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August 2010 - Posts

Are your projects linked to Enterprise strategy?

Published: August 30 2010, 05:24 PM | no comments
by Steve Romero

Is each of your IT investments contributing to enterprise strategy? This is one of the most fundamental questions answered by the governance process of Project and Portfolio Management (PPM). Though this may seem to be a ridiculously rudimentary aspect of investment governance, it bears repeating - again and again.

I mention the need to use enterprise strategy as the primary criteria for selecting investments in my IT Governance, PPM, and PMO presentations. I mention it every chance I get. I do so because the vast majority of organizations I visit around the world cannot quickly and confidently identify the enterprise strategy linkage for each of the projects and programs in their portfolio(s) of investments. I get the same number of, "Umm...."s when I ask about the strategic significance, priority, and value of their portfolio of applications.

So I got a huge kick yesterday when one of the IT executives assembled to hear my IT Governance presentation shared one of my own anecdotes on the topic with the other members of the IT leadership team. He was able to do so because he and another gentleman in the room at this company had attended the first presentation I delivered here in Australia 3 years ago.

He started by saying he still uses some of my anecdotes from that morning Field Marketing Event. It was my "Critical Components of the PMO" presentation where I discuss the 9 objectives I believe help transform PMOs from "paper-pushers" and "process-police" to "participants in enterprise success." The anecdote is from the objective: Facilitate choosing the right project mix and priority.

I start by telling audiences that though the PMO doesn't choose which projects are approved, there are a number of things they can do to influence the investment governance committee to choose the right ones. Most of the recommendations focus on providing the decision-makers with as much fact-based data as possible to determine if a project should be done and if it can be done. But my first recommendation is for the PMO to identify link to goals and strategy. This is from where the anecdote originates.

Though the PMO can't tell the decision-makers what to choose, they should try to influence the steering committee to use thoughtful, meaningful, measured, enterprise specific criteria to make reasoned and rational investment decisions. I acknowledge this may be difficult for PMOs to do because they likely have little influence on executive leadership. But I insist the PMO should not sit still if they see project after project come down the pipe with no apparent link to enterprise strategy. But what can a PMO do?

I tell PMO Directors to post a giant chart with two columns outside their offices. In the first column is the list of all of the projects and programs currently underway. In the second column is the enterprise strategy or goal to which the project is linked. In those instances where the PMO does not know the linked strategy or goal, they should draw a great big red question mark. When people walk by and ask, "What are those big red questions marks?" the PMO Directors responds, "Those are projects we are working on and we have no idea why."

This anecdote is always good for a chuckle and I quickly go on to acknowledge the chart won't likely stay up very long. I also warn them it may not be the best career move for the PMO Director and that I simply want to prove a point. Every single thing we do should be tied to enterprise goals and strategy and it is up to everyone in the organization to try to influence that end.

The executive shared the anecdote with his fellow IT leaders and they all had a little laugh that quickly degraded into something that sounded more like subdued groans accompanied by slight headshaking. It provided a great start to our meeting and we ended up having a fantastic two-hour discussion of IT Governance.

Again, I got a huge kick out him remembering the story and sharing it with his team. I also couldn't help but marvel at the fact I was almost halfway around the world from my home sitting once again with some folks I presented to 3 years ago. It was gratifying and sad at the same time. Organization after organization continues to struggle to make the best possible investment decisions for their enterprises. PPM continues to be incredibly immature. And I still find the need to remind folks of the necessity to fulfill one of the most fundamental aspects of project selection - link to enterprise strategy.

Please write me back and tell me that your organization makes the link. Please tell me you only invest in those things you feel will enable you to realize your enterprise goals and strategies. Otherwise, you may have to draw some big red questions marks.

Steve Romero, IT Governance Evangelist

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By: Steve Romero
Steve Romero is the IT Governance Evangelist at CA Technologies, Inc. His mission is to help enterprises realize the full potential of their IT investments for strategic and competitive advantage. In this capacity, he acts as a strong advocate for the customer, speaking around the world to users, prospective...
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PPM - Is everyone on the same page?

Published: August 23 2010, 10:30 AM | 1 Comment(s)
by Steve Romero

Is everyone in your organization on the same page when it comes to Project and Portfolio Management (PPM)? Do you have a handle on this essential governance process so critical to enterprise success?

I would love to hear the answer is "yes." I would love to receive comments to this post describing how well PPM is working and how mature the process is, in anyone's enterprise. I know PPM success stories are out there and I occasionally have the joy of hearing about them. I also read about them when I peruse surveys reporting the increased pervasiveness and continued maturation of PPM. I seldom get to see it.

I have visited more than 100 companies and government organizations around the world and each one was struggling with PPM. In every case, there wasn't even a common understanding of the term, let alone a defined, unified, and cohesive approach to meeting its end. So I am thrilled that company after company continues to request my PPM presentation as a means to providing the foundation and catalyst for their PPM-fostered journey to success.

