By Kevin Korterud
To mark the new year, I decided to make a rather ambitious resolution: envision the future of project management offices (PMOs). Specifically, what PMOs will be like in the year 2025.
In retrospect, a New Year’s resolution to exercise more or take up a new hobby might have been easier. But here goes.
In 2015, PMOs of all types face a growing number of challenges. These include larger and more complex programs, workforces spread across different locations, time zones and cultures, integration needs and a shortage of skilled technologists. All of these trends will likely intensify in the next 10 years.
While there have been significant advances in the area of program delivery with agile methods, work planning tools and other enhancements, we need to rethink the function of the PMO with regard to its readiness to deal with a constantly changing and challenging business environment.
Here’s how I think PMOs could — and should — be functioning in 2025:
1. Mega PMO. Today all sorts of PMOs are spread across an organization: enterprise, business, program and transformation PMOs. Organizationally, these PMOs are typically fragmented across multiple business functions and governance structures. In addition, each PMO can operate independently of each other.
Given the complexity and scale of contemporary programs, this scenario has inherent risk from a delivery integration and coordination standpoint. For effective and safe delivery in the future, all PMOs need to be brought into a single organization and centralized command structure responsible for the oversight of all delivery programs.
This “Mega PMO” would go beyond the strategic roles played by Enterprise PMOs (EPMOs)—like portfolio management and benefits realization—to encompass tactical and operational services as well.
The level of integration on today’s delivery programs compels a move to this new PMO operating model.
2. Mega-PMO Partitioning. We must also address the strategic, tactical and operational needs of contemporary program delivery. This can come about by structuring the PMO of the future into functions that provide services and direction at all three of these levels.
For example, portfolio management, benefits realization and strategic planning would reside in a function that is staffed with highly skilled resources. Administrative and operational activities such as work plan updates, status report production and financial tracking would be in a service center function using resources with matching skills.
3. Unified Program Managers. It’s common today to have program managers embedded in various parts of an organization. While this results in program manager specialization, it does little to harmonize program management approaches and activities.
Just as program oversight would be brought into a single organization, so should the program managers overseeing program delivery. This would ensure both existing and new program managers collaborate and execute in a coordinated manner.
In addition, the centralization of program managers would also enable the development of program managers’ skills in ways that typically wouldn’t happen while embedded in a business function.
4. A Master Control Room. In a prior article, I mentioned the need for and benefits of a program control room. The creation of a single PMO compels the need for a centralized control venue to enable effective delivery oversight.
To manage the quantity, complexity and scale of future programs, this PMO master control room would need to resemble a control room in a manufacturing environment. This would include display screens, consistent representation of status, incident resolution rooms and other enabling technologies that drive effective program delivery.
This vision of the future aligns with the trends and trajectories of delivery programs. Not unlike how manufacturing, supply chain and other core business processes moved from craft to industrialized systems, the design and operation of PMOs need to change to support the delivery programs of tomorrow.
What do you think the future will hold for PMOs? I welcome your reactions!
With an 85-year history, Ming Hua Yan Arts and Cultural Group is one of Taiwan’s artistic treasures.
But in recent decades, the Taiwanese opera group has faced a big challenge: how to modernize a traditional folk art and introduce it to a modern audience. Since project managers often struggle to bring innovation to historic industries, Ming Hua Yuan provides a successful roadmap to follow.
Blending Innovation With Tradition
Chen Sheng-Fu, who oversees the family-owned organization, said its success began with committing to building on its reputation; the group needed larger audiences if its art and way of life was to survive. Taiwanese opera is marked by an emphasis on stylized singing and posture, showcased through simple, slowly paced stories. This is antithetical to modern audience expectations, so over the past 30 years, Chen and the organization have been working around this fundamental problem. He has introduced the director system from the movie industry, and extensively applied the elements of modern theater to the production of traditional repertoires.
For the modernization of the form itself, Ming Hua Yuan has been adopting more complex stories. They usually consist of multiple storylines juxtaposing the past and present on the same stage. Ming Hua Yuan also introduced contemporary stage design such as lighting and sound effects, acrobatics and 3-D background panoramas, which are more typical in large-scale live concerts. In addition, more contemporary language was incorporated into the performance.
Using Process Analysis and Cycle Time Application
As a program manager overseeing this modernization, Chen relied heavily on process analysis. He strives to ensure each performer, prop or stage design can fulfill multiple tasks. For instance, quick scene changes are made possible through costumes and set pieces that can be easily changed or modified between scenes, and that can conceal the smaller props and costumes. For example, a tree trunk can be part of a forest for one scene, then turned around to reveal an imperial throne in the next scene.
This allows on-stage performers to be as responsible for scene changes as stagehands and technicians. If 20 performers each spend eight seconds to complete the tasks, then nearly three minutes of work can be accomplished, with the audience experiencing only a brief musical interlude with dramatic lighting. Such a cunning application of “cycle time” enables Ming Hua Yuan to change scenes without dimming the lights and bringing down the curtain.
The challenge of running a traditional performing art group is no easier than running any modern business. But with modern techniques and professional management, Ming Hua Yuan has successfully reformed itself—and introduced a traditional art form to a global audience.
By Jen L. Skrabak, PMP, PfMP
A portfolio manager’s key responsibility is to sell your idea — whether it’s to incorporate innovations into the portfolio, to advocate for portfolio management processes or to champion the establishment of a portfolio. And one of the most powerful ways to sell is to have great presentation skills. The next time you have to present your portfolio strategy to executives or conduct a meeting, think about the simple acronym that can ensure SUCCESS:
I always think in terms of the outcome of my presentation or meeting first: what is the one thing you want to people to remember, do, think or feel differently as a result of your presentation.
