karl riley pwc analysis from their 4th global ppm

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?

2

April 2015APM: Portfolio Management SIG

PwC

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…

(%)

3


PwC

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.

4


PwC

The Global PPM Survey shows that familiar issues still are not being addressed

Why change how programs are delivered?

5


PwC

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

6


PwC

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.

7


PwC

Theme 2Be flexible, change faster


• 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.

8


PwC

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.

9


PwC

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.

10


PwC

Theme 5Measure and address the hard facts to maintain direction


• 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.

11


PwC

The Global PPM Survey illustrates that there is often a disconnect between the Executive Team and the PMs

Why change how programs are delivered?

12


PwC

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

13


PwC

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

14


PwC

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


(%)


When you commission change, to what extent are business outcomes clearly defined and measurable?

15


PwC

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


(%)

How well is your organisational strategy delivered through change activities?


16


PwC


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

17

April 2015

PwC


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

18

April 2015

PwC


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

19

April 2015

PwC


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

20

April 2015

PwC

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

21


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

accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members,

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

http://www.pwc.com/structure

mailto:[email protected]

karl riley pwc analysis from their 4th global ppm

Education