1 TTCSI NSW 2014 – PMI SCC IPMD 2014 Building Bridges to Project Management Excellence Achieving Real Value November 6, 2014

2 TTCSI National Services Week Theme: Building Bridges November 3 to 7, 2014 Celebrating 7 years of Commemoration

3 November 6, 2014 Celebrating 11 years of Commemoration

4 “Achieving a Sustained Competitive Advantage in the Services Sector through the application of Project Management” Theme

5  The Services Sector – the largest and most diverse sector  Employs approximately 80 percent of the labour force  Importance - to diversify the National Economy and develop the Non-Energy Sector  Diversification of the economy requires a concerted effort comprising countless initiatives (projects) to achieve the intended result Context

6 Making Project Management Indispensable For Business Results  Requires a management approach that considers the business side of the PM discipline  Assesses the performance and results delivered Context

7 Achieving a sustained competitive advantage through the application of project management in this sector Requires us to:  Explore the path to continuous levels of excellence (Building Bridges)  Realize improved results and value for our organizations First let us look at the concept of Value in Project Management and Value Delivered by projects Context

8 Introduction Why do organizations invest in Project Management? In a Nut Shell: 1)To Control Spending 2)To Improve Performance Bottom Line: Governance and Value Risk Reduction and Value Optimization

9 PMI 2008 Study – The Value of Project Management  Increased PM Maturity Delivers Greater Value  Intangible Value Appears To Increase In Proportion To PM Maturity  Greater levels of intangible value are reported in organizations with higher level of PM maturity  However, Tangible Value Is Seen At All Levels Of PM Maturity “Even the simplest methodology, if accepted by the organization and used correctly, can increase your chances of success” – Kerzner 2006 VALUE

10  Even Organizations That Demonstrate Significant Value Today Are Not Assured Of Continued Value Moving Forward  Some Organizations Demonstrating Significant Value And Actively Investing In Their PM Implementation Are In Fact Destroying Value VALUE

11 PMI Pulse organizations can:  Improve Performance  Reduce risk  Save money  Earn a greater return on investments through excellence in basic project management execution VALUE

12 PM Solutions 2014 Project Management Maturity & Value Benchmark  There is a direct and strong correlation between the PM maturity of a firm and its overall performance  High-performing firms are much more mature in their PM practices than low performers  There is a correlation between the length of time project management has been in place in a firm and its PM maturity and overall performance  Organizations have seen considerable value by increasing the level of their PM maturity VALUE

13  PMI Pulse 2013 Report - 46% of organizations do not understand the Value of Project Management  Let us examine value derived from project management in the region VALUE

14 Success or Failure?

15 Success?  Over the past few years, organizations have struggled with project delivery and success. Initiatives are:  Over budget  Behind schedule  Poorly executed  Failed to deliver on their original intent  The greatest challenges to these organizations included:  Inadequate supply of skilled project management resources  Insufficient tactical and strategic capability to influence outcomes that demonstrate value and deliver results

16 Success? 2012 – 2013 Study: The aggregated average for deemed  Project Success is 63.1%  Project Failure is 36.9% Deeper examination of project success parameters found no greater than 44% of projects meet the criteria defined for success

17 Cost of Failure  PMI Pulse 2013 Study: Effect of poor Project Management = Low performing organizations risk 14 times more money than high performing organizations As organizations’ project management strategy matures, the business value derived from it also increases  Average Cost of US $7 Million was spent on Projects reported as failures – 2013 Study  56% of projects are behind schedule  46% of projects are over budget  38% of projects do not deliver on their original intent  36% of projects are deemed to have failed

18 Improving Performance  The industry practice of creating more projects of smaller investment size does not equate to a resulting risk reduction of the portfolio spend  The results show a contrary result; that project failure increases as the root causes of failure are potentially not being addressed adequately or effectively  Let us now look at the greatest single influencer on project management in organizations

19  Centralized team within an organization  Creates a home for Project Management  Manages the standardization of a project management methodology, tools, templates, key performance indicators, processes and resources among other responsibilities The basic value of a PMO  Ability to objectively and consistently provide internal consulting experience  Project management knowledge  Clear set of performance standards for getting all of the required work accomplished The Project Management Office (PMO)

20  Its core purpose is to deliver value  When organizations improve their project management maturity, they experience corresponding gains in project management performance  More importantly, they also show improved organizational performance and substantially greater value in a variety of project management performance measures that matter most to executives Organizations that implemented PMOs cited significant improvements in:  Financial measures (ROI)  Customer measures (customer satisfaction)  Project/Process measures (cost, scope, time, quality)  Learning and growth measures (employee satisfaction, certification) The PMO

21 The greatest challenges to PMOs in the Caribbean:  Project managers with inadequate project management skills  Compliance with defined standards  Demonstrating value  Resource management  Executive support Greatest Challenges to PMOs

