What’s Next? PRINCE2 in the Wider Context

PRINCE2 – you are not alone…

Project Management (PRINCE2® and PRINCE2 Agile®) The PPM Suite Aligned to PRINCE2®, MSP®, and M_o_R® and brings together a set of principles, processes and techniques to help deliver projects or programmes through enablement, challenge and support structures Management of Value (MoV®) focuses on function (what things we do) and drives to maximize value in line with Programme and Project objectives and key stakeholder requirements MoP® Portfolio management helps organizations make decisions about implementing the right changes to business as usual via projects and programmes Portfolio management is not concerned with the detailed management of these projects and programmes; rather, it approaches the management of change projects and programmes from a strategic viewpoint MSP® Programme management is the action of carrying out the coordinated organization, direction and implementation of a dossier of projects and transformational activities (i.e. the programme) to achieve outcomes and realize benefits of strategic importance to the business Project Management (PRINCE2® and PRINCE2 Agile®) Project management is the action of creating one or more outputs that contribute to the outcomes in accordance with a specific business case A particular project may or may not be part of a programme P3O P3O Management of Risk (MoR®) is a route map for risk management. It can help organizations identify, assess and control risks and put in place effective frameworks for making informed decisions P3O

Value - Perspective Matters Balance between Stakeholders Balance between benefits and expenditure Satisfaction of needs (benefits) (monetary and non-monetary) Use of resources (expenditure) (money, people, time, energy, and materials) Balance between use of Resources VALUE

We don’t use most of what we build/buy! What do we Value? 25% of features are needed 75% of features are “nice to have” 80% of TCO of software is AFTER delivery We don’t use most of what we build/buy!

Product Features: The Vital Few over the Trivial Many Business Value: Low Very Low 80% of time Expended 20% of Value 80% of Value The Trivial Many Business Value: Very High High Medium 20% of time Expended Insight Vital Few Things Business Value: Very High High Medium

PRINCE2 and PRINCE2 Agile - Principles Assign clear roles and responsibilities and build a supportive culture Tailor to suite the environment Focus on Product Manage by Exception Continued business justification Manage by Stages Stage 1 Stage 2 Stage 3 Stage 4 Learn from experience and improve

MoV - Principles Align with Organizational Objectives Tailor M_o_V activity to suite the subject environment Focus on functions and required outcomes Assign clear roles and responsibilities and build a supportive culture Apply M_o_V throughout the investment Balance the variables to maximize value Learn from experience and improve

MoP - Principles Senior management commitment Governance Alignment Portfolio, Programme, Project Office Strategic Alignment Energized Change Culture

MSP Principles Remaining aligned with corporate strategy Envisioning and communicating a better future Designing and delivering a coherent capability Leading change Adding value Focusing on benefits and threats to them Learn from experience and improve

MoR – Principles Align with Organizational Objectives Fits the context Engage Stakeholders Provides clear guidance Informs decision-making Facilitates continual Improvement Creates supportive culture Achieves measureable value

P3O – Principles Govern Effectively Prioritize investment, align and adjust to business strategy Hold people to account Invest in people and process Safeguard Value Track progress through highlight and exception-based reporting

P3O – Outcomes and Benefits Defined Executed

Cone of Uncertainty - Estimation “The further a project progressed, the more accurate the estimates for the remaining effort and time became” (Barry Boehm, “Software Engineering Economics“, 1981) 16x variance NASA also came to the same conclusion… that in the beginning of the project life cycle estimations have in general an uncertainty of factor 4 This means that the actual duration can be 4 times or 1/4th of the first estimations… This is just for individual Projects, not the Projects that exist inside of Programmes, inside of Portfolios!

I guess we will need a change request… Forecasting There IS a straight line to where we are going? You need this estimated by WHEN? I guess we will need a change request…

The Typical Planning View: Output-focused Input Activity Output Right order, and the wrong starting place Resources How, Who What Let’s create a WBS!

Predicting the Future…Hurricane Trajectory Range of Possible Futures

Execution involves constant choice-making Which choice do I make? Execution involves constant choice-making

Predicting…Alternative Futures Trajectory The future is not certain or predictable - there are a range of possible futures Nearer-term outcomes are more certain, and further out, less certain While some organizations might want to bet on a particular track of change (current choice), they need to know they are doing just that, and that a range of futures is still possible…until you stop creating them The most likely future will include parts of each scenario Desired

Backcasting Define from here… Start execution from here Insight Define from here… Possible Future State Expressed as Outcomes Intermediate Outcome Intermediate Outcome Intermediate Outcome Refine and adapt by making choices through here… Intermediate Outcome Start execution from here

Outcomes Happen – whether planned or not! X The PMs Delusion Tangible (code, process, facilities, etc.) Surprise!

Hmm….this means something! Forecasting Cone Backcasting Cone Emergence Happens!

Portfolio, Programme, and Project Management(P3M)

P3M + Product/Service = P4M Project Programme Portfolio Product Service Product

Key Messages of PPM Takes a Strategic Change Investment Perspective – “see the whole” Focuses on Value, Outcomes, and Benefits – understand WHY before focusing on WHAT or HOW Governed through Principles-based Action – Informed decisions Has defined processes – HOW we do things Has clear Roles and Responsibilities – WHO does WHAT Can be tailored to your context – WHERE it happens matters Emphasises learning from experience and continuously improving – EVALUATE and ADJUST because EMERGENCE happens Stop! When it stops making sense…Business Justification

PPM and the GC Project Management Framework Stage Gate Project Types (IT-enabled (full/lite), Real Property) Project Size Full: Requires TBS approval (New > $1M or maintenance >$2M) Lite: New (does not meet above), Maintenance (> $1M and < $2M) Stage Gate TBS guideline has 7 gates, Departments vary (some have 5) Mostly used as an Investment decision-making framework Gate 1—Strategic assessment and concept Gate 2—Project approach Gate 3—Business case and general readiness Gate 4—Project charter / project management plan (PMP) Gate 5—Detailed project plan and functional specifications Gate 6—Construction complete and deployment readiness Gate 7—Post-implementation review # of Gates depends on size, perceived risk, and complexity

most successful when conducted early” PPM and the GC Outcomes – TBS is beginning to place a renewed emphasis on investment proposals linking outcomes and benefits to why projects should be done, and hence why the investments should be made (https://www.canada.ca/en/treasury-board-secretariat/services/information-technology-project-management/project-management/outcome-management-guide-tools.html) “Outcome Management can be applied to an initiative at various stages of the initiative’s lifecycle – most successful when conducted early” “used to, among other things, articulate the value of the initiative and develop a comprehensive business or value case” “It also forces the identification of intermediate outcomes that serve as milestones or leading indicators towards attaining the outcomes and to permit tracking of progress towards the final outcomes.”

What can we do as Leaders? Envision a better future enabled through Strategic Change designed to create Value Have Commitment to clear Objectives supported by Strategy to achieve desired Outcomes Have a focus on Capability that Informs decision-making (or choice-making) Recognize that context matters, so we will Tailor it to ours Track Measureable Benefits with appropriate Governance of each Investment Manage Product development by Stage as long as there is Justification to continue Provide Guidance by helping everyone to Learn, Improve, and Adjust based on what emerges Engage and Invest in People to Create a Supportive Culture