We’re excited to be participating in the Gartner PPM & IT Governance Summit once again this year. The Summit will will be in Orlando from June 6-8. If you plan on attending, please do stop by the UMT360 booth and say hello.
Blog Posts from the Leader in Enterprise Portfolio Management
The end of the year is a time to connect with loved ones, celebrate the holidays, and make resolutions for the New Year. For PMO leaders, it’s also the perfect time to take a step back and assess the effectiveness of the processes you use to manage project and program investments, while also assessing their impact on your business.
The PMO Symposium is one of our favorite events of the year. It’s where hundreds of business leaders gather for a behind-the-scenes look into the proven strategies and practices that drive success for some of the world’s leading PMOs. Each year it seems to get better and better, with just about everyone responsible for directing their organization’s portfolio of projects, programs and initiatives in attendance!
You’re probably familiar with the grim statistics. Industry analysts tell us that traditional PPM is failing to deliver the anticipated results. And despite continued and significant investments in PPM, companies are still losing up to 46% of the planned business value from their project portfolios.
Clearly, the status quo isn’t working. But a new breed of business leader is emerging to help buck the trend and transform PPM. And the UMT360 team will be at the PMO Symposium in Miami to help showcase how these leaders are breaking the cycle of unreliable planning, cost overruns and project failures.
If you’re planning on attending the PMO Symposium in Miami from November 16-19, stop by the UMT360 booth to say hello. You can participate in our survey, picture how you measure up against your peers and be in the running for one of the free GoPro cameras we’ll be giving away at the end of each day. Read the rest of this entry »
UMT360’s recent webinar schedule has focused on enabling PMOs to be strategic. Great topics, with some world-class PMO professionals including Learning How to Establish a Strategic PMO with Carl Souchereau from SNC Lavalin T&D, and Changing the PMO Status Quo with Frank La Rocca from ConEd. In fact, we’ve seen so much interest in the Strategic PMO idea that we’ve created a local breakfast series, starting initially in Chicago and Houston.
But we also thought it would be good to step back and define just what makes up a strategic PMO. We reached out to some industry folks to get their views, and one response stood out in particular. Andy Jordan is the president at Roffensian Consulting, and has over 20 years within the portfolio, program, project and PMO space. Andy’s response aligned very closely with our view, and so we thought we’d let Andy share directly! You can reach Andy at email@example.com, and we thank him in advance for the guest post! – Paul
By Andy Jordan
In the last few years PMOs have been asked to take on much more ‘business critical’ functions. Some have embraced this opportunity, some have not. The idea of a project focused central services style PMO (people, process, tools, training) is rapidly losing favour because it is not delivering business results. Instead, the idea of a PMO more aligned with the business is gaining traction, and that is what PMOs should always have been. A Strategic PMO is a project centric business department and should be structured and managed in the same way as other business departments – goals and objectives set by enterprise leadership that help the organization as a whole succeed. That’s what we expect for sales, or operations, or fill in the blank other department, and that’s what we should expect of PMOs.
Consolidated Edison’s Frank La Rocca did such a great job setting up an enterprise PMO to handle a $200 million portfolio that the energy company has asked him to do the same for $2 billion of spend. What made him so successful? La Rocca understood early on that he had to have the portfolio transparency to know what projects were underway and the financial metrics to gauge their performance. He had to make changes to ensure he had the information he needed to make smarter portfolio decisions from selection forward.
Today, many businesses are questioning the effectiveness of their traditional Project Portfolio Management (PPM). What does the PMO need to do to position themselves as leaders with the ability to optimize the spend and maximize ROI across the portfolio?
Join Con Edison’s Director of Financial Governance Frank La Rocca for a look at how he built an Enterprise PMO and established complete financial transparency across a $2 billion capital portfolio. He’ll talk about the governance framework for increased financial intelligence, how to gain “buy in” from the top, setting baseline metrics, establishing a dynamical reallocation process to drive greater ROI and more.
Click here to register today for this webinar opportunity then plan to join Frank on Tuesday, May 13th at 2pm/ET.
Con Edison’s Director of Financial Governance Frank La Rocca is using Microsoft Project Server and UMT360 to provide financial intelligence across the company’s $2 billion portfolio. He discussed how UMT360 is helping him optimize the capital spend and drive results during the Microsoft Project Conference in Anaheim earlier this year. He also shared his governance framework for increasing financial intelligence, building a credible PMO, establishing a ‘sweep process’ to dynamically reallocate capital spend and more.
