pmi powerpoint template maximum 2 lines, arial 28pt bold · • value planning –tools,...

HOUSTON, TX, USA | 5 – 8 NOVEMBER 2017

#PMOSym

PMO17BR212

Five Transformational Steps Toward Increased Organizational Agility

Iain Fraser, Business Consultant

Jacobite Consulting Ltd

Five Transformational Steps Toward Increased

Organizational Agility

1. Change now!

2. Adopt theme around three Ps to success

3. Operate on elements of value management, portfolio management and

organizational structure

4. Pivot on vision, strategic goals, business objectives and integration

5. Balance risk with opportunity via the continuum of investment

So, why those five?

2

Organizational Agility – Why the Need?

• Nine out of 10 executives say agility is critical for business

success (McKinsey & Co., 2006)

• 90% of executives say vital, and 50% said that rapid

decision making and execution are essential (EIU, 2006)

• 14% more money being wasted if you are not (PMI, 2015)

• The VUCA world

3

Step 1 – Change Now! (Critical to Understand)

• Types & Levels of Change

– Operational (L1), Tactical (L2), Strategic (L3)

• Approaches

– Engineering – mechanical; value methodology- (BPR) based

– Psychological – helping making sense of it all

– Process – just that; used a model for change (e.g., John Kotter, Leading

Change)

– Being vs. doing – powerful conversations that are planned and focused

– Skills-based – innovation, professionalism, collaboration

– Storytelling – sharing the message and giving time to ponder

4

Four Conditions for Change

1. People see leadership actively modeling and advocating.

2. People have the skills to do what is required of them in the

future.

3. People alter their mindset when they see the point of change

and see what it means for them.

4. The surrounding structures, systems and reward systems

support the change objective.

The above are interrelated, not individual items.

The Three Ps to Success will assist hugely.

5

Magic Ingredient of Change

– Leadership courage and asking the right questions

• Do you avoid making strong decisions?

• Do you hold back on constructive criticism?

• Do you avoid escalation?

• Are you demanding excellence?

• Are you holding staff accountable?

• Are you doing too much work?

– Head, heart and gut!

6

Step 2 - The Three Ps to Success

• Purpose – vision, goals and CSFs, business objectives, culture

• People – empowerment, new skills, accountability and

responsibility

• Performance – light (lite) systems, driving for results, integration

and balance of opex & capex

7

Leadership Principles

• Self-mastery – you first, before others

• Focus – together with determination, beat brains and brawn

• Power with people – leaders exercise power with people

• Persuasive communication – Leaders sell whereas others

tell

• Execution – getting things done

• Giving – leaders focus on what they give

Source: You Don’t Need a Title to be a Leader, Mark Sanborn. 2006

8

Leadership Styles

• Coercive and commanding – do what I tell you

• Authoritative visionary – come with me

• Affiliate – people come first

• Democratic – what do you think?

• Pace Setting – do as I do, now!

• Coaching - try this Source: Harvard Business Review article , Daniel Goleman, 2000

9

Leadership Techniques

• H – Humor those involved

• E – Excite them

• L – Listen to them as appropriate

• P – Praise as often as you can and when relevant

10

Step 3 – Have These Elements

• Value management

• Portfolio management

• Organization design and integration

11

Value Management Framework

• Value strategy – what does it mean to the organization?

• Value planning – tools, techniques, trade-offs, etc.

• Value engineering – optimizing chosen initiatives

• Value delivery – program of work and project management

• Value capture – benefits realization-based

Source: The Business of Portfolio Management. Iain Fraser. 2017

12

VM Framework Model

13

Value Levels

• Level 1 – easy to capture; examples are BPR, software upgrades

• Level 2 – quite significant change introduced; needs planning; new

product, new systems, etc.

• Level 3 – difficult!; change of culture, M&A, etc.; needs passion, planning

and expertise

You need a framework that overarches organizational activity.

14

The Rise of Portfolio Management

• Holistic view of organization

• Blend of capex & opex

• Links strategic goals with business implementation objectives

• Much different from program of work and project management

• Seen as highly suitable to combat the VUCA world

15

Portfolio Management Links with Strategy

During the business cycle, components are periodically reviewed and

validated in relation to:

• Alignment with strategic goals and business objectives

• Viability, based on key indicators

• Value and relationship to other components

• Available resources and portfolio priorities

• Addition and deletion of portfolio components

16

Portfolio Management Links with Operations

Interacts with and impacts various operational functions:

• Finance

• HR

• Marketing

• Procurement

• Brand & Corporate Communications

• Risk & Assurance.

17

Portfolio Management Success Factors

• Influence the organization’s vision, goals and objectives

• Use a value management framework to determine content

• Establish CSFs and forward path toward achievement of objectives and

portfolios

• Consider all the organization’s work – both capex & opex

• Consider capabilities and capacity

• Change the organization as necessary

Keep it scalable, light and inclusive.

18

Organizational Structure

• Get rid of the functional dinosaur!

• Establish a matrix form:

– Weak matrix – people positioned/rented!

– Balanced matrix – people seconded

– Strong matrix – people dedicated

19

Which Model?

20

Organizational & P3M Governance

21

Step 4 - The Pivot Model

22

Performance Excellence…

Time

QualityScope(business planning)

Finance&

Cost

Human Resources& Culture

Brand & Communications

Risk & Opportunity

IntegratedManagement

Procurement(supply chain)

23

Integrated

Functions

24

Strategic Goals

ScopeManagement Excellence

PROGRAM

PORTFOLIO

PROJECT

Integrated

Solutions

Step 5 – Balance Risk with Opportunity

25

Bringing it Together…

Using a Balanced Scorecard Approach(Four Common Perspectives)

Risk & Control

Financial

Strategy & Change

CustomerCommunity &

Colleague

Vision & Strategy

•Objectives, Measures, Targets and Initiatives are identified for each Perspective.•Common to have slight emphasis one 1 Perspective

26

Opportunities (Action Plan) for EPMO

• Be responsible for the value management framework and portfolio

management model

• Link to strategic goals and map to business objectives

• Blend opex & capex

• Staffed by business-oriented people

• Use a range of enterprise tools – ERP, EAM, P3M, etc.

• Big picture thinking and action!

27

iain.fraser@jacobite.co.nz

+64 21 479 301

28

Contact Information…