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Project maturity – projectProject maturity – projectProject maturity project management in transitionProject maturity project management in transition

Rome Chapter Italy 2nd July 2010

Richard AllmanDirector Business Development

© Human Systems International Limited 1987 – 2008 All Rights Reserved

Director Business DevelopmentHuman Systems Europe Ltd

Today’s presentationToday’s presentationToday s presentationToday s presentation

Human Systems – who are we ?

Project maturity – the past to j y pthe present

So what’s going on and where do we start to improve !!

Case Study and conclusions.

© Human Systems International Limited 1999 – 2008 All Rights ReservedPPM Corporate Portfolio Management March 2008

y

2

Some Background to Human SystemsSome Background to Human SystemsHuman SystemsHuman Systems


3

Our credentialsOur credentialsOur credentialsOur credentials

Established 1985

Over 20 years of comparative global data & metricsOver 20 years of comparative global data & metrics

Major customer base of multi-national and international jorganisations

We know ‘what good looks like’ and understand whyWe know what good looks like and understand why projects fail and why organisations continue to under deliver

Organisations share best practice through our global knowledge networks

© Human Systems International Limited 1987 – 2008 All Rights Reserved 4

knowledge networks

Our relations with PMI 4

Integrated View of CapabilityIntegrated View of CapabilityIntegrated View of CapabilityIntegrated View of Capability

Organisational Capability Assessment- Use of Human Systems’ CPA

- Assessment of Process & Practice- Scored for both Approach and Deployment

Individual Competence Assessment

Assessment Centres

Total Assess

Rapid Assess

Entire Resource Pool

Top 25%

Stars !

- Use of Human Systems’ Total Assess

Team Performance Assessment

- Use of 4D Team Performance tool- Personal Capability & Development Profiles

- Corporate analysis directs focus- Analysis of Team strengths & issues

- Periodic tracking of progress & trends

Project Review & Analysis

- Use of Human Systems’ Profiling tool (PPA)


- Detailed analysis of individual projects- Aggregate trend & issue analysis

Organisational Model for the Organisational Model for the Management of ProjectsManagement of Projects

Sufficient supply of Great Change People


Strategically aligned project portfolioGreat Change People

with Attractive Career Paths.

Great Change People with Attractive Career Paths.

Organisational belief &

project portfolio.

Organisational belief & buy-in to PM as the means of delivery.

Robust sponsorship.

Excellent process, widely understood & consistently applied.

Effective review, QA & external

benchmarking.

Culture of Learning & Knowledge Management

Integrated data,

metrics


Management. metrics and tools.

So project maturity means So project maturity means improvement ?improvement ?Explosion of maturity models in recent years, CMMI OPM3, P3M3

This has created a huge industry in UK driven through central government agenciesg g

Major ‘peer’ organisational pressures to respond.

Where is the evidence ?

Is the detail and expense justified ?


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but too Many Projects Failbut too Many Projects Fail…but too Many Projects Fail…but too Many Projects Fail

Pipeline Delivery Cost control Investor / Analyst

Effective and Efficient Project Managementj g

Successful projects


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Problem - what problem?Problem - what problem?Problem what problem?Problem what problem?For the majority…., project success appears to equate toFor the majority…., project success appears to equate to achieving an acceptable level of failure….

O l 2 t f i ti l i d th hi dOnly 2 percent of organisations claimed they achieved targeted benefits all the time in the past 12 months

KPMG 2005 Global PM Survey

90% say PM is critical to, or somewhat important to th i bilit t d li j t d i tititheir ability to deliver projects and remain competitive

Only 27% say they do a very good job of managingOnly 27% say they do a very good job of managing projects (10% ‘excellent’), but only 6% say that their projects come in on time and on budget all the time!

© Human Systems International Limited 1999 – 2008 All Rights ReservedPPM Corporate Portfolio Management March 2008 9

Economist Intelligence Unit Survey 2009

But you wouldn’t think so if But you wouldn’t think so if ywe listened to organisations congratulating themselves !

ywe listened to organisations congratulating themselves !congratulating themselves !congratulating themselves !

