DRIVING ORGANIZATIONAL CHANGE

DRIVING ORGANIZATIONAL CHANGE The Next Generation Project Management Office

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WHO IS APQC?

APQC is a member-based nonprofit and one of the leading proponents of benchmarking and best practice business research. Working with more than 500 organizations worldwide in all industries, APQC focuses on providing organizations with the information they need to work smarter, faster, and with confidence. Every day we uncover the processes and practices that push organizations from good to great. Visit us at www.apqc.org and learn how you can make best practices your practices.

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APQC

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SPEAKERS

Holly Lyke-Ho-Gland Program Manager, Business Excellence [email protected]

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o  Demographics o  Common PMO characteristics

§  Governance models §  KPIs §  Responsibilities §  Skill competencies and gaps

o  Comparison of PMOs in large and small organizations

o  Factors driving PMO’s support of strategic and transformational change initiatives

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DEMOGRAPHICS

Organization's Revenue

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32.5%

27.0%

12.7%

9.5%

8.7%

5.6%

4.0%

0.0% 10.0% 20.0% 30.0% 40.0%

Project/Program Manager

Head of the PMO

Other

VP or Director-Level Project/Program Management

PMO Staff Member

Chief Project Officer, CIO, or Other C-Level

VP or Director-Business Management

The majority of the respondents come from organizations with revenues under $ 1 billion.

Less than $ 100 million,

33.60%

$ 100 to $ 500 million`,

6.40%

$500 million to $1 billion,

10.40%

$1 to $ 5 billion, 14.40%

$ 5 to $ 10 billion, 11.20%

$ 10 to $20 billion, 5.60%

More than $ 20 billion, 18.40%

Respondent’s Job Function

The majority of the respondents are directly involved in project management within their organization—either project or program managers or the heads of the PMO.

N = 126

N = 125

PMO TRENDS

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PMO ORGANIZATIONAL MODEL

39.3%

33.0%

11.7%

11.7%

4.3%

0.0% 20.0% 40.0% 60.0%

Centralized PMO or enterprise PMO (ePMO)

Decentralized PMOs within business lines

Centralized PMO and decentralized PMOs (who are governed by the centralized PMO)

Centralized PMO and decentralized PMOs (who are not governed by the centralized PMO)

Decentralized PMOs within each region

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N = 94

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PMO KEY PERFORMANCE METRICS

64.6%

56.3%

56.3%

52.1%

32.3%

31.3%

29.2%

20.8%

12.5%

9.4%

6.3%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Project compleIon rate

Budget adherence

Schedule variance

Stakeholder saIsfacIon

Quality (e.g., defect raIo)

Risk mitrigaIon

Cost savings

Revenue generaIon

No measures

PM cerIficaIons

Other

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The majority of PMOs’ performance is measured by the usual trinity—project completion rate, budget, and schedule.

N = 96 Note: The values in this graph do not add up to 100%, because it was a select all that apply quesIon.

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TOP FIVE PMO CUSTOMERS

68.8%

57.3% 56.3%

38.5%

27.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Executive team Operations IT Finance Sales and Marketing

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N = 96

Number of FTEs Supported by PMO

25th Percentile = 20 FTEs Median = 100 FTEs 75th Percentile = 550 FTEs

Note: The values in this graph do not add up to 100%, because it was a select all that apply quesIon.

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TOP 9 CURRENT RESPONSIBILITIES

Project ExecuIo

n • Gathering informaIon and reporIng on project status (93.5%)

• Seeing projects finish on Ime (74.7%)

• Reducing risks of projects(71.3%

• Governing project review process (70.7%)

• Ensuring projects stay on budget (68%)

Project P

lann

ing

• Developing project plans (77.7%)

Value-‐Ad

d • Establishing project methodologies and templates (91.7%)

• Managing interdependencies between projects(68.8%)

• Providing consultaIve services to project teams (68.5%)

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TOP 5 NEW RESPONSIBILITIES*

25.6%

21.7% 20.9% 20.4% 20.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Improving quality of projects Providing corrective action suggestions for projects

Conducting process audits to identify improvement areas

Providing guidance on project selection and prioritization

Providing performance assessments for planning

efforts N = 93

* Responsibilities PMOs foresee having within the next two years

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TOP NINE PMO SKILLS

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Core Skills Project management process (86.5%)

Problem solving (73.4%) Time management (67.4%) Risk management (66.0%)

