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.

 

10 Ways to Absolutely Ruin your Projects

Instead of providing a list on how to successfully run a project management office, I chose a different route and set out to assemble a list of valuable information that guarantees project failure under any given circumstance. If you are a project manager or run a PMO, the recommendations you will read below are full of promise and will definitely get you into trouble.  With that in mind, here are…

10 Ways to Absolutely Ruin your Projects

  1. Start a project without a defined goal or objective:  Like a ship without a destination or a race without a finish line, starting a project without a goal is an exercise in running in circles.  No matter how much time, effort or money you through behind it, you’ll never accomplish what you set out to do because it was never clearly defined.  Then again, it’s also a great way to stay out of trouble because you’ll never know when your project is ‘moving sideways’.
  2. Run a project that is not aligned with the company’s objectives:  I know ‘mobile tech’ is really cool.  So is ‘social media’.  So let’s kick off a project to do that.  Wait a minute.  Did we ever check with our customers – both internal and external – if this is what they are asking for?   Do we know if this project help move the company’s goals forward?  I don’t know, but let’s call it “Rogue Project” because it sounds so cool.
  3. Manage a project that does not have a sponsor’s support:  Like a football quarterback without his offensive line, running a project without a sponsor to provide direction, remove obstacles, and ensure support to move the project forward is a great idea.  Please let us know how that works out for you, OK?
  4. Make a project more complex just for complexity’s sake:  If two levels down into the work breakdown structure is good, six levels is great.  It’ll show people how much more smart and experienced you are than them.  If you can do this effectively, it leads to…
  5. Micromanage your team, especially the senior level people:  Which studies show is a great way to lose supporters. Really fast.
  6. Don’t consider the benefits or ROI before you kick off the project:  Project benefits are so hard to define.  And who knows if we’re ever going to achieve them anyway.  So let’s not worry about it.  Just give me that bag of money so I can start my project already.  It’s not about value after all – it’s about working with cool technology.
  7. Recreate the wheel when starting a project:  I know my organization has done something like this before, but I’m really, really smart and don’t need the help.  I’m happy to start all the deliverables from scratch.  Or maybe this time I’ll just make up a new methodology.  Why recycle and reuse when I can just recreate?
  8. Allow your project’s scope to change on a whim:  if we don’t have a good change control process it makes the project easier.  If we learn new things, let’s quickly move in that direction.  We can call it ‘iterative execution’.  Just like a new puppy deciding if he wants to chase a ball, bark at the other dogs or have a snack.
  9. Don’t check in with the stakeholders or customer through the lifecycle of the project:  we already understand what they want, so bringing in them back in as we move through the project will only give them a chance to get more engaged and supportive.  Nah…let’s just surprise them at the end.
  10. Spend, spend, spend:  Don’t worry about budgets – they’re just rough estimates, anyway.  If we need to get more developers and fly the team out to Las Vegas for a workshop, so be it.  By the time the financial team finds out it will be too late anyway.

Hopefully the list above is taken as a cautionary tale – maybe even a checklist of what not to do.  How do you stack up against it?

BioBridge Global Gets Competitive Edge with Daptiv’s PPM Solutions

We are excited to announce that with the help of Daptiv’s innovative PPM solutions, BioBridge Global (BBG) was successful in aligning its multiple business lines, streamlining complex processes and standardizing projects across the organization. BBG is a non-profit company that oversees and supports the South Texas Blood & Tissue Center, QualTex Laboratories, GenCure, and The Blood and Tissue Center Foundation.

For an organization catering to a highly regulated industry, the road to smooth planning and execution needed a lot more than just a PMO. Operating in the heavily regulated Healthcare industry with changing government strategy, policies, and meeting multiple audit requirements, BioBridge Global was in need for a dynamic project portfolio management (PPM) tool that would help them keep up with changing requirements at the project level without adding excessive time and cost.

In collaboration with Daptiv, BioBridge Global created several custom applications using Daptiv’s Dynamic Applications, including a report-building scorecard and applications that provided visibility and cost/benefit analysis. Daptiv’s report building mechanism enabled BBG’s governance committee to take critical business decisions as it grew its business operations across the state. Additionally, Daptiv’s insight has helped BBG determine a project’s fit in supporting the overall business by identifying costs, potential risks, resource issues and more before a decision is made to green light a project.

To know more about the announcement, click here.

Life after project completion: Is a project complete without benefits realization?

In our day-to-day project management and PMO activities, the easiest and the most important thing missed is planning ahead for what happens AFTER we cross the finish line. So technically speaking, once project managers hand over the reins of the completed project to the business owner, their job is just half done. For a project to be considered complete, project managers must focus on the other half, which is “Benefits Realization”.

