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Repositioning the Project
                  Management Profession
                                                      presented by
                                         Brian Phillips, MPM
                  Registered Consultant: PRINCE2, MSP, MoP, P3O and P3M3
                       Accredited Trainer: PRINCE2, MSP, MoP and P3O
                                  Lizz Robb, MPM
                               Yellowhouse Training Director
                 PRINCE2, P3O, MoP, M_o_R and Change Management Trainer
                Yellowhouse is an APMG Accredited Training and Consulting Organization




                       PRINCE2®, MSP®, P3O®, M_o_R®, MoV® and P3M3® are Registered Trade Marks of the Cabinet Office;
                                       MoP™ and The Swirl logo™ are Trade Marks of the Cabinet Office




                  Overview
                  1.   The past …
                  2.   Bodies of Knowledge / Methodologies
                  3.   The Project Manager as “Hero”
                  4.   Growth of Best Practice models
                  5.   Organizational Maturity focus
                  6.   Growth of the PMO
                  7.   The future …




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                                                          01-1
The past …
                     Before PMBOK® or PRINCE2 …
                     Any approach or method was used
                      ◦ no clear distinction between Business as Usual
                        and Projects
                   Projects seen as just another way of doing
                    things
                   Accidental project managers everywhere




                     PMBOK® PMI® are Registered Trade Marks of the Project Management Institute




                  Bodies of Knowledge /
                  Methodologies
                     PMI: PMBoK: 1994; 4th edition (2008)
                     OGC: PRINCE2: 1996; 4th edition (2009)
                      ◦ From PRINCE: 1989 (from PROMPT - 1975)
                     AIPM: 3 competence levels – CPPP, CPPM,
                      CPPD
                     IPMA: 4 Competence levels
                     APM (UK): APMBoK; Competence Framework
                     IAPPM: Certification
                     Proprietary methodologies (everyone’s got one)
                     Program Management (MSP; PMI PgM Std)
                     Portfolio Management (MoP; PMI PfM Std)
                     PMI Standards for EVM, WBS, Config Mgt, etc




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                                     01-2
The Project Manager as “Hero”
                     Building individual capability
                     PM focus on Professional development
                      ◦ PMI: PMP, CAPM, PgMP
                      ◦ AIPM: RegPM – 3 levels
                      ◦ OGC: PRINCE2, MSP, MoR, P3O, P3M3
                      ◦ Proprietary methods/certification
                     Project Management an emerging profession?
                     Accreditation, Certification and Qualifications
                      ◦ Cert IV, Diploma, Degree, Masters, Doctorate




                  Growth of Best Practice
                   UK models to the fore now
                   The OGC framework has grown from a
                    PRINCE2 base in 1996
                   MSP for Program Management
                   Emerging areas:
                      ◦   Portfolio management
                      ◦   Value management
                      ◦   Benefits management
                      ◦   Change and Transition management




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                          01-3
Best Practice Portfolio
               Models                      Best Management Practice Guides


                                       P3O®                                       ITIL®
                                                      MoVTM       MoR®
                                      Portfolio,                              IT Infrastructure
                                   Programme and
                                                    Management   Management        Library
                                   Project Office    of Value      of Risk
                Portfolio,
             Programme and
                 Project
              Management
             Maturity Model                MoPTM Guide (Portfolio Management)
                (P3M3TM)

                                         MSP® Guide (Programme Management)
               PRINCE2TM
                Maturity
                 Model                   PRINCE2® Guide (Project Management)
                (P2MM)




                  Application of OGC Models
                      Governance – clear roles and responsibilities, common
                       language and processes
                      Portfolio Investment/Decision enabling/Delivery support – P3O
                      Strategic Transformational Change – MSP
                      Project delivery methodology – PRINCE2
                      Assurance and review – Gateway Review, Assurance
                       framework
                      Capability improvement – P3M3
                      In Queensland: QGCIO Panel for Program and project
                       management training, mentoring and coaching
                      Gershon Report (2008) Commonwealth Government has
                       adopted P3M3 for Capability Improvement
                      In Australia, all States now working with Gateway Review




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                                    01-4
Organizational Maturity focus
                         Project management is growing in complexity
                         Moving from “PM as hero” to …
                           ◦ Organizational capability improvement model
                           ◦ Portfolio selection and consistent success
                         Projects to programmes to portfolio approach
                           ◦ Cooke-Davies model
                         P3M3 (maturity development)
                         Corporate PMO




                     Understanding capabilities lead to
                     different kinds of success …
               Organisational Delivery                             Consistent project success.
               Capability                                          (Do we consistently do the right
                                                                   projects, and do them right?)



