Gartner Shares the Most Important PPM Trends for 2014 - 051214
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The document discusses trends in project and portfolio management (PPM) as identified by Gartner, emphasizing the importance of focusing on value generation over traditional metrics like on-time and on-budget. It highlights the challenges faced by PMOs and advocates for a value-based approach to portfolio management that integrates business and IT, aiming for better financial transparency and project alignment with business capabilities. UMT360 is presented as a solution provider with a focus on improving enterprise portfolio management through digitalization and comprehensive financial controls.
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Gartner Shares the Most Important PPM Trends for 2014 - 051214
- 1. Complete Perspective. Smart Decisions. www.UMT360.com @UMT360 LinkedIn.com/company/umt360/ google.com/+UMT360 Gartner Shares the Most Important PPM Trends for 2014 • Donna Fitzgerald Gartner Research VP, Program & Portfolio Mgt. • Ben Chamberlain UMT360 Chief Product & Marketing Officer
- 2. Donna Fitzgerald • Gartner Research VP focused on Project & Portfolio Management • Combines a unique blend of thought leadership & industry practitioner experience Ben Chamberlain • UMT360 Chief Product & Marketing Officer • Over 12 years experience of building Portfolio Management solutions on-top of the Microsoft platform
- 3. The Value Driven Future
- 4. The bridge can be built by focusing on Value & better Portfolio Management 80% of PMOs are below level 3
- 5. The competitive landscape is in constant Flux Organizations have already taken all the easy cost reductions The focus shifts to competitive advantage This makes the success of the planned investment more important Success therefore isn’t completion of the project – it is Value Generated Value Generated requires the project to deliver the things that enable the value generation Maximum Value Generation generally entails CHANGE Unless you know to look for it… You won’t see the impact of these changes until your organization has passed step 4 Then by the time You see the need to change it’s too late…
- 6. 6 “I don’t want to see anything about on-time and on-budget in your reports. Going forward it’s all about value delivered” Midwestern insurance company CIO Resources • Tacit Knowledge • Thought Leadership • Commissioned Research Curriculum • Outcome driven • Execution alternatives Member Success • Respect as measured by press • Good Compensation ValueChain
- 10. The Value Based Portfolio Transcends IT
- 11. IT Centered Projects Benefit Centered Business Projects Accounting for Value Enterprise Portfolio Roadmaps & Blue Prints S/W Product Development
- 12. Benefits Realization Plan Program Plan Results Chain
- 13. Strategy A Strategy B Strategy C Strategy D Finance Project 1 Project 5 Project 10 Project 4 Customer Facing Project 3 Project 12 Process Improvement Project 2 Project 9 Project 8 Project 13 Project 11 Project 14 Project 6 Project 15 Innovation/ Learning and Growth Project 7 And no – this isn’t short term thinking – This is real prioritization
- 14. This is a simultaneous equation requiring optimizing for Maximum Value across competing priorities. Finally remember… It’s you, rather than Management, who is responsible for the analysis
- 16. Re-orient Your PMO to Successfully Cross the Chasm
- 18. • Today everything is either a Project or it’s operations • Tomorrow there will be: • Programs for large change • Projects for Intra-organizational change (which includes IT) • New Product Develop Efforts for software that touches the customer (and might produce revenue) • Product Releases for continuous change to maintain business capabilities • Continuous change efforts (Kaizan, Workouts) and IT bug fixing • Initiatives – speculative, exploratory work that might produce something new but also might determine that something shouldn’t be done.
- 19. Operations/ Production Product Dev & Evolving Shared Value chain Control &compliance Corporate CAPEX Emergent Responses within SBUs & Functions
- 22. Enterprise Portfolio Management Take Your PMO to a New Level
- 23. $0.00 $0.40 $0.80 $1.20 $1.60 $2.00 2011 2012 2013 2014 Operational costs limit innovation Run RunThe Gap is Growing! Grow & Transform Grow & Transform
- 24. $0.00 $0.40 $0.80 $1.20 $1.60 $2.00 2011 2012 2013 2014 Operational costs limit innovation Run Closing the Gap! Grow & Transform RunRun Grow & Transform
- 25. Business Process / Capability Application IT ServicesProjects Maintenance Portfolio Relationships & Financials Intelligence is Key! $ $ $ Application IT ServicesProjects Maintenance $ $ $ $ $ $ Integrate Business & IT Portfolios Drive Complete Financial Transparency Assets & Projects are Business Investments Synchronize Roadmaps & Gauge Cross Portfolio Impact
- 26. Traditional PPM is Failing to Deliver Anticipated Results 18% 43% 33% 33% Of projects fail to get implemented Of completed projects have cost overruns Of all projects are delivered late or over budget Of projects do not meet their goals or business intent Gartner PMI Standish Group Standish Group 46% Unrealized Business Value Realized Business Value
- 27. Trifecta of Business Value Erosion 46% Unrealized Business Value Realized Business Value PPM+
- 28. Traditional PMO Enterprise PMO Investment Focus Responsible for discretionary spend for projects Visibility across all spend, both lights-on and discretionary Portfolio Focus Responsible for managing project portfolios only Responsible for integrating all portfolios and mapping to business capabilities Innovation & Portfolio Selection Demand is consolidated from bottom up requests from across the business Higher quality demand is generated from analysis of business capabilities / products Funding & Allocation Funding allocated by department and organization utilizes an annual planning model Funding allocated by business capabilities and teams empowered to adopt a dynamic planning model Portfolio Tracking & Measurement A tactical focus on managing schedules, resources and scope More emphasis on tracking project financial performance & maximizing ROI across the investment portfolio Benefits Tracking Based on project level ROI and often no process for tracking actual benefits Benefits realization framework established at program or capability level Take Your PMO to a New Level
- 29. UMT360 – Enterprise Portfolio Mgmt. Digitalize Investment Planning & Controls Financial Transparency Connected Enterprise Portfolio Intelligence Synchronize Roadmaps PPM+ PPM+ PPM+ Financial Intelligence Application Portfolios IT Business Mgmt. UMT360 Solutions in the Magic Quadrant for Integrated IT Portfolio Analysis (IIPA). Visionary 2013 in Project and Portfolio Management. Partner of the Year 2013 in Program and Portfolio Management. Cool Vendor 2012
- 30. UMT360 - Project Financial Intelligence Integrated Project & Portfolio Financial Controls Investment Governance & Controls Business Case Analysis Allocation & Funding Cost Tracking& Variance Analysis Change Request Mgmt. ERP Connector / Integration Program Mgmt. Chargeback Reporting Benefits Realization Financial Dashboards & Reports Performance Metrics Cross Portfolio Mappings
- 31. Application Catalog Portfolio Analytics Cost Takeouts & Benefits Realization Performance Metrics Chargeback Reporting Cost Tracking & Variance Analysis Demand Generation Budgeting, T CO & Funding Application Roadmaps Change Mgmt. Dashboards & Reports Investment Governance & Controls UMT360 - Integrated APM & PPM Get More Business Value from your Applications
- 32. Thank You Visit www.UMT360.com to learn more. Ben Chamberlain UMT360 Chief Product & Marketing Officer [email protected]