“I’ve got Excel and half a day a week thank you very much. What do I need to know?”
Presented by David Dunning, Director, Corporate Project Solutions
Your Speaker Today David Dunning • Professional Services Director at CPS
• Over 15 years experience in implementing portfolio, programme and project management ecosystems.
• Member of the Institute of Business Consulting, APM Portfolio SIG and a Certified Management Consultant.
• Real world P3M experience across multiple industries.
CPS Is….
400 + Years of Project Technology Services Consulting experience
200+ Industry Enterprise Accreditations P3O / APMG, ACO, Project Recruitment ISO9001 P3M Management 200+ EPM and Consulting Implementations
SharePoint Training Technology 20+ Security cleared consultants
11,000+ Business Users trained Support Process Intelligence Agenda
Definition • Definition – what do I mean by that?
Challenges • Why is life not simple?
Answers • The Answers
HOW? • How on earth….
END • Conclusions What is Resource Management?
“In organizational studies, resource management is the efficient and effective deployment for an organization's resources when they are needed”
http://en.wikipedia.org/wiki/Resource_management
Definition Organisational Context – not a local issue
Definition
Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010] Organisational Context
• Line • Product • Matrix
Definition Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010] Operational Issues
Organisation Constraints
Progress / Skill / Issue Capability Management
Prioritisation Availability and Planning Challenges Operational Issues
• Skill pool management – What competencies do we have? – Who has them? – What do we need… • …now – to deal with current work • soon – to carry out the ‘pipeline’ • eventually – to realise the ‘vision’ …and how do we fill the gaps?
Challenges Operational Issues
• Availability management – Availability is limited – Holidays / absence – Training / Professional Development – Organisation operation (admin) “We never have enough resource when we’re asked for it at short notice” - either carry extra capacity, or plan better …so plan better!!!
Challenges Prioritisation
• Every organisation faces choices – you either make good / bad choices with the resources you have or can afford • How to prioritise - Strategic Objectives, Business Case, Benefits Management? • Big projects, medium projects, small projects? – May want to do all the big projects – …but may get better value from a mix of various sizes which use resources more effectively? • Low priority <> No priority?
Challenges The Bigger Picture
• PRINCE2® – Delivering projects - OUTPUTS • MSP® – Delivering programmes – OUTCOMES • P3O® – Support structure to ensure Definition and Delivery of the portfolio • MoPTM – Selecting the ‘Right’ projects and programmes aligned to strategy
Challenges PRINCE2® is a Registered Trade Mark of the Cabinet Office P3O® is a Registered Trade Mark of the Cabinet Office MSP® is a Registered Trade Mark of the Cabinet Office P3M3® is a Registered Trade Mark of the Cabinet Office MoP™ is a Trade Mark of the Cabinet Office Portfolio Management (PfM)
• “A portfolio is the investment in the changes required to meet strategic objectives “ - P3O® • Portfolio Management - Coordinated strategic processes and decisions to balance organisational change and business as usual
Challenges Where does PfM fit?
Vision (Values, picture of future state)
Mission Strategy
Current State Business Drivers Portfolio Management
Products, Pipeline Programmes and Projects Outcomes / Benefits
Challenges BAU - Work Problems if not done well • Wasted resource - Not killing projects which have lost viability • Slippage and overrun. Operational disruption? • Imbalance of projects and BAU - Wasted management effort on ‘politicking’, as there is no clarity of direction • Excessive resource issue resolution time • No learning, estimating does not improve • De - motivated people, recruitment / retention issues?
Challenges CEO
LOB LOB CFO CIO Executive A Executive B Allocating effort betweene.g. HR BAU and ChangeExample – LOB “A” - HR Needs 15 people to carry out HR duties Corporate Direction - Is tasked with expandingWhat capabilityis required (3 people), to and fulfil line responsibilities? 10 implementing processes from new 3 legislationHow (2 people) we prioritise between local and 2 Has internal 5 projects which need 10 corporate changes? 15 Holidays, training, absence How do we prioritise?