                Project Sponsor                                    Project success.
                Capability                                         (Did we do the right project?)



                Project Management                                Project management success.
                Capability
                                                                  (Did we do the project right?)



               Source: Terry Cooke-Davies of Human Systems International Limited
               © 1999-2003




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                                        01-5
Development of Maturity Models
                     Software Engineering Institute PMMI
                      ◦ Carnegie Mellon University
                     Organizational Project Management Maturity Model
                      ◦ OPM3 – PMI Standard
                     Private Organisations
                      ◦ Project Management Maturity Assessment
                     Portfolio, Programme and Project Management Maturity
                      Model – P3M3
                      ◦   Office of Government Commerce – UK
                      ◦   Based on SEI model
                      ◦   PMMM model launched in 2002
                      ◦   Version 1 P3M3 launched in February 2006
                      ◦   Version 2 released in June 2008
                      ◦   Assessment process for P3M3 developed by APM Group




                  P3M3
                     P3M3 provides a framework for organizations to
                      assess current performance and put in place
                      improvement plans with measurable outcomes
                      based on industry best practice
                      ◦ 3 Models
                      ◦ 5 Levels
                      ◦ 7 Process Perspectives
                     ACO – Accredited Consulting Organizations
                         Registered Consultants




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                 01-6
The P3M3 Model


                                                              P3M3®


                            Portfolio                        Programme
                                                                                          Project Management
                           Management                        Management



                      Management    Benefits     Financial     Stakeholder      Risk        Organizational    Resource
                        Control    Management   Management     Engagement    Management      Governance      Management




                                                              Figure 1




                  Overview of P3M3®
                      An overarching model with three sub-models
                       ◦ Portfolio Management Maturity Model (PfM3)
                       ◦ Programme Management Maturity Model (PgM3)
                       ◦ Project Management Maturity Model (PjM3)
                      P3M3 uses a five-level maturity framework
                       ◦   Level 1: Initial Process
                       ◦   Level 2: Repeatable Process
                       ◦   Level 3: Defined Process
                       ◦   Level 4: Managed Process
                       ◦   Level 5: Optimised Process
                      Maturity is focused on seven process perspectives
                       which exist in all three sub-models




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                                                            01-7
Growth of the PMO
                    Project Office
                    Program Office
                    Project Support Office
                    Portfolio Office
                    Centre of Excellence
                    Enterprise PMO
                    Others?
                    P3O emerges in the UK




                                     Organization
                                    Portfolio Office
                                     (permanent)                                 Centre of
                                                                                Excellence
                                                                                 (may be a
                                                                                  separate
                                                                                  unit or a
                                                                                function or
                                                                              team within the
                      Hub Portfolio /               Hub Portfolio /            portfolio and
                    Programme Office              Programme Office                   hub
                       (permanent)                   (permanent)                programme
                                                                                   offices)

                                                                                 • Standards
                                                                              • Skills/Training
                                                                                • Assurance
                                           Programme             Project        • Knowledge
                                               Office             Office        management
                                          for a specific     for a specific
                                             initiative         initiative
                                           (temporary)        (temporary)
               Fig 1.2




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                                    01-8
P3O: Portfolio, Programme and
                  Project Offices
                    Investment decision-making
                    Run the Business – Change the Business
                         ◦ Maintain the balanced portfolio
                    Decision enabling
                    Delivery support
                    Centre of Excellence
                    Integrated models
                    Defined roles
                    Career path options




                                          Strategic Objectives
                                               Managed Benefits




                           Change the Business
                                                            Run the Business
                            Portfolio Management
                                                             Business as Usual