· Now, work this core message until it’s clear and concise. As portfolio managers, we need to be experts at distilling a tremendous amount of information into the “critical few” points — think bullet points rather than paragraphs.
· Be aware that too much detail will cloud the message, cause confusion, and delay buy-in. Strip away the unnecessary elements and leave your audience with the essence.
· Don’t add jargon, industry-specific terms (i.e., technology or project management), or try to be too trendy. Spell out acronyms, and try to stay away from anything that requires a dictionary to interpret. I once had a project manager refer to a “wheelhouse,” and I had to look it up to see what it meant. For the record, it refers to “an area of expertise.” But ultimately, ask yourself: Do you want people to wonder what your message is? Or do you want them to quickly grasp it?
· Instead of just jumping into facts, keep the audience’s attention by opening and closing gaps in their knowledge. Put yourself in their shoes, and ask yourself, “What do they know, and what don’t they know?” Open with something they don’t know to grab their attention.
· Then, try to highlight a few ‘a-ha’s” and lead them to the desired outcome. Is your audience interested in the process, or just your portfolio inventory of the programs and projects? Highlight a few programs and projects with interesting facts rather than reviewing the entire list of programs and projects.
· Create curiosity, interest or concern in what you are going to tell them before you tell them. For example, you might say that it’s commonly thought that there are 100 critical projects within the portfolio, but your analysis show that it’s actually 10 critical projects. This way, you are also selling your value as a portfolio manager — anyone can come up with a list of projects, but only you can analyze and bring recommendations.
· Remove abstract language or ideas from your message, and replace them with concrete language or ideas (tied to a tangible/physical item that people can relate to).
· Use sensory language to paint a mental picture. Give an example.
· When selling a new portfolio management process, say “good portfolio management is like having a well-balanced 401k.”
Use “good statistics” — ones that aid a decision or shape an opinion and humanize your statistics by bringing them closer to people’s day-to-day experience.
Make the statistics or examples relevant by placing them into the frame of everyday life. For example: “I compare the portfolio roadmap to having a detailed guide for a trip from NY to LA so that every major stop can be accounted for.”
· Don’t rely solely on logic to sell your presentation.
· Create empathy for specific individuals affected by what you are trying to sell. Say things such as: “Given that it currently takes five people two weeks to manually put together the reports needed, my new portfolio management process will now free up three people and reduce the time to five days.”
· Show that your ideas are associated with things people already care about. Within a large company, that may be increasing efficiency, increasing shareholder value, meeting compliance and regulatory demands and increasing employee satisfaction.
· Use stories so your message relates to the audience and reflects your core message. Use specific examples, preferably yours, of why it’s worked (i.e., “When I worked at our competitor’s and implemented this portfolio management process, it resulted in an increased ROI from 50 percent to 85 percent within six months.”). Another thing that works well: A brief acknowledgement that your method is a best practice within the industry, based on your extensive research.
· Finally, don’t forget that the story should have emotional elements and draw from the other SUCCESS principles.
What are your tips for successfully presenting portfolio management to stakeholders?
Finding Innovation Through Design Thinking
Recently, I came across a concept presented by U.S. businessman and author Tim Ogilvie centered on "design thinking" -- how to turn abstract ideas into practical applications to maximize business growth. Since the core of portfolio management centers on identifying the right opportunities through strategic alignment, innovation and transformation, this concept seems to apply to our job as portfolio managers.
Of course, this is easier said than done, and although innovation is typically defined as a "breakthrough," it is actually accomplished through trial-and-error experimentation and old-fashioned hard work and perseverance. I think of innovation as "fail fast, fail often," but more accurately as "recover even quicker."
Mr. Ogilvie asks some key questions, to which I've added my own thoughts on how they apply to portfolio management in identifying the right innovative projects or programs in a systematic way:
Innovation Model Canvas
The Innovation Canvas and its eight key components is another way to find and sell innovation. You can easily put this on a one-page document or even the back of the napkin to concisely describe to executive sponsors why a project or program changes the way the organization does business. If you can only partially fill out the grid, then the project may require more development. You may even want to do two versions -- one for the current state and another for the future state:
What methods do you use to spot innovation in your projects and programs?
Innovation seems to be the new mantra for companies -- even though it has affected and shaped all aspects of our lives. And innovation covers not only the creation of a product, but also includes the process to produce it, how it's delivered to customers and even how value is generated, both for the company and the customer.
Some argue that processes and policies are barriers to innovation. These people confuse innovation with creativity and believe that trying to implement a well-thought-out, standardized process to manage innovation will constrain the results. But the opposite is true: A method for innovation sets the ground for achieving success in an efficient way. After all, creativity is only a part of a more complex innovation process, driven by project management -- and as such, you could say that project management is the vessel for innovation. That's because the best way to guarantee your organization's innovation efforts are well-managed, successful and deriving true value is through the use of program and project management tools. In addition, portfolio management can help define where to invest innovation dollars.
The problem is that those in the innovation field do not necessarily see project management as a useful tool, and those in project management do not feel that what they do is so beneficial to the innovation process. But let me give you seven processes to break down those perceptions for the sake of fostering innovation:
For organizations that compete on a global scale -- that is, most companies -- innovation can be their most important competitive advantage and the factor that guarantees long-term success. Innovation might sound like the flavor of the month, but in the future, success will be on the side of organizations that know how to do it and excel at it.
How does project management foster innovation at your organization?