Alamo PMI 2nd Annual
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Strategic Planning –
Shaping the Project Slate
Walter A. Viali, PMP
Region 6 Mentor
PMI
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Worked with Texaco in Rome and in
Houston for 25 years (1974-1999)
PMO “aficionado” since 1983
Consulting since 1999 with several
companies on PMO implementation
PMI member since 1998
Became a PMP during the last century
PMI Houston President in 2007
PMI Region 6 Mentor since 1/1/2011
And, of course………………….
Alamo PMI 2nd Annual
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Alamo PMI 2nd Annual
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Roman Elvis, circa 200 A.D.
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When Elvis died in
1977, there were three
known impersonators…
In 2004 there were over
50,000….
With this growth rate,
in 2022, one of four
people on the planet
will be an Elvis Tribute
Artist (ETA)... So, get
ready!
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Alamo
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… as I’ve been working at it for
aPMI
while!
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Alamo PMI 2nd Annual
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VI
March 24th, 2011
Out of Galveston, TX on
the Carnival Ecstasy
6th Annual Seminar at Sea!
Ensure your registration and book by December 31, 2010
For additional reservations and transportation options:
Go to www.houstontravelzone.com
or email Sherry@houston.travelzone.com or call Sherry at 281-326-8050
Registration officially closes on January 31, 2011
Registration requests received after the January 31th deadline are subject to availability
S@S VI
Excitingly new, with great presenters, an
outstanding keynote speaker, new activities
for spouses, great prizes, and new excursions.
Also some great pricing for groups.
.
Need a few Good Reasons why you should choose to come on the
Seminar at Sea Cruise?
• Network with colleagues from other chapters
• Attend the informative seminars and earn up to 15 PDUs
• See the beautiful scenery, relax, and enjoy four wonderful days of sailing
with 24-hour dining and non-stop entertainment
For questions, contact AJ Collier at president@pmiclg.org or at 713-854-2660
Eric Jenett
PMP no. 1
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What Is Strategy?
From Vision to Projects
The PMO and Strategy?
◦ Time for the PMO to Step Up
The Driver for Strategic Planning
◦ Time for Senior Management Buy-in
The Processes for Strategic Planning
◦ What really works
Balanced Portfolios of Projects
What About Project Management?
Top Project Management Trends for This Year
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Strategic Planning gives us direction and tells
us which projects will best support the
business and therefore increase its probability
of success
Alignment ensures that, as the business
changes, so will the projects we are working on
Project Management tells us how to effectively
manage these projects and what information to
generate and communicate, to ensure that the
overall process is working as smoothly as
possible
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“Planning is an unnatural process. It’s much
more fun to do something. And, the nice
thing about not planning, is that failure will
come as a complete surprise, rather than
being preceded by a period of worry and
depression”…
We love to react and hate to plan, but lack of
planning will result in delays, rework, cost
increases and even greater problems...
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Strategy is foresight: the deep intellectual
challenge of trying to see and understand
when the future is still “formless”,
communicating that foresight and mobilizing
the organization to act
Strategy is a process in motion, unending
and never complete, constantly adapting to
in accord with events
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Strategy is holistic understanding of all the
functions of the business – including all,
neglecting none
Strategy is alignment: creating a shared
competitive agenda and preempting
misalignment
Strategy is an art, assembling a plan from a
puzzle of missing and irregular pieces
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Provant Project Management
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Vision
Strategy
Portfolio
Programs
Projects
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Portfolios are collections of Programs and
Projects that support specific business
strategies in an organization
Programs are groups of related projects
(i.e. Apollo Space Program)
Projects are unique endeavors, with a
definite start and end, which produce a
desired product on time and on budget
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PgMP
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PMP, CAPM,
RMP, SP
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OPM3 A
OPM3 C
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Strategic Planning ???
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We’re working on getting a handle on
managing portfolios, programs, and
projects through PMI and its standards
What about vision and strategy? How do
we do that?
