Post on 24-Dec-2015
Alamo PMI 2nd Annual Right Arm Day
Walter A. Viali, PMPRegion 6 Mentor
PMI
Strategic Planning – Shaping the Project Slate
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Alamo PMI 2nd Annual Right Arm Day
My Background… 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………………….
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Alamo PMI 2nd Annual Right Arm Day
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!
Alamo PMI 2nd Annual Right Arm Day
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
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, 2011Registration 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.
.
VI
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Alamo PMI 2nd Annual Right Arm Day
What We’re Going to Talk About
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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Alamo PMI 2nd Annual Right Arm Day
In Plain English….. 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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Alamo PMI 2nd Annual Right Arm Day
Why Plan? “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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Alamo PMI 2nd Annual Right Arm Day
What is Strategy?
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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Alamo PMI 2nd Annual Right Arm Day
What is Strategy? 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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Alamo PMI 2nd Annual Right Arm Day
From Vision to Projects
Vision
Projects
Programs
Portfolio
Strategy
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Alamo PMI 2nd Annual Right Arm Day
In Plain English….. 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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Alamo PMI 2nd Annual Right Arm Day
Completing the Big Picture
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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Alamo PMI 2nd Annual Right Arm Day
What Do We Want to Accomplish with Strategic Planning?
Establish common vision Agree on company mission Define long-term objectives Develop business strategies Define associated goals
◦ Key Performance Indicators (KPIs) Understand which programs and projects
are needed to support each long-term objective and business strategy
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Alamo PMI 2nd Annual Right Arm Day
Where Do Projects Fit in Strategic Planning?
Each project must clearly support a business strategy because◦ It consumes valuable resources◦ It costs money◦ It impacts a lot of people
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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Alamo PMI 2nd Annual Right Arm Day
The Bottom Line... 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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Alamo PMI 2nd Annual Right Arm Day
Organizational Function - The Project Management Office
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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Alamo PMI 2nd Annual Right Arm Day
Organizational Function - The Project Management Office
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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Alamo PMI 2nd Annual Right Arm Day
Project Control - Model 1◦ Plan, cost, project management schedule, resources at a project
level (ERP implementation)◦ Develops and supports project management process
Organizational Project Control - Model 2◦ Develops and supports extensive software development and
organizational processes◦ Coordinates project management, schedule and cost across the
organization 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
Project Office Models
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Alamo PMI 2nd Annual Right Arm Day
Drill Down Capability
ExecutiveManagement Project Portfolio
Database
ProcessLibrary
ResourcePool
ContractorDatabase
Business Units
PMO Tools
Training
PMO OperationsGuide
PROJECTMANAGEMENT
OFFICE
• 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
StandardReporting
Requirements
PolicyVisionStrategyBus. TrendsDirection
Projects
Status
Approvals/Adjustments/StatusBudget ProposalsBusiness CasesProject Justification
Model 3 Project Office
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Alamo PMI 2nd Annual Right Arm Day
Financial
• Budget planning
• Cost benefit analysis of projects
• Monitoring project investment
• Leveraging current technology
• Maximizing technology effectiveness
• Risk mitigation
• Ensuring quality project outcomes
• Mentoring• Issue
resolution• Scope control• Deliverables• Change control• Resource
fulfillment• Project Status
Reporting
• Resource organization/management
• Employee satisfaction/ retention
• Project Authorization
Business Strategy
Quality Assurance
Project ManagementOperations
• Mapping to business goals
• Meeting customer demands
Technology
The Project Office facilitates project success by focusing on all key aspects of a project:
PMO Focus Areas
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Alamo PMI 2nd Annual Right Arm Day
The SPO and the PMO
The Strategic Planning Office
The Project Management
Office
Vision and Strategy
Portfolios, Programs
and Projects
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Alamo PMI 2nd Annual Right Arm Day
“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
Project Governance Defined
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Alamo PMI 2nd Annual Right Arm Day
OperatingDepartments
CEO COO
SeniorUser
SeniorBusiness
