2018 PMO Predictions: Five trends during turbulent times It’s not the same old song for PMOs anymore. In this time of continual—and rapid—digital evolution, PMOs must sync with stakeholders and strategies and re-establish relevancy. We predict that the following five trends will be the difference between strategic partnership or obsolescence— balance or fade—for your PMO in 2018. Tune in to the trends.
Time-to-value: It’s never been more important for PMOs From the phonograph to Bluetooth speakers, the way we consume music has changed with technological advancements. This was a gradual evolution—it would be 40 years from the first radio broadcast (1906) to the first LPs. It would be another 40 years before the invention of the Walkman (1979), making music personal and portable.1 But the acceleration of technology hit warp speed over the past four decades, incorporating the revolution of the digital age into our daily lives: CDs, MP3s, iPods, online music stores, streaming services, docking stations, wireless speakers. The same can be said for the discipline of project management. From the managers of each of the four faces of the Great Pyramid of Giza (2570 BC), to the development of the Gantt chart by Henry Laurence Gantt (1910), the launch of the Project Management Institute (1969), to the birth of the Agile Manifesto (2001), project management has experienced gradual growth—but with long, uneventful periods of ‘status quo’—until digital transformation hit the scene. Last year’s PMO Predictions focused largely on the disruption and innovation brought about by digital transformation. This year, we’re examining many of the same trends—the changing face of the workforce, advances in workplace technology, and the shifting role of PMOs, their function, and their processes. But this year’s pivotal word is change. Change is constant. And fast. And we predict that the following five trends have the potential to (quickly) change the future of your organization—specifically your project management office (PMO). Daptiv PPM is one of Changepoint’s work management solutions.
“The slow one now will later be fast As the present now will later be past The order is rapidly fading And the first one now will later be last For the times they are a-changin’”
Bob Dylan The Times They Are A-changin’
Now add the layers of complexity to the landscape of change: the ever-expanding, multi-generational workforce and increased digitalization of products and systems that already permeate organizations. The resulting shift in business priorities and traditional project management practices and functions will require a new set of skills, management styles, and overall mindset of the PMOs supporting those organizations. The pace of innovation and technology continues to accelerate. The PMO in 2018 must be hyper-sensitive to the speed with which it executes and proves its relevancy in the organization—or risk becoming obsolete. changepoint.com/products/daptiv 2
TREND 1
The people are changing...and your ideal team member is a critical thinker, not a spreadsheet jockey In 2017’s PMO Predictions, we reported that Millennials were joining the workforce in droves, with Generation Z (those born after 2000) not far behind. Throughout 2018, the trend of an evolving workforce will continue, resulting in up to five generations working together in any given organization between now and 2020.2
$30.5 billion annually,5 the conversation surrounding Generation Z needs to be about recruiting and ultimately retaining the newest wave to enter the workforce—while also meeting the needs of the multiple generations already in place.
In 2018, it’s still largely a PMBOK world. While we previously noted the importance of understanding how Millennials are changing the nature of work—their aversion to rigid corporate structures, their preference for performance transparency and feedback, and their openness to pursuing new career opportunities—the focus in 2018 is less about Millennials, and more about their cohorts in Generation Z. In the coming year, it will be critical for employers to understand this newest group, which is rapidly joining (and again reshaping) the ranks of the modern workforce, and the culture shift it will bring to organizations. While much has been made of the average tenure of Millennials being two years (for Baby Boomers, that number is seven),3 it’s still too early to tell for Generation Z. Yet this generation brings a new mentality with it, one of “changing expectations, especially of technology, already felt in HR departments…[and] companies with aging workforces are struggling to recruit Gen Z if they can’t show a satisfactory employee experience.”4 Given that the increase in churn created by Millennial turnover is an estimated Daptiv PPM is one of Changepoint’s work management solutions.