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Establish common vision
Agree on company mission
Define long-term objectives
Develop business strategies
Define associated goals
◦ Key Performance Indicators (KPIs)
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Understand which programs and projects
are needed to support each long-term
objective and business strategy
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Each project must clearly support a business
strategy because
◦ It consumes valuable resources
◦ It costs money
◦ It impacts a lot of people
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If a project no longer supports a business
strategy,
◦ It must be terminated and
◦ We need methodologies and controls in place to know how
and when to do this
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What we need is the initial alignment of
business and projects with continuous
monitoring and reporting to ensure all
projects adequately support the organization’s
business strategies on an ongoing basis.
This is not going to happen by itself!
◦ Organizational Function (and a Driver)
◦ Strategic Planning Processes
◦ Overall commitment (not a once off deal!)
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An “office” staffed by project management
professionals who serve their organization’s
project management needs
◦ Full service provider of project management
services
◦ Center of project management excellence
What does this have to do with Strategic Planning?
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If business long-term objectives, strategies
and goals are to be met through projects,
then we need to:
◦ get a good handle on projects and related
processes for managing them
◦ ensure continuous alignment of these projects
with the business long-term objectives,
strategies and goals through persistent
performance monitoring and reporting
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Project Control - Model 1
◦ Plan, cost, project management schedule, resources at a project level
(ERP implementation)
◦ Develops and supports project management process
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Organizational Project Control - Model 2
◦ Develops and supports extensive software development and
organizational processes
◦ Coordinates project management, schedule and cost across the
organization
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Enterprise Project Management - Model 3
◦ Supports strategic planning and related alignment of projects
◦ “Owns” the organization’s project managers, trains them and assigns
them to projects
◦ Develops and supports the development and organizational processes
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Projects
Drill Down
Capability
Executive
Management
Policy
Vision
Strategy
Bus. Trends
Direction
Training
PMO Operations
Guide
Business
Units
Project Portfolio
Database
Approvals/Adjustments/Status
Budget Proposals
Business Cases
Project Justification
PROJECT
MANAGEMENT
OFFICE
Standard
Reporting
Requirements
PMO Tools
Resource
Pool
Contractor
Database
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Status
Process
Library
• Program Status
• Program
Forecasting
• Schedule
Performance
• Project Funding
• Resource Analysis
and Allocation
• Projects
Disposition
• Issues/Resolutions
• Overtime Reporting
• Cost Overrun
• Business Function/
Program Evaluation
• Contract Analysis
• Program Exception
Analysis
• Budget Analysis
• Problem Analysis
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The Project Office facilitates project success by
focusing on all key aspects of a project:
Financial
• Budget
planning
• Cost benefit
analysis of
projects
• Monitoring
project
investment
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Business
Strategy
• Mapping to
business
goals
• Meeting
customer
demands
Operations
• Resource
organization/
management
• Employee
satisfaction/
retention
• Project
Authorization
Quality
Assurance
• Risk
mitigation
• Ensuring
quality
project
outcomes
Technology
• Leveraging
current
technology
• Maximizing
technology
effectiveness
Project
Management
• Mentoring
• Issue resolution
• Scope control
• Deliverables
• Change control
• Resource
fulfillment
• Project Status
Reporting
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The Strategic
Planning Office
Vision and
Strategy
The Project
Management
Office
Portfolios,
Programs
and Projects
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“Ultimately, project governance is the responsibility
of the board of directors and executive management.
It is an integral part of enterprise governance and
consists of the leadership and organizational
structures and processes that ensure that the
organization’s projects sustain and extend the
organization’s strategies and objectives.”