Challenges Cut services, say no to the Corporate workload, do less internal projects, or abolish holiday? Pipeline Management
• If no formal “Portfolio management” – Do we at least have a ‘front door’? • Is there a process? Plan Headcount, then generic, then people? • Effort estimation and likelihood, Risk and contingency? • Decision support?
Challenges
Work Coming towards us Progressing
• Do we formally progress achievement and remaining work? – Oh dear, I’ve created an overload? – Cross Project Dependency issue? • Time accounting – is it accurate / are people spending the right time on the right things? • Agile Issue handling? – Adverse event – Change request
Challenges So why not just let us all use spread-sheets and our wits? • Because projects are UNSTABLE - i.e. – full of risk / uncertainty, and – dependencies (internal / external) • To allocate resources and work effectively – we need STABILITY!
Challenges A “Request / Supply” example
Project Plan? My Plan
IT Task
Project and line manager schedule in a task
Department Spreadsheet? Ongoing IT BAU Tasks IT IT Task Task IT IT Task Task IT IT IT Task Task Task IT IT Task Task IT Task
Challenges Something comes up….
My Plan
IT IT Task Task
Project and line manager have to communicate. OK in this simple scenario
Ongoing IT BAU Tasks IT IT IT Task Task Task IT IT Task Task IT IT IT Task Task Task IT IT Task Task IT IT Task Task
Challenges Knock on effects….
My Plan
IT Task
What if there is another Another Plan Project? IT IT Task Task
Ongoing IT BAU Tasks IT IT Task Task IT IT IT Task IT Task IT IT Task Task Task Task IT IT Task Task IT IT Task Task
Challenges This comes back around to the Line Manager?
Utilisation issues…
My Plan
IT Task
Another Plan
IT Task
Ongoing IT BAU Tasks IT IT Task Task IT IT Task IT Task IT IT Task Task Task IT IT Task Task IT IT Task Task
Challenges Too late to use this availability hole?
Iceberg...
My Plan What about this line
IT manager? Task
Another Plan
IT Task
Ongoing IT BAU Tasks IT IT Task Task IT IT Task IT Task IT IT Task Task Task IT IT Task Task IT IT Task Task
Challenges Conclusion
So – this is not simple.
Answers We have to deal with… Competency map. The structure is right Availability. Our pipeline is clear Skill transformation is and prioritised! happening. Are we operating We are planning. correctly Priorities Balanced. Actuals there. CXO / Line Portfolio Managers Managers
Project / Programme Resources Managers My plan is in a pipeline. My role is clear. Correctly structured. I am developing. Resource Allocated. Absences booked. Answers Control Cycles I can do this work. operating and I am recording time. supported Answers
The Answers? The p A collaboration of line managers, lan owners, portfolioowners, office lan Value
Organisation Current Organisation Components?
CEO
LOB LOB Strategy CFO CIO Executive A Executive B Group
Programme Processes Projects Local PMO Project X Programme Y Office Group Office
Business PSO Assurance
Major Projects Cost
Where does resource management fit in? What has this got to do with a PMO? Answers What if we could start from scratch?
CEO
LOB LOB Strategy CFO CIO PxO Executive A Executive B Group
Can we rationalise this structure?
Answers And in doing so enable better portfolio resource management support? PM / Line / PMO Responsibility
“Project Manager” “PxO” “Line” • Pipeline visible • Fwd Service Level • Prioritisation • Budgeting • Project Planning • Planning support • Planning • Allocation need • Allocation assistance • Allocation • Balance Discussion • Balance Discussion • Balance Discussion • Project Reporting • Macro Reporting • Local Reporting • Use tools and • Define tools and • Use tools and process process process • Compliance • Assurance • Compliance
Governance?
