karl riley pwc analysis from their 4th global ppm
TRANSCRIPT
APM: Portfolio Management SIG
The case for doing things differently
Karl ReillyGlobal Lead for PPM Methods & Tools
April 2015
www.pwc.co.uk
PwC
4th Global PPM Survey
Do those who commission change get what they want?
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19
39
42
Other
Company Senior Manager
Company Manager or staff
18
42
14
8
14
5
Company porfolio or programmemanager
Company project manager
Company PMO manager or teammember
Consultant/Contractor portfolio orprogramme manager
Consultant/Contractor projectmanager
Consultant/Contractor PMOmanager or team member
What is your role?General Employee roles
Portfolio & Programme Manager roles
Base: 3,025
Base: 1,775
Base: 1,051
Overall
7%
35%
59%
C-Suite
Portfolio &
Programme
Managers
General
Employees
Who took part in the research? The survey was targeted at three main groups…
(%)
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Global Survey
The results of the 4th Global PPM Survey repeat some consistent
messages from our previous surveys as well as opening up new
insights that can help organizations deliver better results for their
sponsors of change.
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The Global PPM Survey shows that familiar issues still are not being addressed
Why change how programs are delivered?
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How to do things differently?
Optimize your portfolio to
maximize return
Be flexible, change faster
Enable your people to deliver
success
Connect the Executive Team
to program delivery teams to get the change
you want
Measure and address the harsh facts to maintain
direction
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Theme 1Optimise your portfolio to maximize returns
Organizations should:
• Optimise the selection of programs within the portfolio using quality data and objective criteria to help the organization more effectively achieve its change strategies.
• Take a look at the portfolio management capability with a view to ensuring both program selection and reviews clearly support the organisation’s strategic goals –being pragmatic enough to stop projects or program that are not delivering.
• Create a portfolio management function from a business architecture perspective, ensuring the right people, process and tools are in place to effectively manage the portfolio of change program that consistently align to business goals.
• Build a sustainable and effective ‘ideas pipeline’ to continually enter new projects and program into their portfolio.
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Theme 2Be flexible, change faster
Organizations should:
• Plan for change from the outset – not doing so is unrealistic, and will take you longer to react when it does happen.
• Create an environment where change can be managed in a controlled manner for the benefit of all. This moves beyond traditional change (variation) control and impact assessment processes, rather defining a new operating rhythm for program delivery where change is expected, embraced and harnessed.
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Theme 3Enable your people to deliver success
Organisations should ensure that the PM community is enabled to deliver change by creating the right environment:
• Programs must be properly resourced with highly skilled professionals – the right capability and capacity.
• Training PMs effectively will improve delivery success. PPM is a profession – too few people are trained to deliver it.
• Organisations need to invest the time to carefully examine their requirements for software that enables program and portfolio management, and ensure the tools they select are fit for purpose and meet the needs of both PMs who plan and manage at very detailed levels, and the Executive Team for summary reporting at the portfolio level.
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Theme 4Connect Executive Teams to delivery teams to get the change you want
Executive Teams should:
• Show commitment to the importance of program management and understand delivery issues. When program outcomes are clearly defined, measurable and understood by all, results improve.
• Be encouraged to make better use of the experience and value their professional PMs can offer. Often PMs are seen as providers of data, or worse still administrators – they need to be adept at technical reporting but can add far more value through working closely with leaders to shape and drive programs.
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Theme 5Measure and address the hard facts to maintain direction
Organizations should:
• Maintain a line of sight to the intended outcomes and benefits. Decisions on further funding, resourcing, direction and risk management should all be made with outcomes and benefits in mind.
• Invest in their program management resources –ensure they are well trained and able to consistently deliver the basic program management elements so that progress is well planned and tracked.
• ‘Stop and reflect’ – taking a pause can often provide sufficient thinking time to regroup and set a new baseline or refocus effort.
• Not be afraid of knowing when to stop programs. Clear measuring of progress and decisive actions can help to save wasted investment in the long run, along with making sure the business case and benefits are still valid and being realized.