                                      Managed Programmes and Projects

               Fig 1.1




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                   01-9
Research: Creating Value in Project
                  Management using PRINCE2®
               Conducted by QUT for OGC       Organizations need to          Recommendations:
               PRINCE2 is perceived as a      manage the introduction of     Educational initiatives with
               very robust, comprehensive     PRINCE2 as a significant       certification for Senior
               and pragmatic project                                         Executives, Project Sponsors,
                                              organizational change
               management framework.                                         and Project Board members.
                                              initiative.
               Problems and issues which                                     Detailed guidance on how to
               impede success of projects     Desire to recognize            introduce, implement and
               using PRINCE2 are              competence in applying         sustain PRINCE2 from an
               organizational NOT             PRINCE2 in projects.           organizational perspective
               methodological.                                               (building upon existing
                                              Acknowledged benefit of        Change Management
               Dominant issue is poor
               Project Sponsor/Project        tailoring guidance in          qualification).
               Board performance (caused      PRINCE2 2009 release - but     Add additional qualification to
               not by PRINCE2).               seeking further advice.        recognise competency in
               Source is organizational NOT                                  application of PRINCE2 in
                                              Growing request for similar
               PRINCE2 framework /                                           actual projects.
                                              guidance on embedding -
               methodology.                                                  Expand coverage of
                                              currently ‘out of scope’.
                                                                             stakeholder management.

                       http://www.apmg-
                       international.com/home/News_Events/06Aug10QUT_PRINCE2_Research.asp




                  Auditor-General Report No 7: 2010
                  Extracts from “Report to Parliament No. 7 for 2010
                  Information systems governance and control, including the
                  Queensland Health Implementation of Continuity Project”

                      “In general, the results of these audits further emphasise the need for
                       significant improvement in program and project governance …”
                      “… project governance, including managing relationships with key
                       stakeholders was not effective in ensuring roles and responsibilities were
                       clearly articulated and in ensuring there was clear accountability for the
                       efficient and effective implementation of the system.”
                      (Key recommendation)
                       “Establish clear lines of accountability and roles and responsibilities at the
                       initiation of the project to ensure an end to end governance structure.”


                  http://www.qao.qld.gov.au/pages/publications/pub_ag.html




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                                                 01-10
The Future …
                   Its not about … the methodology
                                 … the project scope
                                 … the business case
                                 … the project manager
                   Its about … governance and leadership
                      ◦ PRINCE2 Research, QUT August 2010
                      ◦ Auditor-General’s Report 7, 2010




                  Programme and Project Sponsors
                     The role of the sponsor will grow in importance
                         More involved and know more about the processes
                         They will need to learn more about the sponsor role
                         currently few are taught or trained in this role
                     ‘Project orientated’ organisations more common
                     Programme and Project managers will need to learn
                      how to better involve and use their sponsor
                     Programme management techniques and processes
                      need to evolve further
                     More focus on benefits and benefit delivery
                         Aligned with business strategy




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                  01-11
How to get there …
                   A long journey ...
                    Governance aligned with investment strategy
                    Tools and methods
                    Common language, templates, processes
                    Training, learning and development
                    Mentoring and Coaching
                    Continuous improvement
                          To build maturity and therefore better performance of
                           projects and programmes
                      Capability improvement, sustainability




                   • Best Management Practice
                   • Accredited Training Organization
                   • Accredited Consulting Organization
                   • www.yellowhouse.net
                We have been chosen as a panel member to supply training to the Queensland Government as part
                 of the Queensland Government standing offer arrangement C08/2700 to support implementation,
                      increase capability and help realise the benefits of adopting the Queensland Government
                                           Methodologies in the Queensland Government.




                           PRINCE2®, MSP®, P3O®, M_o_R®, MoV® and P3M3® are Registered Trade Marks of the Cabinet Office;
                                           MoP™ and The Swirl logo™ are Trade Marks of the Cabinet Office




Repositioning the Project Management
Profession
© 2010 Yellowhouse.net pty ltd                                                                                              01-12

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Repositioning The Project Management Profession 2 2