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What this means for your PMO
In 2018, organizations must once again evolve, not only to adapt to the influx of Generation Z, but also to meet the demands of the multigenerational workforce. The differing values, habits, and work styles of team members will lead to a marked culture shift within organizations, putting businesses in the position of adapting new management styles to attract and retain their employees. PMOs won’t be exempt from this new reality. The multigenerational workforce and the influx of Generation Z of 2018 mean that classic project management roles within your PMO will be less of a critical skillset, while emotional management and critical thinking will assume greater importance, given that there will be an unprecedented need to: Manage in ambiguity, due to the challenges of cross-company collaboration and communication regarding corporate business objectives Cater to the multiple skillsets of each generation— each with their own set of desires, values, work styles, preferences, and engagement levels—to ensure that everyone has the chance to be successful6 Continue to meet the needs of employees that expect autonomy in apps, processes, and devices, which will result in a more fluid workspace and continued loss of PMO control over projects7 While forward-thinking organizations will recognize and work to address these changes, for your PMO, keeping current (as well as relevant) will require changes to your standard practices, especially when it comes to technology, capacity planning, and resource management. PMOs must do more than delegate tasks to available employees that Daptiv PPM is one of Changepoint’s work management solutions.
“You tell me it’s the institution…well you know…you better free your mind instead…” The Beatles Revolution have appropriate-sounding job titles. By better understanding employees’ skillsets, individual strengths, work preferences, and interests, PMO leaders will go from assigning work to matching skills to tasks—ensuring that the right people are working on the right projects. Recruiting, retaining, and managing the multifaceted workforce of 2018—Generation Z and those who came before them—will come down to “tap[ping] into Generation Z’s ethos to ensure that organizations are ready to use their talents to create market growth,”8 adopting a holistic view of employees and potential hires by “taking into account the entirety of an individual worker’s experience…interactions with external stakeholders, building location and layout, and systems and tools, as well as their health, well-being, and family responsibilities outside of the work environment,”9 and ultimately using technology and smart management to improve the overall employee experience. changepoint.com/products/daptiv 4
TREND 2
The function of the PMO is changing...instead of being process police, maximize the opportunities that come with digitalization In 2017, the function of the PMO was important, and it will continue to be in the coming years, albeit for different reasons. With the changing dynamics of the workforce, along with digital transformation continuing at full speed in its disruption of traditional business practices and processes, the function of the PMO is also changing. While the main tasks of PMOs— overseeing projects, delivering results on time and on budget,
and ultimately supporting the strategic goals of the business— remain essential, these basic functions will no longer be enough to keep most PMOs relevant. Governance has become the anti-climactic B-side of a record. As organizational focus bends under the weight of business transformation, companies need to be reminded that the scope of the PMO can extend far beyond IT. Business transformation has moved into the business units, and traditional IT is more of a utility. So the role of the PMO and its PPM solution in 2018 is less about being the “governance police,” and more about supporting business growth with the successful execution of transformational initiatives. PMOs that focus solely on process management and overarching control are already viewed as counterproductive to progress and innovation by many organizations,10 and failure to evolve, especially over the next year, is to risk being left behind as the rest of the company moves forward, and remaining a project management office caught in a rut of obsolete practices and outdated success metrics. PMOs that continue in the conventional manner do so at their peril: by 2020, proactive PMOs are expected to replace most (if not all) of their passive counterparts.11
Daptiv PPM is one of Changepoint’s work management solutions.
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What this means for your PMO
The 2018 PMO must move to being a strategic partner in the support of strategy-to-execution alignment. Most PMOs are still occupied with time tracking and project execution. But as businesses continue to slog through digitalization, PMOs can set themselves up for ongoing success (and save themselves from obsolescence) by becoming proactive partners across and within the organizations they support. To truly survive in the next wave of digitalization, PMOs must take on a proactive approach at proving their value contribution to their organization. That means following their company through the upcoming (and rapidly approaching) transition from stability to a “more fast-paced exploratory period of innovation and dynamic experimentation.”12 This proactive approach will require PMOs to avoid stagnation by expanding on their current role, while also increasing its value contribution to the business by going beyond a constant focus of the tasks at hand, and instead searching for (and implementing) cross-enterprise opportunities—especially new methods for program, project, and portfolio management that help create and demonstrate innovation. This also means that PMOs must work to transform from any impression of being the “process police,” and assume a more leadership-oriented role within their organization. Getting there begins with PMO leaders that have the business knowledge and communication skills to work with and advise senior management and key stakeholders, while also possessing the ability to communicate and influence across the entire organization. Though a seemingly daunting task, it is possible for forward-thinking PMOs go beyond assigning tasks and ongoing project management. To make the transition to a leadership-oriented PMO, leaders should begin by focusing Daptiv PPM is one of Changepoint’s work management solutions.
