the modern program management office new goals, new organization aligning goals with reality...
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The Modern Program Management Office New Goals, New OrganizationThe Modern Program Management Office New Goals, New Organization
Aligning Goals with RealityAligning Goals with Reality
Presentation to PMI Fairview ParkBy Mike NelsonNoblisJanuary 21, 2009
BackgroundBackground
• Today’s presentation is based on the article published in “Inside the Modern Program Management Office” Sigma issue
• Sigma is a Noblis Technical Journal and the PMO issue published in October 2008
• Several other articles from the issue to be featured in presentations throughout 2009 at PMI Fairview Park
• Sigma PMO issue available at no cost in the printed version, online at http://www.noblis.org/4399.htm and audio recordings of the articles are on iTunes
Presentation TopicsPresentation Topics
• Description of a the Program Management Office• The Federal PMO• Organizational Change• Alignment of Interests• Conclusion
Description of the PMODescription of the PMO
Background on the PMOBackground on the PMO
• What is a PMO? – there are many acceptable definitions– Project/Program Management Office– Portfolio Management Office
• PMOs are positioned on a continuum between– Facilitating– Controlling
• Purpose and scope of the PMO– Management and coordination of multiple projects– Identification and meshing of relevant
methodologies and knowledge domains towards an organization’s strategic objectives
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Why PMOs?Why PMOs?
• Change in American and International business organizational structures– Matrix organizations– Specialization of labor, function, companies
• Supply Chain Management and Enterprise Resource Planning (ERP) initiatives
• Modularity• Outsourcing
• As these trends continue, the fact remains that despite the challenges – the attraction of potential efficiencies (profits) - continue to lead business in the direction of greater specialization
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
The Federal PMOThe Federal PMO
PMOs as the Federal ResponsePMOs as the Federal Response
• The PMO aims to manage processes and activities that support single or multiple projects
• Leveraging the PMO as a center of excellence within agencies is a smart tactical and strategic move towards sustainable process improvement
• Newly trained project management professionals have formed a federal management layer with the necessary expertise
• Deploying an effective PMO requires organizational change – ignoring this reality jeopardizes the PMO’s potential effectiveness
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Other Duties as Assigned…Other Duties as Assigned…
• Federal PMOs also
– Handle OMB Exhibit 300’s and Capital Planning and Investment Control Process (CPIC)
– Performance management and strategic initiatives that support the President’s Management Agenda
– Requirements for the creation of a common and interdependent Federal information architecture
– Procurement and source selection activities
– Responses to Congressional inquires
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
A person who has committed a mistake and doesn't correct it, is committing another mistake. - Confucius
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Project FailureProject Failure
• Discouraging statistics about project failure– 69 percent of Information Technology projects fail
according to the 1995 Chaos Report– 61 percent of Information Technology projects
analyzed were deemed “failed or failing” in the 1997 KPMG Canada Survey
– 78 percent of projects were perceived as delivered late or with cost overruns in a 2008 survey of medium and large mortgage origination firms
• Enterprise Resource Planning Initiatives – 51 percent of survey respondents to the 2001
Robbins-Gioia Survey viewed their ERP implementation as unsuccessful
– However, 56 percent of respondents indicated that their organization had a PMO in place and of those individuals only 36 percent felt the ERP implementation was unsuccessful
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Project Failure continuedProject Failure continued
But are all these examples really project failures?
In “Debunking IT Project Failure Myths” a Forrester article by Lewis Cardin, he states:
– IT execs often get held to initial project estimates – regardless of any events and changes which occur
– Stakeholders have a lack of insight, interest and/or involvement in the project management
– Unresponsive project governance and unrealistic project plans and objectives result in projects scored as “failed” –regardless of what success was achieved
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Project Failure continuedProject Failure continued
• Although difficult to evaluate empirically, it is likely that proper empowered, supported, and functioning PMOs can mitigate project “failure”
• The solution is not haphazard fielding of a organizational entity labeled “The PMO” complete with marching orders and walking away
• Extend the reach of your project, program, division or enterprise by co-opting the concepts of Organizational Change
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Organizational ChangeOrganizational Change
By nature, people are nearly alike; by practice, they get to be wide apart. - Confucius
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
What is Organizational Change?What is Organizational Change?
