Developing organisational capability in
programme & project management
Developing organisational capability in programme & project
management as part of bridging the strategic gap
Topics covered today
1
Introduction to the Innovation Value Institute and the IVI consortium
2
The IT Capability Maturity Framework (IT-CMF) – managing IT for business value
3
What is an IT capability and why it is important
4
Programme & Project management capability within IT-CMF
5
Value of IT-CMF and benefits of IT-CMF capability maturity assessments
6
Summary: IT-CMF in a nutshell
Innovation Value Institute (IVI) is a global open-innovation
consortium founded my Intel, BCG and Maynooth University
Research
Education /
Training
Assessment /
Benchmarking
Maturing Enterprise IT Capability
IVI Mission
“To deliver practice-based research and thought leadership to transform
how public and private sector organizations globally manage IT
capability for value and innovation”
IT-CMF balances academic rigour with a practical industry-led
approach, filling a crucial gap in IT management skills and education
Managing IT like
a business Managing theIT budget Managing theIT capability Managing IT for business value
AA Accounting and Allocation
BP Business Planning
BPM Business Process
Management
CFP Capacity Forecasting and Planning DSM Demand and SupplyManagement
EIM Enterprise Information Management IM Innovation Management
ITG IT Leadership and Governance ODP Organization Design
and Planning
RM Risk Management
SAI Service Analytics and Intelligence SICT Sustainable ICT
SP Strategic Planning
SRC Sourcing
BGM Budget Management
BOP Budget Oversight andPerformance Analysis FF Funding and Financing
PPP Portfolio Planning and Prioritization
CAM Capability Assessment and Management BAR Benefits Assessment and Realization EAM Enterprise Architecture Management
ISM Information Security Management KAM Knowledge Asset Management PAM People AssetManagement PPM Program and ProjectManagement RAM Relationship AssetManagement
RDE Research, Development and Engineering SD Solutions Delivery
SRP Service Provisioning
SUM Supplier Management
TIM Technical Infrastructure Management UED User Experience Design
PM Portfolio Management TCO Total Cost of Ownership
IT-CMF spans the IT capability of the organization
Each critical capability has five levels of maturity:
IT-CMF assessments measure and benchmark
maturity levels across 4 Macro Capabilities
Cost Centre Service Centre Investment Centre Value Centre Predictable Performance Systemic Cost Reduction Expanded Funding Options Sustainable Economic Model Technology Supplier Technology Expert Strategic Business Partner Corporate Core Competency TCO
ROI & Business Case Options and Portfolio Management Optimised Value Optimising Advanced Intermediate Basic Initial M a tu ri ty Low High Managing IT like a business Managing the IT budget Managing IT for business value Managing the IT capability Macro Capability Unmanaged
What is an IT Capability?
Enterprise IT capability maturity is far more than IT process maturity
IT-CMF defines enterprise IT capability as
“the systematic mobilization of IT resources
in support of targeted outcomes”
IT-CMF holistically defines the management capabilities that an organization needs to
mature to consistently deliver business value from its IT assets in support of business
goals.
IT-CMF defines a capability maturity curve that can be used to assess the gaps
between current and target future enterprise IT capability holistically across 35 critical
capabilities (CCs) and/or on any individual CC or cluster of CCs focused on an
organizational issue.
Enterprise IT Capability is an integration of
•
People (roles)
•
Processes
•
Organizational structure
Why is IT capability of the organization important?
Technology IT Process IT People IT Knowledge
Organizational capability to manage IT for business value
Business value and innovation enabled through IT
IT
R
e
so
u
rc
e
s
IT capability is about executing stable and repeatable patterns of IT management
activities that deliver business value in alignment with organisational strategy
IT-CMF architecture – how it works…
Business
Value
4
Macro-capabilities
35 IT management
capabilities (Critical
Capabilities)
300+ Capability Building
Blocks + individual maturity
profiles
800+ maturity assessment
questions
3,400+ recommended management
Optimizing
• Seamless interoperability within and beyond the borders of the organization; widespread tool integration
• World-class demonstrated; significant optimization/improvement focus Advanced • Predictable, flexible and unified end-to-end organizational approaches, enterprise-level tools institutionalized
Intermediate • Standardized across core department (typically IT); consolidated tools enable reliable execution
Basic
• Defined approaches emerging in pockets; local tools offer intermittent support
• Clarity and regularity emerging in pockets Initial
• Ad hoc, reflecting individual heroism rather than stable methods • Disorganized and lacking clarity, deviations from norm not readily
detectable
M
a
tu
rit
y
Low
High
IT-CMF offers a concise management roadmap
to optimize business value from IT
The IT-CMF is based on five maturity levels to
manage the value of IT
Overview of Programme and Project Management (PPM)
IT-CMF Definition of PPM
PPM aims at the consistent and optimised execution of programmes and projects to deliver business value.