Answers Answers
The Answers? The Value
People
Process
Organisation Re-definitions • Resource Planning – creating a model of resource demand, maintaining it, reporting off it. More bottom up. • Resource Management – using the model of resource demand in the context of emerging requirements, priority, progress and capability in order to carry out planned work. More top down.
Strategy Resource Planning Resource Management Resource Management Initiated Initiated Consolidated
Answers Answers
The Answers? The
Technology Value
People
Process
Organisation Example Technology
Enterprise Project Management
Portfolio Work Resource Team Optimization Management Management Collaboration
IT WON’T DO THE JOB FOR YOU
…but it can make your job easier Answers EPM Solutions
Answers First Step?
• What is the problem? – Health check? – Internal perception gathering? – ‘Best practice’ assimilation/learning? – Gap analysis? • Quick Win – Vision – Enablers for change • ….
HOW? What do I need - Holistic View
Portfolio, Programme and Project Management Components
OUTCOME PEOPLE & INSIGHT & BASE ORGANISATION PROCESS MANAGEMENT CAPABILITY Universal interactive reporting Organisation components in Best practice templates and Commonly exploited tools, methods and tools. place to thought lead, update cycles people joined up data. Integration ‘designed in’. support, govern and understand. Good quality, reliable Ability to share useful scrutinise delivery.
TRANSFORM Commonly understood information. information not corporately Strategy led delivery and processes and tools operated benefit realisation.
reported. by capable people.
PROBLEM
• This is typically an improvement programme – enable, improve, change
HOW? Crude Roadmap
BASE CAPABILITY PEOPLE & PROCESS INSIGHT & MANAGEMENT ORGANISATION
CHANGE • Tools joined up • Interpretation not • Flexible Insight to spot issues • Scrutiny and with other tools a gamble • Meaningful analysis on oversight of the • Data integrity • Processes relied reliable information from portfolio • IT strategy upon by the reliable process • Strategy drives alignment business • Supporting key business delivery and delivery • People capability processes informs strategy not an issue • Future resource needs from strategy
IMPROVE • Tools aggregate • Common • Common data schemes in • Support and information easily Information different systems governance in place • People use tools • Processes joined • Common reports extended to • Exec level use of & follow basic up and operated integrated information information for usage model • People capable • Aggregated information for decision making • Accuracy and of following further collaboration • Skill development / reliability processes acquisition
ENABLE • Common • The right • Common reports defined • Standard tools & planning & management • Information sources processes owned collaboration information understood and manually • Initial link between tools • Common worked together strategy & delivery • People have procedures • Common ways of visible base tool • Enough of the collaborating around • Capability hiring HOW? capability right people information approach • Data Accuracy Resource Planning
Resource Planning Initiated
Skill Pool creation, clean up
Availability creation, clean up
Prioritisation Model
Clean up existing Plan structure plans guidelines
Update Process I
ENABLE Resource Management I
Resource Planning Resource Management Initiated Initiated
Skill Pool creation, clean up Skill Pool maintenance
Availability creation, clean up Availability maintenance
Prioritisation Model Pipeline Process
Clean up existing Plan structure Resource Allocation plans guidelines guidelines
Update Process I
ENABLE IMPROVE Resource Management II
Resource Planning Resource Management Resource Management Initiated Initiated Consolidated
Skill Pool creation, clean up Skill Pool maintenance
Availability creation, clean up Availability maintenance
Portfolio Review Prioritisation Model Pipeline Process Process
Revised Processes / Plan Resource Allocation Extend new / Clean up existing Plan structure Structure Allocation guidelines guidelines existing plans plans guidelines
Update Process I Update Process II
Organisation Structure Review
ENABLE IMPROVE CHANGE Conclusions
• Organisation Structure is a limiting/enabling factor • Pipeline management will define how effective any other measures to manage resource will be • Prioritisation does not have to be a fight • BAU and Projects need balancing • Planning ideally needs common consistent tools on a database • Allocation process needs managing • Capabilities, Support roles and Controls need to be sorted • Implementation is a change programme – simple first step to the richest process • Engage the right stakeholders at the right levels • Treat symptoms – but deal with the underlying problem too
END To find out more & stay in touch…
http://www.apm.org.uk/group/portfolio-management-sig Thank you for listening!
