1. 1 The New Skills Talent Triangle: What You Need to Build Your Project Management Career Path FOSE Conference 2014 Christopher Landes PMI Manager, Thought Leadership & Communications www.pmi.org

2. 2 Talent Roadmap Navigating the Current Environment Organizations Need Skilled Talent Credentials Matter! Future Skills for Success Leadership is about encouraging and empowering people to collaborate, fail, adjust and complete projects.

3. 3 2014 Macro Business Challenges If you don't have the people to deliver to your standards of excellence, you lower the value of your entire portfolio. − Christian Risom, CEO of Shape A/S, Copenhagen, Denmark Human capital is the #1 challenge globally Game-changing organizations have effective talent management strategy Building skills for future success

4. 4 Slow Economic Growth Sources: EIU – January 2013; IMF – April 2013 Projected

5. 5 In the past few months, has your company canceled or delayed scheduled projects due to the economic conditions? (%=yes) Q. Source: PMI Economic Snapshot Survey, 1Q2014 Project Cancelations and Delays There has been a 2 percent decrease year-over-year; A 3 percent decrease from previous quarter

6. 6 Source: The Economist, Investing in Infrastructure, 3/22/2014. Global Projects Exceed Skills To Manage Them Projects needed to build or repair infrastructure are in the $trillions

7. 7 Source: PMI Pulse of the Profession In-depth Study: Talent Management, 2013. Tangible benefits = greater project success rates … Talent Alignment to Organizational Strategy... fewer dollars at risk.

8. 8 Talent Alignment with Strategy Source: PMI’s Pulse of the Profession In Depth Study: Talent Management, 2013 45% solidly aligning talent programs with strategies However, 55% of organizations need to improve alignment of their talent program.

9. 9 Human Capital – Still #1 challenge Source: The Conference Board, 2014 CEO Challenges.

10. 10 Government Talent: Challenges at Two Levels 1.Government employees 2.Employees of government contractors  Talent that government can directly support and shape  Talent whose development government can influence

11. Support Career Paths = Performance Success Meeting Goals/Intent Career Path No Career Path Within BudgetOn Time 11 % OF PROJECTS COMPLETED Source: PMI Pulse of the Profession ® Clearly defined career path for PMs leads to higher program success

12. 12 Percentage of projects meeting goals Project dollars wasted Have active sponsors on <50% of projects46%$163 million Low alignment of projects to organizational strategy48%$157 million Minimally effective at change management52%$145 million Immature benefits realization processes55%$136 million Minimally effective at innovation56%$133 million Low organizational agility56%$133 million Low portfolio management maturity57%$130 million Minimally effective at knowledge transfer57%$130 million Standardization practices not used55%$136 million Low project management maturity56%$133 million Low program management maturity57%$130 million No ongoing PM training58%$127 million No formal knowledge transfer process59%$124 million No PMO60%$121 million No formal process to mature PM practices60%$121 million No formal process to develop PM competency60%$121 million No defined career path for PMs60%$121 million Study average64%$109 million Project size$1 billion The Risks of Poor Project Performance Estimated dollars wasted (in USD) for every $1 billion spent on projects Strategic practices Tactical practices Source: PMI’s 2014 Pulse of the Profession ®

13. 13 Certifications Matter! More PMP ® certifications = better project performance Q: In your estimation, what percentage of the projects completed within your organization in the past 12 months… Q. What percentage of project managers within your organization have the PMP® credential? Arrows indicate a significant difference between groups at a 95% confidence level Source: 2014 PMI Pulse of the Profession®

14. 14 Certification Matters to You! Among countries surveyed, there is an average 15 percent salary difference for PMP certification holders CountryPMPNon-PMPDifference ($) Difference (%) United States $110,000$91,500$18,50020% Average$73,133$63,373$9,76015% Source: PMI 2013 Salary Survey, 12/2013.

