Welcome to London’s First Conference

The Global State of the PMO J LeRoy Ward

Global State of the PMO MATURITY IMPROVES BUT VALUE MEASUREMENT MISSING J. LeRoy Ward, PMP, PgMP, PfMP, CSM ESI International J. LeRoy Ward, PMP, PgMP, PfMP, CSM ESI International 2015

It’s every man for himself. Captain Edward J. Smith of the R.M.S. Titanic speaking to the ship’s Morse Code operators.

Survey Quick Facts 01 Value & Effectiveness Skills & Career Development Role in Supporting Agile Challenges & Obstacles

© All information in this document is copyright protected and the property of ESI International, Inc. Survey QUICK FACTS 01

75% PROJECT STAFF 7% EXECUTIVES 42% FROM ORGS >10,000 EMPLOYEES 65% FROM MNCS 4 TYPES OF PMOs REPRESENTED ESI’s 4 th Global Survey 900+ RESPONDENTS 16 INDUSTRY SECTORS 5 CONTINENTS

OUR Take 75% PROJECT STAFF 7% EXECUTIVES 42% FROM ORGS >10,000 EMPLOYEES 65% FROM MNCS 4 TYPES OF PMO’S REPRESENTED 900+ RESPONDENTS 16 INDUSTRY SECTORS 5 CONTINENTS Knowledgeable & experienced respondents Multiple perspectives (roles) represented Weighted towards large organizations & IT professionals Multiple types of PMOs represented Broad industry coverage Good geographic distribution

Now, let’s “DIVE” into the key findings!

© All information in this document is copyright protected and the property of ESI International, Inc. The Value & Effectiveness OF THE PMO 02

Has the PMO’s role, function, or value been challenged? No 64% Yes 36%

Who has challenged the PMO? 72% 36% 27% 23% 22% 34% 4%

Who funds the PMO? Project Budgets Program Budgets Corporate Overhead Enterprise WIDE Project/Program LEVEL Center of EXCELLENCE Department LEVEL

Reasons for questioning the PMO’s value 44% 41% 31% 27% 24% 32% 24% 21% 16%

TOP 4 reasons why PMOs were Organizational restructuring Change in senior management Seen as too bureaucratic 4 Not fit for use

Was terminating the PMO a good idea? NO 60% NO 60% YES 20% YES 20% Maybe 16% Maybe 16% Don’t Know 4% Don’t Know 4%

1.Methodology, processes and standards 2.Management reporting 3.Project management tools 4.Portfolio management 5.Planning 6.Governance Top Six Services OFFERED BY PMOs

PMO evolutionary/maturity stages NOT PART OF REMIT NOT FULLY IN PLACE STILL EVOLVING FULLY EMBEDDED S1 S2 S3 S4 S5 S6

To what degree does the PMO fulfill its role? Poor FairGoodVery Good Excellent 2%2% 2%2% 24 % 45 % 24 % 5%5% 5%5%

Perceptions of PMO service fulfillment by role PoorFairGoodVery GoodExcellent

Perceptions by relationship to PMO PoorFairGoodVery GoodExcellent

Improvements attributed to the PMO Very Ineffective IneffectiveNeitherEffective Very Effective Don’t Know

Does the PMO measure and report its effectiveness to Execs and others? DON’T KNOW 12% NO 23% YES 65%

What criteria is used for measuring PMO effectiveness? 78% 68% 53% 52% 45% 60% 33% 25%

CUSTOMER SATISFACTION: A never-ending quest for the truth  Hotels  Rental car agencies  Airlines  Hospitals  Training providers  Conference organizers  Dr’s offices  and………. The Customer is ALWAYS....

You’re asked for your opinion everywhere! PMO

Performance against metrics in past year Much WorseWorseBetterMuch Better

 Understand and address challenges from Senior Management  Provide more support for PMs who don’t work in the PMO  All PMOs need to measure their effectiveness  Tackle more strategic activities such as determining project ROI OUR Take

© All information in this document is copyright protected and the property of ESI International, Inc. THE PMO’S ROLE IN Skills & Career Development 03

Industry-sector perceptions of project staff skills PoorAdequateGoodVery Good

These guys need to get their PMP!