Survey of 541 global organisations on the state of project management January 2009


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Project Manager Today & Human Systems "State of PM" survey: During the same period, what would be the average proportion of benefits delivered against original project business case


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Project Manager Today & Human Systems "State of PM" survey: What percentage of total revenue is project‐based?


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Project Manager Today & Human Systems "State of PM" survey: During the same period, what would be the average cost over‐run for projects within your organisation


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Project Manager Today & Human Systems "State of PM" survey: How do customers (both internal and external) view the conduct of their projects?customers (both internal and external) view the conduct of their projects?


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Project Manager Today & Human Systems "State of PM" survey: How does the organisation view the conduct of its projects?organisation view the conduct of its projects?


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Project Manager Today & Human Systems "State of PM" survey: How many years of project management experience do you have?of project management experience do you have?


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Project Manager Today & Human Systems "State of PM" survey: Indicate qualification(s) or bodies from whom you have a qualification: q ( ) y q


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Project Manager Today & Human Systems "State of PM" survey: At any one time, how many concurrent projects will be running within your organisation?how many concurrent projects will be running within your organisation?


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Project Manager Today & Human Systems "State of PM" survey: What is the average project budget?g p j g


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Project Manager Today & Human Systems "State of PM" survey: During the past year, what proportion of projects delivered on time, on budget and to specificationy , p p p j , g p


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What do we know about P j S dWhat do we know about P j S dProject Success and Failure?Project Success and Failure?Failure?Failure?


Planning & Estimating a Real ProblemPlanning & Estimating a Real ProblemProblem . .Problem . .

4

5

1

2

3

4

RiskValue & BenPlanning

Estimators Lack SkillIt hasn’t improved in 15 years

0

1

1993 1996 1999 2002 2005 2008 (Est)

PM’s Do Their Own Planning – Regardless of Skill Level

And Yet Decisions Are Based on These Plans


© Human Systems International 2008

Why is this ?Why is this ?Why is this ?Why is this ?• Planning

21 of 44 process in PMBoK dedicated to planning.

Product-based planning lies at the heart of Prince2 methodologyp g gy

141 of 586 ‘best practices’ in PMI’s OPM3 concerned with planning

APM & PMI b th i hi h t i it i t f h & d l tAPM & PMI both give highest priority in terms of research & development

• Estimating

On the other hand estimating receives scant exposure

Often seen as the ‘black art’ of cost engineers and quantity surveyors

Only 3 of 44 processes in PMBoK is related to estimating, whilst’…

Estimating is just 1 of 52 areas of knowledge in APMBok


Estimating is just 1 of 52 areas of knowledge in APMBok

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Under-estimated CostsUnder-estimated CostsUnder estimated CostsUnder estimated CostsFrom a study largely focussed upon major transport & engineeringFrom a study largely focussed upon major transport & engineering projects, Flyvbjerg asserts that:

9 out of 10 projects have cost over-runsp jcost over-run is constant for the last 70 yearscost over-runs of 50 % – 100 % are common, whilst overruns above 100 % are not uncommon100 % are not uncommon estimating has not improved

Lowlights!

Suez Canal +1,900 %Suez Canal +1,900 % Sydney Opera House +1,400 %Concorde +1,100 %


24

,

Over-estimated BenefitsOver-estimated BenefitsOver estimated BenefitsOver estimated BenefitsHalf of all projects cannot show that they deliver 50 % or more ofHalf of all projects cannot show that they deliver 50 % or more of the benefits promised

Human Systems’ Research

£58Bn annually wasted on IT related change – not used as intended, or benefits never derived

P f D id Cl Sh ffi ld U i it UKProf. David Clegg, Sheffield University UK

9 out of 10 rail projects have over-estimated traffic; av. shortfall > 51 %; traffic forecasts have not improved for 30 years51 %; traffic forecasts have not improved for 30 years

Bent Flyvbjerg

Lowlights! (traffic as % of forecast)Lowlights! (traffic as % of forecast)Calcutta Metro 5 %Channel Tunnel 18 %