15. 15 The Talent Triangle 66% of organizations say that technical project management skills are the most difficult to find But over 90% of organizations say that technical project management skills and strategic and business management skills are teachable And 66% of organizations say that leadership skills are most important for success in project management © 2010 PMI’s Pulse of the Profession ® In-Depth Report: The Competitive Advantage of Effective Talent Management

16. 16 How are organizations achieving significant or good alignment of talent management to organizational strategy? PMI’s Pulse of the Profession ® In-Depth Report: The Competitive Advantage of Effective Talent Management

17. 17 Talent Management Offerings Train in soft skills Make training a priority Evolve their talent program PMI’s Pulse of the Profession ® In-Depth Report: The Competitive Advantage of Effective Talent Management

18. 18 Career Paths for Project Managers New hire to advanced project manager Advanced project manager to senior project manager Senior project manager to senior management PMI’s Pulse of the Profession ® In-Depth Report: The Competitive Advantage of Effective Talent Management

19. 19 Integrate Talent Management Across Organization Integrate talent management across the organization Performance management programs are aligned with organizational strategy Learning and training programs are aligned with organizational strategy PMI’s Pulse of the Profession ® In-Depth Report: The Competitive Advantage of Effective Talent Management

20. 20 Measure Talent Management Outcomes Revenue and profit growth Staff turnover and attrition Employee satisfaction/engagement Employee retention PMI’s Pulse of the Profession ® In-Depth Report: The Competitive Advantage of Effective Talent Management

21. 21 Critical Behaviors for Future Success Source: IBM Global CEO Survey, 2013 Leadership seeks talent that is comfortable with change, learns on the go, often from others’ experiences.

22. 22 Critical Skills & Behaviors I.Strategic Vision I.Establish Vision II.Align Team to Vision III.Design Adaptable Structures II.Superior Communications I.Seek Diverse Perspectives II.Tailor Communication III.Communicate Multi- Dimensionally IV.Promote Project V.Influence Stakeholders III.Exceptional Leadership I.Manage Emotions II.Act Courageously III.Maintain Presence IV.Inspire the Team V.Build Culture IV.Conflict Resolution I.Analyze Situations II.Think Innovatively III.Negotiate Successfully V.Integrated Thinking I.Identify Root Cause II.Keep Broad Perspective III.Maintain Pulse IV.Understand Ripple Effects V.Connect Stakeholders VI.Personal Differentiators I.Be Curious II.Exemplify Integrity III.Maintain Focus IV.Improve Self V.Build Diverse Network Source: PMI Global Executive Council Research Findings, 2011.

23. 23 Source: PMI 2014 Pulse of the Profession® Organizations that have … Global Total Government Organizations A formal process for developing project manager competency 47%38% A defined career path for those engaged in project or program management 47%32% A formal process to mature existing project/portfolio management practices 47%34% Ongoing training for staff on use of project management tools and techniques 62%55% A formal process for transferring knowledge from one part of the organization to another 48%34% PM Engagement Across Governments Globally

24. 24 The Way Forward Game-changing organizations are... − Purpose driven, performance-oriented, principles led − Have superior talent strategies Articulate vital importance of talent management − Demand that everyone is accountable for spotting developing and retaining the next generation of leaders − Collaboration, trust and respect are the foundation of game-changing talent strategies − Enable people closest to the market to solve problems Source: Dr. Robert J. Thomas, Building a Game-changing Talent Strategy, 2014

25. 25 The Way Forward New role of government in a digitizing world is to act as a “broker,” orchestrating the supply of services linked by information systems meeting different citizens needs. Source: The Digital Government, Booz & Co., Spring 2013.

26. 26 Concentrate investments on specific capabilities to fulfill missions Enable strategic private sector partnerships Expand cloud-based applications − Use open source, collaborative software, (Veterans Health Information Systems and Technology Architecture, EHR) Digital Model = Greater Flexibility, Collaboration and Quality

27. 27 Embrace Flexible Workplace ( Office of Personnel Management Systems) − Knowledge transfer, training for new hires Continue to develop consumer- oriented services Hone best practices Agencies provide citizens, businesses, access to personalized content based on specific circumstances Digital Model = Greater Flexibility, Collaboration and Quality

28. 28 Thank you! www.pmi.org/pulse