ITGI document: Board Briefing on Governance
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Enterprise
Governance
Project
Governance*
Operating
Departments
Senior
User
* = Level of Project
Governance staffing tied
to project visibility and
delegation of authority
QA
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CEO
Senior
Business
COO
Senior
Technical
Project Manager
PMO
Project Team
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… and commitment
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BUSINESS
STRATEGY A
BUSINESS
STRATEGY B
TOTAL COST
COST
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PROGRAM X
BUSINESS
STRATEGY C
PORTFOLIO B
BENEFITS
TOTAL BENEFITS
COST
PROGRAM Y
BENEFITS
$
PROJECT 1
$
$
PROJECT 4
$
$
PROJECT 2
$
$
PROJECT 5
$
$
PROJECT 3
$
$
PROJECT 6
$
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Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Execute the Business Plan and the I.T. Plan
Prepare/
Review
Strategic
Business
Plan
Develop
Tactical Plan
from the
Project
Portfolio
Performance (Monitor/Evaluate/Report)
Prepare/
Review
Project/
Programs
Portfolio
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Submit
Tactical Plan
to the PMO/
Budgeting
Process
Determine
Required
Changes to
the Planning
Process
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Project Initiation
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Business Strategy Definition
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Portfolio Development/Alignment
◦ Identify Programs / Projects
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Project Closure
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Major Steps:
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Industry Analysis
Organization Analysis
Business Unit Analysis
Organization Infrastructure Analysis
Business Strategy Definition and Review
Definition of Portfolios of Programs and Projects
Alamo PMI 2nd Annual
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Major Deliverables:
◦ Industry Components, Trends and SWOTs
◦ Organization and BU Culture, Trends,
Mission, Vision, Objectives, Critical Success
Factors and SWOTs
◦ BU Significance and Financial Analysis
◦ Activity and Information Needs Analysis
◦ Business Strategy
 Vision, Mission, Long-Term Objectives,
Strategies, Goals, Critical Success Factors
◦ Portfolios of Programs and Projects
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Executive Overview
Current situation analysis for the
organization and its stakeholders
Definition of business strategies and
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supporting projects
Prioritized projects and description
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Financial and tactical plans
Elapsed time to develop?
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Issue # 1 – How long does it take to develop
the strategic plan?
Issue # 2 – How much will it cost to develop
the strategic plan, if led by an external
consulting group?
Issue # 3 – How long will this strategic plan
remain current?
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As the world continues to accelerate…
As the current business climate demands
quick action…
As new strategies are required almost on a
daily basis…
…Can we do things faster? Can we develop a
strategic plan in 2-3 days?
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JAD (Joint Application Development) is a
structured meeting, conducted by a neutral
facilitator, designed to extract high-quality
information from the meeting participants,
using a compressed timeframe and a
workshop environment to enhance the
process.
JAD strongly complements, but does not
replace, analytical methodologies.
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Structured Agendas-The Standard
JAD Agenda
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Introduction
Review Purpose, Scope, Objectives
Ground Rules
Executive Sponsor Kickoff
I.T. Perspective
[ Session Approach ]
Review Issues
Review Design
Evaluate Workshop
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Structured Agendas - A few JAD
Session Approaches
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Strategic Business Planning Approach
Business Reengineering Approach
I.T. Planning Approach
Project Scope Definition
Project Requirements Definition
Project Management
◦ Delphi Estimating Sessions
◦ Detailed Project Planning Sessions
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And many more…
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Structured Agendas
Strategic Business Planning
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Define Vision and Mission of activity
Define Guiding Principles
Analyze current situation
Analyze competitive situation
Define Objectives and Goals
Develop Business Strategies
Define Critical Success Factors
Design Programs, Projects and Resources
Describe support Organization
Define follow-on activities
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Vision/Mission Definition
Barriers to Entry
Opposing Forces
Stakeholder Analysis
Strengths, Weaknesses, Opportunities
and Threats (SWOT)
Balanced Scorecard
F.I.S.T.
Value Chain Analysis
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Set of operationally meaningful statements
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Focuses on what the organization wishes to become
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Takes into consideration matters of strategic
importance:
◦ Mission
◦ Driving Force
◦ Stakeholders
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What is the thrust or focus for future business
development?
What is the scope of products, services and markets
that will --- and will not --- be considered?
What is the future emphasis or priority and mix for
products, services and markets that fall within that
scope?
What key capabilities are required to make the vision
happen?
What does this vision imply for growth and return
expectations?
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Definition:
- What needs is the organization trying to fill?
- Who are the primary stakeholders?
- How do we do our business?
- What are our philosophies and core values?
- What makes us distinctive and unique?
Purpose:
- To provide focus and direction to the business
- To specify the purposes of the organization and the
primary rules that guide it
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VISION
To be recognized as a valued partner in driving Texaco’s growth
and profitability through excellence in information services.
