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Anton Nekic IS PPM Overhead or Competitive Advantage v2-4

Anton Nekic
Anton Nekic

This document discusses project portfolio management (PPM) and the role of project management offices (PMOs). It suggests that traditional PPM approaches focused on compliance, reporting, and metrics are no longer sufficient, and that PMOs must shift to directly demonstrating value and competitive advantage. The document also predicts that PPM solutions will move towards real-time exception management and linking project performance to key business indicators. Finally, it emphasizes the need for PPM consultants to bring experience and tools that can both optimize costs and guarantee outcomes.

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1 The way we used to solve problems in the past is not the way that we will solve in the future Albert Einstein Anton Nekic 0412 469 882 Value Chain - http://vc3p.bizcard.mobi/.
2 Setting the scene Is PPM overheard or source of competitive advantage? What are the current overheads around project management and PPM? Swot Analysis initial thoughts PPM Predictions Summary
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6 IS PPM A costly overhead or source of competitive advantage ? Is there an Industry problem with PMO Overhead? Should we think like a start up? Management of key issues/risks/ Reporting real time by exception management rather than oceans of Reports /Governance? CIOs and Leaders now want a single entity that delivers the organizations goals. Companies invest heavily in projects and they do so for one compelling reason: their ability to compete might depend on it. The ability to compete is being solved in old ways and we continue to have same conversations hindered by poorly functioning, costly and process heavy PPM environments. Failure to demonstrate value relative to cost is a major reason why clients are removing incumbent IT PMO and shifting to new ways but not sure how to cut through current PMO complexity A shift from metrics and administration to delivery of competitive advantage and the investments of past decades will vanish.
7 PPM SWOT ANALYSIS ROUND TABLE DO WE AGREE? Strengths Aligns investment with Business Strategy Provides a transparent approach Deals with pet projects Enables a process to take calculated risks on innovative projects Weaknesses (perceived) May be seen to stifle creativity and spontaneity Lost opportunities to introduce new technology / business Seen as an administrative process Might not be agile enough to deal with Opportunities Optimizes use of investment $ and resources Continuous review enables projects to be stopped if business conditions change Threats Seen as an overhead The players dont adhere to decisions made Risk of circumvention Requires senior management understanding
Key Predictions Performance management regime will be demanded and more focus on exception management of issues/risks in real time with less focus on oceans of reporting. Old Ways with compliance, reporting and metrics will be gone. PMOs that cannot demonstrate a direct line to organizational value will be scrapped. Dysfunctional project steering committees will no longer be tolerated and project investment and execution failures no longer allowed. Sponsors will be held accountable. PPM (Software) applications that take months to years and cost millions of consulting dollars and teams of organizational change agents are at an end. Enabling processes for PPM such as onboarding, release of funds, and management of unwieldy Systems will be replaced by smart forms/business rule event engine that link project performance to lead corporate KPIs. Clients will expect PPM consultants to come with methodologies and tools to not only optimize the cost of the engagement but guarantee
the outcome. Generalists and Consulting Companies who are taking a long winded , process engineering approach rather than deploying exception management sense and respond capability / Smart forms to enable real time business performance will be seen as solving problems in the old ways . Gartner has long maintained that there is a correlation between PPM ability and project investment and execution outcomes which can only be achieved by allowing for PPM solutions that allow for systems of innovation rather than systems of record. Gartner also states that companies with a high PPM capability report a return of 25 % more , three times greater than those with low capability
Portfolio Management is a buzz word but in reality few have implemented true end to end PPM. Business Strategy = Profitability, Revenue Growth, Industry leadership, Market Value What, who and how to make investment decisions? Portfolio Management Program Management Which projects to select and which to Continue to support? How to successfully execute programs and projects? Project Management Business Value
11 Solution Design Principles Business PMO not IT PMO requires a cultural change Shift PMO away from compliance and towards value Clients must demand more PPM consultants bring IP and experience to table. Extending portfolio management to project teams will assist resources understand how their efforts contribute to the overall goals of the organization. People are most committed if they understand the value of their work and portfolio management enables this.
12 Summary I sit on the CIO Council and here is some feedback in terms of where the PPM market is headed. Effectively we are making the individual project deliverables irrelevant, and are instead attempting to ensure that the organization as a whole is successful.
Input from Event Guests How do we get the many Junior but enthusiastic PMs into the fold and learn from them? Weakness - To enabling processes such as OR-Boarding Every project is a sub-culture of the organization Opportunity - PMO has an opportunity to avoid losses through its knowledge of figures Opportunity - Take lessons from the past but use innovative tools of the future Ombudsmans report into top 10 failures - a good read Sponsor with insufficient clout Change via a BAU threat management approach rarely works Opportunity - Lean reporting for lean projects Opportunity Google Days Threat - Senior management apathy
Measurement of PMO value how? Unsure if people know how they add to the value of the company We have known the answer for decades Think as a start-uptake risks Dont see the PMO strengths that often PMO Portfolio management vs project management ?? Does PMO need to re-invent themselves ?? Is 1 page enough? PM is NOT hard ??!! Best projects delivered by best people Blame culture.
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Anton Nekic IS PPM Overhead or Competitive Advantage v2-4