Programme: A set of interrelated projects, centrally managed to attain business objectives and
benefits (e.g. establishing a Shared Service Centre).
Project: A unique set of coordinated activities, with defined start and end points (end points can
be time, cost, or performance targets), undertaken to meet specific objectives and attain the desired results (e.g. implementation of an ERP-System).
PPM reports back to Portfolio Management.
• Selection and adaption of Project Management standards to best fit the organisation
• Interfacing with key critical capabilities, e.g. Portfolio Management and Portfolio Planning and Prioritisation
• Definition and tracking of metrics to measure project success • Release strategy to operations
• Tracking and updating business cases and benefit assessment and realisation plans
Core Definition PM:
• Portfolio Management (PM) is the capability that ensures there is an appropriate level of monitoring of the programmes and projects in the portfolio that have an IT component.
• PM implements the decisions made by Portfolio Planning and Prioritization (PPP) and that the programmes and projects within the portfolio are executed within their parameters.
Core Definition PPP:
• Portfolio Planning and Prioritization (PPP) is the capability to select (approve), cancel, and prioritize
programmes/projects that are seeking organizational resources within an organization.
• PPP uses an agreed framework to optimize an organization's IT investments (ROI) in programmes /projects by ensuring that all programmes/projects are aligned with the organization's strategy.
Portfolio Planning and Prioritisation, Portfolio Mgmt., and
Programme and Project Management are MECE
1Portfolio Planning and Prioritisation PM Portfolio Management PPP PM monitors ongoing programmes / projects Core Definition PPM:
• Programme and Project Management (PPM) is the
discipline of planning, organizing, managing and optimizing
resources for programmes and projects in order to achieve the desired result (e.g. business value), to manage risks and issues, and to ensure all changes are properly handled.
• PPM reports back to PM. Programme and Project Management PPM PPP Board New programme/ project proposals by IT and the business Prioritised programmes and projects
Category
Capability building block
Framework
Standards and Methods
Continuous improvement
Tools and Techniques
Tools and Techniques
Control and Evaluation
Performance and quality management
Change and risk management
Post programme / project learning
Governance
Organisational structure, policy, standard, and process
Involvement of stakeholders
Cat.
Capability
building block
Description
Fr am e w o rk Standards and Methods
Consistent use of appropriate programme / project standards and methodologies to best fit the organisation’s needs and objectives.
Continuous improvement
The selected or developed framework, methodologies and standards are updated based on lessons learned, benchmarking, as well as the changing business and technology environment. Identify improvement
opportunities from historical information.
Description of PPM categories and underlying capability building
blocks (1 of 2)
Cat.
Capability
building block
Description
Fr am e w o rk Standards and Methods
Consistent use of appropriate programme / project standards and methodologies to best fit the organisation’s needs and objectives.
Continuous improvement
The selected or developed framework, methodologies and standards are updated based on lessons learned, benchmarking, as well as the changing business and technology environment. Identify improvement
opportunities from historical information.
To o ls a n d Te ch n iq u e s Tools and Techniques
Some proven tools and techniques are used to facilitate a variety of programme / project management functions (e.g. risk and issue
management, schedule management, budget management, document sharing and collaboration, root cause analysis, reserve analysis).
Cat.
Capability
building block
Description
Fr am e w o rk Standards and Methods
Consistent use of appropriate programme / project standards and methodologies to best fit the organisation’s needs and objectives.
Continuous improvement
The selected or developed framework, methodologies and standards are updated based on lessons learned, benchmarking, as well as the changing business and technology environment. Identify improvement
opportunities from historical information.
