Top Five PPM Trends to Watch Out For in 2014

The business world is forever changing and for organizations to thrive they must be able to adopt or, even better, be an early adopter of the noted trends and predictions. All neatly wrapped up as the top strategic PPM trends for the coming year, Daptiv predictions focus on increasing the benefits of Agile, greater applicability for PPM solutions across the board, and enterprises spearheading the creation of strategic PMOs, influenced by the reliability of benefits forecasting.

Here are Daptiv’s top 2014 predictions for the Project Portfolio Management industry:

  1.  Increased adoption of PPM for integrated portfolio management: The evolution and rapid uptake of SaaS PPM has increased coordination with ancillary IT management applications). ALM (Application Lifecycle Management), Agile and ITSM vendors have been leveraging PPM through alliances, integration, and/or acquisitions. This trend began to have an impact in 2011 and Daptiv sees this to continue to play a key role in PPM’s market growth through 2014.
  2.  More PMO heads will measure effectiveness on business results: While introducing tools, using methodologies, mapping project management practices, sending project managers to training, and increasing the number of professional PMs in the organization are important metrics for a PMO head to collect and report on, they do not speak to the effectiveness of the PMO from a business perspective. To judge business effectiveness, PMO heads will determine if their work has had a positive, quantifiable effect on the business in terms of troubled project reduction, positive business results, lower project manager attrition, and faster time to market. In 2014 the practice of measuring the outputs, not the inputs, of project management will gain traction.
  3. Portfolio Management gets the attention and  funding and encourages project entrepreneurship: Daptiv sees more companies directing tight budgets toward IT and process improvement via portfolio management to get a handle on enterprise project investments. Project entrepreneurship means project managers must develop an “entrepreneurial” mindset. In 2014, this mindset will enable project and portfolio leaders to take on risks, foster innovation and focus on business value rather just looking at the traditional triple constraints.
  4. Rolling-Wave Planning (Agile): Rolling-Wave Planning is the process of planning a project in phases as it proceeds rather than completing a detailed plan for the entire project before it begins. Planning is dependent on speculation and the further out the plan the more quickly the strategy will become obsolete as conditions change. In Rolling-Wave Planning, one will plan over time as the details in the project become clearer. Daptiv forecasts rolling-wave planning to become the default approach in 2014 and expects it is here to stay in the project management world.
  5. Getting Started with PPM Benefits Realization: 2014 will see a much-needed shift of PMOs from being tactical to strategic. More formalized strategies will strategically align organization goals with the business objective of the organization, consequently delivering end-to-end benefit. Gartner estimates that less than 15% of enterprises systematically measure the business outcomes of their initiatives. Most IT and PMO organizations focus their measures on price and performance, not value. This year will move the needle by shifting the language and the focus from on time and on budget to speaking about the resulting benefits.

 

Implementing and Monitoring Organizational Change: Part 3

While its relatively straightforward to monitor the performance of a risky technical component, track defects, and make a binary “go” or “no go” decision as to whether that component can be used,  monitoring and controlling the effectiveness of organizational change activities are often more difficult, given their emotional and typically subtle nature.  How do we know that individual employees are accepting the change or are we about to experience a mutiny?  How do we know that the impacted organizations have been able to adapt and accept the changes, or are the supporting roles, processes and procedures going to undermine or undo all of our efforts?  How fast can we expect a change-averse culture to change?  How do we know if we’re going too fast? Can we go faster?

The solution is the same as for the technical component; we establish a monitoring mechanism which tests the response of the impacted areas against the desired result.  The big difference is in how the monitoring and measuring is done.  In the case of the technical component we establish a performance standard and collect empirical data which measures performance against that standard.  If the standard is met we’re in the clear, if not it triggers a contingency plan.  With organizational change both the performance standard and the data collected may be more qualitative and subjective but it still serves its purpose; determining if there is (or is not) a problem and if a problem does exist, doing something different to influence the outcome.

For example, consider the project where the first indication that training or change management were not successful is when a major business process (like billing or payroll) cannot be executed?  Clearly we need ways to identify and implement course corrections long before they reach the critical stage of final implementation. 

Issue Log Monitoring

One approach to monitoring is to use the project issue log or create an additional log  for concerns; items which are not immediately solvable or actionable.  Assuming that the team is diligent in reporting organizational change related issues or concerns, the frequency and severity of issues can signal a developing problem, especially when sudden increases are observed in a single area.    If the team also compares the issue and/or concerns log with the risk register, which has clearly identified organizational change risks, certain elements in the logs will stand out and can be interpreted as increasing risk probability or trigger a contingency plan.

Surveys

Surveys or questionnaires to monitor critical elements associated with organizational change provide a more structured approach to monitoring organizational change risks.  In this approach the project team creates a survey designed to elicit feedback from the organization about its perception of the project and the organizational change factors which may contribute to the success (or failure) of the effort.  By conducting the survey at regular intervals and comparing result from survey to survey, the team can quickly identify areas which require more attention and intervention.

  While creating and administering a survey represent additional time and cost to the project there are a number of benefits to be considered:  1)Collecting this information forces regular and systematic review of the project as it is perceived by the impacted organizations, 2)  As the survey is used from project to project it can be improved and reused, 3)The survey can quickly collect feedback from a large part of the organization, increasing the visibility of the project and reducing unanticipated or unwelcome reactions. 

Conclusion

In conclusion, organizational changes and the management of those changes can be a critical component for project success.  While the discipline of organizational change management may not be the primary focus of the project,, attention is required to understand what organizational changes may be required and their impact to both organizations and individuals.  Understanding the nature and scope of these changes enable the project team to more effectively plan, execute, and monitor their execution and effectiveness.