25Humber Bridge 25 %

Behavioural issues at Behavioural issues at

The promoters of multi-billion-dollar megaprojectsProject start-upProject start-upThe promoters of multi billion dollar megaprojects systematically and self-servingly misinform parliaments, the public and the media in order to get projects

d d b ilapproved and built

The formula for approval is an unhealthy cocktail of:The formula for approval is an unhealthy cocktail of:underestimated costs, overestimated revenuesoverestimated revenues,undervalued environmental impacts, &overvalued economic development effectsp

Result = High risks concealed from MPs, taxpayers and investors


26

investors Bent Flyvberg - “MegaProjects & Risk”

So where should we start to i ?So where should we start to i ?improve?improve?

A consistent diagnostic andA consistent diagnostic andA consistent diagnostic and measured approach would A consistent diagnostic and measured approach would pprepresent a dramatic improvement !

pprepresent a dramatic improvement !improvement !improvement !


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Projects are Means to Projects are Means to Different EndsDifferent Ends

Ports and Airports . . . Transfer Passengers and FreightPorts and Airports . . . Transfer Passengers and Freight comfortably & economically.

Pharmaceuticals . . . Develop andproduce blockbuster drugs.

Local Government . . . Provideexcellent & efficient services.

Manufacturing . . . Make currentproducts better & develop new

Transport companies . . . Operate fit bl d titi l

ones.

Telecommunications


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profitably and competitively.High speed, high tech, low cost,

first to market

. . . which depends upon . . . which depends upon successful Project delivery . .successful Project delivery . .

Projects to improve the performance of current activities . . .current activities . . .

Projects to develop new business, new products, new

Projects to introduce new

bus ess, e p oducts, emarkets . . .

technology, new processes, new ways of working . . .

P j t t b ildProjects to build new infrastructure, new physical

assets . . .


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. . . and this requires 3 distinct Project Management. . . and this requires 3 distinct Project Managementdistinct Project Management capabilitiesdistinct Project Management capabilities

Capability to manage each project to time, cost, quality, scope, safety, technical

performance etc.

Project Management Capability

performance etc.

Capability to make sure that the product produced by each project is what the organisation needs that it Project Sponsor what the organisation needs, that it

delivers the benefits that are promised from it, that the product is operated as

designed etc

j pCapability

designed etc. Capability to make sure that the project portfolio is the right one to implement the organisation’s strategy that scarce

Organisational Project Capability

the organisation s strategy, that scarce resources are used productively.


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Three Decades of Research Three Decades of Research into Capabilities and Resultsinto Capabilities and Results

• Strategy implemented effectively. • Key resource productivity.

• Multi-project management and governance capability.Organizational Levely p y

• Overall success of all projects undertaken.• Overall level of PM success.

p y• Effective, reliable metrics.

• Continual improvement of key processes.

gAgility of Organization

• Benefits realized.• Satisfactory technical performance.

• Stakeholders satisfied

• Clear & attainable program goals• Sponsor capability & attitude

• Benefits realization & managementSponsor or Program LevelEffectiveness of Program• Stakeholders satisfied

• Time • Cost

• Appropriate project strategy.

• Clear project goals • Project team• Adequate resourcing • Risk management

g

P j t L l• Time • Cost• Quality • Scope

• Safety

• Adequate resourcing • Risk management• Effective planning and control

• Clarity about technical performance requirement.

Project LevelEfficiency of Project


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• Multi-project management and governance capability. y p y







• Benefits realization & managementA i t j t t t

Sponsor or Program LevelEffectiveness of Program• Stakeholders satisfied

• Time • Cost


• Clear project goals • Project team• Adequate resourcing • Risk management

g

Project LevelTime • Cost• Quality • Scope

• Safety



Project LevelEfficiency of Project


32



• Multi-project management and governance capability. y p y







• Benefits realization & managementA i t j t t t • Stakeholders satisfied

• Time • Cost


• Clear project goals • Project team• Adequate resourcing • Risk management Time • Cost

