The Next Gen PMO: Aligning Your Organisation to Execute Its Strategy Tim Wasserman The Next Gen PMO: Aligning Your Organization to Execute Its Strategy Tim Wasserman Programme Director, Stanford Advanced Project Management Chief Learning Officer, ESI International & IPS Learning Objectives for Today Share framework for improving strategic alignment of project-based work Explore organizational, leadership and individual dynamics that enable improved performance Provide actionable, applicable tools © 2015, IPS Learning/ESI International. All rights reserved. Why Good Strategies Fail …lessons for the C-suite Only 56% of strategic initiatives have been successful 9% rate themselves as excellent on successful execution 61% of firms often struggle to bridge strategy-execution gap The Economist Intelligence Unit, March 2013 © 2015, IPS Learning/ESI International. All rights reserved. Global CEO’s #1 Strategy Seek better alignment between strategy, objectives and organizational capabilities The Conference Board, 2014 © 2015, IPS Learning/ESI International. All rights reserved. Why focus on Alignment? PMI’s Pulse of the Profession, February 2014 © 2015, IPS Learning/ESI International. All rights reserved. Why do we get less than desirable performance? © 2015, IPS Learning/ESI International. All rights reserved. Why Good Strategies Fail Alignment between strategy and execution unclear Failure to accurately predict results in scope creep Impact of organizational dynamics are misunderstood or ignored Risks not well understood Lack of aligned performance metrics Required skill sets don’t match required needs Programs/projects extremely complex Inconsistent processes on how to manage projects and programs Lack of clear agreements around interfaces and interdependencies © 2015, IPS Learning/ESI International. All rights reserved. Lack of resources, people spread too thin Other organizational functions and members not on board Difficult to manage without authority over people who are on multiple projects, not functional reports Bridging the gap… © 2015, IPS Learning/ESI International. All rights reserved. 9 Our Strategic Execution Journey © 2015, IPS Learning/ESI International. All rights reserved. The Strategic Execution Framework Who are you? What is the context? Where are you going? What needs creating? How will we build it? How will you operate? © 2015, Stanford Advanced Project Management & IPS Learning. All rights reserved. Unpacking the SEF Strategy Making Strategy Execution © 2015, Stanford Advanced Project Management & IPS Learning. All rights reserved. What’s Your External Environment? Energy • • • Price of crude oil Global competition Energy consumption Financial Services • Hyper competitive market • New emerging technologies • Faster time to market © 2015, Stanford Advanced Project Management & IPS Learning. All rights reserved. What’s your Context? Organization Program/project Team Individual © 2015, IPS Learning/ESI International. All rights reserved. Questions to Ask & Actions to Consider How aware are team members of the current organizational context? How often is this discussed? How much is enough information? Who helps you decide what to share? © 2015, IPS Learning/ESI International. All rights reserved. The Ideation domain The reason the organization exists Character, image, brand, and values © 2015, IPS Learning/ESI International. All rights reserved. What the organization is dedicated to in the long term Xerox’s Ideation, 1981 “Xerox perceived itself as only in the office copier business.” Malcolm Gladwell © 2015, IPS Learning/ESI International. All rights reserved. © 2015, IPS Learning/ESI International. All rights reserved. Questions to Ask & Actions to Consider • What is your PMO’s Ideation? • Is it compelling to the point of being a “magnet?” • How is your PMO perceived by it’s customers? By senior management? By the project and program community? • Can your people connect what they are doing to the organization’s Ideation? © 2015, IPS Learning/ESI International. All rights reserved. Retaining Top PMO Talent When You Have No Authority The Nature domain The artifacts, core values, and behaviors of the organization How an organization designs relationships between areas or functions © 2015, IPS Learning/ESI International. All rights reserved. The path an organization designs to achieve its purpose and goals Misaligned Ideation, Culture and Strategy © 2015, IPS Learning/ESI International. All rights reserved. Ideation Facebook’s mission is to give people the power to share and make the world more open and connected. © 2015, IPS Learning/ESI International. All rights reserved. Bootcamp © 2015, IPS Learning/ESI International. All rights reserved. Four core cultures Every organization has a predominant culture and may have subordinate cultures. Collaboration Control Collaboration Cultivation Cultivation Control Competence Competence Source: Schneider, William E. The Reengineering Alternative: A Plan for Making Your Current Culture Work. Burr Ridge, IL: Irwin Professional Pub., 1994. © 2015, IPS Learning/ESI International. All rights reserved. Culture and Today’s Work Approaches Collaboration Collaboration Cultivation © 2015, Stanford Advanced Project Management & IPS Learning. All rights reserved. Control Control Competence Aligning PMO Structure and Culture Collaboration Control (affiliation) (order & security) Collaboration Enterprise/Org Unit PMO Control Project Support PMO Project-Specific PMO CoE PMO Competence Cultivation (self-actualization) Cultivation (achievement) Competence © 2015, IPS Learning/ESI International. All rights reserved. Retaining Top PMO Talent When You Have No Authority Your Culture Maps Draw a culture map for: Collaboration Control 5 4 5 3 Your Organization (red) Your PMO (green) 4 2 3 1 2 1 1 2 1 2 3 3 4 5 4 5 Cultivation © 2014 IPS Learning LLC and contributors © 2015, IPS Learning/ESI International. All rights reserved. Competence What structure is appropriate? © 2015, IPS Learning/ESI International. All rights reserved. Questions to Ask & Actions to Consider What is your PMO’s culture “egg”? Are you culture and structure aligned within the PMO? How does this compare/align to your business unit? The overall organization? What do you need to adjust? © 2015, IPS Learning/ESI International. All rights reserved. Retaining Top PMO Talent When You Have No Authority The Vision domain The determination of specific desired results The path an