SeniorTechnical
Enterprise Governance
ProjectGovernance*
Project Manager
Project Team
PMO
* = Level of ProjectGovernance staffing tiedto project visibility anddelegation of authority
QA
Enterprise and Project Governance
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Alamo PMI 2nd Annual Right Arm Day
The Processes and Techniques for Strategic Planning
… and commitment
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Alamo PMI 2nd Annual Right Arm Day
BUSINESS STRATEGY A
BUSINESS STRATEGY B
BUSINESS STRATEGY C
PORTFOLIO B
PROGRAM X PROGRAM Y
PROJECT 1
PROJECT 2
PROJECT 3 PROJECT 6
PROJECT 5
PROJECT 4
TOTAL COST TOTAL BENEFITS
COST BENEFITS
$
$ $
$
$
$ $
$ $
$
$
$
COST BENEFITS
Establishing Project Portfolios
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Alamo PMI 2nd Annual Right Arm Day
Establishing a Strat Planning Cycle
Prepare/ ReviewStrategic Business Plan
Prepare/ ReviewProject/ ProgramsPortfolio
DevelopTactical Planfrom the Project Portfolio
Submit Tactical Plan to the PMO/Budgeting Process
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Performance (Monitor/Evaluate/Report)
Determine Required Changes to the PlanningProcess
Execute the Business Plan and the I.T. Plan
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Alamo PMI 2nd Annual Right Arm Day
Using a Standard Methodology for Strategic Planning
Project Initiation
Business Strategy Definition
Portfolio Development/Alignment
◦ Identify Programs / Projects
Project Closure
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Alamo PMI 2nd Annual Right Arm Day
Business Strategy Definition (Standard Methodology)
Major Steps:◦ Industry Analysis◦ Organization Analysis◦ Business Unit Analysis◦ Organization Infrastructure Analysis◦ Business Strategy Definition and Review◦ Definition of Portfolios of Programs and Projects
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Alamo PMI 2nd Annual Right Arm Day
Business Strategy Definition (Standard Methodology)
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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Alamo PMI 2nd Annual Right Arm Day
Strategic Plan Format (Standard Methodology)
Executive Overview Current situation analysis for the
organization and its stakeholders Definition of business strategies and
supporting projects Prioritized projects and description Financial and tactical plans
Elapsed time to develop?
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Alamo PMI 2nd Annual Right Arm Day
A Few Issues 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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Alamo PMI 2nd Annual Right Arm Day
How About Some Speed?
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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Alamo PMI 2nd Annual Right Arm Day
JAD for Strategic Planning 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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Alamo PMI 2nd Annual Right Arm Day
Structured Agendas-The Standard JAD Agenda
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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Alamo PMI 2nd Annual Right Arm Day
Structured Agendas - A few JAD Session Approaches
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
And many more…
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Alamo PMI 2nd Annual Right Arm Day
Structured Agendas
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
Strategic Business Planning
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Alamo PMI 2nd Annual Right Arm Day
Many Techniques Available
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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Alamo PMI 2nd Annual Right Arm Day
Vision Statement
Set of operationally meaningful statements
Focuses on what the organization wishes to become
Takes into consideration matters of strategic importance:◦ Mission◦ Driving Force◦ Stakeholders
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Alamo PMI 2nd Annual Right Arm Day
Vision Statement 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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Alamo PMI 2nd Annual Right Arm Day
Mission Statement
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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Alamo PMI 2nd Annual Right Arm Day
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 StandardsWorld class network and computing environment
Value added information solutionsEffective transfer and sharing of Information Technologies across entities
Strategic workforce planning for information professionals
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Alamo PMI 2nd Annual Right Arm Day
Equilon and Motiva Sales and MarketingOur Vision
To be the leader in fuel and convenience marketing
Equiva Services Sales and MarketingOur Mission
Assist the Alliance in becoming the convenience marketer of choice
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Alamo PMI 2nd Annual Right Arm Day
Structured AgendasStrategic Business Planning
Define Vision and Mission of activityDefine Guiding PrinciplesAnalyze current situation Analyze competitive situationDefine Strategic Objectives and GoalsDevelop Business StrategiesDefine Critical Success FactorsDesign Programs and ResourcesDescribe support OrganizationDefine follow-on activities
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Alamo PMI 2nd Annual Right Arm Day
Guiding Principles
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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Alamo PMI 2nd Annual Right Arm Day