“…So little time…Try to understand that I’m… trying to make a move just to stay in the game…”
Keane Everybody’s Changing
on collaboration opportunities that involve multiple employees from across departments throughout the organization, and finding ways for them to come together and work toward common business goals. Ultimately, for PMOs to continue to remain relevant, and an essential part of any business, they will need to develop business strategies and mindsets that go beyond merely optimizing processes, and create opportunities that foster leadership, engagement, and collaboration—demonstrating their new key function in moving the company forward, achieving progress and innovation, and showing continued purpose and value. changepoint.com/products/daptiv 6
TREND 3
The process is changing...and the emphasis is less on project status, more on delivering digital business outcomes 13
Not only is the function of the PMO changing, pushing many PMOs to become business-driven collaborative leaders— business processes are also changing, once again forcing PMOs into the position of evolving and adapting to the new professional landscape if they hope to remain relevant. As digital business continues to move forward, an increasing number of companies will require a high degree of collaboration ability from different teams and groups across the organization.14 But let’s be honest—most PMOs don’t have the desirable reputation of “collaborative leader.” More inclined to be projectdriven than business-driven, many PMOs are still focused on tracking projects and time in Excel spreadsheets. And while many PMOs are experimenting with agile methods to manage projects, adoption is lagging. Only 7% of organizations use pure Agile, 29% use traditional methods such as waterfall, and 64% manage projects with multiple methods.15
Companies are quickly recognizing the need for project demand shaping—and PMOs are in the perfect position to help. This proactive management of work initiatives with business constraints could elevate the PMO from “command and control” to “business collaborator.” However, many struggle with demand shaping because of their lack of understanding and/or confidence in business objectives. As uncovered in Changepoint’s 2017 Business Agility Report, more than 60% of PMO professionals worldwide are not confident in their knowledge of business objectives.16 Even the very definition of PPM is changing. Ask four different PMOs to define PPM, and you may get four different answers. From classic “project and portfolio management” to “project and program management,” or “project performance management,” to “program portfolio management,” there is a trend to a more holistic, program and portfolio perspective. And this program and portfolio perspective will be further enhanced as Enterprise Architecture and PMO groups align more closely for greater business success—and to maintain relevancy within the organization. If PMOs are to continue to meet changing business demands and surmount increasing organizational challenges, they will need to reevaluate their processes, as well as the business use of the tools and tracking methods that support process.
Daptiv PPM is one of Changepoint’s work management solutions.
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What this means for your PMO
Traditionally, PMOs have been tasked with creating processes that provide predictability, streamline execution, and eliminate risk. But as agile experimentation and tool proliferation spreads throughout organizations, PMOs must recognize the need for changes in their overall function to keep the pace with business innovation. Just how PMOs will adapt to these changes and evolve their role is yet to be seen, but the outcome of Changepoint’s survey closely aligns with the predictive outcomes of Gartner’s recent “Leadership Vision for 2018: Program and Portfolio Management Leader” research report: both find that properly adapting to the changing business landscape and digitalization requires adopting an agile mindset in processes. Fully-agile projects are not yet mainstream; PMOs should take steps toward collaborative and critical thinking. This will help to view the ongoing evolution holistically and find opportunities in change, instead of just checklists, budgets, and scope. Project demand shaping is vital to everything from work management to strategy. In 2018, PMOs must take an active role, potentially hand-in-hand with their EA group(s), in reshaping the makeup of the company’s portfolio to deliver optimal outcomes. The company’s strategic direction must be brought into alignment with resource and cost constraints. These macroenvironmental changes allow the portfolio to pivot, elevating the PMO to ‘contributor’ status instead of ‘command and control’ status. Therefore, in 2018, PMOs should focus on evolving their processes, with less emphasis on predictability and risk elimination, and more on linking business needs, technology, and resources to efficiently achieve corporate objectives. A singular, cross-enterprise PPM tool that not only integrates with Daptiv PPM is one of Changepoint’s work management solutions.