To o ls a n d Te ch n iq u e s Tools and Techniques
Some proven tools and techniques are used to facilitate a variety of programme / project management functions (e.g. risk and issue
management, schedule management, budget management, document sharing and collaboration, root cause analysis, reserve analysis).
C o m p e te n ce Definition of competence requirements
Defined set of skills for various programme / project roles and training curricula including skills on people (leadership, stakeholder management, …), process (PPM and related business processes), function, technology and business.
Cat.
Capability
building block
Description
C o n tr o l a n d E va lu at io n Performance and quality management
Planning, monitoring and reporting of performance and quality metrics to ensure effective PPM and management of expectations of stakeholders. Integration of project management information system and cost
management system.
Change and risk management
Timely and effective assessment, communication and resolution of change and risk related to the programme / project. Ensure appropriate communication, review, and approval of issues, progress, change requests and risks related to the programme / project.
Post
programme / project learning
Capture lessons learnt from programme / project execution and historical project info. Feed into continuous improvement.
Description of PPM categories and underlying capability building
blocks (2 of 2)
Cat.
Capability
building block
Description
C o n tr o l a n d E va lu at io n Performance and quality management
Planning, monitoring and reporting of performance and quality metrics to ensure effective PPM and management of expectations of stakeholders. Integration of project management information system and cost
management system.
Change and risk management
Timely and effective assessment, communication and resolution of change and risk related to the programme / project. Ensure appropriate communication, review, and approval of issues, progress, change requests and risks related to the programme / project.
Post
programme / project learning
Capture lessons learnt from programme / project execution and historical project info. Feed into continuous improvement.
ve rn an ce Organisational structure, policy, standard, and process
Availability and adoption of programme / project governance framework for decision making and managing progress; Identify and define structure of reporting lines, authorities, roles and responsibility both inside the programme / project and in the organisational setup surrounding the project. Establish and adopt roles and accountabilities, policies and
Transitions that increase maturity in PPM deliver additional value
Actions listed are derived from database of 3400+ Practices Outcomes & Metrics (POMs)
•Regularly revisit selection of PPM
methodologies/standards for optimisation and refreshment
•Introduce metrics that measure the project's benefits quantitatively against the stated objectives
•Methodologies and standards meet the current and future needs of the organisation
•Improvement process becomes value-based instead of driven by operational needs
•Ensure PPM processes, tools, systems are integrated end-to-end within the company and aligned between business and IT.
•Ensure project methodology fully integrates organisation wide risk management
•Focus quality metrics on defects prevention
•Tie job titles/levels to proficiency in role appropriate competencies
•Comprehensive approach to managing programmes and projects
•Comprehensive view on all risks
•Systematic defects prevention instead of repair
•Organisational levels match defined and required competency profiles
•Require business cases to be documented and quantified for each project
•Ensure use of consistent project methodology enterprise wide across all projects, covering the full project lifecycle
•Appropriate allocation of resources and review of quantitative project success to increase competitiveness
•Project execution consistent between key milestones; facilitates reporting and
management; strengthens confidence in project execution
•Define clear deliverables for each project phase
•Define set of metrics to track progress
•Define selected PPM related trainings
•Status can be measured
•Basic means for controlling put in place to accelerate decision making processes
•Basic knowledge transfer is in place
Maturity
High
Low
Action taken
Action taken ValueValue
5
A d va n ce d In te rm ed ia te B as ic O p ti m is in g In it ia l4
3
2
1
Ex. Benefits of higher Program & Project Management (PPM)
capability maturity? A delayed launch
lost revenue + more costs
N
u
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b
e
r
C
u
st
o
m
e
rs
/
M
ar
ke
