Ray Mead The Circle of Value PMO and Value APM PMO Specific Interest Group Conference London, 25 Oct 2016

1. www.p3m.global
©p3m global. All rights reserved.1
The Circle of Value
Ray Mead – CEO, p3m global
APM PMO SIG, 25th October 2016

2. www.p3m.global
©p3m global. All rights reserved.2
Who We Are
assess
Competence Assessments
Organisational Maturity
p3m Healthcheck
Technology Assessments
p3m pulseTM
develop
Training
PMO Design & Development
Methodology Development
Coaching & Mentoring
EPM Implementation
e-learning
p3m pathwaysTM
engage
Portfolio Optimisation
Business Transformation
Turnkey Project Delivery
Extended Workforce
p3m Assurance
p3m oneTM

3. www.p3m.global
©p3m global. All rights reserved.3
PMO & Value

4. www.p3m.global
©p3m global. All rights reserved.4
PMO & Value

5. www.p3m.global
©p3m global. All rights reserved.5
PMO & Value

6. www.p3m.global
©p3m global. All rights reserved.6
PMO & Value

7. www.p3m.global
©p3m global. All rights reserved.7
PMO & Value

8. www.p3m.global
©p3m global. All rights reserved.8
What is Value?

9. www.p3m.global
©p3m global. All rights reserved.9
What is Value?
Function
Cost
Value =
Function = the specific work that a design/item must perform.
Cost = the life-cycle cost of the product.
Value = the most cost-effective way to reliably accomplish a function that will meet the user's
needs, desires, and expectations.
Larry Miles

10. www.p3m.global
©p3m global. All rights reserved.10
Value Engineering

11. www.p3m.global
©p3m global. All rights reserved.11
Value Engineering

12. www.p3m.global
©p3m global. All rights reserved.12
Value Engineering

13. www.p3m.global
©p3m global. All rights reserved.13
Intangible Value

14. www.p3m.global
©p3m global. All rights reserved.14
Perception

15. www.p3m.global
©p3m global. All rights reserved.15
Reality

16. www.p3m.global
©p3m global. All rights reserved.16
Perception vs Reality

17. www.p3m.global
©p3m global. All rights reserved.17
Value is Subjective

18. www.p3m.global
©p3m global. All rights reserved.18
Multiple Realities

19. www.p3m.global
©p3m global. All rights reserved.19
Perceived Realities

20. www.p3m.global
©p3m global. All rights reserved.20

21. www.p3m.global
©p3m global. All rights reserved.21

22. www.p3m.global
©p3m global. All rights reserved.22
The Circle of Value: 360º Perspective
PMO
Executive
Management
Functional
Managers
PM
Community
Customers &
Suppliers
Executive Value
“How much is the PMO costing
us? We need to focus on what
brings us value. Must-haves, not
nice to haves”
Lateral Value
“I have no idea what they do. It’s
like a black hole over there”
Community Value
“They keep hassling us for
information so we tell them what
they want to hear. Looks like an
easy gig, though; nice work if
you can get it.”
Customer Value
“Why am I paying for project
management? Surely you
should deliver anyway? Getting
an update on status is like
getting blood out of a stone”

23. Standardised Managed Controlled Improving
Support
Consolidation
Governance
Strategic
Planning
Project
Business Unit
/ Programme
Division
Enterprise
PMO Scope Functions
Maturity
• Basic data collection
• Hero factor
• Admin support
• Basic data consolidation
• Consistent delivery
model and terms of
reference
• Visibility of key risks,
issues and outcomes
• Financial overview
• Sense of visibility
• Structured execution
• Common
understanding
• Managed investment
portfolio
• Alignment with corporate
strategy
• Input in decision making
• Performance monitoring
• Reliable comms
channels
• Economies of scale &
scope
• Risk portfolio
• Consolidated and
managed
organisational change
• Benefit realisation
• Accurate forecasting
• Dependable governance
framework
• Change agents
• Managed & quantifiable
outcomes
• Repeatability & trends
• Predictable outcomes
• Agility and flexibility
through fast decision-
making
• Quality of execution
• Focus on outcomes
• High success rate
• Reliable data
• Effective controls
• Effective risk &
dependency
management, resource
management and
forecasting
• One version of the truth

24. Standardised
Managed
Controlled
Improving
PMO Maturity
6 12 18 24 30 36
Months
High Risk Zone• Strong bottom up
support from P3M
community
• Good basic training
• Good basic
methodology
• Visionary leadership
• Executive
support/mandate
• At least one Enterprise
PMO concept must
exist
• Strong Divisional PMO
presence needed
• Appropriate staffing
• EPM Tool
• PMO function
embedded in the
organisation at all
levels
• Strong Enterprise PMO
contributing to
Enterprise Resource
Planning
• 360 degree value
demonstrated
Different CSFs needed for different stages

25. www.p3m.global
©p3m global. All rights reserved.25
The PMO Charter
The PMO
Charter
Defines
business
purpose
Specifies
organisational
alignment
Highlights
functional
responsibility
Specifies
authority
Identifies
funding

26. www.p3m.global
©p3m global. All rights reserved.26
PADET

27. www.p3m.global
©p3m global. All rights reserved.27
Executive Value: Project Assurance
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2012
2013
2014
2015
0.00
1.00
2.00
3.00
4.00
5.00
EUROPE MATURITY LEVEL
Overall maturity level Target

28. www.p3m.global
©p3m global. All rights reserved.28
Lateral Value: Demand & Capacity Planning
• The PMO can capture all requests for new
projects and log them against strategic
initiatives to monitor demand and align with
capacity
• To demonstrate value the PMO needs to be
able to:
• Control initiation of new initiatives
• Prioritise initiatives (new & existing)
• Access information on resource allocation
and utilisation

29. www.p3m.global
©p3m global. All rights reserved.29
Community Value: Career Development

30. www.p3m.global
©p3m global. All rights reserved.30
Customer Value: The Power of Branding

31. www.p3m.global
©p3m global. All rights reserved.31

32. www.p3m.global
©p3m global. All rights reserved.32
New sports park
Upgraded rail
station
Improved rail
links
Regenerated
urban park
More frequent
trains
Athletes village
Increased
revenue from
tourism
Fast Shuttle
Service to city
centre
Faster access to
park
More industry
attracted to park
More jobs
New housing
Marketing
campaign
More day
visitors
To regenerate
the local
economy
Residents
consultations
To improve the
city’s image
More residential
tourists
More
attractions/
facilities
Further sports
investment
Extra capital for
further
development
Increased
accommodation
in area
Increased
attraction to
tourism
Recruit and train
guest rooms
staff
Project Output
or Enabler
Strategic
Objective
End Benefit
Intermediate
Benefit
Business Change

33. www.p3m.global
©p3m global. All rights reserved.33
Business Value Modelling
• Identify the relevant stakeholders
• Identify their needs and goals
• Agree on how we measure/test the achievement of the needs and goals
• Select the (few) most important measurements and tests, the “Value
Drivers”
• Define the relationship between the Value Drivers.
• Use the Value Drivers to focus and prioritise our work, from start to finish.

34. www.p3m.global
©p3m global. All rights reserved.34
Summary
• Make sure your remit is clear
• Give the (the most important) people what they want!
• Measure everything
• ‘Good enough’ is never good enough. Constantly strive to improve.
• Be practical and realistic. Work with the tools that you’ve got.

35. www.p3m.global
©p3m global. All rights reserved.35
our clients

36. This presentation was delivered at an APM
event
To find out more about upcoming events
please visit our website
www.apm.org.uk/events