The Project Portfolio Management (PPM) evolution has made great leaps and bounds over the last few years. For this reason, I believe there are still a few common misconceptions that remain linked to the topic of PPM discussions everywhere. Before diving into misconception #1, it is important for you to know that PPM CAN be for everyone, regardless of maturity. If you have a multi-maturity organization, join us for our upcoming webinar to see how you can have a one size fits all PPM solution tailored to meet the needs of every user within your business.
Systems are put into place to resolve pain points, address challenges and return a positive value impact on the underlying need for PPM within the organization. PPM success factors could be defined by an increase in resource productivity, a decrease in spending or the general ability to be able to do more with less. Here’s where the misconception comes in; PPM is, for the most part, known as a complex discipline. In many organizations, PPM systems are often defined and used by those within the organization who are mature enough to understand the data that goes in and the meaning of the data that comes out. Well, understanding the data is one thing, validating the data is another. PPM systems will net a much greater return if all resources (those who are managing the work and those who are performing the work) are using the tool. It is no longer fair to assume that the true PPM practitioners within your organization are the only ones qualified to use a PPM system. Notice that I said “those who are managing the work”. In order to have a complete portfolio that reflects true spend, every user must be included. I’m happy to say that in today’s PPM world, that is possible. In fact, EPM Live has brought PPM to thousands of users and has met the individual maturity needs of each and every client. So now that we got the misconception out of the way, let’s talk a little about maturity.
What is a PPM Maturity Model and why is it so important? PPM Maturity Models have played an important role in history, preparing organizations and IT leaders to better their Project and Portfolio Management processes. The ability to practice these types of strategic disciplines to better align with your organization’s strategic objectives is called Organizational Project Management Maturity.
In today’s competitive market it is critical for organizations to leverage their IT infrastructure to better these processes and continue to move up the maturity curve. It is proven that organizations with higher maturity can expect to see better return and performance on their project portfolio and could potentially lead to competitive advantage. Why? Because a portfolio that is managed in accordance with a PPM Maturity Model, such as Gartner’s, can help organizations identify their weaknesses, determine and set priorities, and play a key role in establishing goals to better the overall organization.
Does this mean that every organization should set a goal of going from level 0 maturity to level 5 in 90 days? Absolutely not, in fact, quite the contrary. Moving up in maturity at a rapid pace will only introduce risks and ultimately result in low adoption or acceptance for all those involved. Organizations must realistically assess where they reside in the maturity model and set practical, incremental goals that are achievable and obtainable through gradual adoption. The Gartner PPM Maturity Model involves 5 core dimensions and 6 levels:
5 Core Dimensions:
- People- Your most valuable asset on any project is the people. Their skill set, their involvement or availability and their ability to follow processes and deliver on projects are all crucial characteristics of project management maturity
- PPM Processes- Processes are the activities, tasks, or workflow that is used to establish an end result. The granularity and complexity of the processes we use through project management disciplines whether it be portfolio management, resource management, time management or task management have a great impact on the end result
- Financial Management- All project related work, in addition to materials, have a direct impact on your projects bottom line. How you track and manage this information will most definitely play a role in your project’s success
- Technology- This one is a sweet spot for EPM Live. Technology is critical. How and with what tool you will manage every aspect of your portfolio will ultimately determine your ability to improve productivity which in turn affects your resources, your dollars, your time and the quality in which you deliver
- Relationships- This one seems to require little explanation. The relationship we have amongst our stakeholders (project teams, customers, leadership) can make or break a project. Communication is key and the way we collaborate and nurture these relationships is of utmost importance
So how does EPM Live technology stack up against the Gartner PPM Maturity Model? EPM Live believes that PPM Maturity is critical for project success. We also understand that most organizations fall between level 0 and level 1 maturity. EPM Live provides the tools necessary to help organizations improve their PPM maturity while at the same time aligning with the organization’s strategic goals as you transition up the maturity ladder. For this reason, EPM Live offers a solution path to success that will help you determine where you are in organizational maturity, where you want to be moving forward and a roadmap to get you there!