PMO17BR103PMOSym2017_171105_WassermanBarrows_FINAL copy.pptx

Enabling an Effective PMO presented at PMI Symposium, highlighting: the growing importance—and challenges—of project execution; a leadership model for leading project-based work; and five critical actions for PMO Leaders

1. PMO17BR103 The Adaptive PMO: Enablers of Effective Project Management Today Tim Wasserman, Chief Learning Officer, Strategy Execution Ed Barrows, Managing Director, Duke Corporate Education

2. Outline for Today The world today The growing importance—and challenges—of project execution A leadership model for leading project-based work Five critical actions for PMO L eaders Q&A

3. Poll Who has heard the term VUCA?

4. Poll What words come to mind when we say VUCA?

5. The World Is Becoming More VUCA

6. Poll: How Long Can Companies Expect to Survive Today? What was the average l ifespan of a company on the S&P 500 in 1958? What is the average l ifespan of a company on the S&P 500 today? 49 years 37 years 26 years 18 y ears 11 years

7. 61 1 8 Corporate Lifespans H ave D eclined… Dramatically

8. Senior Leaders Are Feeling the Pressure of CEOs expected the level of complexity to increase over the next five years of CEOs, LESS THAN HALF, feel prepared to handle this complexity 64% of CEOs said their businesses were more volatile, uncertain and complex 79% 49% …and only Source: IBM Global CEO Study: Capitalizing on Complexity, 2010

9. VUCA Is Impacting the Project Environment Source: PMI Pulse on the Profession 2017 Source: PMI Report Navigating Complexity 2013 23% Medium Complexity 37% Low Complexity HIGH COMPLEXITY 41% Research reveals that the average BUDGETS for HIGHLY COMPLEX PROJECTS are nearly TWICE AS LARGE ; more dollars at risk for highly complex projects

10. Project-Based Initiatives Are Growing Source: PMI Job Growth and Talent Gap Report 2017 The volume of initiatives and the number of people leading project-based work will continue to grow 2027 87.7M 65.9M 33% INCREASE 10 YEARS 2017 “2.2M jobs per year for the next 10 years…”

11. Projects A re B ecoming M ore I mportant… and Failure R isk I s I ncreasing Source: Why Good Strategies Fail. EIU. 2013 Source PMI Pulse on the Profession 2017 Source: PWC 4 th Annual Global Portfolio and Programme Management Survey

12. Where Projects and Project L eaders A re B eing S tressed Organizations must embrace a shift in their organizational planning and execution processes to improve their overall adaptability Source: PWC 3 rd Annual Global Portfolio and Programme Management Survey, 2012 Source: PMI Report Navigating Complexity 2013 TOP TWO: Characteristics of complex projects Multiple stakeholders Ambiguity of project, features, resources, phase, etc. 57% 48% TOP TWO: Reasons for complex project failure Re-prioritization Change in strategy 47% 41%

13. The Implications We See Source: PMI Pulse on the Profession 2017 Source: PMI Report Navigating Complexity 2013 Increased business c omplexity Growth in project-based w ork Increases in strategic p rojects Greater project c omplexity Greater risks for organizations Increased o pportunity for project l eaders

14. What are the implications for your PMO and your role? Poll

15. Who are you? Where are you going? How will you operate? What needs creating? What is the context? How will we build it? The Strategic Execution Framework Copyright © 2004 IPS Learning, LLC and Stanford University – All rights reserved.

16. Achieving Strategy Execution Excellence

17. “ Project-based work today requires leaders who can collaborate and influence across more boundaries ” “Project leaders have to do a better job of managing the tension between being complete and moving with speed ”. “ W e need discipline to make the plan happen and the creativity to design solutions to problems as they arise ” “We need more leaders in our organization who can make things happen today but do so with tomorrow’s vision in mind ” “Great project plans are essential to success, but so is the ability to adapt ” “Project leaders have to manage the change that our projects are creating” “We need leaders on projects who find ways to get decisions made faster ” “Projects are where engagement actually happens; we need leaders who can connect with and develop people in a project-based work setting” “Technical and Relational Are Not Enough … ”

18. Traditional PM Tools: Necessary, B ut N ot S ufficient Adaptive Skills Driving collaboration and influencing faster and across more boundaries Innovating by owning problems and designing solutions for emerging challenges Flexibility in knowing when to and how to change process to accelerate performance Engaging and developing members in the context of projects TOMORROW TODAY Essentials are still important, BUT leaders now need adaptive skills to succeed Essential Skills Project management effectiveness is facilitated by mastering hard skills Building a solid plan Managing schedule, scope and performance Establishing effective routines Maintaining accountability

19. Our POV: The SELF Model Provides the I ntegrating F ramework for Adaptive E xecution

20. Adaptive Strategic Execution: Addressing the Challenges Aligning Work With Strategy (CSIA) Building Effective Teams (LET) Design Thinking for Results (new) Influencing Without Authority (MWA) Making Sense of Complexity (new/LSE/ECP) Building highly effective distributed and diverse strategy execution teams Building the influence required to effectively and efficiently redirect the work activity to optimize strategy execution Making sense of the complex context within which the strategy must be executed Aligning strategy with work activity to reduce the strategy-execution performance gap Applying design thinking to improve strategy execution results Reconfiguring the work activity to deliver optimal business value in executing the strategy Managing stakeholder relationships to ensure successful strategy execution Driving and influencing the change required to execute the strategy