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The Global PPM Survey illustrates that there is often a disconnect between the Executive Team and the PMs
Why change how programs are delivered?
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We asked: How is the success of change activities measured in your organisation?
C-Suite
General Employees
65% 57%
Financial metrics
Customer satisfaction metrics
42% 40%
Time metrics
19% 24%
Delivery of documented outcomes
26% 21%
Employee satisfaction
23% 17%
Successful embedding of change
22% 15%
Don’t know
3% 9%
How do you measure success?, Or, How do you know you’ve finished?
Base: C-Suite: 193; General Employees: 1,029
31% 33%
Quality metrics
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39
10
51
13
9
82
Don't know
No
Yes
C-Suite General Employees
(%)
Reflecting on change activities completed in the last 5 years and sustained visible benefits you can see today, have the changes been worth the investment?
Base:
C-Suite: 191;
General Employees: 1,008
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2
5
19
13
27
19
15
2
3
11
10
30
19
26
Don't know
Not clearly defined
Defined but not easily measurable orunderstood by the business
Clearly defined and measurable but not widelyunderstood
Clearly defined, generally understood butdifficult to measure
Clearly defined, measurable and understood byall staff
Clearly defined, measurable and understood byall staff and customers
C-Suite General Employees
(%)
Base: C-Suite: 196; General Employees: 1,027
When you commission change, to what extent are business outcomes clearly defined and measurable?
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29
37
20
9
4
2
24
38
14
11
67
All change activitiesare driven from the
strategy byleadership
Most changeinitiatives align to the
strategy via anapprovals process
The majority ofprojects align with
our strategy butthere is no formalapprovals process
Projects receivebudget approval, but
do not necessarilyalign to
organisationalstrategy
Projects arecommissioned
locally within theorganisation to local
agendas/needs
Don't know
C-Suite General Employees
(%)
How well is your organisational strategy delivered through change activities?
Base: C-Suite: 193; General Employees: 1,036
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Approximately two thirds of PMs agree that there is a coherent relationship between the programme objectives and benefits and the organisational strategy and vision
23%
49%
14%
8%
4% 2%
Strongly agree
Agree
Neither agree nor disagree
Disgaree
Strongly disagree
Don't know
There is a coherent relationship between the programme’s objectives and benefits and the organisational strategy and vision
Base: 1,774
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Base: 1,700
9%
46%
10%
47%
4%
13%Very regularly
Regularly
Neither irregularly nor regularly
Irregularly
Very irregularly
Don't know
How often is the portfolio performance reviewed by the key stakeholders so that it aligns with the organisational strategy?
Just over half of PPMs say the portfolio performance is regularly reviewed by key stakeholders so that it aligns with the organisational strategy
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17
3
10
1
33
16
21
35
15
45
Have integrated schedules (e.g. programschedules are integrated with individual
project schedules)
Maintain an up-to-date schedule/plan on allprojects
(%)
Don’t know
0%
3%
Base: 1,774
Are portfolio plans up to date and integrated?
RarelyNever AlwaysVery oftenSometimes
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Base: 1,747
11%
39%
21%
40%
5%4%
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Don't know
50% of PMs agree that an appropriate baseline exists to measure all benefits
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So what?
Our survey respondents tell us that there is a case for changing the way we deliver.
• We need to understand the corporate strategy, and be flexible in how we deliver to meet the strategy.
• We need to talk in the language of our clients and their industry.
• We need to use data to baseline and track performance to drive decision making.
• We need to alert to the changing world around us, and adapt to threats and opportunities
• We need to harness technology advances
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The case for doing things differently
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the
information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the
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employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act,
in reliance on the information contained in this publication or for any decision based on it.
© 2015 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to the UK member firm, and may sometimes refer to the PwC network.
Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
Questions…?
Download the survey report atww.pwc.com/ppmsurvey
Contact: e-mail: [email protected]
Twitter: @Karl_Reilly_PwC