Benefit realization is the confirmation that the value a project was expected to generate really does get delivered.  In our everyday project management lives it is easy to get buried in details around task management, risk mitigation, resource capacity, balancing budgets and all the other moving parts.  We often forget why we set out to do the project in the first place:  the delivery of a product or service, an enhancement or improvement, or a capability.  For example to meet some new regulation, standard or market demand.  But what if, after we deliver the goods, and did exactly what the customer asked for, we realize that all the effort and resources we used to deliver the project don’t amount to what they were supposed to?  That’s exactly what benefits realization is all about.

We’ve all heard of ROI – return on investment.  It is the concept of an investment of some combination of resources (people, money, equipment, etc.) yielding a benefit to the investor.  A high ROI means the investment gains compare favorably to investment cost. As a performance measure, it is one of the best methods to evaluate the efficiency of an investment.  ROI does not exclusively have to be in financial terms.  It can easily be an operational advantage, an improvement in position, or other positive change.  In order to compare the efficiency of a number of different investments we need to compare like measures, which is why a financial ROI is one of the most commonly used.  Unfortunately, without benefits realization, our ROI is simply a guess.  And that is why benefits realization is so important.

I’ve discussed with   many of our clients about this and have found out that there is a need for a wide degree of maturity around the realization process.  This is an indication that while the concept of realization is gaining interest, it is still far from a mature practice.  Which presents a great opportunity for those organizations that are not doing it – now is a great time to implement this practice.

How to launch a benefits realization initiative?

One of the best approaches involves setting goals, tracking against those goals and including a ‘hand-off’ step, similar to the passing of the baton in an Olympic relay race.  Tactical steps you can take include:

  • Set your sights:  using whatever calculation available, combined with experience and validated by results from similar projects, come up with a target for what the value you think the project will deliver.  Set that as the initial estimate.  Enlist the help of a financial leader or controller to help set the original estimates.
  • Continual monitoring:  Using the initial estimates or targets as a first guess, continue to refine the success factors throughout the lifecycle of the project.  These are often called forecasts or committed values and are more accurate than the original estimates.  It is best to continue revising these figures throughout the lifecycle of the project.  The objective here is to have these forecasted numbers eventually match the actuals.
  • Start tracking actuals now:  some project can actually generate benefits even before the project is complete.  What a great win for the project team to be able to report these.
  • Put a plan in place: Add a milestone or stage beyond the Complete step called Close or ‘Realization’ and set a validation step 3, 6 or 12 months after the project is complete.  It sets the expectation that the work is not over at Complete.
  • It is outside of the project manager’s responsibility:  As the project comes closer to its Complete or End date, engage the financial sponsor and the process owner (the person who is benefiting or owning the project’s or product’s outcome, improvement or change) and have them start validating and “owning” the numbers.
  • Go back to the beginning:  how accurate were your original estimates compared with your forecasts and your actuals?  Take those learning and apply them to future estimates.  This is called continual improvement – applying lessons learned and best practices to improve the entire PMO.

One last point is that it isn’t always about the money.  Sometimes projects generate other value, such as an improvement in customer satisfaction, or increase market share by launching a game changing product.  It is important to be able to quantify the value of these types of projects even if they do not generate direct revenue or cost improvements.  Many organizations call these ‘Level 2” or “Indirect Benefits”.

Finally, is a project complete without benefits realization?  To the project manager who’s already run their marathon and marked the project as complete, I expect their answer to be ‘yes’, but common sense tells us otherwise.  As a best practice, one of the most important factors in a projects success isn’t “how we did it” – coming in under schedule or under budget – but “what we did” – that the project delivered what it set out to do.

Survey Finds Resource Management is the Top Business Challenge for Senior Executives

We recently surveyed 100 senior IT executives at the Gartner PPM and IT Governance Summit from May 20-22, 2013 to gauge and analyze the key business challenges faced by organizations in today’s economy. Interestingly 67% of respondents considered resource management as their top business challenge, 28% of them found it difficult to justify the value delivered by the Project Management Office. 22% stated that keeping track of time and money leakages was a concern. Only 5% considered delivering change without overburdening their staff as their main issue, which can likely be attributed to their usage of PPM software and resulting benefits.

“67% of Senior Executives Identified Prioritizing Work to Fit Available Resource Capacity as Their Biggest Business Challenge”

Project Management Offices are increasingly seen as custodians of the resource management process within organizations, and this is validated by another study conducted by pmsolutions research – “The State of the PMO 2012”.  The study looked at a broad spectrum of companies across the globe and found that the number one priority for the PMOs is to “Improve Resource Planning and Forecasting Process.” Pointing towards similar findings, both the Daptiv survey and the pmsolutions’ study reveal that overcoming resource management challenges will be vital for PMOs to justify their value in the future.

You can find the details of the survey here.