Introduction to Results Management Is Your PMO Managing to ...€¦ · • The Results Management Office is an extension of the PMO. Its goal is to shift the focus of the PMO from

Introduction to Results Management OfficeIs Your PMO Managing to Results?

Saurayan ChakiDeloitte Consulting LLP

2 Copyright © 2014 Deloitte Development LLC. All rights reserved.

Speaker Introduction

Presenter: Saurayan Chaki

Saurayan is a Manager in Deloitte Consulting LLP’s Technology Consulting practice with a focus on serving Healthcare clients. His areas of specialization are Program Management, Results Management Office (RMO), and IT Strategy. Saurayan recently showcased RMO at the PMI Global Congress (2013). He also co-authored a CIO Journal Article on RMO.

Please connect: Via Twitter @saurayan Via LinkedIN (www.linkedin.com/in/saurayan)

http://www.linkedin.com/in/saurayan


Preface

• Many of today’s Program Management Offices (PMOs) are focused only on delivering projects on time and on budget

• Delivering large transformational programs require more than disciplined execution of processes, it requires broader focus on business outcomes

• The Results Management Office is an extension of the PMO. Its goal is to shift the focus of the PMO from the mechanics of process excellence to be more accountable for the business outcome of the Program

• RMO can be applied as a conceptual framework to transform the PMO. It can also be implemented as a separate organizational entity to support the existing PMO

• The purpose of this presentation is to introduce the audience to the key tenets of the RMO, discuss implementation options, and share lessons learned from a number of RMO implementations


• Why do we need an RMO?

• What is the structure of the RMO?

• How is RMO different from the traditional PMO?

• What are the potential benefits of having an RMO?

• What are the key outcomes of each pillar of the RMO?

• How to implement RMO?

• What are some key lessons learned in recent RMO implementations?

• Closing thoughts and Q&A

Contents


How Effective Are PMOs?

The number of strategic initiatives that succeed, remains low – only 52% according to the March 2014 Pulse of the Profession report by PMI.

A recent survey1 by Gartner revealed that 64% of the survey participants consider stakeholder satisfaction and adoption as the most important measures of project success, yet project delivery organizations continue to focus only on time, scope, and cost to measure and monitor project success

1 – Gartner, Lars Mieritz , “Stakeholder Satisfaction Is Critical to Determining a Project's Success”

Can you think of some reasons why PMOs are failing to deliver strategic initiatives?

Audience Discussion‏

52%‏


The value propositionResults Management Office

The success factors for large transformation programs extend beyond just strong project management capabilities

Today’s PMOs should look beyond process excellence and be accountable for business outcomes. This is called the Results Management approach.

Results Management – Guiding Principles Consider how this will matter to the business five years from now (Program

Strategy & Mission Alignment) Get people who really know the business and enabling technology, and let

them drive (Domain Authority) Grab your key stakeholders at the very beginning, and don’t let go

(Organizational Readiness) Build on a foundation of sound project management discipline (Program

Management)


The core elementsThe Four Pillars of Results Management Office

Solution PlanningBusiness Process

ManagementEnterprise ArchitectureTechnical Integration

Domain Authority

Program Strategy & Vision Investment PlanningBenefits & Results

Management

Program Strategy & Mission Alignment

Leadership Alignment & Stakeholder EngagementOutreach & CommunicationChange ManagementTraining

Organizational Readiness

Resource and Demand ManagementSchedule ManagementBudget ManagementGovernance & ReportingRisk & Issue Management

Program Management


What is different from the traditional PMO?Results Management Office

When compared to the PMO, the RMO: Places business and technical leaders inside the program, allowing the RMO

to drive – rather than just administer – the program Prompts and focuses discussion about change so that programs stay on track

to achieving their intended outcomes Links smart business choices and rigorous technology implementations –

often with hundreds of millions of dollars on the line Requires working from the highest level business drivers all the way down to

the most granular details of project implementation Takes discipline above all else – with a relentless focus on creating business

value through a flexible process Customizes and tailors processes to the requirements of the program and the

unique nature of the organization


More on the mindset differenceResults Management Office

The Results Management Difference

Current-State PMO Extended to “RMO”

