APM PMO SIG event: Assurance and its relationship with the PMO conference on 5th March 2014

1. PMO Assurance
Getting Value from Management Information
Jon Street & Jez Batt

2. Introduction
•Objectives for next 30 minutes:
•
A short story: how our PMOs provision of management information and
analysis has provided assurance for a wide range of stakeholders
including organisations Board of Directors
•
Challenge all of us on the value we currently get from our management
information and what we could do to improve
•Why is PMO assurance important to our clients
•What is “assured” and who for
2

3. Contextual project support
•The PSO role – understanding a project’s needs
•Project controller
•Consistency of approach (multiple areas with varying
complexity and maturity)
•Heartbeats and month-end
3

4. Programme assurance
3 key aspects:
1. Data assurance
2. Informing leadership through
relevant MI
3. Enabling proactive action through
analysis of MI
•
P3M specialist – promotes industry and
P3M best practice
•
Programme
Assurance
P3M
Specialist
PMO Service
Management
&
Consultancy
PMO Service Management & Consultancy
– to optimise service quality
4

5. Transforming “MI” to “BI”
Business
Intelligence (BI)
Management
Information (MI)
1. What Happened? Using the available data to present progress made
2. Why Did It Happen? Using the available data to understand progress made
3. What Is Likely To Happen? Using the available data to predict onward progress and
success potential
4. What Should I Do About it? Using the available data to take proactive action to increase
the likelihood of success
5

6. Example of finance assurance (1)
Even with a simple financial table it’s not that easy to tell what is going on with
this Programme’s financial position, or what we need to consider...
Delegated FY
Actual to Date Forecast POT
Budget
Outstanding
Commitment
Actual +
Commitment
Project A
6,100,000
1,267,988
8,350,875
1,388,220
2,656,208
Project B
2,400,000
342,921
2,951,422
26,765
369,686
Project C
4,800,000
2,134,773
4,800,000
2,665,227
4,800,000
Project D
2,150,000
0
2988238
14,308
14308
15,450,000
3,745,682
19,090,535
4,094,520
7,840,202
6

7. Example of finance assurance (2)
By visualising the data analysis, and by adding key messages we quickly
identify where and what action the programme should consider...
• We should request additional budget delegation before funding runs out in January
• However, we should review forecasts in light of under spend against original plans
• The monthly burn rate for second half of the year requires more than a 400% increase
• Committed funds are lower than forecast spend by October
25.00
19.10
19.09
20.00
15.45
15.00
10.00
7.84
5.00
all figures £m
0.00
Apr-13
May-13
Jun-13
Theme Plan
Jul-13
Aug-13
Actual/Forecast
Sep-13
Oct-13
Last Month
Nov-13
Dec-13
Committed
Jan-14
Feb-14
Mar-14
Delegation
7

8. Portfolio advantage
•Consistent data
repositories and
maintenance
through-out the
stack
Board review
Steering group
reports
Programme
planning data
Project
dashboards
Project planning
data
•Allow for reporting
to senior managers
and directors
•Board reviews
Inter-project
dependencies
Supply Chain
dashboards
Supply chain
workbooks
Work authorisation
and financial
delegation
8

9. Board reviews
Types of MI/BI at different organisational levels:
•Board > MI/BI, coherence and alignment against
organisation strategy, and personal interaction
•Portfolio > MI/BI and coherence of portfolio
•Programme > MI/BI (time, cost, resources)
•Project > MI/BI (time, cost, resources)
•Supplier > MI/BI (time, cost, resources)
9

10. Take-aways
We are succeeding if we are providing...

Increased MI integrity and clarity of delivery progress

Increased ability to take the advanced action necessary to
enhance delivery performance, through:

Early warnings

Identifying trends and patterns

Analysis based on what could happen, rather than what has
happened...

Increased visibility and linking of finance - delivery - risk

Increased support for delivery management and control
processes

Optimised application of, and continuous improvement
of, P3M best practice and governance
10

11. Question for table discussion
Consider where your project, programme and/or organisation
fits on the “transforming MI to BI” slide
What one or two things would you like your PMO to do
differently to be help you get the greatest value from your
MI?
Business
Intelligence (BI)
Management
Information (MI)
11