Examples of Guiding Principles 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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Alamo PMI 2nd Annual Right Arm Day
Structured AgendasStrategic Business Planning
Define Vision and Mission of activityDefine Guiding PrinciplesAnalyze current situation Analyze competitive situationDefine Strategic Objectives and GoalsDevelop Business StrategiesDefine Critical Success FactorsDesign Programs and ResourcesDescribe support OrganizationDefine follow-on activities
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Alamo PMI 2nd Annual Right Arm Day
Analyze Current and Competitive Situation
Current Situation Analysis
Competitive Situation Analysis
Value Chain Analysis
Five Forces Analysis
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Alamo PMI 2nd Annual Right Arm Day
Analyze Current and Competitive Situation
SWOT Analysis◦ Strengths of the organization (internal)◦ Weaknesses of the organization (internal)◦ Opportunities for the organization (external)◦ Threats to the organization (external)
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Alamo PMI 2nd Annual Right Arm Day
Strengths Weaknesses
Opportunities Threats
Leverage assets to provide new revenue streams with improved income resiliency
Market share provides scale for alliances with others
Strategic wholesale joint ventures
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
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
• 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
Sales and Marketing SWOT Analysis
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Alamo PMI 2nd Annual Right Arm Day
Value Chain Analysis 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)
InboundLogistics
Operations OutboundLogistics
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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Alamo PMI 2nd Annual Right Arm Day
Value Chain - Manufacturing
SupportActivities
Primary Activities
MarginAdministration and Firm Infrastructure
Human Resource Management
Technology Development
Procurement
In-BoundLogistics
Operations Out-BoundLogistics
Marketing And Sales
Services
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Alamo PMI 2nd Annual Right Arm Day
Value Chain - Services
SupportActivities
Primary Activities
Margin
Administration and Firm Infrastructure
Human Resource Management
Technology Development
Procurement
Service Preparation Service Delivery Service Follow-Up
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Alamo PMI 2nd Annual Right Arm Day
Structured AgendasStrategic Business Planning
Define Vision and Mission of activityDefine Guiding PrinciplesAnalyze current situation Analyze competitive situationDefine Strategic Objectives and GoalsDevelop Business StrategiesDefine Critical Success FactorsDesign Programs and ResourcesDescribe support OrganizationDefine follow-on activities
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Alamo PMI 2nd Annual Right Arm Day
Strategic Objectives 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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Alamo PMI 2nd Annual Right Arm Day
Strategic Objectives
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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Alamo PMI 2nd Annual Right Arm Day
Strategic Objectives Examples 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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Alamo PMI 2nd Annual Right Arm Day
Goals 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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Alamo PMI 2nd Annual Right Arm Day
Goals Examples
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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Alamo PMI 2nd Annual Right Arm Day
Structured AgendasStrategic Business Planning
Define Vision and Mission of activityDefine Guiding PrinciplesAnalyze current situation Analyze competitive situationDefine Strategic Objectives and GoalsDevelop Business StrategiesDefine Critical Success FactorsDesign Programs and ResourcesDescribe support OrganizationDefine follow-on activities
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Alamo PMI 2nd Annual Right Arm Day
Strategies 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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Alamo PMI 2nd Annual Right Arm Day
Strategies ExamplesSome 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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Alamo PMI 2nd Annual Right Arm Day
Strategies ExamplesManufacturing:
- 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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Alamo PMI 2nd Annual Right Arm Day
Structured AgendasStrategic Business Planning
Define Vision and Mission of activityDefine Guiding PrinciplesAnalyze current situation Analyze competitive situationDefine Strategic Objectives and GoalsDevelop Business StrategiesDefine Critical Success FactorsDesign Programs and ResourcesDescribe support OrganizationDefine follow-on activities
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Alamo PMI 2nd Annual Right Arm Day
Critical Success Factors (CSFs)
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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Alamo PMI 2nd Annual Right Arm Day
CSF Examples 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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Alamo PMI 2nd Annual Right Arm Day
Strategic Objective/Strategy/Goal/CSF Examples
StrategicObjective
To be recognized as the premier provider of Project Management training and consulting services.