“…time to take heed and change direction… time to take leave of formal functions…time to plant seeds of reconstruction…”
Pearl Jam Evacuation
the other tools currently in use, but also manages information, resources, project/program and portfolio execution, not only meets the “classic” needs for time tracking and reporting, but also helps PMOs standardize their day-to-day processes while focusing on the greater demands of the business—with an agile mindset. changepoint.com/products/daptiv 8
TREND 4
The technology is changing…and how you manage the free-for-all can make-or-break your PMO As in previous years, digital innovation will continue to pick up speed and reshape the way we work—and the coming year promises more tech evolution that will directly affect PMOs. As mentioned in last year’s PMO Predictions, much attention has been given to the Internet of Things (IoT), and in the coming years, it will continue to expand to almost every area of business, from project planning and execution to analysis and reporting, but with another important consideration coming into play: smart machines, Artificial Intelligence, and their growing impact on businesses.
The wide proliferation of tools is greater than ever before for PMOs. Much like the more recent, faster evolution of digital music devices, the onslaught of cloud-based and collaborative work management tools makes for too many choices—choices that are enabled by companies allowing departments, and even different roles within the same department, to utilize their tool of choice to get the work done. From outdated legacy systems like Excel to collaboration tools Slack and Spark, to lightweight work management tools such as Trello or Asana, it’s obvious: while experimentation is common, transformation is not as straightforward as assigning a Scrum Master or scheduling a stand-up.17 “Work management” can be disruptive, and can be detrimental to an organization trying to build alignment and transparency. As if juggling multiple projects, methods, processes, and tools wasn’t enough, these lighter work management tools can contribute to a fractured landscape that is expected to be harmonious—unless they have a common place to work together. The PMO of 2018 should identify a singular PPM solution that integrates with these disparate tools, methods, and processes to simplify and standardize the entire PPM process— saving time and money.
Daptiv PPM is one of Changepoint’s work management solutions.
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What this means for your PMO
In 2018, the continued digitalization of business will require ongoing collaboration agility to streamline projects across multigenerational teams, improve performance, and increase overall success rates. Industry analysts currently predict that by 2030, technological changes brought on by the IoT, smart machines, and AI will require PMO leaders to “oversee and ensure successful collaborations between smart machines and humans.”18 When it comes to PPM, with AI and IoT projected to take on project roles such as data collection, analysis, reporting, and other traditional project management tasks and functions, PMOs will need to evolve with the technological advances if they hope to remain relevant and, more importantly, survive the digital transformation. As an increasing number of businesses begin to adopt IoT and AI solutions, PMOs should concern themselves less with traditional project management tasks and focus more on finding opportunities to be strategic in the face of change, and viewed as tech-savvy, cross-company collaborators able to build partnerships—both personally and digitally. The number of day-to-day project and portfolio management technology choices are also growing in number. And more organizations than ever are experimenting with agile methodologies, but are expanding their new “self-selected” toolsets, keeping legacy tools such as Excel. Gartner’s own survey confirms this finding, noting that “38% of technology purchases will be managed, defined, and controlled by business leaders …. [and] most organizations will support technology devices, software, and services outside the ownership or control of IT.”19 Daptiv PPM is one of Changepoint’s work management solutions.
