Benefits Awareness in the C-suite

Those of us that have been in the project management discipline for many years continuously struggle to understand why the C-suite many times just does not get it. Whether it is implementing the right projects to increase the value of the strategic goals or just making sure the right skills are in place to staff the right projects those of us in portfolio management are constantly helping the C-suite see the value of our discipline. The Project Management Institute (PMI) every year at the PMO Symposium provides the attendees a series of Thought Leadership Reports. Today, I will be reviewing the Strengthening Benefits Awareness in the C-Suite: Benefits Realization Management which was done by PMI and The Economist Intelligence Unit for the 2016 PMO Symposium.

The report defines benefits realization management as the first item but what I found more conducive for someone in the C-suite is that the company that does benefits realization management well wastes 67% less money than those that implement strategy on a "wing and a prayer" so to speak. So why aren't C-suites running to implement portfolio management and all the benefits realization management it brings? The report seems to believe it is a lack of understanding that projects are what drive benefits realization which in turn means successfully implementing the company's strategy.

How could this be? Well, it could be said that C-suites do not like to be the first to implement something unless it has been shown to be effective. However, the fallacy to this was that in the 50s, 60s, and 70s portfolio management (granted it was called something different) was done by many successful companies and was valued by the C-suite. However, as projects became more and more difficult and the resources needed become more skilled, the ability to track it all became too expensive to track. In other words, the value that it once provided was being eaten by the overhead needed to track all the moving parts. The software was not cost effective at this point. So the art was lost for all practical purposes.

The report outlines four attributes for those that do benefits realization management well. The attributes are Perseverance, Communication, Ongoing monitoring, and embedding benefits realization management in project portfolio governance. So let's take each one. Perseverance - Anything that is worthwhile normally is not easy to implement and takes focus for it to be successful. Many times when things get hard middle management will give up or the C-suite does not see immediate results so the initiative is abandoned. Middle management and project managers must see the C-suite walking the talk, if not, benefits realization management will fail. Communication - What is it that the organization will do towards benefits realization management? What does it look like? Who is responsible? How is it doing? If the transparency is not there it will be difficult to have buy in. The best way for transparency is to be open with communications. Also, communications must be in many different forms. Think of email, newsletters, intranet sites, blogs, You Tube, and more.

Ongoing monitoring - If you don't measure it, it does not exist. You hear those words from quality managers all the time. Also, make sure you know what you want to measure and then measure it. Also, remember that the monitoring will be different over time. And going back to communication, communicate what you monitor and how benefits realization is doing the monitoring. Provide the good with the bad and what will be done to get back on track. Finally, embed benefits realization management into project portfolio governance. In my humble opinion, project portfolio governance does not exist unless there is benefits realization management in the process. The benefits realization management will vary between companies and industries. The project portfolio manager needs to work with the C-suite to understand what is worthwhile following. Remember you as the portfolio manager are the expert so you need to walk the C-suite through the process.

The Project Management Institute's leadership needs to go on a roadshow with companies that have been highlighted in the report. Until more is heard about benefits realization management, the project management discipline from those that have experienced an increase in ROI or the bottom line, those of us that deliver project portfolio management will continue to have an uphill battle with the C-suite.

Stay tuned for my perspective on the final of the three 2016 Thought Leadership Series: Establishing Benefits Ownership and Accountability.

Project Management on the Brain

By Wanda L. Curlee

Could neuroscience be the next big thing for the project management profession?

Today, there are many theories about leadership, management, and psychology, yet, no one is quite certain how the brain works in concert with these theories—or even if it does.

In the pursuit of more information, neuroscience—including functional magnetic resonance imaging (fMRI) and positron emission tomography (PET) —is being used to study what the brain activity of business-minded individual’s looks like during thought and during motion. (This technology can map new neural pathways as they are created—pathways that can be created until death.)

Already this scientific field is creating new fields of study across the business landscape. Neuroeconomics, for example, is “the application of neuroscientific methods to analyze and understand economically relevant behavior such as evaluating decisions, categorizing risks and rewards, and interactions among economic agents,” according to Dr. Zainal Ariffin Ahmad, a professor in the Business Research for Applied Innovations in Neurosciences (BRAIN) Lab at the Universiti Sains Malaysia’s Graduate School of Business.

There’s also neuroaccounting, neuroethics, neuroleadership and neurogoernance.

With portfolio management still in its infancy, neuroleadership and neurogovernance could potentially assist portfolio managers. By extracting knowledge from the sciences of neuroleadership and neurogovernance, PMI could differentiate itself and its body of knowledge from the various other project management associations and standards.

