Enterprise  PMO    

Defini/on,  Assessment,  and  Opportuni/es  

By  Imad  Al-­‐Murib  

Lean  Vector  Consultancy  

1  

An  enterprise  program  management  office  (EPMO)  is  a  governance  en/ty,  employed  by  senior  organiza/onal  leadership,  suppor/ng  the  integra/on  and  driving  success  between  strategic  goals  and  their  enabling  ac/on  ini/a/ves  such  as  projects  and  programs.    

What  is  the  EPMO?  

Agenda:  

•  EPMO  Organiza/on  Assessment  Readiness  •  EPMO  Styles.  •  EPMO  Mission  and  Objec/ves.  •  EPMO  Structure  •  EPMO  Risks  •  PorRolio  Management      

2  

EPMO  scope  is  heavily  dependent  on  the  enterprise  environment  

EPMO  has  limited  scope.  Project  PorRolio.          

Skip  EPMO  EPMO  has  limited  scope.  Opera/on  Excellence  and  Business  Process  Improvement.      

Full-­‐fledge  EPMO  focused  on  building  market-­‐leading  business  capabili/es    

The  Client  

3  

Run  The  business   Planned  Improvement  

Survival-­‐Induced  Change  

Strategy-­‐induced  Change  

1-­‐  Most  of  the  mee/ngs  are  focused  on  running  the  business  

1-­‐  Is  there  a  good  stream  of  revenue  currently  coming  into  the  business?      

1-­‐  Is  your  organiza/on  losing  money  or  facing  significant  reduc/ons  in  funding?  

1-­‐  Is  the  Org  capable  of  managing  programs  well  enough?    

2-­‐  The  Organiza/on  Chose  small  improvement  over  large  ones.      

2-­‐  Has  management  successfully  op/mized  produc/on  and  sales  capability  in  the  past,  and  is  it  commi[ed  to  con/nuing  to  do  so?  

2-­‐  Is  the  Org  capable  of  managing  change  well  enough.    

3-­‐  Has  the  business  been  delivering  reliable  revenue  and  reliable  profits,  even  if  there  might  be  more  money  to  be  made  if  new  markets  or  alterna/ves  were  more  aggressively  pursued?  

EPMO  is  focused  on  Opera/onal  Excellence  and  Process  Improvement  

EPMO  is  focused  on  PorRolio  management.  Control  to  stop  the  bleeding.  

EPMO  focused  on  building  market-­‐leading  capabili/es.    

NO  EPMO   Limited   Limited   Full  EPMO  

Readiness  Assessment:  Client  is  more  focused  toward  Planned  Improvement  and  Strategy-­‐induced  Change      

4  

In  the  Client  case,  the  drive  for  the  EPMO  is  more  of  Pull.  

Push:  The  IT  PMO  asking  for  more  authority  to  get  the  job  done  in  a  cross-­‐func/onal  environment.  Pull:  The  Senior  execu/ve  entrust  few  to  become  his  eyes  and  ears  to  ensure  that  things  are  ge^ng  done.  

The  drive  to  the  EPMO  could  be  either  a  pull  or  push  

Source:  Gartner  

5  

The  Four  Styles  of  EPMO  

EPMO  Style   What  does  it  do?   When  it  fits   Outcomes  

Repor/ng   gathers  data  mul/ple  siloed  func/ons  and  detects  poten/al  issues  

When  there  is  a  concern  around  projects  outcomes  and  value  

Provides  the  Execu/ve  team  a  complete  transparency  of  the  state  of  the  projects  

Opera/onal   All  project  managers  within  the  organiza/on  report  to  a  single  en/ty  

When  the  organiza/on  want  to  centralize  all  projects  to  make  best  use  of  the  resources  

Tight  control  and  high  visibility  of  what’s  being  done.  

Strategic   Evaluates  projects/program  benefits  against  corporate  strategy  to  ensure  the  right  projects  are  approved  and  others  are  stopped.  

When  there  are  concerns  about  disconnec/on  between  the  strategic  level  and  execu/on  level  of  the  organiza/on.    

Facilitates  the  "transla/on"  of  elements  in  the  organiza/onal  strategy  into  ac/on  through  projects  

Business  Transforma/on   looks  at  changing  the  very  DNA  of  the  enterprise    

When  the  organiza/on  want  to  transform  and  change  the  core  business  model.    

New  business  models  or  even  new  organiza/on.  

Source:  Gartner  

6  

EPMO  Area  

When:  •  Set  up  a  strategic  EPMO  if  there  is  a  high  degree  of  change  on  the  

horizon  and  if  the  various  business  units  in  the  organiza/on  will  need  to  work  together  to  achieve  the  goal.    