MISSION
Our Mission is To Provide Texaco and its Affiliates with:
Information Architecture Standards
World class network and computing environment
Value added information solutions
Effective transfer and sharing of Information Technologies across entities
Strategic workforce planning for information professionals
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Equilon and Motiva Sales and Marketing
Our Vision
To be the leader in fuel and convenience marketing
Equiva Services Sales and Marketing
Our Mission
Assist the Alliance in becoming the convenience
marketer of choice
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Structured Agendas
Strategic Business Planning
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Define Vision and Mission of activity
Define Guiding Principles
Analyze current situation
Analyze competitive situation
Define Strategic Objectives and Goals
Develop Business Strategies
Define Critical Success Factors
Design Programs and Resources
Describe support Organization
Define follow-on activities
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Guiding Principles are statements of
belief which define the philosophies of
the organization and how the group will
work in order to support the mission
statement of the organization.
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We will support each other in striving towards our goals.
We believe that people and their knowledge are our
most valuable assets.
The desire for continuous quality improvement will
drive our every action.
We will lead by example.
We will provide guidance to our customers in
understanding and implementing continuous quality
improvement.
We will continuously improve the products and services
we provide.
We will focus on our vision, but not lose sight of the
details required to accomplish it.
We believe that team management is the best vehicle for
implementing continuous quality improvement.
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Structured Agendas
Strategic Business Planning
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Define Vision and Mission of activity
Define Guiding Principles
Analyze current situation
Analyze competitive situation
Define Strategic Objectives and Goals
Develop Business Strategies
Define Critical Success Factors
Design Programs and Resources
Describe support Organization
Define follow-on activities
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Current Situation Analysis
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Competitive Situation Analysis
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Value Chain Analysis
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Five Forces Analysis
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SWOT Analysis
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Strengths of the organization (internal)
Weaknesses of the organization (internal)
Opportunities for the organization (external)
Threats to the organization (external)
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Strengths
• Fully developed network plan
• Broad based risk portfolio of businesses (i.e., unbranded fuel
sales to fast food)
• Strong, national brands which currently command a “majors”
price premium
• Network provides competitive cost and customer access
advantages
Opportunities
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Leverage assets to provide new revenue
streams with improved income resiliency
Market share provides scale for alliances
with others
Strategic wholesale joint ventures
Weaknesses
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Business performance subject to the
instant volatility of the spot market
High dependence on fuel margin
Channel flexibility is limited and movement
is slow
Age and size of sites not easily adaptable
to fuel margin decline
Threats
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Supermarket expansion will continue with
attendant cost structure advantages
Fuel is becoming commoditized in the
minds of most consumers
Recent industry mergers pose new
efficiency/effectiveness challenges
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Value Chain Analysis
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Think about an organization as a big input/output process
At one end, supplies (input) is brought into the system
At the other end, goods and services are sold (output)
Inbound
Logistics
Operations
Outbound
Logistics
Sales &
Marketing
Service
• Throughout this process are opportunities for people
to add value to the organization
• By bringing in supplies more efficiently
• By selling more products, etc.
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Value Chain - Manufacturing
Margin
Administration and Firm Infrastructure
Human Resource Management
Support
Activities
Technology Development
Procurement
Primary
Activities
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InBound
Logistics
Operations
OutBound
Logistics
Marketing
And Sales
Services
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Margin
Administration and Firm Infrastructure
Human Resource Management
Support
Activities
Technology Development
Procurement
Primary
Activities
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Service Preparation
Service Delivery
Service
Follow-Up
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Structured Agendas
Strategic Business Planning
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Define Vision and Mission of activity
Define Guiding Principles
Analyze current situation
Analyze competitive situation
Define Strategic Objectives and Goals
Develop Business Strategies
Define Critical Success Factors
Design Programs and Resources
Describe support Organization
Define follow-on activities
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Strategic Objectives are statements of positions
to be reached or purposes to be achieved. They
answer the question “where do we want to go?”
They should be consistent with the intent and
purpose of the mission and vision statements.
Strategic Objectives should be challenging, yet
achievable, guides that set criteria for selection
of alternatives among possible courses of
action. They should not specify a specific
course of action, like a goal.
Objectives can be distinguished from goals by
the following example:
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One of John F. Kennedy’s strategic objectives in
1960 was to reestablish the USA’s position as a
leader in the fields of science and technology;
one of his goals was to land a man on the
moon and return him safely by 1970.