La Rocca has a sharp understanding of the importance of Portfolio Financial Intelligence. When he was named VP at a major northeastern utility company, he says the CFO and COO told him they wanted to ensure IT spending was aligned with corporate strategy. To answer strategic alignment questions, he went in search of information about the total portfolio spend and value but says that information was difficult to come by.
“The answers had to be culled from many different systems and spreadsheets and from interviewing the right people.”
La Rocca says having financial transparency was key to his being able to achieve his team’s goals and support the organization’s overall strategy. At the Project Conference, Frank discussed financial intelligence, his experience identifying the software that would best help him achieve his goals, and how it is working for him today.
Click the links below to view the series of complimentary UMT360 webinars presented by Frank La Rocca.
When Frank La Rocca was named VP at a major northeastern utility company, the CFO and COO told him they wanted to ensure that IT spending was aligned with corporate strategy. It’s a goal that has stayed in the back of his mind ever since – the need to understand or measure the alignment factor. This driver is at the core of what’s becoming known as Portfolio Financial Intelligence (PFI).
La Rocca quickly learned that the answers to the bigger questions on portfolio strategic alignment, total portfolio spend and value were not as readily available as one might expect. “The answers had to be culled from many different systems and spreadsheets and from interviewing the right people,” he explained.
La Rocca sought out solutions to provide the financial transparency he needed to have the right conversations and ultimately make smarter decisions about the portfolio’s management and investments. Incorporating this Portfolio Financial Intelligence (PFI) was essential to achieving the goals within his department and supporting the organization’s overall strategy.
To institute PFI, La Rocca identified four main challenges that the organization had to address.
He recommends that organizations begin by building a financial management foundation so they’re able to access the financial data even if initially in spreadsheets. La Rocca created a standard repository and required that any business case being considered go through the new process. “Ensuring you have only one method of accepting a project proposal levels the playing field,” he explained. “There can be no back door to financial governance.”
In order to effectively compare the wide array of capital projects, he helped establish a ‘strategic value currency’ which enabled his company to quantifiably compare the benefit of doing one project over another. “The strategic value currency helped ensure that strategic alignment and removed the subject nature from the business case development.” To do this, La Rocca and his team looked at the strategic development within the company, mined corporate statements to identify business drivers, prioritized the drivers through a pairwise analysis with the company leadership, then used those to rank the project proposals before them.
He also spent a significant amount of time defining key metrics, determining how to develop trends and analytics to improve metrics, and establishing the base line so that they could set and communicate targets to improve. He found success in publishing those metrics and data internally to ensure people were accountable.
Perhaps most impactful was his decision in 2012 to institute a ‘sweep process’ to allow for dynamic budget reallocation. “It allows project managers to release funds dynamically during the year and secure those funds for other projects. Once we know a project is not going to use that money, we take it, we sweep it away and we invest it strategically in another project.” He says that allowed the utility to increase its utilization though it required a culture change early on. “The sweep process is really where we get a lot of bang for our buck and if I were to describe the process, it’s really breaking the annual budgeting planning mold. We had so many project managers say ‘that estimate you’re holding me accountable for , we did that so early on when we didn’t really know a lot about the project yet, now that the project is executing, you’re still holding me accountable and that’s not fair.’ What we allow them to do is literally reforecast on a quarterly basis and give up money that we can use for other projects.”
For more on Frank La Rocca’s PFI experiences at Con Edison, view his webinar series by clicking here.
In his recent UMT360 webinar, Benefits Realization: Unleashing the Power of the PMO, Frank La Rocca, the Director of Business Improvement Services in Con Edison’s Finance Organization, shared a benefits realization framework to effectively track the actual value delivered across the investment portfolio. To ensure you’re realizing planned benefits, La Rocca said organizations should have a dynamic reallocation process in play. In a poll conducted during the webinar, 52% of attendees said they currently do not have a reallocation process allowing them to re-evaluate projects during the year and recapture funds which can then be reallocated to new initiatives. “If you’re finding that you’re leaving money on the table, this is a good way to move money around and perhaps squeeze more juice from the portfolio,” he explained. La Rocca also said it’s important that organizations be aware of their churn rate, something that 69% of attendees did not know. His company takes the original portfolio and subtracts the give backs and under-runs, then adds approved increases, over-runs and new projects to come up with a sense of the churn or project work that didn’t happen. For more on creating a benefits realization framework to improve business results, view Frank La Rocca’s webinar available here.