22  The Value achieved from the PMO depends largely on:  Investment it receives  Management of the unit by its leader  Influence and impact within the organization  How it is implemented  Level of maturity  The bottom line: The implementation of a proper PMO in an organization creates a home for project excellence and can yield significant organizational performance benefits. The PMO

23  Most people are focused on Project Execution  Most executives are focused on Project Outcomes  Project Managers are focused on the Management of the Project  The PMO is focused on the Management of Project Management, methodology, inputs required, processes, outputs, tools, templates, business results, organizational performance, maturity, continuous improvement, etc. Understanding Perspectives

24 So how do we achieve the theme for today? “Achieving a Sustained Competitive Advantage in the Services Sector through the application of Project Management”  Improve Value  Improve Value from Projects  Improve Value from Project Management  Improve the PMO We need A Management Approach to Project Management to deliver value and results that leads to a sustained competitive advantage. The PMO – Building Bridges

25 Getting Started  Organizations need to decide to invest in project management (Insurance for Assurance)  Consider value attributable to the PMO as per tender evaluation criteria. (Methodology, PM Skill and Experience, Implementation Plan, Schedule, Communication Plan, Change Management Approach)  Attain real project management talent from the onset  Find talent with Business Acumen, Strategic and Executive level expertise  Consider getting help from outsourcing  Begin the process Improving Outcomes

26 Improving Outcomes Assess Set Goals/Targets Actions Bridge the Gap Continuous Improvement Engage Employees Training & Certification Metrics and KPIs Realize Value, Excellence Benchmarking Continuous Refinement Exceed Target

27 How do you achieve and sustain value?  Continuous investment to Project Management  Focus and commitment to Project Management  Retention of leading personnel  Consistent alignment of needs between organization and PMO  Caution not to cause over-implementation and bureaucratization  Let us look at an organization in pursuit of “Achieving Real Value” from project management Achieving Sustained Competitive Advantage

28 Evolution Cost Centre One Service Internally Focused Unknown Entity Profit Centre Multiple Services Externally Focused Internationally Published Accredited Recognised Entity for Best Practices Awarded for Excellence  The PM Services Unit at Massy Technologies InfoCom is a continuous evolution and has transformed itself.

The Pursuit of “Achieving Real Value” PMO Evolution ICTS Excellence Awards 1 st Publication 2 nd Publication TTCSI Excellence Award PMI REP Accreditation 3 rd Publication PMI SCC Recognition Award Communications, Engage Employees, Develop Basic Tools Embed Tools, Training Develop More Sophisticated Tools, Certifications Organization wide training in PM Develop More Sophisticated Tools Develop More Sophisticated KPI and Management Analysis Transformation Business Results Increasing Value Delivered Increasing Business Domain Projects TTCSI Excellence Award

30 With increased maturity, you are able to gain more Intangible Value in different ways. For example:  2010: Recognized for Project Management Best Practices in developing a Project Management Culture  2012: Recognized as an enterprise that exhibited excellence and innovation in developing and maturing an organizational structure to support the effective business management of projects; and manifested vision and business insightfulness in carrying out new ideas, methods, or processes that led to quantifiable improvements in project business management that demonstrates real business benefits and value for the organization  2013: Recognized for Project Management Best Practices in PM Excellence, Strategic business of project management, Integrated processes, Effective risk management and PM Culture Demonstrating Value

31 Project excellence transcends triple constraints:  We have shared the reporting format with other projects as a best practice.  Willing to go the extra mile to build relationships.  Presence was always felt throughout the project.  Demonstrated a high degree of flexibility to adapt to a variety of situations throughout the life of the project.  No other project in the global knowledge library yielded as many best practices and going forward, the best practices and lessons learned from this project will be added to the knowledge library and actions taken within the Corporate Project Methodology to ensure that future projects adopt the best practices from this project. Voice of the Customer

32  Financial  Process  Customer  Learning  Growth  Project  Portfolio  Maturity Metrics, KPIs, Results 2012  Increase in Managed Utilization 7%  Increase in Internal Satisfaction 9%  Increase in External Satisfaction 9% 2013  Increase in Revenue over prior year 150%  Increase in Net Profit over prior year 85%  Reduction in Support Expenses over prior year 31%  External Client services increase over prior year 100% 2014  Revenue 18% above set target  72% of Portfolio = External Client services

33 “Achieving a Sustained Competitive Advantage in the Services Sector through the application of Project Management”  You can achieve value from the application of project management  There is room for improvement in the amount and type of value being delivered by projects and project management  There are levels of maturity and excellence to achieve levels of value in project management  You can achieve MORE* Value and REAL* Value from project management with the right talent providing a management approach to project management excellence leading to a sustained competitive advantage  Matters to the Organization Resulting in Excellence  Relevant to the Enterprise And Leadership Closing Thoughts

34 “Service Sector Champions” 2012 & 2014 Contact

35 Thank you Building Bridges to Project Management Excellence Achieving Real Value