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Gartner Webinar

Be Prepared For the Future of Program and Portfolio ManagementPresenter:Audrey Apfel, Managing Vice President and Gartner Fellow Emeritus

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This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.© 2010 Gartner, Inc. and/or its affiliates. All rights reserved. 1

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in 85 Countries

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Inquiries

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Searches

60,000Clients

10,800 Client

Enterprises

5,500Benchmarks

Welcome!Thank you for joining us on today’s Gartner webinar.

Complex/ Overwhelming

Tools

Specialized

Compliance

Fit for Use Now

Fit for Use Now

MainstreamMainstream

ResultsResults

What's Hot and What's Not

Software Tools

Future of Project Management

PMO Evolution

Prediction

By 2014, organizations will invest 30% less time and money in traditional IT project management than in 2010.- Project management moves away from “one size fits

all”- Growing understanding that project management

doesn’t always work- Governance moves closer to the source- “Everything” is really not a project!

1. How does the management of project-based work need to change?

Low High

Long

Short

Project Management in Transition —What Kind of Work Is It Really?

Traditional Project Mgmt.; Directive Program Mgmt.

"ChangeOperations"

Repeatable Projects/

Managed Work

Certainty of Requirements

Time to Value

Iterative Approaches;

Adaptive Program Mgmt.

PM 2011+

Simple Obvious Categorize

ComplicatedRequires

Analysis or Expert

Analyze

Complex In Retrospect Probe

System Cause/Effect Approach

Project Management in Transition —What System Is It Operating In?

Program Management In Transition, Too

IdentifierBottoms Up Significant Interdependencies Discovered

Policy Gov't. — No planned end date

Change High level org. change required

Outcome-Driven Clear scope, complicated effort

Transformational Change of DNA; high internal and external risk

Project Management in Transition – Where Should Governance Live?

PPM Today:• Utilizes structured meetings• Pushes up decision making • Unit of interest is the project

The World of "Change Operations":•Management by exception•Pushes down decision making•Unit of interest is the process

Project

Gates Meetings

Activities

Ongoing Reviews

Activities

Process

Rules Decisions

Exception Reviews

Prediction

By 2014, less than 20% of today's PMOs will become an enterprise function centered on business change or strategy execution.Those that evolve to this level will get there by:- Becoming directly accountable for program or portfolio

level results- Making the process fit the work, making the approach

fit the culture- Focusing on internal PMO process improvement, not

just on fixing “them”

What are organizations focusing on to successfully evolve the PMO?

PMO Accountability

What accountabilitylooks like:•Value metrics trend portfolio performance over time•Direct execution of strategic programs•Executive satisfaction:

- Information management- Decision support- Change management

•Allowing the organization to move faster!

What accountabilitydoesn't look like:•Ensuring compliance to process as an end result•Documenting the train wreck•Burdening the organization with administration without line of sight to results of those efforts•Focusing solely on user adoption of an expensive PPM software tool

Project Capability Office

Por

tfolio

Man

agem

ent

Central PMO

Community of Practice

Project Support Office

Maturity Level 1

ProgramWork

Project Management Office(s)

Pro

gram

Offi

ce(s

) Enterprise Program

Management Office

Maturity Level 2

Maturity Level 3

Maturity Level 4

Maturity Level 5

Enterprise Project Management

Office

Stuck Level 2s and Lazy Level 3s

Strategy Execution Office

Continuous Improvement Begins at Home: A Lean PMO Targets Waste

Waste Business Example IT PPM Example

Overproducing Producing stuff before there's a valid order

Excess projects, extra features

Too much waiting Lengthened cycle time, reduces agility

Poor prioritization, too risk-averse

Too much conveyance

Unnecessary transportation of material between sites Excess sign-offs, handoffs

Overprocessing Processes longer or more complex than necessary

Relearning, non-value-adding steps

Source: Adapted from "Implementing Lean Software Development: From Concept to Cash," by M. and T. Poppendieck, Pearson Education, 2007

Prediction

By 2014, more than 30% of organizations will experience a proliferation of software tools installed to support PPM processes and projects.- Specific buyers in the organizations are focusing on

getting value as they define it, and getting it now.- Single platform consolidation across silos and users,

and completely replacing manual approaches are largely myths.

How is the market for PPM software applications evolving, and how should users choose appropriate solutions?

2011 Gartner PPM Market Universe: One Tool Doesn’t Fit All

Practical PPM Leaders Deploy Tools That Are Fit for Use Now

Enterprise PPM suites

SaaS Entrants SharePoint

"Open Source"/Cloud PPMERP

Getting It Right For You

What's Underneath?

It Takes Two

Enabling Your Work

Multiple models and ways to integrate

We're Talking About Change

Tool vs. Model

The "Right" Demo

Process Readiness

You Always Have Options

Training & Consulting

Action Plan for PPM Leadership

Monday Morning:- Determine your PPM maturity so you know what is possible.- Do something lean — Streamline a process, eliminate a sign-off,

cancel a meeting, retire a report.Next 90 Days:

- Determine the next steps for PPM software in the organization, focusing on the shortest path to value and retaining flexibility.

- Recharter the PMO — Communicate value and accountability.Next 12 Months:

- Reassess the organization's assumptions about what constitutes a "project." Triage work should include change operations, iterative approaches, critical programs and complex efforts.

Related Gartner Research

Predicts 2011: PPM Goes From Managing Projects To Managing Change Audrey Apfel (G00208607)

Adopting Product Planning and Release Management for M&E Work: A Critical Step in Better Project Resource Management Donna Fitzgerald (G00169466)

Magic Quadrant for IT Project and Portfolio Management Daniel Stang (G00200907)

Projects Today, 'Change Operations' Tomorrow Audrey Apfel (G00158273)

ITScore Overview for Program and Portfolio Management Lars Mieritz, Donna Fitzgerald(G00205501)

For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.

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