•  Establish  a  strategic  EPMO  if  there  is  a  wealth  of  good  ideas  in  the  organiza/on  all  compe/ng  for  limited  funding.    

Skills  needed:  Success  in  this  organiza/on  requires  different  skills  than  classic  project  management.  Hire  for:    

•  Analy/cal  and  cri/cizing  skills  that  will  support/challenge  the  development  of  business  cases  and  appropriate  project  and  program  metrics.    

•  Strong  systems  or  associa/onal  thinking  skills    •  Emo/onal  intelligence    •  Facilita/on  skills    

Change  management  is  another  cri/cal  skill.  Understanding  the  magnitude  and  source  of  change  directly  impacts  the  nature  of  programs  and  the  sequence  of  projects  in  the  porRolio.    

What:  •  Focusing  in  detail  on  the  measurement  of  value  at  the  pre-­‐selec/on  

phase  is  how  the  EPMO  can  assist  top  management  in  making  be[er  porRolio  decisions.    

•  The  strategic  EPMO  focuses  on  providing  facilita/on  and  analysis  to  ensure  that  strategy  gets  executed.    

•  Set  up  a  strategic  EPMO  to  help  ensure  that  projects  and  programs  are  actually  driving  strategy  fulfillment.  Increase  the  focus  on  change  management  and  strategic  communica/on.  Facilitate  strategic  tac/cs  forma/on.    

Given  Client  environment  and  vision,  a  Strategic  EPMO  would  be  the  most  suitable  EPMO  style.  

7  

The  Mission:      To  ensure  that  strategy  is  translated  into  an  executable  form  (a  project  

or  program)      To  ensure  that  the  project's  scope  stays  true  to  only  what  is  required  to  

implement  the  strategy.    

The  Func/on:    Is  to  act  as  a  "cataly/c  mechanism"  to  promote  and  enable:    1.  Strategy  collabora/on    2.  Change  management    3.  Communica/ons    4.  Program  execu/on    

  A  strategic  EPMO  is  a  Strategy  Execu/on  Office  and  NOT  Project  Execu/on  en/ty.    

  EPMO  does  only  a  very  limited  amount  of  actual  program  execu/on.    

Set  up  a  strategic  EPMO  to:  •  Ensure  that  projects  and  programs  are  actually  driving  strategy  

fulfillment.    •  Focus  on  change  management  and  strategic  communica/on.    •  Facilitate  strategic  tac/cs  forma/on.    

To  bridge  the  gap  between  strategy  and  tac/cs,  begin  by  applying  the  concept  of  benefits  realiza/on  as  a  basis  for  determining  to  what  extent  a  project  actually  contributes  to  the  strategy  it  is  designed  to  support,  and  use  this  as  a  priori/za/on  criterion.  

Strategic  EPMO  Mission:  

8  

1.  Strategy  Collabora/on  

The  Air  Sandwich  challenge  of  Strategy  Collabora/on  *  The  Sponsor  

The  What:  Execu/ves,  who  excel  at  reading  the  market,  determine  the  organiza/on's  op/mum  response  to  specific  market  condi/ons  and  the  economy  in  general,  and  then  cral  the  strategy  for  the  organiza/on  

Senior  Managers    The  How:  Senior  managers  then  a[empt  to  intuit  how  that  strategy  relates  to  the  work  they  had  been  planning  to  do  anyway  and  then  "tack  their  sails"  in  a  direc/on  that  they  hope  will  accomplish  the  goal.  This  is  the  "how"  part  of  the  vision.        

No  Filling  !  

"The  New  How:  Crea/ng  Business  Solu/ons  Through  Collabora/ve  Strategy.“    *  

The  EPMO  role  is  to  facilitate  the  collabora/on  and  sharing  of  ideas  on  how  something  can  and  should  be  done  to  move  the  organiza/on  closer  to  realizing  its  strategy.    

The  filling  should  be  a  process  of  collabora/ng  on  strategic  tac/cs.    

Agreements  generally  only  emerge  as  a  result  of  people  presen/ng  their  views  of  the  situa/on  and  then  gradually  arriving  at  a  shared  and,  hence,  unique  view  of  the  right  course  of  ac/on.    

The  job  requires  a  great  deal  of  listening  and  probing  to  ensure  there  is  agreement.    Effec/vely,  while  not  all  aggressive  goals  are  realis/c,  not  all  opera/onal  obstacles  are  real  either,  and  both  groups  will  need  to  change  some  elements  of  their  ini/al  concept.    