[email protected] 07767 803540 http://uk.linkedin.com/in/davidjdunning
Please talk to me if you would like support in bringing this to your business.
Technical and Business Solutions to the “Above”!
Backup Slides ENABLE
Identify Define Assessment Drive Change and Realise the Benefits e.g. Awareness Readiness Prerequisite training Training Data Migration Governance Review • Identify – the problems to be solved Design Change • Define – the solution and the roadmap e.g. P3O® Structure • Process / Standard e.g. Data OK Assess – what the implication is Tools Configuration Improvement forums Training Preparation Capability assurance • Phase 1 Vision = ENABLE Learning / advancement – Assessment • Organisation / capability mapping IMPROVE – Design • Initial P3O® Service Level / staffing Next Realise the Benefits Tranche • MoP, MSP ®, PRINCE2® - Trigger Processes / Standards • EPM Tools / Reports • Data Migration Design Change – Change
• Phase 2 Vision = IMPORVE – build upon the capability enabled. CHANGE
• Phase 3 Vision = CHANGE – Next Realise the Benefits deliver benefits beyond what is Tranche possible with improvement alone. Trigger
Design Change Close Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010] Key Players
Competencies Is the structure right? mapped? What is our pipeline? Skill transformation? Prioritisation? Are we planning? Are we operating Priority Balance? correctly? Actuals? CXO / Line Portfolio Managers Managers
Project / Programme Resources Managers
Am I in a pipeline? Is my role clear? Plan structure? Am I developing? Resource Allocation? Absence booking? Control Cycles Can I do this work? operating? Am I recording time? Strategic Objectives vs Local Objectives
In larger organisations – we can’t map projects to Corporate Objectives Top down / bottom up?
Projects Department Corporate Objectives Objectives Plan and Plan Structure • Assuming plans… (But we love Excel…) 1 3 • Estimating – are we any good? 2 • Stages / Gates / Cross Project dependencies?
Ability to Identify Business Value Potential
organisations the investments that will will that the investments business value – value business Portfolio Management enables enables Management Portfolio Deliver and Realise and to Deliver Ability (average company today?) projects and programmes” and projects waste effort and resources deliveringby the wrong “It shocking is that some organisations continue to Management Value Portfolio Portfolio
to identify and select and select identifyto
RIGHT THINGS 60% Realised
maximise
Business Benefits Business
Value Lost
Project Project Prog Mgt.
. /
opportunities opportunities value business selected the deliver successfully to organizations enables Management Project Programme THINGS RIGHT and -
So what work do we have, what do we call it, and can we plan or not? • Programmes and Projects • Work packages – within projects (perhaps), but maybe these assignments need to be defined, prioritised, done, accepted and closed – mini projects perhaps? • Workstreams – groups of people delivering a function or a service level, e.g. – HR service, IT support desk, Payroll… Which of these workstreams to we need allocate resource / costs to, and which should be included in budgeting / prioritisation processes? What to do to get going… Set the capability / benefit expectations – so that success can be measured
Establish Appoint a capable ‘Organisational Will’ at Programme Manager – the right level to deliver effectively Assess the current state of strategy Appoint a Senior management and 'P3 Responsible Owner – organisation’ a business person to provision – to make front the change change provision feasible Map out the vision for Devise a problem how the objectives statement – to gain can be met – keeping stakeholder short and long term engagement needs visible Prepare Benefit Profiles, a Business Case, Programme Brief, Programme Preparation Plan and Identify Define Vision statement Organisational Context – Functional Structure
Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010] Organisational Context – Divisional Structure
Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010] Organisational Context – Matrix Structure
Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010]