Strategy
Improve existing products/services.
Goal 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 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
As Of Date: _ 10/15/2010________ Strategic Priority: ______2________
Business Project Manager: ___Bill Jones__________________________
I.T. Project Manager: ___Carl Roecker_____________________________
Project Name/Business Strategy: _Expand use of Web solutions______
Profitability Market Share Infrastructure Reduce Costs MandatedInitiative creates profitability to organization
Initiative increase product or service market share
Initiative improves organization infrastructure
Initiative enables organization to compete
Initiative is required
Does not improve service
Less than $1M in first year
Greater than $2M in first year
Less than $5M in first year
New industry product
Industry leader
0
1
2
3
4
5
10 x .4 = 40 12 x .3 = 36 5 x .15 = 75 4__ x .1 = 4 _0 x .05 = 0
Does not improve Market Share
Strong potential to increase Market Share somewhat over next 2 years
Strong potential to increase Market Share somewhat over first year
New industry product
Significant impact right away
0
1
2
3
4
Market Owner 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
0
1
2
3
4
5
Does not improve competition ability
Improves somewhat ability to compete
Improves moderately ability to compete
Improves significantly ability to compete
Moderately reduces cost to compete
Significantly reduces cost to compete
0
1
2
3
4
5
Initiative is not mandatedState mandated
within fiscal year
Federally mandated within Fiscal Year
High risk of State penalty if not implemented in fiscal year
High risk of Federal penalty if not implemented in fiscal year
Large Penalty to theBusiness if not implemented in fiscalyear.
0
1
2
3
4
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A Final Word on Real Benefits 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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A Final Word on JAD
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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Strategic Planning & Alignment
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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Alamo PMI 2nd Annual Right Arm Day
Business/IT Steering Committee Status Report for: date
Sales & Marketing - All Project Portfolios
Portfolio Business Strategy Total Cost Expected Benefits Overall Portfolio Status CommentsA. Optimize the Sales Network $9999M $99,999MB. Reduce Cost through the Sun Study $9999M $99,999M Decisions pendingC. Implement a Distributed Support Model $9999M $99,999MD. Rationalize Acquired BUs $9999M $99,999ME. Expand the Use of Web Based Solutions $9999M $99,999M Behind scheduleF. Implement the Regionalization of Western Operations $9999M $99,999MG. Reduce the Number of Wolrdwide Plants $9999M $99,999M
Totals $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.
Project Portfolio Summary
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Business/IT Steering Committee Status Report for: date
Sales & Marketing Function: eMarketing 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 Budgeted Amount Expenses to Date Status Issues this period Outlook next periodLink to Merchandise Website 5,000 405 Redesign Sales Consultant Pages 44,000 1,140 Behind schedule 1 FTE to be added
SUB-TOTAL 49,000 1,545
Run and Maintain
Project Name Budgeted Amount Expenses to Date Status Issues this period Outlook next periodEnhance Broadcast Messaging 45,100 7,643 Modify/Test Release 1.7 101,100 36,743 95% Contingency used up.