EPMO  as  Strategy  facilitator  is  to  make  everyone  Focus  and  Balance  these  two  Factors    

9  

2.  Change  Management   Change  management  is  a  mul/step  process  that  begins  with  craling  a  realis/c  and  doable  vision.    

CommunicaKon  is  a  cri/cal  component  of  change  management  and  will  be  invaluable  in  enlis/ng  support  and  establishing  the  reality  of  the  change.    

Start-­‐up  

Design  

Implementa/on    

Create  Awareness  

Employees  

Educate  

Reinforce  and  Reward  

Acquire  project  resource  

Project  Team  

Provide  Direct  Support  

Maintain  momentum  

Build  management  support  

Stakeholders  

Develop  Sponsorship  

Align  leadership  and  manage  resistance  

The  magnitude  of  the  change  be  fully  understood  and  that  the  organiza/on  have  the  core  capabili/es  to  achieve  the  change.  

3.  Communica/on   Social  Media   Town  Hall  

Mee/ngs  

Corridor  Discussions  

VoicE  

emails  

Training  sessions  

10  

4.  Program  Management  Execu/on  The  EPMO  should  set  up  a  small  Center  of  Excellence  for  program  management.  This  group  will:  1.  Monitor  the  health  of  programs  in  the  enterprise  porRolio    2.  Manage  the  execu/on  of  a  very  small  number  of  highly  risky  and  

strategic  programs    3.  Assist  in  the  management  of  other  strategic  programs  as  required    

Planning  and  Control  Timescales,  costs,  outputs  and  dependencies,  risks  and  assump/ons,  a  schedule  showing  the  tranches,  the  transi/on  plan  and  the  monitoring  and  control.  

Benefits  RealizaKon  Management  A  benefit  is  the  measurable  improvement  resul/ng  from  an  outcome,  which  is  perceived  as  an  advantage  by  a  stakeholder.  As  the  program  introduces  transforma/onal  change,  this  results  in  a  desired  outcome.    

Blueprint  Design  and  Delivery  The  Blueprint  is  a  model  of  the  organiza/on  upon  comple/on  of  the  program,  its  working  prac/ces  and  processes,  the  informa/on  it  requires  and  the  technology  that  supports  its  opera/ons.  This  detailed  descrip/on  of  the  future  organiza/on  is  designed  to  deliver  the  capability  described  in  the  Vision  Statement.    

Quality  management   Risk  Management  and  Issue  ResoluKon  

The  Business  Case    Is  an  aggrega/on  of  specific  informa/on  about  the  value  of  the  benefits,  the  risks  to  achieving  them,  the  costs  of  delivering  the  Blueprint  and  the  /mescales  for  achievement.  

Leadership  and  Stakeholder  Engagement  

Defining  the  Vision  of  the  program  The  Vision  Statement  is  used  to  communicate  the  end  goal  of  the  program  being  an  outward-­‐facing  descrip/on  of  the  future  state  following  program  delivery.    

OrganizaKon  roles  and  capabiliKes  documentaKon.    

11  

EPMO  Structure  

  Monitor  the  health  of  programs  in  the  enterprise  porRolio    

  Manage  the  execu/on  of  a  very  small  number  of  highly  risky  and  strategic  programs    

  Assist  in  the  management  of  other  strategic  programs  as  required.  

  Develop    Business  Case.    Translate  Strategy  to  tac/cal  opera/on  plan    Build  Strategy  execu/on  plan  

  Ensure  that  benefits  are  iden/fied  and  defined.      Measure  &  Track  benefits      Align  the  program’s  desired  benefits  and  the  strategic  objec/ves  

of  the  organiza/on.  

KPIs    •  General  recommenda/ons  range  

somewhere  between  10  and  25  projects.    •  This  might  entail  reviewing  and  suppor/ng  

somewhere  around  50-­‐60  business  cases  throughout  the  year.    

12  

The  strategic  EPMO  is  backed  up  by  two  other  organiza/ons,  the  Project  Capability  Office  and  the  business  process  center  of  competency,  whose  respec/ve  mission  is  to  ensure  that  projects  and  business  process  work  can  be  done  anywhere  in  the  organiza/on.    

EPMO  and  other  governance  bodies  

Combining  the  opera/onal  and  process  aspects  of  PPM  with  an  organiza/on  focused  on  strategic  execu/on  simply  doesn't  work  well  over  /me.  