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Have dominant market share for all refined oil
products
Be recognized as the premier provider of Project
Management training and consulting services.
To constantly be in the process of developing
and integrating appropriate new quality
improvement methodologies.
Have in place an organizational culture where
people find quality improvement and customer
focus fulfilling and rewarding.
Grow international presence in lubricants market
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Goals are specific accomplishments for the
organization to achieve in moving from the current
situation towards the identified strategy.
Goals define where the organization wants to go and
when it wants to be there.
Goals define the gaps that the organization’s
activities must bridge if they are to meet their
strategies and thereby their objectives.
Each goal should have a specific date and
deliverables associated with it.
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1. By June 1, 2010 have completely revamped
training materials and classes.
2. By the end of April, 2009, have completed
support documentation (slides, handouts,
agendas, etc.) for SBP and ISP sessions.
3. By September 1, 2009, document alternative
resources needed to meet the needs of
customers.
4. By December 31, 2009 have negotiated SLAs
with 50% of our current customer base.
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Structured Agendas
Strategic Business Planning
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Define Vision and Mission of activity
Define Guiding Principles
Analyze current situation
Analyze competitive situation
Define Strategic Objectives and Goals
Develop Business Strategies
Define Critical Success Factors
Design Programs and Resources
Describe support Organization
Define follow-on activities
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Strategies answer the question, “How do we get where we
want to go?”.
Strategies further refine objectives by identifying specific
means of supporting the strategic objective; however, they do
not identify specific tasks or establish time-frames for
completion. Rather, strategies define how the organization is
going to accomplish the objective.
Strategies focus on the opportunities and threats in the
corporation’s relationship to the environment and on the
strengths and weaknesses in the internal operations of the
company.
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Some strategy areas that an organization can pursue
include:
Product and Markets:
- Improve existing products and services
- Develop new products in existing product lines
- Develop new product lines
- Withdraw low-revenue products
- Expand market share
- Seek new or associated markets
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Manufacturing:
- Transfer programs from development to manufacturing
- Expand existing facilities
- Buy new equipment
- Develop new manufacturing technologies
- Decrease manufacturing costs
Marketing and Sales:
- Undertake new or revised market studies
- Change sales and advertising budgets
- Change pricing structure
- Modify distribution system
- Add or drop geographical areas of sales
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Structured Agendas
Strategic Business Planning
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Define Vision and Mission of activity
Define Guiding Principles
Analyze current situation
Analyze competitive situation
Define Strategic Objectives and Goals
Develop Business Strategies
Define Critical Success Factors
Design Programs and Resources
Describe support Organization
Define follow-on activities
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Critical success factors are all those
factors needed to realistically achieve
strategies and strategic objectives.
The absence of the necessary CSFs
could easily delay, hamper or totally
prevent a goal from being achieved in
the stated time frame
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Sufficient budget available
Having the right expertise
Completion of another project
Reduced product costs
Consensus on a standard Service Level
Agreement.
Weather
The economy
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Strategic
Objective
Strategy
Goal
Improve existing products/services.
By June 1, 2010 have completely revamped training materials
and classes.
CSF
Sufficient budget available for advertising.
CSF
Must hire people experienced at developing class material.
Strategy
Implement Service Level Agreements with new and existing
customers.
Goal
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To be recognized as the premier provider of Project
Management training and consulting services.
By December 31, 2009 have negotiated SLAs with 50% of our
current customer base.
CSF
Reduce product costs.
CSF
Consensus on a standard Service Level Agreement.
CSF
Sufficient budget available for development and negotiation.