Skill perceptions by size of organization EMPLOYEES Very PoorPoorAdequateGoodVery Good

Even high-performing organizations agree that PM skills need improvement <25%<50%50%-75%>75%

Is the PMO involved in training/skills development? YES 69 % NO 27 % YES 61 % NO 34 % YES 60 % NO 30 % YES 65 % NO 27 % Enterprise WIDE Project/Program LEVEL Center of EXCELLENCE Department LEVEL

How is the PMO involved? Enterprise Wide Department Level Project/Program Level Center of Excellence

Training opportunities and relationship to the PMO NOYES

PMOs Exposed! 64% Don’t Measure Training’s Impact PMOs Exposed! 64% Don’t Measure Training’s Impact

How do PMOs measure training’s impact? 68% 56% 6% 32%

Wait, It Gets Worse! Only 34% of PMOs Help PM’s Sustain New Skills Wait, It Gets Worse! Only 34% of PMOs Help PM’s Sustain New Skills

Dr. Hermann Ebbinghaus No matter how thoroughly a person may have learned the Greek alphabet, he will never be in a condition to repeat it backwards without further training Use it or lose it! verwenden Sie es oder verlieren Sie es

The Ebbinghaus Forgetting Curve Ref: retrieved May 26, 2015www.Revunote.com Ref: retrieved May 26, 2015www.Revunote.com MEMORY RETENTION % ELAPSED TIME (DAYS) Forget 40% of what I said since I started talking Forget half of what I said Forget my name & most of what I said Forget you attended this conference and that I exist!

6 techniques used by PMOs for sustainment 60% 57% 55% 38% 36% 33% 2%

Sustainment and perception of PMO role fulfillment NO YES NO YES

Does your organization provide a career path for project managers? 46% Jeez, I don’t know…. That’s above my paygrade! Jeez, I don’t know…. That’s above my paygrade!

PM career path and project performance NO 38 % NO 42 % NO 70 % NO 87 % YES 55 % YES 50 % YES 27 % YES 13 %

 Training effectiveness should be measured and in multiple ways  Provide more opportunities for “soft skills” training  Engage in more sustainment activities  If possible, create some type of career path or ladder OUR Take

© All information in this document is copyright protected and the property of ESI International, Inc. THE PMO’S ROLE IN AGILE 04

Agile Use & Experience 54% USE CONSULTANTS TO HELP RUN AGILE PROJECTS 56% NUMBER OF AGILE PROJECTS INCREASING 40% USE AGILE METHODS ON PROJECTS 60% say they use on selected projects 66% LITTLE OR NO PRACTICAL EXPERIENCE WITH AGILE

Why Agile is so hard to implement 53% 44% 43% 31% 20% 13% 31% 9%

Most significant challenges for supporting Agile? 45% 39% 32% 31% 12% 26% 7%

How are PMOs supporting Agile? 43% 42% 38% 37% 12% 35% 8%

 Clarify and agree on PMO’s role in Agile adoption and practice  Position the PMO as the “change agent” of Agile methods  Help organization decide on a specific Agile approach  Ensure Agile training is available to all practitioners OUR Take

© All information in this document is copyright protected and the property of ESI International, Inc. Challenges & Obstacles 05

Main challenges facing the PMO 1.Resources 2.Portfolio Management: aligning projects to strategy 3.Defining/clarifying the PMO’s role 4.Agile support 5.Training & skills development 6.Budget & funding issues Can someone help me get up? When’s recess?

They want to know: what have you done for us lately?

Do you use this list? 1.Formally adopted Agile as our standard approach 2.Introduced PM methodology 3.Project Management Manual published 4.Undertook full review of PMO processes and tools 5.Improvement of EAC forecasting 6.Upgraded IT PMO to Corporate PMO 7.R&D project passed a gate

Or this one? 1.Achieved more than target project profit 2.ID root causes and presented to customer 3.Met timeline on 2 projects 4.Improved customer satisfaction 5.Many projects delivered to client satisfaction 6.Met over 95% goal of projects on schedule 7.Turnaround of key project from RED to Amber

One last finding!

This survey is TOO LONG!

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