Output-Driven

Administrative

Reactive

Efficiency-Oriented

Cost and Schedule Focused

Process Focused

Performance Focused

Outcome-Driven

Strategic and Agile

Anticipatory and Proactive

Effectiveness-Oriented

Leverages Human Capital

Collaborative and Communicative

Risk Intelligent


RMO determines and maintains not only the expected business benefits but also regularly monitors them during and post implementation

Potential Benefits of the RMO

PMO RMO

VALUEIs the initiative delivering

business value?

• Confirms that the project team has reviewed the business value section of the initiative’s business case

• Confirms that the spend on initiatives is generating business value (quantifiable and intangible)

ALIGNMENTIs the initiative strategically

aligned?

• Creates a forum for IT and business owners to discuss alignment and adherence to business cases

• Confirms that the initiatives support business and IT vision, and adhere to business cases

ON TRACKIs the initiative on track?

• Gathers status reports from project teams to generate reports to highlight discrepancies against the defined project plan

• Sets the correct program direction • Provides processes, tools, and leading

practices to assure that the program is positioned to deliver expected outcomes

RELEVANCEIs the initiative (still) market

relevant?• Does not monitor relevance

• Assesses the current state of initiatives relative to market conditions

• Confirms that the initiative is continuously relevant

• Identifies areas of focus or change required to respond to shifting competitive landscapes

OPERATIONAL READINESSIs the organization ready to adopt

the changes introduced by the initiatives?

• Confirms that the necessary paperwork is complete before the project can be signed off as completed

• Validates the readiness of the organization to accept and make most efficient use of initiative outcomes


Deep Dive – The Pillars of the RMO

Establishes the Program objectives in support of organizational goals and confirms that the Program delivers the expected business benefits and outcomes

Effective Practices: Define expected business benefits and associated

measures Develop a clear program strategy and roadmap Filter every decision through the program strategy Monitor business benefits post-implementation

Key Outcomes: Clearly defined Program strategy, mission and vision

that guide Program direction Use of the Program strategy to develop guiding

principles for execution and in the design of decision frameworks applied throughout the lifecycle

Achievable goals and objectives defined Program business benefits defined in clear, measurable

terms, that are actively maintained and monitored throughout the Program

Scope of the Program defined in terms of business areas and/or functions to be addressed

Supports business and technical decisions and confirms that decisions are made with a holistic view of the impact on people, process, technology and the organization

Effective Practices: Establish a common business and technical architecture Assign specific ownership and authority for integration

within the program Make, communicate and enforce integration decisions

consistently

Key Outcomes: The overall solution has the business and technical

knowledge necessary to achieve Program goals, objectives, and scope

The solution’s strategic elements are balanced against constraints represented by time, budget, and environment

The solution design incorporates and balances organizational, project and Program technical requirements and constraints

Business process reengineering is coordinated with Program requirements, end-to-end analysis, design, and integration activities

Program Strategy and Mission Alignment: Domain Authority:


Deep Dive – The Pillars of the RMO

Fosters commitment to and adoption of the solution by all Program stakeholders at all levels impacted by the Program

Effective Practices: Obtain sponsorship and buy-in from key stakeholders

early in the program Identify change agents to champion the solution

throughout the life of the program Develop messages that align to what stakeholders care

about Communicate early and often Remember that “why” is just as important as the “what”

and the “how”

Key Outcomes: Key stakeholder groups buy in to the Program and are

in alignment with its vision, goals and objectives and strategy

Communications are coordinated, transparent and consistent to all Stakeholder groups

Stakeholders are aware of the Program solution and its impact on their organizations

The organization is prepared, trained and ready to adopt change and the Program solution

Makes use of the extended visibility and reach provided by the functional areas above to enhance effectiveness of traditional PMO processes.

