PPTX - Texas Department of Information Resources

lapclassManagement

Nov 6, 2013 (3 years and 5 months ago)

46 views

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us
e o
f the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally prote
cte
d, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.

© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

Robert Handler

Vice President

Gartner Research

EPMO


A Tool For The New
Normal

Successfully Navigating the New
N
ormal
R
equires
an
Adaptive Strategy

Government,

regulatory bodies

Labor supply


Internet

Economic climate

Levels of

unemployment

Competitors

Suppliers

Markets, clients, customers

Globalization of trade

Technology

Information systems

Financial institutions

Political ideology

Taxes and tax revenue

Slow and Steady Doesn't Win the Race
Any More

The Future Requires Building the
Adaptive Organization


Current approaches
to work need to
accelerate


Scanning (sensing)
needs to become an
art form


Context (what, why,
how) becomes the
GPS system for the
enterprise


Understanding of
capabilities becomes
a lifeline for rapid
response





The EPMO Enables The Adaptive
Organization

By 2015, 60% of the Fortune 1000 will establish an EPMO to
improve the value created by investments in projects and
programs.

Supporting the Strategic
Planning Assumption:


With continued pressure on
financial accountability,
organizations will require
enterprise
-
level visibility of where
their money is going


Continued problems with project
coordination across silos will
further fuel the need for enterprise
visibility and coordination of
programs and investments

Alternate position to the
Strategic Planning Assumption:


Organizations have the structure
that suits their real objectives. A
strong PMO is often perceived as
a threat to other senior managers.


Most PMOs are in IT


a weak
PMO operating in a weak
matrixed management
environment allows the squeaky
wheel to get
greased
.

Key Issues

1.
What is an Enterprise Program/Portfolio
Management Office?

2.
Critical steps toward the EPMO?

3.
Example case study

Defining the Enterprise PMO

If you are a PMO in IT

Does not make you an EPMO

Enterprise

adding the word

In Uncertain Times, Executives Often Require a Dedicated
Staff Function to Help Navigate the Choppy Waters


Top Management
becomes more involved
when:

-
The current business model
of the enterprise is under
attack.

-
It's clear that long
-
term
viability of the enterprise is in
jeopardy.

-
Planned growth is so
significant someone needs
to keep an eye on things.


Top Management tends to
leave well enough alone
when the "outlook" is
stable.

The Four Styles of Enterprise Program
Management Offices

Strategic
EPMO

Business
Transformation
Office

Reporting
EPMO

Operational
EPMO

Transformation

Stability

Facilitating

Controlling


Supports executive
needs for visibility of
what is happening in
the organization


Primarily fiduciary in
orientation

Mantra

“We don't care how you
do it


just tell us you
are getting it done"


The Reporting EPMO
(Facilitating Stability)


Centralizes ALL project
and program execution
across the enterprise


Generally has staff in
the 100s


Focused on the
"production of projects"

Mantra

“We only do one thing but
we do it very well"

The Operational EPMO
(Controlling Stability)

The Three Types of Strategy

Top Down

Middle Out

Emergent


Ensures that top down
strategy gets
executed


A small group of
specialists that
facilitate agreement
about what to do and
how to do it.

Mantra

"It's all about realizing
the value of our
strategy"

The Strategic EPMO
(Facilitating Transformation)


Facilitates the creation of
a new "organization" or
the evolution into a new
market


Focused on building the
"web" of relationships
necessary to support
change

Mantra

“This is how a caterpillar
becomes a butterfly”

Business Transformation Office (BTO)

(Controlling
Transformation)

Photo: Lancaster County
Amish by
it:Utente:TheCadExpert

|
CC 3.0 BY
-
SA

Key Issues

1.
What is an Enterprise Program/Portfolio
Management Office?

2.
Critical steps toward the EPMO?

3.
Example case study

Understand What is Driving the Need for
an EPMO

Survival
Induced
Change

Strategy
Induced
Change

Run the
Business

Planned
Improvements

Stabilizing

Adapting

External/Planned

Internal/Reactive

Decide what the "P" in "EPMO"

Stands For?