So I am continually befuddled when I see those PPM-related surveys I mentioned earlier. Though none of them paint a rosy picture of PPM, they all show that most organizations are doing "some PPM" and PPM continues to mature. I always wonder to what these organizations were referring when they checked the "yes" box to the "Are you doing PPM?" question. I wonder because I contend the definition is far from cut-and-dry.

To make this point, I include each of these definitions in my PPM presentation:

  • PPM is a continuous loop of communication that enables an IT organization and the business to collaboratively plan and manage IT investments.
  • PPM is a term used by project managers and project management organizations to describe methods for analyzing and collectively managing a group of current or proposed projects based on numerous key characteristics.
  • PPM is the process to determine the optimal mix and sequencing of proposed programs and projects to best achieve the organization's overall goals.
  • PPM is the process to ensure that an organization's overall portfolio of investments is aligned with and contributing optimal value to the organization's strategic objectives.
  • PPM is the centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives.

I purposely did not cite the source of these definitions because my point is not to pick on any one of them. (I will go on record that the last definition is my favorite because it mentions the key activities required to do PPM right.) My point is that if an organization has any chance of making any headway with this essential business process they had better be using a consistent definition.

In addition to proving there are many perspectives out there, I provide audiences multiple definitions because I believe the definition is the key in taking those first (or next) PPM steps. Each of the definitions has its merits. PPM can meet any number of business objectives and it should be tailored to meet those applicable to the organization in question. The definition chosen should be based on the:

  • specific business problems or business opportunities PPM is expected to address
  • The specific PPM process objectives required to solve those business problems or exploit those business opportunities
  • organization's governance strengths and weaknesses
  • organization's process strengths and weaknesses
  • organization's culture
  • organizations capacity for change

The definition will drive the creation of process, assignment of roles and establishment of mechanisms to fulfill the specific business objectives of PPM for each individual organization in question. The organization will continually revisit and revise the definition of PPM as their capability matures and their business objectives change.

I am not a one-PPM-size-fits-all kind of guy. I don't believe in prescriptive approaches. So the myriad of PPM definitions is actually a good thing, as long as the organization gets everyone to agree to and apply the same definition.

As a test, write those three letters on a piece of note paper and hand it to each of your Project Managers and your PMO staff. Ask them to write down what those three letters mean to them. Try the same with your executive leadership team. If your PPM is not performing well, this simple exercise may give you a good idea why.

The first step to successful PPM is to get everyone on the same page.

Steve Romero, IT Governance Evangelist

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By: Steve Romero
Steve Romero is the IT Governance Evangelist at CA Technologies, Inc. His mission is to help enterprises realize the full potential of their IT investments for strategic and competitive advantage. In this capacity, he acts as a strong advocate for the customer, speaking around the world to users, prospective...
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The Future of IT - What do you think?

Published: August 09 2010, 02:07 PM | no comments
by Steve Romero

The discussion of IT's role and future has been officially taking place since the infamous Nicholas Carr "IT Doesn't Matter" article in the May 2003 edition of the Harvard Business Review. It seems to be a hotter topic than ever as businesses and their IT organizations emerge reshaped by the global economic downturn. Add the onset of cloud computing and the questions about the CIO and IT organization are greater than ever.

I could spin my broken IT Governance-record here, but if you have read my blog, you already know my answer to the business' ability to realize the most value from their technology investment. Instead, I want to direct you to a great discussion taking place on this topic right now. It will require you to do some surfing and reading, but I am certain you will find it worthwhile. I am also hoping you will return to my blog weighing in with your insights and ideas.

The discussion was initiated by a recent Forbes article called "Rich vs. Poor IT Organizations." Ed Sperling interview's Gartner's Mark McDonald about "Why some IT organizations are progressing while others seem to be stuck in neutral."

http://www.forbes.com/2010/07/23/cloud-computing-gartner-technology-cio-network-mcdonald.html

This article resulted in a great blog post from one of my favorite tweeter/blogger/humans, Peter Kretzman, @PeterKretzman. Peter epitomizes level-headed calmness and this post was easily his most confrontational (if you can even use that word with Peter).

http://www.peterkretzman.com/2010/08/06/countering-a-disturbing-bandwagon-rich-vs-poor-it-organizations/

Peter's blog post instigated a response from another of my favorites, Rob England, better known as @theitspetic. He had some counterpoints to Peter's post.

http://www.itskeptic.org/rich-it-poor-it-or-opposite-day

Notice how I am keeping my comments to myself? It's by design. I left comments on each of the posts, but I didn't tip my hand too much there either. I want to know what you think, so come back and leave your comments or let me know if you left a comment on any of the other posts. I look forward to reading them.