13  

14  

Mostly  Delivers     Typical  Staff  Level     Examples  of  Major  CapabiliKes    

Program  office     • Support  to  one  program,  for  the  life  of  the  program    

• Senior  administra/ve  or  domain  experts    

• Budget  tracking    • Methods  support    • Contractor  repor/ng    • Risk  tracking    • Resource  management    

Project,  program  or  por]olio  management  office    

• Ongoing  organiza/onal  PPM  maturity  improvements    • Ini/a/ve  repor/ng    

• Experienced  low-­‐  or  medium-­‐level  IT  staff    • May  include  the  organiza/on's  IT  or  business  project  or  program  managers    

• PPM  maturity  assessment  and  improvement    • Status  repor/ng    • Resource  tracking    • Methods  sustainment    • Sa/sfac/on  review    

Enterprise  PMO     • Advice  and  some/mes  leadership  to  major  organiza/onal  ini/a/ves    • Escala/on  of  issues  to  leadership    

• Management  or  lower-­‐level  execu/ves    

• Strategy  implementa/on    • Expecta/ons  review    • Value  realiza/on    • Governance  linkage    

Por]olio  management  funcKon    

• Monitoring  ini/a/ves'  investment  "condi/on"    • Providing  impact  analysis  for  new  or  changed  ini/a/ves    

• Senior  IT  staff  for  porRolio  management  and  financial  analysis    

• Execu/ve  insight  support    • Ini/a/ves'  investment  analysis    • Situa/onal  impact  analysis    • Execu/ve  priori/es  and  decision  support    

4  similar  names,  4  different  roles…  and  a  common  source  of  confusion    

As  shown  in  the  EPMO  structure,  PorRolio  management  is  part  of  EPMO  func/on.    The  EPMO  might  also  be  asked  to  do  Program  Management  for  selected  cri/cal  projects  in  certain  circumstances.  

This  is  where  the  lines  blur  some/me.    

Risks  

Risk   Impact   Possible  MiKgaKon  Poli/cs  and  concern  over  "turf"  ownership  might  hamper  EPMO  produc/vity.    

The  EPMO  team  produc/vity.  

The  EPMO  sponsor  (CEO  or  COO)  must  make  it  very  clear  that  the  head  of  EPMO  will  not  be  taken  any  C-­‐Level  seat  within  the  organiza/on  

The  EPMO  as  an  ini/a/ve  is  primarily  linked  with  its  sponsor.  It’s  olen  no/ced  that  once  the  sponsor  is  no  longer  with  the  organiza/on,  the  EPMO  team  goes  with  him.  

The  EPMO  team  job  security  

Acceptance  of  the  risk.  

Having  a  strong  strategic-­‐oriented  team  might  encourage  other  department  managers  to  stop  trying  to  link  strategy  with  opera/on.  A  leave-­‐it-­‐to-­‐the-­‐EPMO  symptoms  might  develop  if  not  addressed  properly.  

Organiza/on  maturity   The  EPMO  has  to  engage  with  the  rest  of  the  business  with  a  clear  agenda  to  help  the  line  managers  to  link  their  opera/ons  with  the  corporate  strategy.  At  no  point,  the  EPMO  will  actually  start  doing  the  work  for  the  business  heads.  

It’s  olen  no/ced  that  cri/cal  programs  might  got  assigned  to  the  EPMO  team  to  manage  it  end-­‐to-­‐end  rather  than  just  provide  governance  and  health  check.  If  con/nued  uncheck,  this  could  overload  the  EPMO  team.    

The  EPMO  team  produc/vity.  

At  a  certain  stage,  it  might  worthwhile  considering  the  Opera/onal  EPMO  style.    

15  

Business  Case  for  Project/Ini/a/ve  Seeking  approval  

Por]olio  Model  

Support  business  func/ons  that  primarily  impact  the  bo[om  line.  

Grow  top-­‐line  revenues  and  enhance  the  reason  why  customers  choose  to  buy  its  products  or  

services  

enterprises  that  are  lacking  appropriate  infrastructure  and  

compliance  are  likely  to  have  an  unacceptable  

degree  of  risk  

These  investments  represent  "good  risk"  for  the  enterprise  and  ensure  that  it  stays  

ahead  of  the  compe//on  

How  much  revenue  that  investments  can  deliver?  Rate  of  return?  Time  to  

return?    

Hard-­‐dollar  cost  savings,  sol-­‐dollar  produc/vity  and  cost  avoidance  in  the  financial  analysis  of  

benefits  

Calculated  risk  approach  to  determine  the  

business  damage  from  not  making  that  investment  

The  degree  to  which  success  could  create  

compe//ve  advantage.    