SUB-TOTAL 146,200 44,385
PORTFOLIO TOTALS 195,200 195,200
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 Project Summary Cost Benefits FTEs PriorityDevelop New Site for the Western Region Current site no longer maintainable $9,999 $99,999 3.5 1
Total $9,999 $99,999
Project Portfolio Reporting
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BUSINESS STRATEGY A
BUSINESS STRATEGY B
BUSINESS STRATEGY C
PORTFOLIO B
PROGRAM X PROGRAM Y
PROJECT 1
PROJECT 2
PROJECT 3 PROJECT 6
PROJECT 5
PROJECT 4
TOTAL COST TOTAL BENEFITS
COST BENEFITS
$
$ $
$
$
$ $
$ $
$
$
$
COST BENEFITS
Establishing Project Portfolios
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So, What’s the Big Deal? 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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OperatingDepartments
CEO COO
SeniorUser
SeniorBusiness
SeniorTechnical
Enterprise Governance
ProjectGovernance*
Project Manager
Project TeamPMO
* = Level of ProjectGovernance staffing tiedto project visibility anddelegation of authority
QA
Enterprise and Project Governance
Business Controls
Quality Controls
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Technical Tasks
IPECC
Technical Tasks
IPECC
Technical Tasks
IPECC
Technical Tasks
IPECC
Post-ProjectReview
PM ProcessApplication Area Process(Seismic, Drilling, Plant Dev., etc.)
Business Controls(Management)
Quality Controls(Technical)
- Product Quality- Technical Standards
- Resources- Schedule- Cost
T e c h n i q u e s
T o o l s
Stage 1, 2, 3, 4…(for example: Initiation, Development,Implementation, Closure)
= Compulsory End-Stage Assessment Meeting
= Quality Review Meetings (Scheduled as needed by Project Type, Activity Type, Deliverable Type
= Compulsory Quality Review Meeting
Business and Quality Controls
Process/Project Management
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Continuous Loop of Direction, Validation and Adjustments
Enterprise Strategy
Business Unit Delivery Strategy
Project Management
Office
Dir
ecti
on
Prioritization
Feedback
Feed
back
Project Status Reports, Time Sheets, Project Schedules
Governance Review Board
Governance Review Board
QA/QCProgram/ Project Managers
Feedback
Courtesy of Steve Rollins, PMOUSA
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We Have a Plan – Now What?
“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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Implementing the Strategic Business Plan
“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 FoggImplementing Your Strategic Plan:
How to Turn “Intent” into Effective Action for Sustainable Change
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Implementing the Strategic Business Plan
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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The 18 Keys to Strategy Implementation
1. Setting accountability
Key 1: Develop an accountability systemKey 2: Turn strategic priority issues into assigned, measurable action plansKey 3: Embed departmental planningKey 4: Negotiate individual accountability
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2. Fixing the organization
Key 5: Change the organization structure - fastKey 6: Change the people - fastKey 7: Foster creative leadership and mental toughnessKey 8: Remove resistanceKey 9: Use teams (appropriately)
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
4. Providing an environment in which people can excel
Key 13: Empower executionKey 14: Select, train and develop for the future - nowKey 15: Fix broken core processesKey 16: Communicate to everyone all o f the time
5. Judging and rewarding
Key 17: Review performance Key 18: Reward strategic results
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How Well Are We Doing?
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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Bridging the Gap
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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The PMO and PMI’s OPM3 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. Specific project management training continues2. Effectiveness of agile development challenged3. Project management expands beyond project
managers4. Larger projects hold challenges5. Project managers pushed to innovate6. Project manager certification upgrades7. Vendor management becomes a priority8. Project management offices further strained9. Funding pressure increases portfolio
management10. Agile development gains popularity to cut project
times
Top PM Trends in 2013
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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.
PMOs Further Strained
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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.
Project Portfolio Management
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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.
Project Portfolio Management
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Strategic Business Planning
Business Process
Reengineering
Strategic IT
Planning
Project Portfolio
ManagementProjects
Project Management
Office
Maturity Models
The Desired PMO Lifecycle
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Strategic Business Planning
Business Process
Reengineering
Strategic IT
Planning
Project Portfolio
ManagementProjects
Project Management
Office
Maturity Models
The Desired PMO Lifecycle
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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!
The Bottom, Bottom Line…
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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.)
Nothing much has changed….
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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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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.”
Sprint PCS The clear alternative to cellular
The Arthur Andersen partner was on his cell phone, when he said,
“Ship the Enron documents to the Feds,”
But his secretary heard,
It turns out that it was all just a case of bad cellular.
Everyone Must Be On The Same Page…
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The Trunk Monkey
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!