February 2008

Announcing 2008 PMO 2.0 Leadership Forum Series Locations and Dates

See, I told you we would finally get to this point! I am pleased to announce the following dates and general locations for our 2008 PMO 2.0 Leadership Forums:

DateEvent
Feb 29th     Dallas (Las Colinas)
April 9th     Washington, D.C.
May 16th     Los Angeles
June 6th     Charlotte
Sept 4th     New Jersey
Nov 6th     Seattle

Obviously, Dallas is coming up this week to start the year off. Registration has been very strong, so we may have to hold it in the Omni lobby if everyone that signed up actually shows! We have an awesome panel set up and a very impressive list of people and organizations planning to attend. The team is pretty hepped-up and looking forward to seeing everyone on Friday.

**Don't forget to wear your boots!**

As you can see from the other dates and locations, we have tried to fill in a bit around areas that we have not yet been near. I know some of you in the heartland may be feeling a little left out, but last year we hit Chicago, Atlanta and Denver, among others. Demo(n)graphics!

I keep trying to convince everyone we should just do this full time — get ourselves a big bus and go from town to town like some twisted managerial aberration of a touring garage band. Roadies wearing chinos and Izod, murmuring "Check, check — one, two" into the PA system. A laser pointer light show.

OK, I'm back now…

We are busy looking for venues, reviewing presenters and seating panelists. As we get more details we will set up a registration site and link for each location. Based on availability of meeting space, the specific day may wobble around a little, but we'll let you know if anything major changes.

And for all you folks in New Jersey, before you start commenting — yes, I know it's a state, not a city! Look at it this way, from a square mile perspective, it's about as geographically specific as saying, "Los Angeles".

Teaching a Pig to Whistle, or, One Process Does Not Fit All

In my February 5th posting, I touched on a few of the challenges of trying to manage a knowledge worker environment, particularly as it applies to defining and deploying processes and standards. One could summarize that whole exercise under the headline, "Immovable Objects Encounter Irresistible Force".

Often times, issues that arise with trying to get adoption of are born out of trying to fit too many diverse things into a single mold. For instance, many PMOs have for years focused primarily on building a level of maturity and consistency around formal project management. That's a noble and useful endeavor, but sometimes in our zeal to extend these results into other areas, a particular concept gets pushed well beyond its useful range.

I suggest regularly stepping back and objectively assessing the following:

  • Do we have enough project templates/approaches to accommodate different kinds of projects? Alternatively, do we have too many?
  • Are we confusing our SDLC methodology with our project methodology (I see that a lot; honestly now, what percentage of your projects are true app dev efforts versus some other kind of project?)
  • Are our methodologies or standards pushing too much detail out into the organization that is causing a lot of rework?
  • Are we being too rigid when it comes to what we dictate as a must-have versus what should be considered optional?
  • Here's the biggie: Are we trying to manage too much of what we do as a formal project?

On that last item, the analysts will tell you their statistics run about 20/80 (or somewhere near that) when it comes to the percentage of formal innovation projects versus other kinds of work in IT. Meanwhile, the corporate suits swear up and down they are spending at least half their capacities on projects. Sometimes that has to do with overly optimistic guesstimations in lieu of reliable utilization data.

As often, what I find is that a lot of planned work is getting forced into a formal project management methodology when it does not belong there, simply because no one has offered up a kinder, gentler option. Remember that knowledge workers by nature do not cotton to being told what to do and how to do it — especially if it represents layering on administrivia and heavy-handed controls that in their eyes aren't perceived to add value. Do you really need a formal risk plan or defined quality specifications to coordinate the blood drive, provide supervisory training, or upgrade desktop monitors to flat panels?

One of our core work management concepts is to make sure that work types are clearly defined and that appropriate control measures are defined for each (If this isn't ringing any bells, hop on over to our PMO Resource Center and download the first of the four-part PMO 2.0 white papers).

So, the whole point I'm trying to get at is that there is something to be said for a very judicious and restrained approach when it comes to determining what we foist upon the organization for the sake of uniformity. I fully support that everyone should probably wear shoes at work, but I do not want to have to walk around in a pair of size 7 fuchsia slingbacks with 5-inch heels (I would get weird looks — even in Austin; only Leslie gets away with that).

So…Knowledge Workers will tolerate requirements that make sense as a basic condition of employment, but are prone to ignore those that are considered trivial, inordinate or irrelevant. Use caution if you are attempting to force everyone to do anything the exact same way in too much detail; otherwise, you may find yourself about as successful as teaching a pig to whistle — wasting your time and irritating the hell out of the pig.

Up Next: OK, So How Do you Approach Building Consistency?

Let the Big Dogs Eat -- Competition for Resources and the Investment Decision Process

Guest blog entry by Randy Leiser, CFO in Residence

Randy Leiser Ever hear the expression "Let the Big Dogs Eat"? If you haven't heard it before, visualize a bowl of yummy dog treats and several very hungry, very differently sized, and arguably unguided dogs prowling behind a gate. Now open the gate — who's eating and who's not?