Governance  

16  

 16M  

 50M    

 12M    

 300K    

 33M    

 5M    

Com

pe/

/ve  

diffe

ren/

ator s    

Com

mod

i/es  

and  

oper

a/o

ns    

Infra

struc

ture  

and  

com

plian

ce    

Inno

va/o n   and  

gam e  

chan ge    

Budgeted  

Strated  

IT  Investment  in  2014  

  IT  spending  is  a  good  indicator  of  the  organiza/on  spending.  

  2014  budget  was  focused  on  Commodity  and  Opera/on  efficiency.  

  Only  1.8%  of  the  Compe//ve  Differen/ators  projects  actually  started.    

  Was  it  due  to  unrealis/c  planning  or  execu/on  difficul/es?  

  Nothing  has  been  treated  as  Experiment  and  Write  Off  approach.  

17  

Strategy  execu/on  framework  An  important  EPMO  role  is  the  facilita/on  of  Strategy  execu/on.  SEM  is  an  Execu/on  Model  for  Strategy  will  be  discussed  here.    

SEM  provides  a  structured  method  for  iden/fying,  documen/ng  and  communica/ng  the  interdependencies  among  organiza/onal  business  units'  strategies  as  they  a[empt  to  execute  the  corporate  strategy.    

18  

SEM  requires  a  strategic  EPMO  func/on  to  carry  out  different  tasks.  However,  even  a  minimum  EPMO  (repor/ng  EPMO)  Can  help  facilita/ng  strategy  execu/on.    

Other  frameworks  and  tools  to  help  Strategy  ExecuKon:  1-­‐  Business  Capability  mapping  2-­‐  Balance  Score  Cards  3-­‐  SEF:  Strategic  Execu/on  Framework  –  Stanford  business  school  4-­‐  Gartner  Risk-­‐Adjusted  Value  management.  

Step1:  coherent  strategy  and  measurable  goals.  

"how  this  will  be  done"  (the  lever)    "amount  of  change  we  expect"  (the  measure)    

The  EPMO  can  aid  in  the  ar/cula/on  of  these  levers  and  measures  as  part  of  the  business  case/por]olio  review  process.    

Step2:  iden/fy  the  areas  that  need  to  be  involved  to  make  a  strategic  ini/a/ve  happen.    

Cascading  Success  Measures  Are  as  Difficult  to  Come  by  as  An/cipated  Benefits  

If  we  will  grow  revenue  by  5%  through  new  geographical  channels,  then  we  need  to  grow  X  area  by  Y%,  

“Grow  revenue  by  geographic  expansion"  (the  lever)    “5%  grow  for  2015"  (the  measure)    

Step3:  Cascading  Success  Measures  

“Implement  a  reverse-­‐aucKon  system  that  will  maximize  the  number  of  suppliers  compeKng  against  each  other  to  sell  raw  material  to  manufacturing,  resulKng  in  lower  prices  for  nonstrategic  raw  materials.”    

Step4:  EPMO  should  support  Business  Units  in  Providing  an  Early  Look  at  How  They  Intend  to  Accomplish  Their  Changes    

The  goal  at  this  step  is  to  collect  just  enough  informa/on  so  that,  when  socializing  it  at  Step  5,  the  various  business  units  can  see  where  they  are  working  together  and  where  they  are  working  at  cross-­‐purposes.    

•  Proposed  high-­‐level  solu/on/project.    •  Benefits  of  proposed  solu/on/project  —  

This  should  con/nue  to  refine  the  strategy  statement  in  Step  3.    

•  Solu/on/project  dependencies:  what  other  business  units  will  need  to  provide  assistance?    

•  Solu/on/project  risks  

Step5:  Circulate  a  composite  view  of  what  every  business  unit  has  submi[ed  and  capture  the  various  organiza/onal  dependencies  that  the  proposals  might  engender.    

Step6:  Convene  some  form  of  governance  or  advisory  group  to  mediate  any  differences  that  become  visible.  

19  

20  

SEM:  Strategy  execu/on  framework  

Summary  

•  It  is  important  to  decide  which  type  of  EPMO  is  right  for  the  client.    

•  EPMO  will  have  a  crucial  role  in  strategy  execu/on  of  the  organiza/on.  

•  EPMO  will  be  adopt  Change  Management  and  Capability  modeling  prac/ces  to  drive  changes.  

•  It  is  important  to  understand  the  role  EPMO  plays  in  PorRolio  Management.  

•  EPMO  will  be  backed  up  by  other  governing  bodies  within  the  organiza/on.  

•  It  is  important  to  understand  the  risks  involved  with  the  EPMO  in  order  to  establish  a  successful  prac/ce.  

21  

Thank  you  

Q  &  A  

22