Steve Romero, IT Governance Evangelist

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By: Steve Romero
Steve Romero is the IT Governance Evangelist at CA Technologies, Inc. His mission is to help enterprises realize the full potential of their IT investments for strategic and competitive advantage. In this capacity, he acts as a strong advocate for the customer, speaking around the world to users, prospective...
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PMO Process "Right" vs. Process "Lite"

Published: August 02 2010, 12:17 PM | no comments
by Steve Romero

Consider this question, "Say, Ms. or Mr. Project Manager, would you rather follow the heavy PMO methodology or the lite PMO methodology?" Can you guess the answer?

I just received a copy of the Corporate Executive Board Company's "State of the PMO: 2010" report. It is a "compendium of PMO and Project benchmarks" produced by the PMO Executive Council in their Information Technology Practice. I am not providing any link because you have to be a subscriber to get a copy and I don't want to tacitly promote a membership-required forum. I leave any engagement you may desire entirely to you.

Here are the key findings listed in the Executive Summary:

1. Continued Budget Pressure-Only a quarter of PMOs expect to see any increase in their budget in 2010, while 61% expect further cuts. This continues the trend of declining budgets, as the median PMO budget fell by 17% between 2008 and 2009.

2. A Year of Flat Staffing-Following significant cuts in 2009, PMO heads report that there will likely be no staff increases in 2010. Sixty-five percent of PMOs say that there will be no change in the number of project and program managers in their organization, and 61% say that non-PM staffing levels in the PMO will remain flat.

3. A Lack of Long-Term PMO Stability-The average tenure of the existing PMO is only five years, and the average tenure of the current PMO director is only three years.

4. An Increasingly Complex Project Portfolio-The project portfolio is growing more complex. More than half of projects involve deployment in multiple locations, 40% of all projects involve more than two external partners, and only 19% of project teams are co-located.

5. A Trend Toward Reduced Methodology-The median number of deliverables in the standard project management methodology is 30. Thirty-five percent of PMOs indicate they want to reduce the number of mandatory deliverables across the next two years.

6. The Continued "Mainstreaming" of Program Management-Ninety-one percent of PMOs categorize projects into programs, up from 83% in 2008. The most common criteria used to group projects into programs include resource requirements (65% of PMOs), common end users (65%), and common project management deliverables or artifacts (55%).

It is an interesting report despite the lack of anything earth-shattering. (Yes, this includes the lack of long-term PMO stability. PMOs continue to come and go.) The one thing that got my attention and inspired this post was finding #5, "A Trend Toward Reduced Methodology."

For those of you who know me, you are aware of the huge place in my heart for process and methodology. I fell in love with process at the beginning of my IT career (go figure) and spent my earliest days as an inflexible and intolerable process lunatic. Fortunately, the years that followed provided me the needed education, experience, insights and beat-downs to temper my fanaticism and I am no longer an advocate of process for the sake of process. I constantly strive for the correct fit and flavor and balance between too much and too little process while under the influence of a relentless obsession to serve customers and the business.

Given my passion for process, finding #5 in the State of the PMO Report peaked my interest and made me hopeful. I assumed "a trend toward reduced methodology" meant PMOs were intent on eliminating unnecessary process activities, steps or tasks. I assumed it meant PMOs were going to ensure their processes and methodologies were reasoned and rational and right for the business they served. I assumed it meant they were devoting themselves to good process management and the inevitable resulting optimization of their processes and methodologies. Then I saw this little ditty inside the report:

  • 47% said establishing a "PMO-Lite" was a priority

ARGH! I say "Argh" because that bullet makes me want to scream! PMO-Lite? As opposed to what, PMO-heavy?" The only thing worse than a "lite" process is a process fast-path (implying the alternative is the slow path).

Process is neither lite nor heavy. Process paths are neither fast nor slow. Process is either right or wrong. Business applicability and required flexibility and adaptability need to be addressed in the design, implementation and management of a process. Variations in process business requirements result in either multiple processes or multiple decision-points in a single process. A process with fewer steps isn't a "lite" process, it is the right process! An exception to a process is not the "fast path," it is the "risky path."

I applaud the fact that almost half of the PMOs intend to address their process and methodology, but the idea of "PMO-Lite" gives me a stomach ache. The key is not fewer project management methodology deliverables. The key is the right deliverables to delight the customer and make the work required to do so possible and practical. Establishing the correct methodology deliverables requires an acute of understanding of the process management discipline (design, implementation and management). I believe it is the lack of this understanding that results in lite process vs. right process. This is why I tell all PMO practitioners and leaders they must be process masters. It is why I will continue to do so.

Steve Romero, IT Governance Evangelist

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By: Steve Romero
Steve Romero is the IT Governance Evangelist at CA Technologies, Inc. His mission is to help enterprises realize the full potential of their IT investments for strategic and competitive advantage. In this capacity, he acts as a strong advocate for the customer, speaking around the world to users, prospective...
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