The path to increased Project Management Capacity

P3M3 and PMO

2 PORTFOLIOS, PROGRAMMES AND PROJECTS EVERYWHERE

*Every organizational strategy only comes true successfully through the right
execution of the right projects*

Project Project
A C

Project Project
B D
3 PORTFOLIOS, PROGRAMMES AND PROJECTS EVERYWHERE
PM I’ll manage my project the
Standards
same way I used to manage
projects in other
organizations

I don’t need these

bureaucratic things, I
don’t have time for this,
Project Project
A C I need to deliver!

Project
B
Project
D
The organization does not
provide me guidance, so I
will create my own way of
”how I work”
My project is super simple and completely
different from other projects, there’s no way to Note: this is common to
apply this, these guys don’t get it that here we all organizations, in all
have another reality altogether! industries and sectors
4 PROBLEMS THAT MAY ARISE
This can result in (among others):
• Several approaches being used
• Lack of consistency
• Problems with continuity
• Difficulties in planning,
monitoring and measuring
results
Project Project • Increased dependency on
A C
specific people
Project Project • Improper and misaligned
B D
communication (internal and
external)
• Inconsistent results
• Stakeholder dissatisfaction
5 HOW DID THE PROJECT MANAGEMENT COMMUNITY DEAL WITH IT
Organizational Maturity Models were created
These are the generally
recognized best practices,
and the evidences that
support them

Here are the Here are the Here are the Here are the Here are the
things that when things that when things that when things that when things that when
done well, give done well, give done well, give done well, give done well, give
the best results the best results the best results the best results the best results

IT Industry Government Development Engineering Other industries

World
P3M3 Overview

What is P3M3?
7 WHAT IS P3M3?

An overarching tool designed to facilitate assessment of an organization’s

current capabilities and offers ways to implement change and improvement

 Portfolio
 Programme P3
 Project
P3M3
 Management
 Maturity M3
 Model

• Office of Government Commerce – UK

• 2014 owned by AXELOS
• Assessment process for P3M3 developed by APM Group – revised by
AXELOS in 2015
8 WHAT IS P3M3?

 Guide for structured best practices

 To understand the key practices in effective
programme and project management process
 To identify key practices that need to be embedded
order to achieve the next maturity level
 To improve the capability to manage programme and
projects effectively
9 P3M3 FRAMEWORK

P3M3

Portfolio Management Programme Management Project Management

(PfM3) (PgM3) (PjM3)

Management Benefits Financial Stakeholder Risk Organisationa Resource

Control Management Management Engagement Management l Governance Management

Specific Attributes (across 7 Perspectives)

Generic Attributes
Planning
Information Management
Scrutiny and Review
Skills and Competencies
10 P3M3 FRAMEWORK

Optimized
Managed process
process
Defined
process

Repeatable
process

Awareness of
process
11 EXAMPLE OF ASSESSMENT RESULT

Management Benefits Financial Stakeholder Risk Organizational Resource

Control Management Management Engagement Management Governance Management

Level
4

Level Level Level Level Level

3 3 3 3 3

Level Level Level Level Level Level Level

2 2 2 2 2 2 2

Level Level Level Level Level Level Level

1 1 1 1 1 1 1
P3M3

Advantages
13 P3M3 ADVANTAGES FOR ORGANIZATIONS

Increased
success

Justification of
Avoid
continued
duplications
investment

Consistency and
knowledge Systematic
sharing improvement
14 P3M3 ADVANTAGES FOR ORGANIZATIONS

Operational effectiveness

Improved delivery performance

Increased productivity / morale

Improved stakeholder satisfaction

Quality and success

Overview

PMO
16 PMO FUNCTIONS AND SERVICES

Strategic Planning and Portfolio Support

(doing the right projects) - Supports
management decision-making. Activities may
Delivery include assessments on alignment with
strategy, development of project prioritization
models, planning support
Strategic
Planning Delivery support (doing projects the right
way) - Supports delivery of the programme
Centre of and projects. Activities may include providing
Excellence expertise for start-up, planning and closing

Centre of Excellence (doing projects

consistently and well) - Applies project
management standards in project
management, encouraging consistent
working practices and ensuring appropriate
application
17 PMO AND P3M3

PMO
• Current state • Improved
• Improvement consistency,
• Implement
plan performance
• Support and delivery
• Future state • Mentor

P3M3 CO
18 PMO IMPROVEMENT PLAN APPROACH

Think ahead…

Deliverables Desired Outputs Desired Outcomes

Improvement Plan
(produce the outputs) (generate the desired
outcomes)

• Resources • Increased
• Tools and • Improved execution
• Schedule competence in
templates of programmes and
• Services to offer managing
• Strategies / SOPs projects
• Other programmes and
• Training • Greater capacity to
• Support projects achieve results
• KPIs • Effective service • Improved
and functions performance and
delivery

Stanford Advanced Project Management work back!

19 MAKING CHANGE CONSISTENT

 Understand the culture

 Is the PMO role clear and understood by all?

 Are there conflicting understandings?

 Discipline and motivation is key

 Creating a new behaviour

 Continuous support and buy-in

20 SOME FACTS

30% Decrease in
failed projects 22% Improvement
in productivity 31%
Increase in

19% Project delivered

ahead of
schedule 15% Cost saving per
project (% of
total project
cost)
partner
satisfaction

45% Improvement in alignment of projects

with the organization’s objectives

State of the PMO , PMI - 2012 & 2014

BETTER PROJECTS, BETTER LIVES