• Quality • Scope• Safety




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Knowing What Matters …Knowing What Matters …Drives Is driven by Balance

Competent project manager 7 0 7 ProjectProven planning methods 5 2 3 ProjectProven planning methods 5 2 3 ProjectClarity about technical performance 4 1 3 ProjectBenefits owners 4 2 2 SponsorAlignment of project to strategy 3 1 2 SponsorAccurate information 6 5 1 ProjectS lid b i 7 7 0 S

Drivers

Solid business case 7 7 0 SponsorEffective teamwork 3 3 0 ProjectNecessary authority 2 2 0 ProjectCapacity to resource whole portfolio 2 4 -2 OrganizationFully resourced project 2 6 -4 SponsorDriven

Amplifiers

The project manager possesses the necessary competence for the specific project, as can be

Strategic options considered 1 6 -5 SponsorRisk management 2 9 -7 Project

Driven

The project manager possesses the necessary competence for the specific project, as can be demonstrated by evidence. [Competent Project Manager]

The planning systems, processes and practices used to develop the project plan are rigorous and proven, and incorporate effective review processes. [Proven Planning Methods]

The technical performance requirements from the product of the project have been specified clearly and unambiguously. [Clear Technical Performance]



Delivers Dramatic Delivers Dramatic

I t f b i

Improvements in EfficiencyImprovements in EfficiencyImpact of basic three PM “drivers”

The scores are forThe scores are for an average of the three project level “drivers”

Improving these three alone can

lt i 50%result in 50%+ improvement



One approach is benchmarkingOne approach is benchmarkingbenchmarking organisations delivery benchmarking organisations delivery g ycapability through their

d h th i

g ycapability through their

d h th iprocesses and how their people practice themprocesses and how their people practice thempeople practice them people practice them


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Benchmarking Project Benchmarking Project Benchmarking Project Benchmarking Project Management CapabilityManagement CapabilityManagement CapabilityManagement CapabilityObjective = To Improve DeliveryObjective = To Improve Delivery Capability, by: Measure

measuring your P&PM processes, practices, people & tools, and Learnp , p p ,comparing them with those of other organisations. . .so that you can learn where youso that you can learn where you stand relative to others, and to ‘best practice’ and can identify areas where you should focus improvement activity


Benchmarking: what is it?Benchmarking: what is it?Benchmarking: what is it?Benchmarking: what is it?

B h ki th f i b iBenchmarking = the process of comparing business processes and performance metrics to best practices from the same or other industries.

Also referred to as "best practice benchmarking" or "process benchmarking“ in which organisations evaluate their processes in

l ti t th f l di irelation to those of leading companies.

Benchmarking enables organisations to make focussed i t i d t i i t f fimprovements aimed at increasing aspects of performance.

Benchmarking may be a one-off event, but is often treated as a ti i hi h i ti ti ll k tcontinuous process in which organisations continually seek to

improve their practices.

© Human Systems International Limited 1999 – 2008 All Rights ReservedPPM Corporate Portfolio Management March 2008 38

Often driven first, by own t f

Often driven first, by own t fsector performance…sector performance…


…but in reality will LEARN f th

…but in reality will LEARN f thmore from othersmore from others


What to Benchmark? The Organization‘s Management of

What to Benchmark? The Organization‘s Management of- The Organization‘s Management of

Projects- The Organization‘s Management of

Projects



Strategically aligned project portfolioGreat Change People


Great Change People with Attractive Career Paths.

Organizational belief

project portfolio.

Organizational belief & buy-in to PM as the means of delivery.

Robust sponsorship.



benchmarking.


Integrated data,

metrics


Management. metrics and tools.

So, what would you So, what would you actually look at?actually look at?

Strategically aligned project portfolio

Sufficient supply of Great Change People with project portfolio.Change People with Attractive Career Paths.

Organizational belief &Robust sponsorship.

Excellent process

Organizational belief & buy-in to PM as the means of delivery.


benchmarking.


Integrated data,

metrics



metrics and tools.

Management.

So, what would you So, what would you

Symptoms ofSymptoms of B fit fB fit f

actually look at?actually look at?