  • 1. 1 The way we used to solve problems in the past is not the way that we will solve in the future Albert Einstein Anton Nekic 0412 469 882 Value Chain - http://vc3p.bizcard.mobi/.
  • 2. 2 Setting the scene Is PPM overheard or source of competitive advantage? What are the current overheads around project management and PPM? Swot Analysis initial thoughts PPM Predictions Summary
  • 3.
  • 4. 4
  • 5. 5
  • 6. 6 IS PPM A costly overhead or source of competitive advantage ? Is there an Industry problem with PMO Overhead? Should we think like a start up? Management of key issues/risks/ Reporting real time by exception management rather than oceans of Reports /Governance? CIOs and Leaders now want a single entity that delivers the organizations goals. Companies invest heavily in projects and they do so for one compelling reason: their ability to compete might depend on it. The ability to compete is being solved in old ways and we continue to have same conversations hindered by poorly functioning, costly and process heavy PPM environments. Failure to demonstrate value relative to cost is a major reason why clients are removing incumbent IT PMO and shifting to new ways but not sure how to cut through current PMO complexity A shift from metrics and administration to delivery of competitive advantage and the investments of past decades will vanish.
  • 7. 7 PPM SWOT ANALYSIS ROUND TABLE DO WE AGREE? Strengths Aligns investment with Business Strategy Provides a transparent approach Deals with pet projects Enables a process to take calculated risks on innovative projects Weaknesses (perceived) May be seen to stifle creativity and spontaneity Lost opportunities to introduce new technology / business Seen as an administrative process Might not be agile enough to deal with Opportunities Optimizes use of investment $ and resources Continuous review enables projects to be stopped if business conditions change Threats Seen as an overhead The players dont adhere to decisions made Risk of circumvention Requires senior management understanding
  • 8. Key Predictions Performance management regime will be demanded and more focus on exception management of issues/risks in real time with less focus on oceans of reporting. Old Ways with compliance, reporting and metrics will be gone. PMOs that cannot demonstrate a direct line to organizational value will be scrapped. Dysfunctional project steering committees will no longer be tolerated and project investment and execution failures no longer allowed. Sponsors will be held accountable. PPM (Software) applications that take months to years and cost millions of consulting dollars and teams of organizational change agents are at an end. Enabling processes for PPM such as onboarding, release of funds, and management of unwieldy Systems will be replaced by smart forms/business rule event engine that link project performance to lead corporate KPIs. Clients will expect PPM consultants to come with methodologies and tools to not only optimize the cost of the engagement but guarantee
  • 9. the outcome. Generalists and Consulting Companies who are taking a long winded , process engineering approach rather than deploying exception management sense and respond capability / Smart forms to enable real time business performance will be seen as solving problems in the old ways . Gartner has long maintained that there is a correlation between PPM ability and project investment and execution outcomes which can only be achieved by allowing for PPM solutions that allow for systems of innovation rather than systems of record. Gartner also states that companies with a high PPM capability report a return of 25 % more , three times greater than those with low capability
  • 10. Portfolio Management is a buzz word but in reality few have implemented true end to end PPM. Business Strategy = Profitability, Revenue Growth, Industry leadership, Market Value What, who and how to make investment decisions? Portfolio Management Program Management Which projects to select and which to Continue to support? How to successfully execute programs and projects? Project Management Business Value
  • 11. 11 Solution Design Principles Business PMO not IT PMO requires a cultural change Shift PMO away from compliance and towards value Clients must demand more PPM consultants bring IP and experience to table. Extending portfolio management to project teams will assist resources understand how their efforts contribute to the overall goals of the organization. People are most committed if they understand the value of their work and portfolio management enables this.
  • 12. 12 Summary I sit on the CIO Council and here is some feedback in terms of where the PPM market is headed. Effectively we are making the individual project deliverables irrelevant, and are instead attempting to ensure that the organization as a whole is successful.
  • 13. Input from Event Guests How do we get the many Junior but enthusiastic PMs into the fold and learn from them? Weakness - To enabling processes such as OR-Boarding Every project is a sub-culture of the organization Opportunity - PMO has an opportunity to avoid losses through its knowledge of figures Opportunity - Take lessons from the past but use innovative tools of the future Ombudsmans report into top 10 failures - a good read Sponsor with insufficient clout Change via a BAU threat management approach rarely works Opportunity - Lean reporting for lean projects Opportunity Google Days Threat - Senior management apathy
  • 14. Measurement of PMO value how? Unsure if people know how they add to the value of the company We have known the answer for decades Think as a start-uptake risks Dont see the PMO strengths that often PMO Portfolio management vs project management ?? Does PMO need to re-invent themselves ?? Is 1 page enough? PM is NOT hard ??!! Best projects delivered by best people Blame culture.
  • 15. 17