“You say you got a real solution…well you know…we’d all love to see the plan…”
The Beatles Revolution
This tool proliferation, along with the growing popularity of agile, puts PMOs in the precarious position of managing siloed information across multiple teams, who are also using multiple tools and methodologies. Progressive PMOs will increase their project success rates and demonstrate their value to their organization by encouraging employees’ expectation for technological autonomy (Bring Your Own Device, Bring Your Own App, Develop Your Own App) through a PPM tool that provides full visibility into projects and encourages cross-enterprise collaboration by rolling up all tools into a single solution. Doing so accommodates the different work styles of a workforce composed of multiple generations, and allows multiple methods to harmoniously co-exist, all while providing PMOs with the project and portfolio insights they need. changepoint.com/products/daptiv 10
TREND 5
Your individual role is changing…and it’s becoming much more product-centric With all of the changes occurring in business and technology over the next year, it’s only natural that the role of PMO leaders will also change. While forward-thinking PMOs have already begun to shift to a more strategic role within the business, additional changes in the coming year will demand further evolutions in the role of project management offices and especially PMO leaders. To adequately adapt and ensure future success, PMOs first need to look inward by conducting “periodic reviews specifically targeted at evaluating the balance between the PMO’s roles and skills versus the company’s overall needs.”20 While PMOs have traditionally focused on process and all-things project management, companies continue to embrace digital business and agile methodologies—both of which are productcentric—which leads most industry analysts to the conclusion that PMO leaders must be ready for the product paradigm to triumph over process. Most analysts agree that the prevailing product portfolio paradigm will result in a new role across organizations—Product Managers, who will eventually replace traditional Project Managers. As business continues to evolve through the age of digitalization, PMO leaders must not only shift their role to innovative leaders and strategic partners within the enterprise, but must also become aware of the role that these new Product Managers will play within their organizations, and in the PMO itself. Daptiv PPM is one of Changepoint’s work management solutions.
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What this means for your PMO
As the emphasis on project management shifts to portfolio or program management, so will the make-up of the Project Manager. Few are the days in which classic or certified project management is the critical skillset. PMO leaders and executive sponsors will demand more holistic, critical thinkers. This role will encompass so much more than checklists and timelines. Those that will move most successfully from Project Manager to Product Manager within the PMO will have the ability to see the big picture, discern the relationship between capabilities, strategies, and resources, and anticipate potential outcomes of decisions. This is already happening. Rapid digitalization and the experimentation with agile methodologies will lead businesses to recruit people that have the skills and competencies to use multiple methodologies for product management. In fact, the 2017 Business Agility Report found that 64% of project management professionals already manage projects with multiple methods, including waterfall and agile. This adoption of the Product Manager role with the PMO, along with other evolving roles and disciplines such as the Change Expert, supports the need of future-focused PMOs to take on a leadership role within the business, fostering a culture of collaboration and trust with stakeholders. Not only does this shift help PMO leaders continue to support the evolution of enterprises using an agile approach to digital business, but it also opens up the possibility of creating opportunities for certain individuals within the PMO to make the natural transition from project to product management.
Daptiv PPM is one of Changepoint’s work management solutions.
“Yeah, oh yeah…I want to rise today…and change this world…”
Alter Bridge Rise Today
This comes back the idea of the 2018 PMO maintaining its relevance and continuing to demonstrate its value contribution to the enterprise by adapting to the demands of the future to ensure future success, first by looking inward and conducting internal audits to evaluate that the PMO’s roles and skills are equipped and on track to serving the business and delivering on the company’s overall needs.
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2018: The times they are a-changin’ Mark McGregor, former Research Director for Gartner, states it best: “Don’t think of change in terms of tools and technologies, although much of it is technology driven. Instead, think about change in the context of everything [you] do— from strategy planning to executive decision making, organizational and systems development, through product and service development, to sales and marketing. Everything is changing—not at once, but constantly...”21
will be integrated into business. Tool proliferation will decrease business agility—and with it, cross-company collaboration and performance—unless a PPM solution, and its PMO, can be at the core of the ever-evolving digital workplace.
Change, and evolution in response to change, are constant. Business changes because of rapid digitalization enablement are impacting organizational culture. And PMOs will need to trade maintenance and optimization of existing practices for a more proactive approach, if they are to continue to demonstrate their ongoing value to the organizations they support. Digital transformation is reshaping how companies approach and manage people, projects, and portfolios. And with the burgeoning ‘lite’ work management tool landscape increasing, and the move to a more “independent” workforce that uses the tools they want to use, it is more and more difficult for PMOs to apply governance to PPM—which challenges the perceived value of the PMO. In 2018, people and process are the new norm—not just jargon. And as a result, a more agile mindset Daptiv PPM is one of Changepoint’s work management solutions.