By using cutting-edge knowledge about how the human brain works to help create standards, PMI could move project management closer to a profession such as medicine. When the standards of the profession are based on empirical scientific knowledge, rather than good practices done on most projects most of the time, project management could become even more science than art.

What do you think? Can and should neuroscience be part of the future of project management?

Originally published on PMI's projectmanagement.com

2016 Project Management Institute's Thought Leadership - Benefits Realization Management

Thank you to all veterans and active duty personnel for their service. Each of you has played a large part to the safety of our country!

The Project Management Institute (PMI) recently published the new leadership series. One of the reports is Connecting business strategy and project management - Benefits realization management (BRM). While reading the report, I was reminded of taking baby steps. The report confirmed how important benefits realizatin management is to implementing strategy.

The report outlined three factors that contribute to the success of BRM.These are "managing the portfolio of projects, creating dedicated space for dialogue, and establishing the right conditions for success". Each requires a culture shift to effectively manage the organization's strategy.

Managing the portfolio of projects' objectives is to manage projects to the strategy. The project success is good but it must provide value to the portfolio which in turn should drive toward the strategy.

Creating dedicated space for dialogue is fancy speak for the C-suite needs to be engaged. Without support and sponsorship from the C-suite the portfolio will lose traction. The C-suite needs to communicate with the business owners working as sponsors. The sponsors help to translate the strategic objectives into projects.

Finally, establishing the right conditions for success is about changing the culture. Active sponsorship, project managers with the correct skills, and most importantly encouraging actively delivering bad news. All these conditions drive the re-mapping of projects to drive the value of the portfolio.

While I agree with all these premises, the report does not address programs. This is a major oversight as programs are integral to a portfolio. The program helps to drive a strategy or part of a strategy more efficiently than driving each project separately.

By not addressing programs, PMI appears to have forgotten the value of programs. This is worrisome as it delivers the wrong message.

Stay tuned for a synopsis and opinion of the other reports within the Thought Leadership Series.

2016 PMO Symposium

Today, I find myself in San Diego. I am here for an extended period of time as my granddaughter was born. So, yes I am a very happy grandma. But I diverge.

The Project Management Institute's (PMI) PMO Symposium is happening in San Diego. Actually, it is on Coronado Island. I attended the previous two Symposia but elected not to attend this year. The last two I attended did not provide the topics I would have expected.

Let me elaborate. The PMO Symposium is not really sure what it is. As the title suggests, it was started to showcase PMOs. However, as time has progressed, the acronym PMO does not have a clear definition. PMO may stand for Project Management Organization, Project Management Office, Program Management Ofice, Progam Management Organization, Program Management Office, Portfolio Management Office, Portfolio Management Organization, But the confusion goes even farther. PMOs can be at the enterprise, organization, program, project, or somewhere in between.

Where PMI misses with the PMO Symposium is that it no longer focused. PMI is trying to make the PMO Symposium cater to Portfolios and PMOs. By doing this PMI has watered down the Symposium. A better solution, continue the PMO Symposium with a clear charter and leave portfolio out of the mix as all it does is muddy the waters.

But, I also need to point to the positives of the PMO Symposium. Each year, PMI creates a series called the Pulse of the Profession which is introduced at the Symposium. These are wonderful series that I look forward to every year.

Also, the Symposium offers a wide variety of workshops, vendors, presentations and network opportunities.

My next blog will evaluate this year's Pulse of the Profession!

Standards and Portfollo

I have always been one that takes the best aspects and novel ideas (that I later test) to develop portfolios for clients or ones that I have created and led. I was quite interested when I read a blog from MrPortfolio. He aptly pointed out that there are two standards that drive portfolios today. There is PMI's Standard for portfolios and then there is the Management of Portfolios (MOP). He aptly points out the differences and similarities between the two tomes.

He also touches on the certifications for portfolio. There is the PMI certification and one for the MOP. He suggests both or if you can only afford one then the MOP. He also states he is biased toward MOP. As an individual that has the PMI portfolio certification (PfMP) and intimately familiar with MOP but does not have the certification, I respectfully disagree.

I would contend it depends where you practice. If you do business in both the US and Europe, then I would suggest that you find the funds to have both certifications. If you practice mainly in the US, then stick with PMI's certification. PMI is quite well known in the US. However, if you practice mainly in Europe then the MOP should be the certification. You must cater to your clients and audience.

I wholeheartedly agree with MrPortfolio, that as a practitioner in the portfolio arena you NEED to know both documents. Each has its strengths and weaknesses. I will not bore you with those because MrPortfolio did a fine job of outlining them. Again, do what is right for your client or your company. Understand both, and you will in all likelihood develop a project portfolio that will help the organization meet its strategic objectives.