Symptoms of Symptoms of ProblemsProblems

Benefits of Benefits of ImprovementImprovement

Not all Projects can be Supply of skilled PM’swith Attractive Career Paths.Not all Projects can be fully resourced

PM’s are allocated

Supply of skilled PM s matches demand

PM’s are allocatedPM s are allocated according to availability rather than competence

PM s are allocated according to competence & project complexity

Highly skilled PM’s don’t tend to stay around long

complexity

PM is seen as a desirable & rewarding

PM numbers & skillsets not understood

desirable & rewarding career option

PM skills managed &


PM skills managed & developed as a significant resource

How does benchmarking How does benchmarking work in practice?work in practice?

• Strategy implemented effectively. • Multi project management and go ernance capabilitS L l E

STRATEGY• Strategic Portfolio Management• Methodology & IT Tools ENABLERS

Continuous Improvement• Key resource productivity.

• Overall success of all projects undertaken.

• Overall level of PM success.

• Multi-project management and governance capability.

• Effective, reliable metrics.


Strategy Level

Agility of Organization

E

N

A

gy• Governance of Project Management• Organizational Resource Management incl. • Career Development• Success Measures

• Continuous Improvement incl. Quality Management, Value Management & Value Engineering• Acceptance Process,

Excellent process, widely understood & • Benefits realized.

• Satisfactory technical performance

• Clear & attainable program goals

• Sponsor capability & attitude Ownership Level

A

BOWNERSHIP• Multi-Project & Program Management• Governance of Programs & Projects incl. Project

R B i C B fit & O t

Acceptance Process, Validation & Verification• Risk• Performance Management & Metrics incl. EVMp y

consistently applied.Satisfactory technical performance.

• Stakeholders satisfied• Benefits realization & management

• Appropriate project strategy.Effectiveness of Program L

E

• Recovery, Business Case, Benefits & Outcomes• Project Transition & Lifecycle Management incl. Start-up and• Close-down

• PMO• Management of Change• Stakeholder Management & Communications

P oc ement & Cont acting• Time • Cost

• Quality • Scope

• Safety

• Clear project goals • Project team

• Adequate resourcing • Risk management

• Effective planning and control

• Clarity about technical performance requirement

Delivery Level

Efficiency of Project

R

S

DELIVERY• Planning & Estimating• Monitoring & Controlling incl. Configuration Management incl. • Benefit Tracking

• Procurement & Contracting incl. 3rd Party Management• Knowledge Management & Learning From Experience• Health, Safety &


y• Clarity about technical performance requirement. Sg• Team Performance (Human Factors)

• Health, Safety & Environment

Process & Practice Process & Practice BenchmarkingBenchmarking

P & P ti h t l dProcess & Practice each separately assessedWhat you say you doWhat happens in realityWhat happens in reality

Methodology independent

O l lOrganisational, Divisional or Business Unit Perspective

National, Sector or Industry Comparators

Results mapping to other maturity models

Results trackable over timeResults trackable over time

Outcomes form basis for improvement


Research background and links to Global PM community enables improvement efforts focused

Outputs:Outputs:PracticePractice gapgap vs chosenvs chosenOutputs:Outputs:PracticePractice gapgap vs chosenvs chosenPractice Practice gap gap vs. chosen vs. chosen comparatorscomparatorsPractice Practice gap gap vs. chosen vs. chosen comparatorscomparators

Organisation X


Quartile position vs peersQuartile position vs peersQuartile position vs peersQuartile position vs peersQuartile position vs. peersQuartile position vs. peersQuartile position vs. peersQuartile position vs. peersOrganisation X

StrategyStrategy OwnershipOwnership DeliveryDelivery EnablersEnablers


Comparative Divisional performanceComparative Divisional performanceperformanceperformance


Drill-down per topicDrill-down per topicp pp pBusiness Units

2nd Comparator Group

1st Comparator Groupp p


A wealth of information!A wealth of information!A wealth of information!A wealth of information!Organization X

Organization X


Business Units

2nd Comparator Group

1st Comparator Group


Overlaying research informs our conclusions: e g StrategyOverlaying research informs our conclusions: e g Strategy

Organization XOrganization X

our conclusions: e.g. Strategy levelour conclusions: e.g. Strategy level

AgilityMean = 2.44

n= 3819% Better

Than Average.

