The Business Driven PMO Andy Jordan

Presented by Andy Jordan June 11 th 2015 PMO Conference, London The Business Driven PMO The role of the PMO in driving success through portfolio execution

 PMOs and Portfolios ◦ What is a Portfolio? ◦ The Portfolio Lifecycle  PMO Relationships ◦ Portfolio Hub ◦ Relationships – Up and Out ◦ Driving Strategy Execution  Strategic Project Execution ◦ Principles ◦ The Sub-Portfolio Manager ◦ Evolving Project Management  Making it Happen

Portfolio Program A Project 1 Project 2 Program B Project 3 Project 4 Project 5 Program C Project 6 Project 7 Consolidated Information

 Vehicle for delivering strategic priorities  Aligned with goals and objectives  May be multiple portfolios ◦ Departmental ◦ Business function ◦ Product ◦ Regional ◦ Etc. A portfolio is the management framework for effective project execution And shouldn’t that be what a PMO does?

Idea Business Case Selection Execution Benefits Realisation  Portfolio begins with the seeds of an idea and lives through the harvesting of the benefits  Successful portfolios need nurturing at all stages of development The implication is that the PMO spans all portfolio elements and all portfolio departments

Idea Encouragement Capture Tracking Collaboration Preliminary Screening Prioritisation Enhancement Business Case Standardisation Objectivity Consistency Completeness Focus Presentation Selection Capability Capacity Modeling Constraint Projections Throttling Scheduling Reserves Execution Results Focus Portfolio Perspective PM Support Stakeholder Support Resource Management Throttling Change Management Benefits Realisation Objectivity Accountability Sustainability Management Costs Consistency

Before the project Viewed as a departmental responsibility Ideas compartmentalized Business cases inconsistent Proposals champion departmental priorities over organizational Politics plays a major role in selection After the project Returns to operational silo Little to no benefits tracking No accountability Does that maximize the ability to achieve the organizational goals? Slide 8

PMO Executives (Strategy) Departments (Application) Projects (Execution) Central Services (Support, Alignment) Communication Integration Collaboration Adjustment Communication Integration Collaboration Adjustment

PMO Executives & Functional Leaders Broader StakeholdersEntire Organisation PMO must focus relationships ‘up and out’ to the organisation at large, not ‘down and in’ to project execution functions This may result in PMO handing off project functions to a PM Centre of Excellence type function

 Enterprise wide facilitator of idea capture and enhancement  Independent subject matter expert in planning and selection  Benefits focused alignment driver during project execution  Validator of outcomes and manager of deltas  Driver of change / adjustments in response to variances

 If the PMO doesn’t provide a strategic portfolio framework then projects will make deliverable focused decisions that ignore the organizational goals  Projects cannot be managed as self contained entities – they are part of the organizational ecosystem  Effective project management means understanding how the project fits within that ecosystem

 Deliverables are only relevant to the extent that they deliver business results  A project can only be successful if it delivers its planned benefits  Change decisions are often driven by the project’s alignment rather than anything internal to the project  Project management is a sub-discipline of portfolio management  Priorities and expectations are dynamic and must be managed as such

Benefits not Deliverables Business Acumen not Triple Constraint Part of Ecosystem not Standalone Initiative Strategic Execution not Tactical Delivery Sub-Portfolio Management No one cares about the ‘what’ if the ‘why’ isn’t achieved Judgment beats blind delivery every single time Success can only occur in partnership with the rest of the portfolio Big picture thinking drives results, short term focus drives mistakes

Business Acumen Industry & Organization Understanding Benefits Focus Portfolio Integration Strategy Driven Change Leadership Collaboration Deliverables Focus Constraint Driven Decisions Self Containment / Independence Project Driven Change Management More Less

 Clear, business focused mandate with ‘real’ support  Realistic roadmap across all strategic elements (planning through benefits)  Integration with all areas – Finance, HR (recruitment), Projects, Operations  Cyclical implementation approach with validation of benefits at each phase  Consistency!

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