  • 1. Repositioning the Project Management Profession presented by Brian Phillips, MPM Registered Consultant: PRINCE2, MSP, MoP, P3O and P3M3 Accredited Trainer: PRINCE2, MSP, MoP and P3O Lizz Robb, MPM Yellowhouse Training Director PRINCE2, P3O, MoP, M_o_R and Change Management Trainer Yellowhouse is an APMG Accredited Training and Consulting Organization PRINCE2®, MSP®, P3O®, M_o_R®, MoV® and P3M3® are Registered Trade Marks of the Cabinet Office; MoP™ and The Swirl logo™ are Trade Marks of the Cabinet Office Overview 1. The past … 2. Bodies of Knowledge / Methodologies 3. The Project Manager as “Hero” 4. Growth of Best Practice models 5. Organizational Maturity focus 6. Growth of the PMO 7. The future … Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-1
  • 2. The past …  Before PMBOK® or PRINCE2 …  Any approach or method was used ◦ no clear distinction between Business as Usual and Projects  Projects seen as just another way of doing things  Accidental project managers everywhere  PMBOK® PMI® are Registered Trade Marks of the Project Management Institute Bodies of Knowledge / Methodologies  PMI: PMBoK: 1994; 4th edition (2008)  OGC: PRINCE2: 1996; 4th edition (2009) ◦ From PRINCE: 1989 (from PROMPT - 1975)  AIPM: 3 competence levels – CPPP, CPPM, CPPD  IPMA: 4 Competence levels  APM (UK): APMBoK; Competence Framework  IAPPM: Certification  Proprietary methodologies (everyone’s got one)  Program Management (MSP; PMI PgM Std)  Portfolio Management (MoP; PMI PfM Std)  PMI Standards for EVM, WBS, Config Mgt, etc Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-2
  • 3. The Project Manager as “Hero”  Building individual capability  PM focus on Professional development ◦ PMI: PMP, CAPM, PgMP ◦ AIPM: RegPM – 3 levels ◦ OGC: PRINCE2, MSP, MoR, P3O, P3M3 ◦ Proprietary methods/certification  Project Management an emerging profession?  Accreditation, Certification and Qualifications ◦ Cert IV, Diploma, Degree, Masters, Doctorate Growth of Best Practice  UK models to the fore now  The OGC framework has grown from a PRINCE2 base in 1996  MSP for Program Management  Emerging areas: ◦ Portfolio management ◦ Value management ◦ Benefits management ◦ Change and Transition management Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-3
  • 4. Best Practice Portfolio Models Best Management Practice Guides P3O® ITIL® MoVTM MoR® Portfolio, IT Infrastructure Programme and Management Management Library Project Office of Value of Risk Portfolio, Programme and Project Management Maturity Model MoPTM Guide (Portfolio Management) (P3M3TM) MSP® Guide (Programme Management) PRINCE2TM Maturity Model PRINCE2® Guide (Project Management) (P2MM) Application of OGC Models  Governance – clear roles and responsibilities, common language and processes  Portfolio Investment/Decision enabling/Delivery support – P3O  Strategic Transformational Change – MSP  Project delivery methodology – PRINCE2  Assurance and review – Gateway Review, Assurance framework  Capability improvement – P3M3  In Queensland: QGCIO Panel for Program and project management training, mentoring and coaching  Gershon Report (2008) Commonwealth Government has adopted P3M3 for Capability Improvement  In Australia, all States now working with Gateway Review Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-4
  • 5. Organizational Maturity focus  Project management is growing in complexity  Moving from “PM as hero” to … ◦ Organizational capability improvement model ◦ Portfolio selection and consistent success  Projects to programmes to portfolio approach ◦ Cooke-Davies model  P3M3 (maturity development)  Corporate PMO Understanding capabilities lead to different kinds of success … Organisational Delivery Consistent project success. Capability (Do we consistently do the right projects, and do them right?) Project Sponsor Project success. Capability (Did we do the right project?) Project Management Project management success. Capability (Did we do the project right?) Source: Terry Cooke-Davies of Human Systems International Limited © 1999-2003 Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-5
  • 6. Development of Maturity Models  Software Engineering Institute PMMI ◦ Carnegie Mellon University  Organizational Project Management Maturity Model ◦ OPM3 – PMI Standard  Private Organisations ◦ Project Management Maturity Assessment  Portfolio, Programme and Project Management Maturity Model – P3M3 ◦ Office of Government Commerce – UK ◦ Based on SEI model ◦ PMMM model launched in 2002 ◦ Version 1 P3M3 launched in February 2006 ◦ Version 2 released in June 2008 ◦ Assessment process for P3M3 developed by APM Group P3M3  P3M3 provides a framework for organizations to assess current performance and put in place improvement plans with measurable outcomes based on industry best practice ◦ 3 Models ◦ 5 Levels ◦ 7 Process Perspectives  ACO – Accredited Consulting Organizations  Registered Consultants Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-6
  • 7. The P3M3 Model P3M3® Portfolio Programme Project Management Management Management Management Benefits Financial Stakeholder Risk Organizational Resource Control Management Management Engagement Management Governance Management Figure 1 Overview of P3M3®  An overarching model with three sub-models ◦ Portfolio Management Maturity Model (PfM3) ◦ Programme Management Maturity Model (PgM3) ◦ Project Management Maturity Model (PjM3)  P3M3 uses a five-level maturity framework ◦ Level 1: Initial Process ◦ Level 2: Repeatable Process ◦ Level 3: Defined Process ◦ Level 4: Managed Process ◦ Level 5: Optimised Process  Maturity is focused on seven process perspectives which exist in all three sub-models Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-7