The "Let the Big Dogs Eat" metaphor could easily apply to the competition for resources in some organizations for those "must-have" IT projects, whether those resources are people, money or both. Sometimes it comes down to the biggest enterprise "dog" winning resources even when the enterprise might be better off if the smaller dogs were better recognized. Fortunately, the jockeying for enterprise resources is a bit more civil, although some might argue it is not without growling and flashing of incisors. That said, the allocation of resources often boils down to actions and decisions that are not always based on a level playing field. When this happens, the enterprise is not realizing the greatest overall business value from the use of its resources. The management challenge in these situations is that it is awfully hard for the resource allocation decision makers to compare the overall business value of various investment proposals. It becomes even more difficult when these enterprise resources are tightly constrained.

As one who was responsible for approving resource allocations, I became very popular around budget and capital appropriation time, as department executives and controllers would plead their investment cases. While their proposals reflected financial and other investment rationale for the most part, their presentations often lacked consistency and clear alignment with the overall strategic objectives of the enterprise.

A consequence of this unstructured approach to investment approval was that some of these well-meaning executives, like the big dog, would flex their stature to get the resources they needed despite whether their investment proposals provided the highest overall enterprise business value. Another more personal consequence of this was that I was usually left in the unenviable position of making and communicating investment decisions without having a structured, efficient, and widely-accepted way to do it. While I carried out my responsibilities as a courageous finance leader should, it certainly was easier saying no to the little dogs, whose bark and bite appeared less threatening!

To mitigate these consequences and level the playing field, we adopted a portfolio management approach to investment approval. Simply put, we adopted enterprise-wide structures and processes to execute investment decisions in a consistent, efficient and defensible manner to produce the highest total business value to the enterprise.

As mentioned earlier, the investment proposals I received almost always had some financial metric justification. However, investments that are measured in purely financial terms, whether consistently or not, do not always result in maximized enterprise business value. It's also probably fair to say that with regards to IT investment proposals, I haven't seen one yet in which I couldn't have easily and significantly increased the projected financial benefit by making a few minor enhancements to the underlying assumptions.

So, to optimize the enterprise's portfolio of investments, we reviewed how each investment contributed to the enterprise, in addition to pure financial metrics and measures. We began simply by aligning investments with a handful of well-understood enterprise strategies and categorizing proposals into investment types such as base services, mandatory or discretionary. Through these initial steps we established a foundation for an enterprise-wide common language for investment analysis.

Over time, we incrementally adopted additional investment analysis concepts such as establishing investment goal categories like risk reduction, resource capacity leveling, and financial cost reduction/revenue enhancement. Additionally, we strengthened investment control structures such as tying incremental investment approval to defined milestones.

As our approach to investment analysis and portfolio management matured, we realized many benefits from our efforts beyond producing an investment portfolio that resulted in providing higher total enterprise business value. For instance, my job of making and communicating investment decisions got a lot easier, and my popularity actually grew and not just around budget time. Additionally, there seemed to be considerably more enterprise strategic planning cooperation, and a lot less barking around the resource bowl.

Next up — The Strategic Planning Jigsaw Puzzle — Putting the Pieces Together

Saving Face: Avoid Your Nose When the Budget Axe Swings

Guest blog entry by Randy Leiser, CFO in Residence

Randy Leiser I recently read an article in SearchCIO titled, "Recession: A Bond for CIO and CFO," and wanted to offer my perspective. As concern around a recession spreads, it is now more important than ever for organizations to take a strategic approach to IT financial management and resource allocation, in order to ensure business initiatives are not crippled by misdirected budget cuts.

As a former head of corporate financial planning for a fortune 500 company, I can confirm that so-called discretionary IT spend is one of the first areas the enterprise finance department goes after whenever there is a need to trim the budget — recession or not. That said, I have also found that CEOs are often reluctant to cut IT, especially if it can be shown how discretionary IT initiatives are an integral part of the enterprise's strategic plan and have a positive, measurable impact on the bottom line. Often the biggest challenge is giving the CFO and CEO the ability to prioritize the discretionary investments in these situations, so they don't "cut off their nose to spite their face."

As the article suggests, well-run IT shops should be able to respond appropriately in these situations. From my experience, organizations that have used the discipline of portfolio management to plan and manage their IT investment in alignment with the enterprise's strategic plan will find the cutting exercise much less painful. In fact, this strategic approach provides the CFO and CEO with the substantiation to defend making budget cuts outside of IT.

PMO Podcast

I did something really fun on Friday and found a great PMO resource in the process that I want to pass on to you. I first met Mark Perry, Senior Vice President at BOT International, last year when he was moderating a PMO symposium. Mark called a several weeks ago and invited me to be on this PMO podcast series that they do. So, Friday we taped the session and by this weekend it was posted.

What I was impressed by was certainly not my own ramblings, but rather the number of podcasts they had available in the series (I think mine was number 124), making this a veritable treasure trove of PMO information.

It's highly popular — Mark said they have over 5000 listeners. In addition to the links below, the complete library is out on iTunes (just search on PMO and BOT and it will pop right up). Anyway, I want to pass this resource on to you. We will also get these links up somewhere so you can have it available for reference later.