organization designs to achieve its purpose and goals © 2015, IPS Learning/ESI International. All rights reserved. The vehicle to evaluate progress to the achievement of strategic goals Clear Strategic Vision: SW Airlines Source: Porter, Michael. "What is Strategy?" Harvard Business Review HBR OnPoint Enhanced Edition, Product Number: 4134 (February 1, 2000). © 2015, IPS Learning/ESI International. All rights reserved. How do they get there? © 2015, IPS Learning/ESI International. All rights reserved. Questions to Ask & Actions to Consider Are your required reporting metrics meaningful, aligned and adding value to the organization? Do project/program metrics link to the strategic goals? Do your team members know what these metrics are? To what extent can they impact these? Are individual and team metrics aligned? © 2015, IPS Learning/ESI International. All rights reserved. Retaining Top PMO Talent When You Have No Authority The Engagement domain The path an organization designs to achieve its purpose and goals Strategy based, prioritized set of projects and programs, reconciled to the resources required to accomplish them © 2015, IPS Learning/ESI International. All rights reserved. An organization's real strategy is the portfolio of strategic projects in which it invests Real strategy © 2015, IPS Learning/ESI International. All rights reserved. Official strategy Strategic goals & portfolio are both moving targets Strategic Portfolio! © 2015, IPS Learning/ESI International. All rights reserved. Strategic Goals Questions to Ask & Actions to Consider Can you map the portfolio of project investments with the organization strategies? How aligned is the portfolio process with the espoused ideation and culture of the organization? Are portfolio criteria understood and agreed upon at all levels of the organization? How effective are those responsible for providing portfolio inputs at influencing the portfolio? © 2015, IPS Learning/ESI International. All rights reserved. Retaining Top PMO Talent When You Have No Authority The Synthesis domain Strategy-based, prioritized set of projects and programs, reconciled to the resources required to accomplish them Multiple interdependent projects managed as a single unit © 2015, IPS Learning/ESI International. All rights reserved. Unique, temporary efforts defined by deliverables, schedule, and resources Critical Skills, Tools and Insights © 2015, IPS Learning/ESI International. All rights reserved. Predictability vs. Uncertainty: Complex Program Attributes Predictable Uncertain Authority Centralized Decentralized Process Plan-Execute-Track-Control Iterate through Try-Fail-Learn Reward System “Failure” to achieve goals is punished Learning through small partial “failures” is rewarded Information Flow Partition information and share it top-down on “need to know” basis Create many-to-many communication Locus of Big Picture Global awareness exists only at top via status reports Global awareness exists around edges of the organization How Program Clearly specify project outputs Manager Leads “Tell What to Do” Clarify ideation and desired strategic outcomes - “Teach How to Decide” Management Style Adaptive, collaborative Top-down command & control © 2015, IPS Learning/ESI International. All rights reserved. Questions to Ask & Actions to Consider What is the PMO’s role and/or charter in driving project and program execution? How is this communicated to and understood by the organization? Are the PMOs offerings/services aligned? © 2015, IPS Learning/ESI International. All rights reserved. Retaining Top PMO Talent When You Have No Authority The Transition domain Multiple interdependent projects managed as a single unit Unique, temporary efforts defined by deliverables, schedule, and resources The ongoing processes of the enterprise that deliver value to the customer © 2015, IPS Learning/ESI International. All rights reserved. What barriers do you see to successful transition? Resistance to change Lack of acceptance/not invented here End user success criteria/metrics not aligned with developer metrics © 2015, IPS Learning/ESI International. All rights reserved. Rapid Transformation 30-90 Days Pre-Transformation 30 Days Phase 1: Diagnosis 30 Days Phase 2: Envisioning the Future 30 Days Phase 3: Paving the Road 6-12 Months Transformation Implementation Carlos Ghosn: Renault-Nissan © 2015, IPS Learning/ESI International. All rights reserved. Questions to Ask & Actions to Consider When do you involve those who own the Operations experience? How do you integrate them early and often? Are your operational success metrics aligned with project metrics? When does work begin on addressing the organizational change component? © 2015, IPS Learning/ESI International. All rights reserved. Imperatives of Strategic Execution I N V © 2015, IPS Learning/ESI International. All rights reserved. E S T Imperatives of Strategic Execution I deation N ature Know who you are, why you exist and where you are going Align your strategy, structure and culture Continually rearticulate and quantify your desired outcomes Vision Continually reinvest in the right portfolio of strategic Engagement projects to achieve current strategic outcomes your strategic projects balancing appropriate Synthesis Execute levels of PM 1.0 (discipline) vs. PM 2.0 (agility) Transition your projects’ benefits into operations, and ransition T reinvest the project resources © 2015, IPS Learning/ESI International. All rights reserved. SEF and Meta Alignment Alignment between and within the domains enables strategic execution Challenges to strategic execution are a reflection of misalignment © 2015, IPS Learning/ESI International. All rights reserved. Where are your Strengths and Opportunities? © 2015, IPS Learning/ESI International. All rights reserved. What Works Well Opportunities for Improvement © 2015, Stanford Advanced Project Management & IPS Learning. All rights reserved. Engaging and Aligning Your People © 2015, IPS Learning/ESI International. All rights reserved. Critical PBW Leadership Competencies for Execution Excellence © 2015, IPS Learning/ESI International. All rights reserved. Some parting thoughts… 1. It’s all about ALIGNMENT 2. Do the RIGHT PROJECTS and do the PROJECTS RIGHT 3. Leading project-based work requires DISCIPLINE and AGILITY © 2015, IPS Learning/ESI International. All rights reserved. Questions and Additional Discussion © 2015, IPS Learning/ESI International. All rights reserved.