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The PMO should also keep in mind that, as digitalization continues to reshape the nature of business, PMOs that evolve from merely supporting their organization to adopting a changeoriented and strategic approach are the most likely to remain relevant in the coming years. In 2018, PMOs should proactively focus their efforts on strategies that clearly help the enterprise move forward, and further demonstrate their value by presenting opportunities that result in collaboration, growth, and increased overall success rates. Proper execution of strategy will need to go beyond process monitoring, and taking the active approach of identifying which people have the right capabilities to successfully execute strategic initiatives, while also showing the flexibility and willingness to pivot and change as circumstances and situations demand. Governance is like an old record player: a beloved yet archaic institution that now is viewed as a hindrance to transformation, innovation, velocity. In 2018, transform your PMO from overhead governance engine to a lean, demand-shaping, transparent necessity. And this same advice is invaluable for incorporating Millennials and Gen Zs into your PMO: they don’t like silos, aren’t fans of structure, and rebel against ‘command and control’ management. They want to quickly establish value as an employee, but also must understand the contributions they make to the company, or they’re out the door. These are the team members that maintain relationships via digital technology. These burgeoning team members are the future of the PMO. An integrated PPM solution can ensure that an at-risk PMO avoids obsolescence. This central rallying point for PMOs, their stakeholders, and their many work management tools, empowers the 2018 PMO to go beyond the day-to-day focus of current tasks, and dedicate more time to improving their own value
Daptiv PPM is one of Changepoint’s work management solutions.
“The slow one now will later be fast As the present now will later be past The order is rapidly fading And the first one now will later be last For the times they are a-changin’”
Bob Dylan The Times They Are A-changin’
contribution by seeking out cross-enterprise opportunities that support business goals, optimize the skills and values of the ever-changing workforce, and continue to meet the company’s overall needs.
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About Changepoint Align execution with strategy, drive digital transformation, and enable new business growth with Changepoint, a leading provider of project portfolio management (Daptiv PPM), professional services automation (Changepoint PSA), and enterprise architecture (barometerIT) solutions. We’ve helped over 1,000 global customers transform chaos into order with work management solutions that help teams prioritize initiatives and get the job done. Whether you’re managing a portfolio of projects, engagements, or applications, Changepoint solutions help you realize benefits faster. With the visibility and control that Changepoint provides, smarter decisions are easier to make, innovation is accelerated, and businesses are better poised to adapt to today’s changing landscape.
Citations & Sources 1 “Infographic: A brief history of music players,” Virgin, July 2014. https://www.virgin. com/music/infographic-brief-history-music-players 2 “Working Beyond Five Generations in the Workplace,” Forbes, February 2015. 3 “Millennials in the Workplace: They Don’t Need Trophies but They Want Reinforcement,” Forbes, November 2015. 4 “Future of Experience: A Gartner Theme Insight Report,” Gartner, May 2017. 5 “How Millennials Want to Work and Live,” Gallup, May 2016. 6 “Predicts 2017: PPM Leaders,” Gartner, December 2016. 7 “Leadership Vision for 2018: Program and Portfolio Management Leader,” Gartner, August 2017. 8–9 “Future of Experience: A Gartner Theme Insight Report,” Gartner, May 2017. 10–12 “Leadership Vision for 2018: Program and Portfolio Management Leader,” Gartner, August 2017. Daptiv PPM is one of Changepoint’s work management solutions.
13 “How IT PMOs Can Remain Relevant in the Age of Digitalization,” Gartner, October 2017. 14 “Leadership Vision for 2018: Program and Portfolio Management Leader,” Gartner, August 2017. 15–17 “2017 Business Agility Report: Does Agile Adoption Help or Hinder Agility?” Changepoint, November 2017. 18 “Digitalization’s Impact on PPM Practices and the PMO by 2030,” Gartner, April 2017. 19-20 “Leadership Vision for 2018: Program and Portfolio Management Leader,” Gartner, August 2017. 21 “Align Your EA and PMO Teams: Common Goals, Greater Business Success,” Mark McGregor for Changepoint, December 2017.
Lyrics Cited Bob Dylan. The Times They Are a-Changin. Columbia Records, 1964. Keane. Hopes and Fears. Island, 2004. Pearl Jam. Binaural. Epic Records, 2000. The Beatles. The Beatles. Northern Records, 1968. Alter Bridge. Blackbird. Universal Republic, 2007.
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