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Project Portfolio Prioritization Matrix
Project Name/Business Strategy: _Expand use of Web solutions______
Business Project Manager: ___Bill Jones__________________________
I.T. Project Manager: ___Carl Roecker_____________________________
As Of Date: _ 10/15/2010________ Strategic Priority: ______2________
Market Share
Profitability
Initiative creates
profitability to organization
Does not improve
service
0
Less than $1M in first
year
Greater than $2M in
first year
1
2
Less than $5M in
first year
3
New industry
product
4
Industry leader
5
Initiative increase
product or service
market share
Does not improve
Market Share
78
0
Strong potential to
increase Market Share
somewhat over next 2 1
years
Strong potential to
increase Market
Share somewhat
over first year
2
New industry
product
3
Significant impact
right away
4
Market Owner
10 x .4 = 40
Infrastructure
12 x .3 = 36
Reduce Costs
Initiative improves
organization infrastructure
5
Does not improve
Infrastructure
Reduces cost
somewhat of
existing
infrastructure
Reduces cost
moderately of
existing
infrastructure
Reduces cost
significantly of
existing
infrastructure
Provides
competitive
advantage
Industry Leader
5 x .15 = 75
Mandated
Initiative enables
organization to compete
Initiative is required
0
Does not improve
competition ability
0
Initiative is not
mandated
State mandated
1
Improves somewhat
ability to compete
1
within fiscal year
1
Federally mandated
within Fiscal Year
2
High risk of State
penalty if not
implemented in fiscal
year
3
High risk of Federal
penalty if not
implemented in fiscal
year
4
Large Penalty to the
Business if not
implemented in fiscal
year.
5
2
3
Improves moderately
ability to compete
Improves significantly
ability to compete
Moderately reduces
cost to compete
2
3
4
4
5
Significantly
reduces cost to
compete
5
0
PMI_02ndx .05
Annual
4__ x .1Alamo
=4
=0
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On a major tax project, JAD sessions generated six
months worth of project documentation in 14.5 days
Major refinery identified and prioritized 24 new
information systems in 2 days
JAD brought together participants from several
locations to develop specifications for a project that
had been on the drawing board for 10+ years
Major computer manufacturer collected critical
requirements for a vital company function in 6 days
Alignment of business strategies and I.T. strategies
identified need for a major reporting project tied to a
new business initiative about to be launched
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JAD is the most effective technique we
have found in over 35 years when it
comes to strategic planning, project
scope definition, project planning, and
collecting lessons learned.
Not using JAD takes away from an
organization’s ability to be the best it
can be in truly creating and managing its
knowledge assets.
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Align portfolios with the business activities
As the business changes, update the business plans
and, consequently, re-align project portfolios
Ensure projects are viewed from their financial
perspective and contribution to the success of the
business strategies (and are not “pet“ projects)
Have the right methods and tools in place to
monitor performance of projects, alignment with
strategies, overall costs and benefits
If projects are no longer viable, trash them!
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Business/IT Steering Committee
Status Report for:
date
Sales & Marketing - All Project Portfolios
Portfolio
Business Strategy
A.
Optimize the Sales Network
B.
Reduce Cost through the Sun Study
C.
Implement a Distributed Support Model
D.
Rationalize Acquired BUs
E.
Expand the Use of Web Based Solutions
F.
Implement the Regionalization of Western Operations
G.
Reduce the Number of Wolrdwide Plants
Totals
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Total Cost Expected Benefits Overall Portfolio Status
Comments
$9999M
$99,999M
$9999M
$99,999M
Decisions pending
$9999M
$99,999M
$9999M
$99,999M
$9999M
$99,999M
Behind schedule
$9999M
$99,999M
$9999M
$99,999M
$99999M
$999,999M
Overall Risk Summary:
1. Current strategies are to be reviewed at the next Steering Council Meeting.
2. Stability of current portfolios impacted by new, emerging business strategies.
Additional Comments:
1. Portfolio F. impacted by loss of FTEs in the Western Region.
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Business/IT Steering Committee
Sales & Marketing Function:
Status Report for:
eMarketing
date
Project Portfolio Account Codes: 99999
Business Strategy Supported by this Project Portfolio: Expand the use of web solutions.
Total cost of Project Portfolio: $ 195,200
Total planned benefits for this Project Portfolio: $ .5M
New Projects
Project Name
Link to Merchandise Website
Redesign Sales Consultant Pages
SUB-TOTAL
Budgeted Amount
5,000
44,000
Expenses to Date
405
1,140
49,000
1,545
Budgeted Amount
45,100
101,100
Expenses to Date
7,643
36,743
146,200
44,385
195,200
195,200
Status
Issues this period
Behind schedule
Outlook next period
1 FTE to be added
Run and Maintain
Project Name
Enhance Broadcast Messaging
Modify/Test Release 1.7
SUB-TOTAL
PORTFOLIO TOTALS
Status
Issues this period
Outlook next period
95% Contingency used up.