• Organizational change attempts to fundamentally alter processes, objectives, and purposes of organizations
• Organizational change is not linear, nor predictable
• Organizational change is very “biological”– Life (and organizations) have patterns,
structure and processes– It is no coincidence that organizational
change depends strongly on people given the “organic roots”
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Success FactorsSuccess Factors
• No substitute for people management– Consider interests of all stakeholders, especially team
members– Consider the usage of interpersonal dynamics
methodologies or toolsets – such as Elias Porter’s Strength Deployment Inventory (SDI)
• Balance of Leadership and Management– “Leaders are people who do the right thing; managers
are people who do things right” – Warren Bennis
• Embrace the power of change– Evaluate your plans, directions and observable facts
through this prism– Institute Organizational Change methodology and
practices on a strategic level – or within your scope of influence
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Tichy Organizational Change ModelTichy Organizational Change Model
• Noel Tichy developed the TPC Framework Organizational Change Model in 1983
• The “TPC” stands for Technical, Political, Cultural – the core systems of a business practice
• Tichy’s belief that these systems needed to be aligned with organizational components
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Tichy’s Organizational Change ModelTichy’s Organizational Change Model
• Organizations utilized Tichy’s TPC to score their organization’s alignment and need for organizational change
• Tichy referred to the Organizational Components as “change levers”• Score across and down for insight to within system alignment and
required organizational change
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Kotter Organizational Change ModelKotter Organizational Change Model
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Establish a Sense of Urgency1Creating the Guiding Coalition2
Developing a Vision and Strategy3Communicating the Change Vision4
Empowering Broad-Based Action5Generating Short-term Wins6
Consolidating Gains & Producing More Change7Anchoring New Approaches in the Culture8
• Examine market and competitive realities
• Identifying and discussing crises, potential crises or major opportunities
• Putting together a group with enough power to lead the change
• Getting the group to work together like a team
• Creating a vision to help direct the change effort
• Developing strategies for achieving that vision
• Getting rid of obstacles• Changing systems or structures
that undermine the change vision
• Encouraging risk taking and nontraditional ideas, activities and actions
• Using every vehicle possible to constantly communicate the new vision and strategies
• Having the guiding coalition role model the behavior expected of employees
• Creating better performance through customer and productivity oriented behavior
• Articulating the connections between new behaviors and organizational success
• Using increased credibility to change all systems, structures and policies that don’t fit
• Hiring, promoting, and developing people who fit
• Reinvigorating the process with new projects, themes and change
• Planning for visible improvements in performance or “wins”
• Creating those wins• Visibly recognizing and
rewarding people who made the wins possible
Translating from Strategic to TacticalTranslating from Strategic to Tactical
• Organizational Change Models can be effective tools from the executive level to a project manager level
• No organizational PMO? You can still adapt PMO concepts to your area of influence– Scorecarding– Alignment of Interests– Creating value
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Alignment of InterestsAlignment of Interests
The person who moves a mountain begins by carrying away small stones - Confucius
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Toolkit for Federal IT PMsToolkit for Federal IT PMs
• Individuals and ideas can be powerful– You don’t have to have a dedicated department,
budget, and software suite to implement functions and behaviors of an enterprise PMO
– Perform an “as is” of our current environment for resources, software, procedures, tools, etc
– After assessing the state of your organization, envision a “to be”
– Create a strategy using what you have to reach achievable goals
• Reference Brian Price and Dave Vera’s article, “Toolkit for Federal Information Technology Project Managers” in the Sigma PMO issue
• Access the electronic article at http://www.noblis.org/4399.htm
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
The Power of NegotiationThe Power of Negotiation
• Claiming versus Creating Value• Approach to “Creating Value”
– Preparation before entering negotiations• Calculate your BATNA (Best Alternative To a
Negotiated Agreement)• Analyze your own and your counterpart’s interests
– During negotiations by comparing and contrasting interests by:
• Risk• Importance of issues• Expectations of the Future• Time Orientation
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
ConclusionConclusion
To go beyond is as wrong as to fall short. - Confucius
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
ConclusionConclusion
• PMOs are strategic solutions to enterprise challenges – however, PMO practices can also be applied on a tactical level
• Change is a concept intellectually understood, but the reality and impact of change is difficult for many people including change agents themselves!
• Harnessing change by utilizing change momentum can help achieve objectives
• Alignment of interests is critical for long term results
Description of PMO The Federal PMO Organizational Change Alignment of Interests Conclusion
Questions and Discussion
ReferencesReferences
Kotter, John, Leading Change, Harvard Business School Press, 1986.
Burke, Warner W., Organization Change, Sage Publications, Inc, 2002.
Fisher, Roger and Ury, William, Getting to Yes, Penguin Books, 1991.
Porter, Elias H., Strength Deployment Inventory Awareness Theory, Personal Strengths Publishing, 2005.
Many additional references utilized from the reference list in Sigma Article - The Modern Program Management Office: New Goals, New Organization, Sigma, 2008.