t
Sh
ar
e
C
o
st
Delay
Additional
Costs
Lost Revenue
Total Revenue
= number x av. value of
each customer
The value of the IT Capability Maturity Framework
The IT Capability Maturity Framework provides
•
A holistic evaluation of IT organizational performance
•
A set of business management best practices for organizational
improvement
It is designed to reduce complexity for CIOs and senior IT decision-makers by
•
Systematically narrowing IT organizational capability gaps
•
Optimising costs
•
Managing IT for value and innovation
IT-CMF facilitates enterprise-wide capability improvement and works with
single-domain models and frameworks, such as ITIL
IT-CMF deployment: Assessments are tailored to
organizational requirements
Assessment Objectives
Executive
assessment
•
Rapid overview of current and target capability maturity across IT
referenced with importance of the capability to the organization
Single CC
assessment
•
In-depth understanding of capabilities and maturity in a single
critical capability and the building blocks within it
CC
Cluster
assessment
•
Assessment of related capabilities around a specific IT challenge,
topic, or domain
Benchmark
•
Assessment of capabilities on important IT challenges by industry,
geography, organization size, and many other contexts
•
Provides insight on capabilities and best practices of selected
peers
Ex. Executive Assessment outputs: quantitative survey findings
Current Maturity Future Maturity Importance
Ex. Executive Assessment outputs: qualitative interview findings
& prioritization
Strengths/Weaknesses Improvement Themes CCs within Themes
Benefits of IT-CMF Assessments
Assess current state of IT maturity Identify target IT maturity state Agree focus of effort & investment Develop targeted improvement programme Leverage areas of good practice Measure improvementand agree it with
the business
based on value agreed
between IT and the business
aimed at achieving
target level of
maturity and not just
‘best practice’
to find
opportunities
that enhance
business
value
IT-CMF assessments enable IT
management
to …
using a consistent,
repeatable, industry
standard framework for
IT business value…
Summary: IT-CMF in a nutshell
Key IT-CMF artefacts & assessment types
ITG DSM ODP IM RM SP SRC SAI SICT BPM BP CFP AA BGM BOP FF PPP EAM TIM PAM KAM RAM RDE SD SRP UTM UED PPM SUM CAM BAR PM TCO C ri ti ca l C ap ab ili ti es ( C C ) Macro Capabilities Optimising Advanced Intermediate u ri ty High u rv e PPM BAR SD
Cluster
Assessment
P ra ct ic e s O u tc o m e s M e tr ic s Maturity Designated Answers Assessment Questions P.O.M.s Next Maturity Steps Survey Tool ExecutiveAssessment
SICT
Capability Categories ITG Governance Leadership Value Orientation Business Interaction Communication IT VisionStyle, Culture & Team Building Decision Bodies & Escalation
Capability Building Blocks (CBB)
IT L ea d er sh ip & G o ve rn an ce C C D iv e (C C L ev el ) A ss es sm en t Industry Benchmark ODP IM ITG SP EIM
Developing organisational capability in
programme & project management
David Trevitt, IVI Senior Advisor
Common Project Failures
•
Poor scope definition, e.g. No quality criteria
•
Scope creep (poor change control)
•
Lack of clear leadership and good governance
•
Unrealistic expectations of key stake-holders
•
Lack enough of the right resources (time, people, finance, technology)
Common Programme Failures
•
Insufficient board level support – get sign-off
•
Unrealistic expectations of organisational capability and capacity
•
Insufficient focus on benefits
•
No real blueprint of future capability
•
Poorly defined / communicated vision
•
Insufficient engagement of stake-holders
•
Organisation fails to change its culture
IT-CMF is an overarching IT Management Framework
Supports and enhances use of ~30 broadly-used IT standards, models, and frameworks1
Service & application management, provisioning and sourcing
• ITIL, ISO 20000, IT Service CMM, ISPL, eSCM-SP v2, ASL
Enterprise architecture and software lifecycle management
• ISO 12207, NASCIO EAMM, TOGAF
Quality management
• ISO 9000, TicktIT, TQM, Six Sigma
Business process management and support
• MOF, BiSL, eTOM
Program & project management & reporting
• PRINCE2, PMBoK, MSP, IT Balanced Scorecard
Investment management
• Val IT, Gartner TCO
Governance, security and risk management
• COBIT 4.1, ISO 27001/17799, MoR, AS 8015
Human resource management
• People CMM
Governance and Management of Enterprise IT
Low High Technical IT Expert / Task Execution CXO/CIO Senior IT Management Value Focus IT Capabilities Represented Target audience Balanced Scorecard PMBOK PRINCE2
IT-CMF: an end-to-end IT management method
Matures the ability to execute stable and repeatable patterns of IT
management