21. Make Sense of Complexity The world is growing ever more complex There are more variables, variety and variation present than ever before PMO leaders need to understand in what environment their project managers, teams, projects and organizations are operating to be able to reframe what they think, rewire what they do and reconfigure how they respond

22. A Number of Variables Affect Organizations

23. Four Operating Contexts Simple Context Complicated Context Complex Context Chaotic Context Low OUTCOME PREDICTABILITY ENVIRONMENTAL CERTAINTY High Low High Low Checking the engine pre-flight Flying a plane Dealing with an air traffic control emergency Dealing with volcanic eruption in Iceland

24. REFRAMING What you SEE REWIRING How you THINK RECONFIGURING What you DO Perceiving Sensemaking Choreography Defining the Problem Uncovering the Need Framing the Challenge Generating Ideas Innovating Concepts Building Business Models Prototyping and Pitching Testing and Learning Iterating and Pivoting The PSC model

25. Influence Without Authority Organizations are getting flatter and more networked Non-hierarchical organizations are able to effectively sense and respond to changes in their operating environment PMO l eaders must be able to lead work and direct strategy and actions without always having formal authority to make the call. The need to incorporate attitudes and behaviors that emphasize informal influence when managing up, down, across and/or out

26. Leadership From the Center Is Vital

27. In a VUCA World, Leadership From the “ C enter ” Is V ital …

28. Poll What role are you in? Architect Translator Doer

29. Does NOT Mean Manipulating the weak managers Avoiding the harsh, punitive customer Saying yes when no is a better response DOES Involve Seeing the relationship as a partnership Finding common ground Agreeing on goals and expectations Managing ongoing communication wisely Delivering results Strategic Influencing Defined

30. Build Effective Teams An increasing volume of work is getting accomplished by teams—formal or informal Being a technical expert is necessary, not sufficient. Team and talent development skills are required PMO l eaders must be able to lead highly effective teams, especially in unstable and often distributed situations. They must be able to build, coach and lead diverse and distributed teams that are high performing, resilient and responsive to complex work and volatile contexts

31. The Team Performance Curve Source: Kaatzenbach , J., Smith, K., The Wisdom of Teams, Harper Collins, 1993 Working group Pseudo-team Potential team Real team High-performing team

32. Real Team Attributes Source: Kaatzenbach , J., Smith, K., The Wisdom of Teams, Harper Collins, 1993 Committed to a common a pproach Mutual accountability Small number Complementary skills Committed to a common p urpose Real Team

33. Leaders Manage the Team-Building Process Source: Barrows, E., & Marshall, E., Building Effective Teams, Duke Corporate Education and TwentyEighty Strategy Execution Structure Governance Direction Relationships Team Performance Leadership Results Context and Culture

34. Actions to Drive Team Performance

35. Drive and Influence Change Paired with VUCA is almost constant change; organizations literally must change or die Changes to organizations—their structures and operations—will persist and take place during the life of complex projects. The more complex the project, the higher the likelihood of failure PMO leaders need skills that help organizations develop the capabilities to navigate the uncertainty caused by complex environments … the science behind how individuals respond to change, tools to reduce resistance to change, and planning to increase engagement in the change process

36. The Challenges of Change Need to Be Considered CH = D x M x P > C C hange D issatisfaction M odel P rocess C ost of the Change Source: Beer, M., Organization Change and Development: A Systems View , Goodyear Publishing, 1980 The likelihood of change in a situation is a function of… The dissatisfaction with the current state The process that will help guide the change The model or vision of the future The personal cost of making the change

37. Leaders Need to Understand and Accommodate the Change Required VUCA-level change is generally transformational change A clear change vision and direction need to be provided PMO l eaders need to be able to enable the creation of new capabilities not previously resident in the organization

38. What change capabilities are you focusing on in your organization? Poll

39. Managing Critical Relationships In order to thrive, leaders must manage critical relationships Trust-based relationships form the basis of effective interactions in the work place—enabling project success PMO leaders need to know how to work with internal and external stakeholders to achieve the most optimal outcomes by focusing on diagnosing stakeholders and their behavior, overcoming obstacles and conflict in relationships and negotiating for beneficial outcomes

40. Source: Duke Corporate Education, Influencing and Collaborating for Results , 2005 Leaders Must Engage Key Stakeholders

41. Fundamentals of Building Relationships

42. The Project Aristotle Study Google conducted the “Project Aristotle” data study to try to find out what made the perfect team Their hypothesis: In perfect teams, everyone “likes” each other—with good mix of introverts, extraverts, friends, etc. Data showed: team composition did not matter! No correlation between team membership and team success What does matter? How people interact! Equality in conversational turn-taking Ostentatious listening—physical cues that you are listening These create psychological safety

43. What does it mean to be an Adaptive PMO? Poll

44. In Closing, What C an You, as PMO Leaders, Do Back in Your Organization? Identify who the architects, translators and doers are in your organization Seek clarity and alignment of expectations of each D etermine how much of your role should include being a translator Assess your capabilities in the five critical areas and choose two to focus on Identify which capabilities your project managers need to be better “center-leaders”

45. Learn more at strategyex.com/ASEP Tim Wasserman Strategy Execution Ed Barrows Duke CE Questions & Answers