Do you ever feel like your project portfolios are just groupings of initiatives with no common theme? That your sponsors are still making one-off project decisions that don't seem to tie to anything? That projects drift along with no real direction or purpose? That PPM is a buzzword that nobody - except you - really understands? Been there, done that. Still doing that to some degree, but there is now a light at the end of the tunnel.
Aligning your project portfolios with business strategies can help make PPM a value added discipline. In large measure, strategies are executed through projects. You can define strategic objectives to support your strategies and capabilities to drive your strategic objectives. Capabilities are delivered through projects, giving you a linkage back to strategy.
This approach supports PPM in a couple of ways. First, it provides a mechanism by which you can evaluate and group initiatives. The idea is that you should be able to represent 100% of your strategic objectives through initiatives. If an imitative does not support a strategic objective, it should not be part of your strategic portfolio. Conversely, if an objective is not supported by an initiative, there is a gap to fill.
Secondly, this approach helps to prioritize and optimize portfolios. Strategic objectives can and should be weighted in terms of importance. This weighting will give you a framework by which you can prioritize (importance) and optimize (constraint analysis) your portfolios.
To further strengthen the strategy-initiative linkage, you can develop metrics to measure your progress against your strategic objectives. Projects can build business cases that show how they will move the needle on these metrics.
Wednesday, September 14, 2011
Tuesday, September 13, 2011
Why PMOs Fail
There seems to be a growing paradox in the world of PMOs In talking with many of my colleagues, the demand for PMOs is very high. At the same time, the number of PMOs that fail is also on the rise. So, how can we see such an increase in demand for a discipline that flames out so frequently?
I believe there are a number of reasons for this phenomenon, but I’ll start with one I see and hear about a lot. Executives who are not realizing return on their strategic and/or finanical project investments often latch on to the PMO concept as a way to right the ship. They commission some of their ”best” people, who may or may not have project/portfolio management experience to build the PMO. Often, they bring in a consultant to deliver a playbook to develop a successful PMO.
In many cases, these solutions start at the project management level. In other words, if we build a solid PM competency and framework, we’ll deliver better projects and thus get better returns. I think this approach often misses the mark. From what I’ve seen, executives often view project management as table stakes – they expect that the organziation can deliver projects effectively, even if it can’t. When they talk about a PMO, what they really want is an organization that helps them develop and execute strategy, can better enable them to choose the right investments, can provide information on whether the investments actually returned what was expected. In short, PMOs often focus on the solving lower priority problems, from the execs perspective, right out of the gate.
If you are chartering a PMO, spend some time with your sponsors and understand what drove them to believe they needed a PMO. If you can provide solutions that are meaningful to them, you will have a better chance of sustaining the organization and enhancing other disciplines, like project management.
I believe there are a number of reasons for this phenomenon, but I’ll start with one I see and hear about a lot. Executives who are not realizing return on their strategic and/or finanical project investments often latch on to the PMO concept as a way to right the ship. They commission some of their ”best” people, who may or may not have project/portfolio management experience to build the PMO. Often, they bring in a consultant to deliver a playbook to develop a successful PMO.
In many cases, these solutions start at the project management level. In other words, if we build a solid PM competency and framework, we’ll deliver better projects and thus get better returns. I think this approach often misses the mark. From what I’ve seen, executives often view project management as table stakes – they expect that the organziation can deliver projects effectively, even if it can’t. When they talk about a PMO, what they really want is an organization that helps them develop and execute strategy, can better enable them to choose the right investments, can provide information on whether the investments actually returned what was expected. In short, PMOs often focus on the solving lower priority problems, from the execs perspective, right out of the gate.
If you are chartering a PMO, spend some time with your sponsors and understand what drove them to believe they needed a PMO. If you can provide solutions that are meaningful to them, you will have a better chance of sustaining the organization and enhancing other disciplines, like project management.
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