Effective Practices: Facilitate decision making and escalation of risks,

issues, and changes to Program scope, budget, and schedule

Measure performance against cost, schedule, scope, and quality baselines

Plan and coordinate the cross-project deployment and Program release activities

Initiate projects, monitor progress, manage interdependencies

Key Outcomes: Program oversight provides context to make key

decisions around scope, schedule, change controls and risk mitigation

Integrated view of Program results delivered, milestones achieved, risks, key activities and overall health

Formalized release management process, with post-implementation reviews completed and lessons learns reports developed

Organizational Readiness: Program Management:


A typical RMO implementation approach has three steps - assess the current capabilities, design a tailored execution plan, and deliver future state capabilities

How to Implement RMO

• Assess current capabilities in the following dimensions:

• Program Strategy & Mission Alignment

• Domain Authority• Organizational Readiness• Project Management

• Identify current “pain points” and define short term solutions

• Define target maturity levels for each capability area

• Develop future state roadmap with activities and timeline

• Identify the future state operating model

• Build change management approach

• Execute on the future state roadmap• Build and rollout the new operating

model• Execute change management plan

Assess Current Capabilities Design Service DeliveryTransformation Execute Initiatives

Results


Top 5 lessons learned from recent Deloitte engagementsLessons Learned from RMO Implementations

”Lesson 1: “Not everything can be solved by fixing the PMO‏- Understand the organization’s culture and the way of doing things in Business and IT teams‏ some problems are outside the realm of the project delivery organization

”Lesson 2: “People component of the transformation is equally important‏ Transforming into a RMO impacts the people as much as it impacts the processes. You should not underestimate the‏importance of change management, stakeholder engagement or preparing the leadership for their new roles. Any investment in these areas go a long way to position the transformation program for success

”Lesson 3: “Don’t forget your client’s customers‏ Stakeholder satisfaction is essential to the success of the transformation. Stakeholders here refer to Business and IT teams‏across the organization – the customers of the project delivery organization. You should communicate as much if not more with these stakeholders outside the PMO

”Lesson 4: “Establishing Domain Authority needs consensus‏Creating a Domain Authority function in a siloed‏ organization requires leadership buy-in and consensus. A structured brainstorming session with senior leaders across the organization can provide the right forum

”Lesson 5: “Provide the right tools to Project Managers‏If there is a problem with the tools used by your PMO, fix it while you fix the processes. If the PMO does not have the right‏tools and systems to apply on the newly defined processes, the transformation will not be effective


Key Takeaway: To deliver and realize the planned business value of a large transformational program, rethinking of the PMO approach is needed.

Closing Thoughts

People-Conscious: Program’s success is often about the end users accepting the change and understanding how to work effectively in the new environment.

Enterprise-Aligned: Programs should align their objectives with the organization through development of strategic relationships with project stakeholders and inter-dependent functions.

Moving from Process Excellence to Delivering Business Outcomes

Solution-Focused: Programs should provide the leadership required to drive and coordinate/integrate the definition of the functional and technical direction for the solution(s) that the Program oversees.

Effectiveness-Driven: Programs should go beyond traditional measures to include the measurement and realization of benefits against key indices as defined by executive leaders.


Want to dig deeper in the RMO? Check out these resources:More Reading Resources

CIO Insight Magazine: Reinventing Program Management

PMOver: Transforming the Program Management Office into a Results Management Office

Deloitte Debate and Technology Executive Dbrief Webcast

WSJ CIO Journal: HCSC Manages to Results, Delivers Value


Q&A

Please discuss additional questions regarding RMO‏

:Feel free to send follow up questions‏

Via Twitter @saurayan

Via LinkedIN (www.linkedin.com/in/saurayan)

http://www.linkedin.com/in/saurayan

Thank You

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Introduction to Results Management Is Your PMO Managing to ...€¦ · • The Results Management Office is an extension of the PMO. Its goal is to shift the focus of the PMO from

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