Score = 1 2 or 3 Score = 4

Full resourcing


Business Units

Score = 1, 2 or 3Mean = 2.21

n = 21

Score = 4Mean = 2.70

n = 17

2nd Comparator Group Alignment to Strategy

1st Comparator GroupScore = 1, 2 or 3Mean = 2.23

n = 5

Score = 4Mean = 2.91

n = 12

10% Worse Than Average.


This provides the business case for improvement and ensures efforts are prioritised!

Tracking progress over timeTracking progress over timetimetime

Projects as a Way of Doing BusinessBusiness ProcessesBusiness Results j y gMulti-Project Management

Start-upCustomer Satisfaction

People DevelopmentBusiness ProcessesBusiness Results

3.50

4.00

4.50

5.00

November Yr. 2

Planning and EstimatingShareholder Value

1.00

1.50

2.00

2.50

3.00

November Yr.

2

Monitoring and ControlQuality Improvement 0.00

0.50

July Yr.1November Yr. 1November Yr. 2November Yr. 3 3July Yr.1

Close down and Learning Lessons

Human FactorsPeople support

Project Methodology

SupportProcesses

November Yr.1

Risk ManagementValue and Benefits Management

Communications & Stakeholdermanagement

Project Processes

Yr.1


Similar approaches exist to assess each level & every aspect of the model

Similar approaches exist to assess each level & every aspect of the model

Corporate Practice AssessmentReviews capability and effectiveness of

j t t tiProject Academies

Reviews the effectiveness of

Governance Assessment

project management practices across the organisation

• Assessment of strengths and weaknesses

• Gap identificationA h / D l t

Reviews the effectiveness of corporate project management

development• Characteristics: focus, scope, links• Administration: MI systems, alumni

network cycle of improvement • Approach / Deployment gap assessment

• Identification of opportunities for internal learning

• Understanding of performance relative to sector peers and best

DeliveryStrategic

network, cycle of improvement• Leverage of Knowledge: Own IP vs.

external research, academic relationships

• Assessment: Measure of effectiveness, perceptions of wider relative to sector peers and best

practice• Understanding of performance

relative to• Identification of key improvement

areas and most effective approaches

Capability

OwnershipCapability

gCapability

, p porganization, KPIs

• Results achieved – qualitative ratings, Kirkpatrick levels

areas and most effective approaches to improvement

Capab ty

Project Profiling

Project Team/Team Leader

Readiness for Change Assessment

Individual AssessmentAssessment

Tailored Consultancy

Th h d l b d l f b l l f d h


The approaches and tools combine to provide a clear picture of current capability, potential areas for improvement and the means to

make sustainable improvements quickly

Similar approaches exist to assess each level & every aspect of the

Similar approaches exist to assess each level & every aspect of theeach level & every aspect of the

modeleach level & every aspect of the

model

Change Readiness

Team Performance


PM Competence Project Profiling

Experience with blue chip global companies repeatedly confirms the value Experience with blue chip global companies repeatedly confirms the value of targeted benchmarking of targeted benchmarking

F t b d d i i

But internal benchmarking alone provides limited improvement

stimulus

Benchmarking should inform and drive improvement initiatives

Benchmarking as an enabler

Benchmarking as a driver

• Clear vision, goals& value based measures

• Action orientation based on measures

• Fact based decisions

• Individual line of sight

Perceived

Competitor/ Future Performance Level

stimulus

Benchmarking as an idea

Benchmarking as a tool

as an enabler

• Subjective measures

• Internally focused

• Process & qualityobjectively measured

• Internally &externally focused

Perceived Performance Level

Satisficing levelActual

Performance Level

Performance gap

as an idea• Internally focused

Time

Level

Effective benchmarking develops a value based performance

Mean performance can be raised by reducing variability between practices informed by benchmarking