The “P” always stands for
some form of Portfolio
management (reporting or
investment decisions)



In more mature
environments EPMO the
"P“ stands for "Program



At the highest level of
organizational maturity
"Project culture and an
enterprisewide project
capability is added




Project

Capability

Program

Portfolio

Build the Project Capability Center

Skills


Methodology training


Performance
-


based competencies


Project management

training (soft skills)

Methodology


Project methodology


Program methodology


Portfolio methodology


Resource management

Tools


Project scheduling


Project Web sites


Resource scheduling


Collaboration

Community


Building a project culture

(performance, results,
trust)


Sharing tacit knowledge

Mentoring


Transforming project
managers into project
leaders


Creating high
performing teams

The Goal of the Project Capability Center is to ensure that the
ability to successfully execute projects is a core capability of
the enterprise

Knowledge
Management


Lessons
Learned


Best
Practices


Sharing tacit knowledge

Key Issues

1.
What is an Enterprise Program/Portfolio
Management Office?

2.
Critical steps toward the EPMO?

3.
Example case study

Example case study
-

Fifth Third
bank



(NASDAQ


FITB)

Fifth Third Bank


Founded in 1862


Headquartered in Cincinnati, Ohio.


Fortune 500
-

#326


Over $5 B in Revenue


Over $12.3 B Market Capitalization


Over $274 B in Assets under care

Super Regional Bank


Commercial Banking


Branch Banking


Consumer Lending


Investment Advisors


49% interest in Fifth Third Processing Solutions/

Lines of Business


>1,300 full
-
service banking centers (>100 Bank Marts)


>2,450 ATMs


12 States: Ohio, Kentucky, Indiana, Michigan, Illinois,
Florida, Tennessee, North Carolina, West Virginia,
Pennsylvania, Missouri, and Georgia.

Affiliate Model (15 Affiliates)

Problem


Project redundancies

“Silo
-
ed” Operational Model (by LOB/by
Affiliate)


Viewed strictly as an enforcement agency


Adoption challenges

PMO = IT Governance


Enterprise Risk’s NPI (New Product & Initiative)

= Business Case justification + Risk Identification Questionnaires


Finance’s AR (Appropriation Request)

= Business Case Justification + Capitalization Worksheets


IT Architecture’s ITAC Review

= Business Case Justification + Architecture Questionnaires

Redundant/inefficient approval &
prioritization of initiatives

Results


Health


On
-
time Delivery


Executive Dashboards

Over 900 Active Projects


Reviewed & prioritized by Tier 1 / Tier 2

Over 900 Projects Proposals


Delegation of Toll Gate Audits except for the Top Level of Rigor

IT Compliance self
-
regulation


Paid U.S. Treasury back $ 3.4 B

5/3 emerged from TARP in Q1 2011


Only 3 U.S. Banks made it in the Top 20

2011 Bloomberg’s World 7
th

Strongest Bank


Understand your environment
and pace of change


Consider the EPMO as a
proven tool to embrace change
in the new normal


Select a model that meets your
needs


Ensure the basics exist with a
project capability center




Final Thoughts

Recommended Gartner Research


Predicts 2013: PPM Leaders Must Embrace Constant
Innovation and Change

Handler, Fitzgerald, Light, Apfel, Mieritz, Olding & Hanford
(G00239711)


Deciding Which of Four EPMO Styles Is Right for Your
Organization

Fitzgerald & Hanford (G00239503)


PMO Versus EPMO: Symbiosis or Open Warfare

Fitzgerald & Hanford (G00236018)


The Enterprise PMO: An Emerging Force in

Strategy Realization

Donna Fitzgerald (G00200779)


Is Your Organization Ready for an Enterprise PMO?

Donna Fitzgerald (G00219055)


This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us
e o
f the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally prote
cte
d, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.

© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

Robert Handler

EPMO


A Tool For The New
Normal