Gartner recently released the 2012 Gartner PPM Magic Quadrant for Cloud-Based Project and Portfolio Management Services. This magic quadrant is focused on the needs of PPM leaders to improve speed, accuracy and agility, while managing risks and costs. It profiles vendors that are providing disruptive technologies — cloud and software as a service (SaaS) — to support these needs.
In addition to the vendor analysis, Gartner identified four key trends they are seeing in the PPM marketplace:
1. PPM Sweet Spot
Gartner has observed a growing trend of organizations focusing on enhancing the collaboration,communication and reporting that targets the information flow between the project manager (the one responsible for managing and monitoring the work) and the project sponsor (the one asking for the work). Sweet spot communication and reporting require a “just enough” approach to the level of detail required to fit the audience. For instance, key tasks or milestones or phases might be tracked, but the sweet spot does not venture any deeper into more detailed PPM activities.
2. PPM and Agile Development Support
With the rise of agile development, PPM applications are supporting some of the communication, collaboration and reporting nuances associated with agile development methods, such as Scrum. A typical project portfolio includes different project types based on a wide range of methodologies, including waterfall, hybrid agile/iterative and more sophisticated agile variants for new product development. PPM solutions are now supporting more integrations to providers such as Atlassian and its issue and bug tracking Jira product, as well as Rally and its products that support agile development.
3. PPM, Social Networking and Collaboration
Gartner notes that social networking and collaboration in the PPM context seem more like fads that could fade away someday, rather than become a legitimate mainstay PPM capability. Enterprise collaboration and communication tools, including issue tracking, threaded discussions, synchronization, integration to and from email systems and applications, and other mechanisms that have been staples of PPM software products for years. With the rise of Salesforce.com’s Chatter, Jive and Yammer that could change if something more meaningful and useful evolves from this introduction of social networking and collaboration in PPM software.
4. PPM and Mobile Device Support
Finally, PPM providers are using HTML5 to connect a PPM system to a number of mobile devices, including tablets and smartphones. PPM providers are focused on delivering three main mobile capabilities to their customers early: (1) Time reporting, allowing end users to report their time from mobile devices into the PPM system, (2) The ability to approve items within a process flow of a PPM system, and (3) Executive reporting to mobile devices, so end users (for example, business managers or project managers) can access and view reports and dashboards from their tablets or smartphones.
You can view a full copy of the 2012 Gartner PPM Magic Quadrant for Cloud-Based Project and Portfolio Management Services at http://www.daptiv.com/gartner-ppm-magic-quadrant.htm
Organize to fit the work.
This seems like a simple concept, but whether you’re setting up a new PMO, or expanding/re-organizing an existing PMO, getting the right organization can be daunting. Not only do you need to define the right roles, you also need to think about getting the right people with the best knowledge, skills and abilities to fill those roles. Here are some thoughts about how you can go about building an optimal PMO organization.
While there seems to be general agreement that a PMO provides a focal point for projects and project-related processes, practices and tools, there is no cookie-cutter definition of what is PMO is, what it does or who is needed to run it. PMOs are by nature highly situational; they reflect the unique needs and challenges of their client or parent organization. Needless to say understanding and articulating your PMO’s value proposition and business objects are the critical starting point. A critical point to remember is that when you start the discussion about organizing, you really need to focus on what you do.
What your PMO does, or needs to do, to meet its objectives and provide value is the key step in translating those too often broad, lofty strategic statements into the tactical, assignable activities that real people need to execute. It’s very similar to the way we define projects - we start with strategies and business objectives and we end up with defined deliverables, tasks and assignments.
So assuming that you’ve been diligent about defining what you do, here are some thoughts about who you might need to do it.
PMO Administrators: Most PMOs are heavily tasked with collecting data, distributing information and coordinating review and governance activities. In a perfect world all of these things would be auto-magical but in the real world someone needs to make them happen. From sending ‘gentle reminders’ to managers that their reports are due to coordinating calendars and distributing meeting materials, the PMO administrator plays a key role in making sure that the internal processes run smoothly. The best administrators also play a role in creating and communicating those internal processes across the PMO stakeholder community. Superior organizational skills, patience, persistence and good people skills are all a must!
PMO Analysts: There are potentially several different analytical positions and job titles appropriate to a PMO; process analyst, information analyst, tools analyst, business analyst, etc.. So what does an analyst do? In the PMO context, the analysts are the people who dive into the details:
Great analysts – of any kind – are excellent at open listening and are exceptional critical-thinkers. They use details, but they don’t get bogged down in them and can explain their methods and thinking to others.
Project Managers: The great debate is not about what project managers do, but whether they should be centralized in the PMO. One side argues that because the PMO is responsible for the practice of project management, all project managers should report and/or be accountable to the PMO. The decentralization side argues that project managers should have a strong working knowledge of the business or technical aspects of projects and should thus report into the functional area executing or sponsoring the project. PMO’s are concerned about adherence to project management standards, and mitigate risk by having deploying professional project managers. Functional areas are concerned with the quality of the project deliverables and the need to understand the project’s business and technical issues.
The answer is that both sides are right and wrong. In practice, most successful organizations are those that recognize the need for a mixed model. Large, complex, cross-functional Programs and Projects require a dedicated manager who can effectively oversee the project across the enterprise. As a ‘center of practice’ the PMO is the appropriate ‘home’ for these project (or program) managers. Conversely, a smaller, intra-functional project may not require the same level of project management rigor and could be effectively managed by a functional resource – a ‘project leader’ as opposed to a ‘project manager’. Using a mixed approach is not without its challenges, but there are also some compensating benefits.
A key challenge is determining the criteria for which projects require ‘project managers’ vs. ‘project leaders’ , which then need to be applied to during the project intake process. Those criteria should be focused on risk mitigation, not availability of qualified project managers. Assigning a project leader to a mission-critical project because all the PMO’s project managers are busy invites disaster. There must also be clear expectations and accountability for things like status reporting – as information generated by project leader is needed by the PMO to provide enterprise-level visibility into projects and portfolios.
Key benefits of centralized project managers include ensuring an adequate level of management for large complex projects, and providing the enterprise as a whole with subject matter experts in project management. These expert PMs can assist in establishing project management processes, educating or assisting others in their use, and increasing the overall project management maturity of the organization.
The PMO Manager/Leader: Last, but not least, we come to the head of the PMO. In his 1990 Harvard Business Review article, ‘What Leaders Really Do,’ John Kotter asserts that management is fundamentally different from leadership. According to Kotter good managers deal with complexity by planning and budgeting, organizing and staffing, and controlling and problem solving. By contrast, leaders cope with change; setting direction, aligning people to that direction, and motivating and inspiring people to keep in the right direction.
The effective PMO manager is both manager and leader. This individual establishes the plan for what the PMO will do, manages the work and the staff and ensures tactical objectives are met. At the same time the head of the PMO fills the pivotal leadership role for the PMO team and for the practice of project and portfolio management across the organization. While the PMO manager spearheads efforts for creating and maintaining processes to ensure consistent predictable project performance, the PMO leader is continually working across the enterprise to encourage the adoption of those processes and the use of the information they provide. The effective PMO leader is continuously adapting themselves and the PMO to support the needs of the organization.
In conclusion, setting up and organizing a PMO requires forethought and preparation. Some things to keep in mind:
And, of course, organize to fit the work.