Budget management (62.5%)

Soft Skills Leadership (68.8%

Communications (66.0%) Interpersonal (e.g., active listening) (66.0%)

Additional Skills Change management (62.1%)

N = 96

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TOP FIVE PMO SKILL GAPS*

49.5%

44.2%

41.1%

37.2% 35.8%

0.0%

20.0%

40.0%

60.0%

Knowledge management Forecasting (e.g., time to result or return on

investment)

Data analysis Political savvy Resource management and analysis

N = 96

* Skills needed in the PMO within the next two years

TALE OF TWO PMOS

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STRUCTURAL CHARACTERISTICS

Structural components provide insight into the span of influence and, to some extent, the role of the PMO within the organizaIon. To that point APQC asked respondents quesIons about their: •  PMO governance model, •  who their PMO reports into, •  tenure of their PMO, and •  number of full Ime equivalent (FTE)

employees.

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RESPONSIBILITIES

KPIs

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Top Five Responsibilities

50.0%

33.3%

31.0%

28.6%

16.7%

70.6%

58.8%

58.8%

58.8%

41.2%

0% 20% 40% 60% 80% 100%

Project completion rate

Budget adherence *

Schedule variance **

Stakeholder satisfaction **

Quality (e.g., defect ratio)*

Less than $100 million (n=42) $20 billion or greater (n=17)

1.  Gathering information and

reporting on project status 2.  Developing project plans 3.  Reducing risks of projects 4.  Ensuring projects stay on budget 5.  Seeing projects finish on time

1.  Gathering information and reporting on project status

2.  Seeing projects finish on time 3.  Governing project review process 4.  Ensuring projects stay on budget 5.  Establishing project

methodologies and templates

Less than $100 million $20 billion or greater

Regardless of revenue, the primary responsibility of all PMOs is to collect information and report on project progress.

•  Small organizations are more likely to only use basic project completion rates to assess their PMOs.

•  Large organizations often include additional KPIs—budget and schedule variation, stakeholder satisfaction, and quality—to assess the performance of their PMOs.

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SKILL COMPETENCIES AND GAPS

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1.  Project management process 2.  Communications 3.  Time management 4.  Problem solving 5.  Interpersonal (e.g., active

listening and advising) 6.  Process design and

improvement

1.  Problem solving 2.  Quality management 3.  Project management

process 4.  Time management 5.  Risk management 6.  Resource management and

analysis

Less than $100 million $20 billion or greater 1.  Knowledge management 2.  Political savviness 3.  Forecasting (e.g., time to

result or return on investment))

4.  Quality management 5.  Data analysis

1.  Interpersonal (e.g., active listening and advising)

2.  Data analysis 3.  Communications 4.  Leadership 5.  Forecasting (e.g., time to

result or return on investment)

Less than $100 million $20 billion or greater

Current Competencies Skill Gaps

SUPPORTING STRATEGIC AND TRANSFORMATIONAL CHANGE

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WHAT WAS RELEVANT

What was Significant?

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•  KPIs •  Responsibilities •  Skillsets

Relevant KPIs

PMOs that support enterprise-wide initiatives are measured via stakeholder satisfaction.

1.  Revenue generation

1.  Stakeholder

satisfaction

1.  Project completion rate

Strategic Initiatives Both Transformational Change

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RELEVANT RESPONSIBILITIES

1.  No additional responsibilities

1.  Assisting with the development of

strategic initiatives 2.  Gathering information and

reporting on project status 3.  Reducing the risk of projects 4.  Ensuring that projects stay on

budget 5.  Improving the quality of projects 6.  Governing project reviews 7.  Providing consultative services to

project teams

1.  Providing formal project charters 2.  Seeing the projects finish on time 3.  Provide corrective action

suggestions for projects

Strategic Initiatives Both Transformational Change

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SKILLSETS

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Core skills • Project management • Time management • Budget management • Problem solving

Sof skills • CommunicaIons • Leadership • PoliIcal savviness

AddiIonal skills • Business acumen • Knowledge management • Change management • ForecasIng

Skills Needed to Support Enterprise Wide Projects

QUESTIONS

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NEXT STEPS

•  Access the full reports in: •  Next Generation PMO Collection •  Transformational Change-Making it Last

Collection •  Effective Project Management

Organizations (Collection)

•  Any additional questions or comments contact us.

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