  • 8. Growth of the PMO  Project Office  Program Office  Project Support Office  Portfolio Office  Centre of Excellence  Enterprise PMO  Others?  P3O emerges in the UK Organization Portfolio Office (permanent) Centre of Excellence (may be a separate unit or a function or team within the Hub Portfolio / Hub Portfolio / portfolio and Programme Office Programme Office hub (permanent) (permanent) programme offices) • Standards • Skills/Training • Assurance Programme Project • Knowledge Office Office management for a specific for a specific initiative initiative (temporary) (temporary) Fig 1.2 Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-8
  • 9. P3O: Portfolio, Programme and Project Offices  Investment decision-making  Run the Business – Change the Business ◦ Maintain the balanced portfolio  Decision enabling  Delivery support  Centre of Excellence  Integrated models  Defined roles  Career path options Strategic Objectives Managed Benefits Change the Business Run the Business Portfolio Management Business as Usual Managed Programmes and Projects Fig 1.1 Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-9
  • 10. Research: Creating Value in Project Management using PRINCE2® Conducted by QUT for OGC Organizations need to Recommendations: PRINCE2 is perceived as a manage the introduction of Educational initiatives with very robust, comprehensive PRINCE2 as a significant certification for Senior and pragmatic project Executives, Project Sponsors, organizational change management framework. and Project Board members. initiative. Problems and issues which Detailed guidance on how to impede success of projects Desire to recognize introduce, implement and using PRINCE2 are competence in applying sustain PRINCE2 from an organizational NOT PRINCE2 in projects. organizational perspective methodological. (building upon existing Acknowledged benefit of Change Management Dominant issue is poor Project Sponsor/Project tailoring guidance in qualification). Board performance (caused PRINCE2 2009 release - but Add additional qualification to not by PRINCE2). seeking further advice. recognise competency in Source is organizational NOT application of PRINCE2 in Growing request for similar PRINCE2 framework / actual projects. guidance on embedding - methodology. Expand coverage of currently ‘out of scope’. stakeholder management. http://www.apmg- international.com/home/News_Events/06Aug10QUT_PRINCE2_Research.asp Auditor-General Report No 7: 2010 Extracts from “Report to Parliament No. 7 for 2010 Information systems governance and control, including the Queensland Health Implementation of Continuity Project”  “In general, the results of these audits further emphasise the need for significant improvement in program and project governance …”  “… project governance, including managing relationships with key stakeholders was not effective in ensuring roles and responsibilities were clearly articulated and in ensuring there was clear accountability for the efficient and effective implementation of the system.”  (Key recommendation) “Establish clear lines of accountability and roles and responsibilities at the initiation of the project to ensure an end to end governance structure.” http://www.qao.qld.gov.au/pages/publications/pub_ag.html Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-10
  • 11. The Future …  Its not about … the methodology  … the project scope  … the business case  … the project manager  Its about … governance and leadership ◦ PRINCE2 Research, QUT August 2010 ◦ Auditor-General’s Report 7, 2010 Programme and Project Sponsors  The role of the sponsor will grow in importance  More involved and know more about the processes  They will need to learn more about the sponsor role  currently few are taught or trained in this role  ‘Project orientated’ organisations more common  Programme and Project managers will need to learn how to better involve and use their sponsor  Programme management techniques and processes need to evolve further  More focus on benefits and benefit delivery  Aligned with business strategy Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-11
  • 12. How to get there … A long journey ...  Governance aligned with investment strategy  Tools and methods  Common language, templates, processes  Training, learning and development  Mentoring and Coaching  Continuous improvement  To build maturity and therefore better performance of projects and programmes  Capability improvement, sustainability • Best Management Practice • Accredited Training Organization • Accredited Consulting Organization • www.yellowhouse.net We have been chosen as a panel member to supply training to the Queensland Government as part of the Queensland Government standing offer arrangement C08/2700 to support implementation, increase capability and help realise the benefits of adopting the Queensland Government Methodologies in the Queensland Government. PRINCE2®, MSP®, P3O®, M_o_R®, MoV® and P3M3® are Registered Trade Marks of the Cabinet Office; MoP™ and The Swirl logo™ are Trade Marks of the Cabinet Office Repositioning the Project Management Profession © 2010 Yellowhouse.net pty ltd 01-12