Here are the podcast links:

The PMO Podcast (Run time: 40.13, file size: 37.7 MB)

The PMO Podcast: Episode Summary Page for Podcast 124: PMO 2.0, an interview with Terry Doerscher

The PMO Podcast Episode Playlist

Happy listening!

Mark also has a blog on Gantthead.

Dancing on the Edge of a Razor Blade: Tradeoffs in Resource Management

I want to kick around the whole knowledge worker situation a bit. Actually, I want to pull this thread a long way out, but not all in one entry. Consider this my springboard into some deep and turbulent water. What I REALLY want is to hear from you all on this subject — I don't have the answers and I am genuinely interested in your take on this.

I've been expanding my horizons lately on this topic with commentary from experts who study knowledge workers. In particular, I'm a big fan of David Allen, author of the popular Getting Things Done, who provides some great insights into the inner workings of knowledge workers as individuals. I've also been reading Thomas Davenport and his work, Thinking for a Living.

Both of these books are useful to help crystallize some of our inherent instincts and suspicions about how we (and the people around us we are tasked to support) think and work, but neither come close to making me feel complete when it comes to how to get us all to work together in a purposeful and efficient manner. In fact, they probably generate more questions than answers.

For example, GTD concepts are great if you are an independent like David, operating autonomously of some larger entity. It reminds me of my black saber-tooth cat, Kingsford. He is very much his own feline, with little regard for my whims, even though he begrudgingly understands that I am the alpha male of the house. Mr. Allen offers no banana for the corporate monkey when it comes to herding cats (instead of being a cat). Imagine the entire corporate staff individually and independently developing ways to track all their stuff and unilaterally deciding whether to do it, delegate it, defer it or trash it. Likewise, although Davenport has a section about managing knowledge workers, he never really gets down to brass tacks for how to get everyone to play nicely together, aligned to accomplishing strategic intent.

Many PMOs out there are intended to support professional knowledge worker environments, which right off the bat is a bit of a set up. Whether we are talking technologists, engineers or designers, they want the assistance of a PMO about as much as they want a rash. Let me elaborate. Drawing upon the works mentioned and your basic daily observation, we know that knowledge workers, in particular, professionals, tend to be a highly independent sort and very cat-like. When you get right down to it, we like to do what we want and do it the way we want to, not necessarily how someone else wants us to. In fact, we are generally loath to take direction. Nor are we inclined to clue anyone else in on what it is that we are doing or our methods or progress, if we can avoid it. We want to establish our own list of tasks, set our own priorities for them, and figure out how to pull it all off without any help or oversight.

Adding fuel to this is a great deal of radical yet fashionable hype about how as twenty-first century independent innovators, all interconnected by the web, we will somehow do the right thing without any guidance or direction. No need for countless managerial layers of bureaucracy to stymie our creative juices; just give us all a high-speed internet connection and turn us loose. Why, in a few short years, the corporate worker will be as extinct as the sharecropper. We'll all be independent contractors, vying for work as one big global pool of hired guns. The world ain't that flat yet folks, or else I would be able to see my own rear end in way out there in front of me.

Left to our own devices, we all might work very hard and be quite inventive as individuals, but that doesn't necessarily translate into earnings or efficiently executing a defined strategy. Sitting around at some laboratory at 3M accidentally developing Post-It goo is great work if you can get it, but pure R&D positions are definitely not the norm. The vast majority of knowledge workers are hired in a corporate or public domain to be purposefully engaged within the confines of a very targeted set of responsibilities and functions. Let's get the smartest, most talented people we can, and then box them into very limited, sometimes mundane roles.

So we have this dichotomy at play between the very nature of knowledge workers and corporate necessity. Enter the PMO, tasked with defining common approaches, tools and processes and somehow getting everyone to adopt them — sometimes it is about like being asked to teach cats to line dance. It's not that the cats aren't smart or graceful, they just aren't inclined to two-step to that particular tune, no matter how hard we fiddle.

So — where is that elusive balance point between fostering integration and collaboration across hundreds or thousands of knowledge workers without over-functioning? How can we be flexible enough to tap into the vast intellectual potential of our staff to make breakthrough advances, while still directing limited resources to aggressively get the needed work done? How much process is enough? Is that template really appropriate and helpful, or does it force us into an unnecessary or counterproductive standard? Where is the fine line between setting policy and leaving it up to the discretion of the individual? How much autonomy and independence can we afford, yet still get the information we need to understand what is collectively going on? What is the right amount of oversight to insure our resource investment without being overbearing or distrustful? Is that workflow a superhighway, or is it barbed wire strung across the intellectual free range?

These are big issues for the PMO, because the answers you give ultimately determine whether you make a difference or are treated with indifference. I think learning how to dance with elegance and style on this particular razor blade constitutes one of the key missing puzzle pieces when it comes to learning how to effectively manage a world full of knowledge workers. It's a not a lost art — it's a relatively new and vexing enigma that has emerged as an unintended consequence of the new global order. I doubt there is a single right answer, but could there be a common approach to getting an answer?