Risk Analysis Summary:
1. Business liaisons for Redesign Sls Consultant Pages have not been available to the project team.
Change Requests Volume/Summary:
1. No significant change requests have been submitted during this reporting period.
Additional Comments:
1. A strategy review session will be held with the eMarketing group to confirm current direction.
Pending Projects
Project Name
Develop New Site for the Western Region
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Project Summary
Current site no longer maintainable
Total
Cost
$9,999
Benefits
$99,999
$9,999
$99,999
FTEs
Priority
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BUSINESS
STRATEGY A
BUSINESS
STRATEGY B
TOTAL COST
COST
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PROGRAM X
BUSINESS
STRATEGY C
PORTFOLIO B
BENEFITS
TOTAL BENEFITS
COST
PROGRAM Y
BENEFITS
$
PROJECT 1
$
$
PROJECT 4
$
$
PROJECT 2
$
$
PROJECT 5
$
$
PROJECT 3
$
$
PROJECT 6
$
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We absolutely have to tie all projects in our
portfolios to business strategies!
Strategies change all the time!
We need a true and tried rapid process to
develop and update our strategic plan and
align and realign projects and strategies!
We need a PMO to make all this happen or it
simply will not!
How many companies are really doing this???
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Enterprise
Governance
Operating
Departments
CEO
COO
Business Controls
Project
Governance*
Senior
User
* = Level of Project
Governance staffing tied
to project visibility and
delegation of authority
Quality Controls
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QA
Senior
Business
Senior
Technical
Project Manager
PMO
Project Team
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Business Controls
(Management)
Business and Quality Controls
Application Area Process
(Seismic, Drilling, Plant Dev., etc.)
- Resources
- Schedule
- Cost
PM Process
IPECC
IPECC
IPECC
IPECC
Technical
Tasks
Technical
Tasks
Technical
Tasks
Technical
Tasks
Post-Project
Review
Techniques
Quality Controls
(Technical)
- Product Quality
- Technical Standards
Tools
= Compulsory End-Stage Assessment Meeting
Stage 1, 2, 3, 4…
(for example: Initiation, Development,
Implementation, Closure)
= Quality Review Meetings
(Scheduled as needed by Project Type,
Activity Type, Deliverable Type
= Compulsory Quality Review Meeting
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Governance
Review
Board
Enterprise
Strategy
Governance
Review
Board
Feedback
Direction
Continuous Loop of Direction,
Validation and Adjustments
Business Unit
Delivery Strategy
Prioritization
Feedback
Program/
Project
Managers
Project
Management
Office
QA/QC
Project Status Reports, Time
Sheets, Project Schedules
Courtesy of Steve Rollins, PMOUSA
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Feedback
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“Strategy has never been more important,” –
Business Week.
“Less than 10% of strategies are effectively
executed,” – Fortune
“If you’re not managing to a strategy, than
what are you doing?”
“In the majority of failures – we estimate 70%
– the real problem isn’t bad strategy, it’s bad
execution.” – “Why CEO’s Fail,” Fortune
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“You may have sweated bullets to come up with a great
strategic plan, but the really hard part is yet to come: actually
implementing your plan for strategic change. For a plan to
succeed, you’ve got to successfully orchestrate and direct a
diverse range of people, resources, programs and actions over a
sustained period of time and across numerous organizational
boundaries. It’s difficult, complicated work that allows for no
shortcuts and no compromises.”
C. Davis Fogg
Implementing Your Strategic Plan:
How to Turn “Intent” into Effective Action for Sustainable Change
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In the end, it’s all about people and how
they are organized and professionally
“nurtured”
Set accountability
Fix the organization
Enable and align
Provide an environment in which people can
excel
◦ Judge and reward
◦
◦
◦
◦
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1. Setting accountability
5. Judging and rewarding
Key 17: Review performance
Key 18: Reward strategic results
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4. Providing an
environment in which
people can excel
Key 13: Empower execution
Key 14: Select, train and develop for
the future - now
Key 15: Fix broken core processes
Key 16: Communicate to everyone
all o f the time
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Key 1: Develop an accountability
system
Key 2: Turn strategic priority issues
into assigned, measurable
action plans
Key 3: Embed departmental planning
Key 4: Negotiate individual
accountability
2. Fixing the organization
3. Enabling and Aligning
Key 10: Define the future culture
Key 11: Allocate resources effectively,
putting your money and people
where your future is
Key 12: Align your organization’s work
with the plan – from top to
bottom
Key 5: Change the organization
structure - fast
Key 6: Change the people - fast
Key 7: Foster creative leadership and
mental toughness
Key 8: Remove resistance
Key 9: Use teams (appropriately)
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Are we implementing the strategic plan
effectively (and who is doing this)?