Gap2

Capability needs change overtime. The Company should set thebarrier for change high to meetanticipated future needs.

a value based performance culture

Level of performance on individual practices

CurrentMean

FutureMean Mean Performance in project

management practices can be raisedby concentrating on reducingvariability between projects.

between practices informed by benchmarking

Organisational Capability

Governance Capability Current

Current Desired

Capabilities

FutureDesired

Capabilities

Gap1

Individual Practices Business Goals

Demonstrable Success On-time

predictability. Less re-work.Lower Late

Phase Attrition

ImprovedR&D

ProductivityReduced Time

to Market.

Top management define overall goals.Individual process, system or behaviouralchange can be tied to those goals in a


Capability

Project Team & Individual Capability

Available Capabilities

68

Enhanced Capability

Improved Planning &

Control-

Enhanced inter project

learning

Improved Project RiskManagement

way which enables measurement ofprogress and impact.

Case StudyCase StudyCase StudyCase Study

Human Systems client, Defence Equipment & Support a y , q p ppkey part of the Ministry of Defence in the UK


56

Ministry of DefenceMinistry of DefenceMinistry of DefenceMinistry of Defence

Budget circa £35B

8 Operating Units (TLBs)

2 Major Project ‘Portfolios’2 Major Project Portfolios

●● Military CapabilityMilitary CapabilityB i I t● Business Improvement

Business As Usual


Defence Industrial Defence Industrial StrategyStrategy

Six Principles

• Appropriate sovereignty• Appropriate sovereignty

• Through-life capability management

• Maintaining key and rapid industrial capability

• Intelligent customers-intelligent suppliers: the importance of• Intelligent customers intelligent suppliers: the importance of systems engineering capabilities and skills

• Value for Defence - VFM• Value for Defence VFM

• Change on both sides


Capability Management

Capability Integration Groups

Capability Managemen

t

Programmes&

Projects

tCapabilityPlanningGroups

‘Portfolios’ ProjectsPortfolios


MoD PM Improvement o p o e eAgenda

Delivery ConfidenceDelivery ConfidenceDelivery Confidence

Delivery Performance

Delivery Confidence

Delivery Performancey

PPM capability

y

PPM capabilityp y

PPM Skills

p y

PPM Skills

Reputation and recognitionReputation and recognition


MoD PPM Centre of Excellence

Defence Equipment & Defence Equipment & SupportSupport£13Bn pa budget

24 500 Staff24,500 Staff

HQ at Abbey Wood BristolQ y

c400 Major ‘Equipment’ Projects

Some most complex in Europe

Business as Usual SupportBusiness as Usual Support

More stock lines than TESCO


Performance MeasuresPerformance MeasuresPerformance MeasuresPerformance Measures

Major Projects Review – NAO

OGC MPP MPRG Gateway ReviewsOGC – MPP, MPRG, Gateway Reviews

Internal Benchmarking & Assuranceg

External Benchmarking

360 Performance Review with Key Suppliers

ImprovedDelivery


Independent Benchmarking" Approach -Top Quartile or better in many areas”



Key reflectionsKey reflectionsKey reflectionsKey reflectionsOur research shows clearly that improved capability directly relates to improved deliveryto improved delivery.

Organisations who have applied themselves diligently to improve project management capability have made dramatic improvementsproject management capability have made dramatic improvements year on year.

One major exception planning & estimatingOne major exception planning & estimating

The lack of delivery on benefits results in organisations eventually challenging the ‘value add’ to the organisation of project/changechallenging the value add to the organisation of project/change management capability. Result is change of delivery model

All our research indicates organisations not continually improvingAll our research indicates organisations not continually improving actually go backwards.

Our processes are mature (maybe ?) but have our people the


Our processes are mature (maybe ?) but have our people the maturity of skills and knowledge ?

64

Fabio Capello discusses tactics with the England


Fabio Capello discusses tactics with the England football team ! Or is it his shopping list for

Esselunga !

Any questions ?Any questions ?

[email protected]


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