In this presentation excerpt from the original webinar, Forrester's Margo Visitacion, VP & Principal Analyst, and PowerSteering's Susan Go, PPM Solution Consultant, reveal how a top-down, program management approach helps overcome the most common process challenges facing PMOs aspiring to become a strategic partner of the business. View the full recording to learn how to: -Structure the PMO to achieve strategic business results -Create explicit linkages between projects & strategy -Rebalance the portfolio in response to business changes -Measure the PMO's contribution to business objectives -Select PPM tools that create efficiency, not overhead

1. The Strategic PMO:
Beyond On-Time/On-Budget
Presenters:
 Margo Visitacion, VP & Principal Analyst, Forrester
 Susan Go, PPM Consultant, PowerSteering Software
Welcome! Thank you for joining us.
View the full presentation.
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PowerSteering Software
www.powersteeringsoftware.com
1-866-390-9088

2. Business-Driven PPM Customers
IT Governance New Product Development Business PMO Performance Improvement

3. Presenters
Margo Visitacion
VP & Principal Analyst
Forrester Research, Inc.
Susan Go
PPM Solution Consultant
PowerSteering Software

4. © 2011 Forrester Research, Inc. Reproduction Prohibited4

5. © 2011 Forrester Research, Inc. Reproduction Prohibited5
PMOs are an essential element
in delivering value…..
Placement, support and tooling can
make or break PMO effectiveness

6. © 2011 Forrester Research, Inc. Reproduction Prohibited6
Establishing value from the start
Using the PMO as the change agent
Recommendations
Agenda

7. © 2011 Forrester Research, Inc. Reproduction Prohibited7
PMOs in 2011 must be part coach, part
mentor, part therapist, but most of all
they must LEAD with the right focus

8. © 2011 Forrester Research, Inc. Reproduction Prohibited8
Business needs speed
 Fierce competition
 Empowered customers and end users
 The need to move fast and be right
We need to deliver
programs and enable
change without waste

9. © 2011 Forrester Research, Inc. Reproduction Prohibited9
PMOs must shift into high gear
75%
72%
60%
PMOs that focus on
project management
PMOs that focus on
methodology management
PMOs that focus on
portfolio management

10. © 2011 Forrester Research, Inc. Reproduction Prohibited10
#1 challenge that PMO face -
Yes
60%
No
40%
Business'
understanding of
project management
PMO in the IS /IT group 217 respondents
Yes
59%
No
41%
Business’
understanding of
project management
PMO in the IT Operations 69 respondents
Question: What is the greatest challenge faced by your PMO?
Base: 693 PMO professionals
Source: April 2011 Global Project Management Office /PMI Online Survey

11. © 2011 Forrester Research, Inc. Reproduction Prohibited11
Establishing value from the start
Using the PMO as the change agent
Recommendations
Agenda

12. © 2011 Forrester Research, Inc. Reproduction Prohibited12
There are many options – principles, approaches and
methodologies
• Framework of suggested practices
• Very scalable
• Emphasizes “what” to do
PMBOK
• UK government methodology for project management
• Emphasizes roles, themes and practices
PRINCE2
• Short delivery cycles
• Manages change very well
• MUST have customer input to be successful
Agile – SCRUM
• Value driven approach
• Continuous optimization
• Methodology agnostic
LEAN principles

13. © 2011 Forrester Research, Inc. Reproduction Prohibited13
Establishing value from the start
Using the PMO as the change agent
Recommendations
Agenda

14. © 2011 Forrester Research, Inc. Reproduction Prohibited14
In closing……
 People don’t want to fail – but are often afraid to stick their necks out
– Create a safe space to develop practices and LISTEN without JUDGEMENT
 Get real – project management is not something slapped on top of
delivery activities
– It’s a profession that supports, not supersedes other practices
 Get visible – top down support and mandate is critical
 Use the community to build a flexible, adaptable approach
 Keep it strategic, don’t get down in the weeds

15. October 6, 2011
The Strategic PMO:
Beyond On-Time/On-Budget

16. Moving Beyond On Time/On Budget
Have you ever killed a project that was on target, ahead of schedule and
under budget?

17. Results -
Centric
CIO / Executive
Management
“I don’t know when to expect revenue and
payback and you’re asking for money?”
Executive Sponsors
/ Approvers
“You’re asking me to approve projects with no
clear business case or priority.”
PMO/Portfolio
Manager
“Why are we getting asked to make cuts? All
of our projects are on-time & on-budget. ”
Resource Manager “I don’t have enough resources to staff all of
our high priority projects!”
Project-
Centric
Project Manager “Don’t bother me with status, I have a
milestone to meet!”
The Symptoms of “Bottom-Up”
17

18. Top-Down Bottom-Up
Strategic Tactical
Results-Oriented Cost-Oriented
Portfolio-Centric Project-Centric
Knowledge Sharing Time Tracking
User Adoption User Compliance
Time to Value Big Bang
Drive “Top-Down” Portfolio Value

19. Model Strategy Into Objective/Programs

20.  Model your organization’s strategy into PMO goals
• Create explicit linkages between programs & strategy
 Translate into an effective portfolio selection process
• Rebalance the portfolio in response to business changes
 Measure what matters most
• Quantify the PMO’s contribution to business results
Beyond On-Time/On Budget: 3 Strategies

21.  Model your organization’s strategy into PMO goals
• Create explicit linkages between programs & strategy
 Translate into an effective portfolio selection process
• Rebalance the portfolio in response to business changes
 Measure what matters most
• Quantify the PMO’s contribution to business results
Beyond On-Time/On Budget: 3 Strategies

22. Measure Business Value

23. Want more?
Margo Visitacion
VP & Principal Analyst
Forrester Research, Inc.
+1 609.314.6745
mvisitacion@forrester.com
www.forrester.com
Susan Go
PPM Solution Consultant
PowerSteering Software
703-707-9888
sgo@psteering.com
www.powersteeringsoftware.com
View the full presentation
now.
Or Contact Us
PowerSteering Software
www.powersteeringsoftware.com
1-866-390-9088