strategic pmo for business value creation (pmi・pmi-tw pmo day)

“Strategic PMO for business value creation”

Koji ShiotaCorporate Advisor, Management Solutions Co., Ltd.

Introduction塩田 宏治 KOJI SHIOTA

MBA

PgMP , PMP , CBAP , CITA-A , TOGAF9 Certified,

CSM, CSPO, ITCMF-Associate, OCEB

Corporate Advisor, Management Solutions Co. Ltd.

Business CareerNTTDATA Corporation

IT Consultation and developmentSony Corporation, Sony (China) Ltd, Sony Global Solutions Inc.Leading project management of many global BPR/System projectsIT organization management in overseas entity(Portfolio management, Program/Project management, Enterprise Architecture representative,Global PMO establishment, Global BPM/BA organization establishment

Establish CreaVision Ltd and join Management Solutions Co. Ltd as acorporate advisor.

Success rate of the project(PMI Survey)

64%

50%

55%

Successfully met the original goals

and business intent of the project

Finished within their initially

scheduled times

Finished within their initial budget

Change is required

Many organizations have plans

for change across many areas

of their business in response to

the rapid changes happening

globally.

Success rate of the Change Program(PWC Survey)

Almost achieved 38%

According to the global survey by PWC in 2014,

the rate of change program to meet the

organizational objective this five years is 38%.

Definition of Success (PMBOK®)

Project Management Program Management Portfolio Management

Success is measured by product and project quality, timeliness, budget compliance, and degree of customer satisfaction.

Success is measured by the degree to which the program satisfies the needs and benefits for which it was undertaken.

Success is measured in terms of the aggregate investment performance and benefit realization of the portfolio.

How do we measure the success of

Transformation Initiative?

PMO roleBusiness

Goal

Portfolio

Management

Program

Management

Project

Management

Enterprise-level

management of

investment performance

and portfolio of projects

Manage multiple

project as a whole

Manage single

project activity

PMO

Business Transformation InitiativeBusiness

Transformation Initiative

(Program/Project)

Business Operation Change

Solution Delivery(Development)

An Transformation Initiative always contains

at least 2 components.

Create Potential

Value

Realize Potential

Value

Relation to PPM Framework

Strategy

LevelPortfolio Management

Program Management

Project Management

Execution

LevelProduct

need&req.&design

Product Delivery

Product Group need&req.&design

Product Group Delivery

Investment theme

Business Strategy/ Model/Architecture

IT

PPM

Activities

Primary

Activities

IT Investment theme

IT Strategy/Architecture

BIZ

Relation to PPM Framework

Strategy

LevelPortfolio Management

Program Management

Project Management

Execution

LevelProduct

need&req.&design

Product Delivery

Product Group need&req.&design

Product Group Delivery

Investment theme

Business Strategy/ Model/Architecture

IT

PPM

Activities

Primary

Activities

IT Investment theme

IT Strategy/Architecture

BIZ

BusinessArchitecture(Enterprise)

SystemArchitecture(Enterprise)

System development Framework

EnterpriseArchitectureFrameworkBusiness

Analysis Framework

Business Analysis&Change Management

Architecture Management

TOGAF ADM Zachman Ontology

Key Question to Project Management People

How much are we

contributing to Business

Value Creation?

Key transformation of our role

Delivery Management

Value Creation

Management

Key Change of Mindset and Role

Do thingsright

(Manage “How”)

Key Change of Mindset and Role

Do thingsright

(Manage “How”)

Do rightthing

“Why” and “What”

Governance

Project

level View

Program

level View

How to start?

Where is to be a starting point?

Additional Capability Required

Strategy

LevelPortfolio Management

Program Management

Project Management

Execution

LevelProduct

need&req.&design

Product Delivery

Product Group need&req.&design

Product Group Delivery

Investment theme

Business Strategy/ Model/Architecture

IT

PPM

Activities

Primary

Activities

IT Investment theme

IT Strategy/Architecture

BIZ

Expand the competency

and the role

PgMCompetency

BA CompetencyPM

Competency

Example of Business Value Oriented PM/PgM/PMO

PM

Product Concept

Product Design

Product Dev.

Business Case

Project Mgmt

PTPart

APart

B

Go UpstreamProject

InitiationProject

Planning

PM is assigned

somewhere in between

ProgramInitiation/Planning

PM/PMOPgM PMO

Business Owner

PgM/PMO can help BO to define what is

the right thing to do for transformation

How to analyze “the right thing”BABOK V3 PMI BA Practice Guide

BA Planning

Need Assessment

Requirement Elicitation

and Analysis

Solution Evaluation

Traceability and Monitoring

BA Planning and Monitoring

Strategy Analysis

Requirement Analysis and

Design Definition

Solution Evaluation

Elicitation and Collaboration

Requirement Lifecycle

Management

Benefit realization Management

ProgramIntegrated

Benefit

Project1

Project2

Project3

Divide

Benefit

Benefit

Benefit

20XX.xx 20XX.xx

Program roadmap

20XX.xx 20XX.xx

20XX.xx 20XX.xx

Define the structure of benefit and the roadmap to realize

Governance

Program Managerand

PMO

Project1 Project2 Project3

Delivery Responsibility

Micro Management

• Business Goal Realization

• Operational standard and

delegation of execution

• Problem Solving Focus

Governance

Problem Solving

PMO Formation for business Value CreationOwner/Sponsor

Program Manager orProject Manager

Business Leader Delivery Leader

Biz Sub-

Leader

Biz Sub-

Leader

Delivery Sub-

Leader

Delivery Sub-

Leader

Dev. Sub-

Leader

Dev. Sub-

Leader

Vendor PM

PMO

Biz PMO Sys PMO

Summary• Contribution to business value creation is expected

to PMO under business transformation pressure

• “Do right thing” requires Business Analysis Competency for PMO

• Delivering benefit requires Program Management Competency for benefit realization and governance for PMO

• PMO can play the central role and gain more recognition through these contributions to businessunder the expanded concept of project management (Beyond PMBOK).

Thank you!

CreaVision Ltd.

E-mail: Koji.shiota@crea-v.com

Facebook: shiotakj

Koji Shiota