Are we managing our portfolios, programs
and projects effectively (and who is
checking)?
Are they aligned with our business strategies
(and who is looking)?
How do we know if we’re really doing well or
not, on an ongoing basis (and who is
worrying about it)?
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In a global survey of 750 project management office (PMO) leaders, 68%
reported having no systematic method to prioritize projects or link them to
corporate strategy.
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488 Best
Practices
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The assessment tool must be effective and
allow for quick results
All companies assessed so far have failed to
score higher than 39% (on a 0 to 100
continuum)
Conducting OPM3 assessments periodically
does give the PMO an opportunity to show its
value to senior management
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1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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Specific project management training continues
Effectiveness of agile development challenged
Project management expands beyond project
managers
Larger projects hold challenges
Project managers pushed to innovate
Project manager certification upgrades
Vendor management becomes a priority
Project management offices further strained
Funding pressure increases portfolio management
Agile development gains popularity to cut project
times
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While project management offices exist to
improve project performance, businesses
rarely grant those offices the resources
needed to do so.
That, combined with increasing pressure to
perform, will strain and break many project
management offices.
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Portfolio management is more than a
prioritization exercise.
It is the culminating activity in competitive
strategy where executives have identified the
programs and projects that will turn their
intentions into reality.
We are witnessing more companies investing
in IT and process improvement to get a
better handle on all of the project-based
investments occurring across their business.
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And they are tweaking — and in some cases
overhauling — their portfolio management
approach to make sure it is the best it can be.
Many organizations will continue to develop a
portfolio hierarchy at the division, business
unit, regional, and corporate-wide levels.
This will require substantive expertise in
portfolio management principles and practices,
and a healthy dose of diplomatic and political
skills to get everyone headed in the same
direction.
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Strategic
Business
Planning
Project
Management
Office
Strategic
IT
Planning
Business
Process
Reengineering
Project
Portfolio
Management
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Maturity
Models
Projects
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Strategic
Business
Planning
Project
Management
Office
Strategic
IT
Planning
Business
Process
Reengineering
Project
Portfolio
Management
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Maturity
Models
Projects
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A Model 3 PMO is a necessity not a luxury
The PMO has to adopt JAD as a most effective
technique (speed/accuracy) for strategic planning
and project requirements/scope definition
Constant realignment of business strategies and
programs/projects is most desirable and should
not be viewed as a disruptive activity
PMO needs to adopt OPM3 to assess the
effectiveness of Organizational Project
Management and to produce “survival” metrics
Culture Change Management is key!
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"Nothing is more difficult than to introduce a
new order. Because the innovator has for
enemies all those who have done well under
the old conditions and lukewarm defenders in
those who may do well under the new”
(Nicolo’ Machiavelli, 1513 A.D.)
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Who Survives?
Not the strongest
Not the most intelligent
Those most responsive to change
(Charles Darwin)
The ones who can deal
with the unexpected
(Walter Viali)
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Everyone Must Be On The Same Page…
The Arthur Andersen partner was on his cell
phone, when he said,
“Ship the Enron documents to the Feds,”
But his secretary heard,
“Rip the Enron documents to shreds.”
It turns out that it was all just a case of bad
cellular.
Sprint PCS
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The clear alternative to cellular
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Four video clips to convey the importance of
critical resources on projects.
Make sure the Strategic Business Plans take
into account the need for the proper levels of
critical resources.
At the project level, have a Plan “B”, agreed
to upfront with the sponsor, in case critical
resources vanish!
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Walter A. Viali, PMP
PMI Region 6 Mentor
713-252-9722
viali@earthlink.net
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