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2017 PMO Predictions:

Five trends your business


can’t afford to miss
Every year around this time, industry analysts, pundits, and vendors alike
turn to their Magic 8 Ball to formulate predictions for the coming year.
This year, we’re calling it like we see it—it’s a jungle out there.
It’s that time of year
The pace of innovation continues accelerating. New
technology is adopted at breakneck speeds and millennials There’s a lot happening in technology and
entering the workplace are accelerating that adoption. these changes affect your business and the
Markets like lightweight work management have emerged and people that make it successful. As we head into
traditional buzzwords like “cloud” and “big data” are old news. 2017, the technology industry’s obsession with big,
Innovation has disrupted every industry. Tesla’s bold thinking will continue to shape the landscape, and it
instrumentation systems more closely resemble the iPhone isn’t going to slow down.
or iPad than a car. Long-time mega-retailer, Walmart, is Successful businesses are nimble and adaptive. But as more
testing drive-through pickup of online orders and, days after and more exciting technologies emerge, building an agile
launch, Amazon Go is being credited with the obsolescence organization and strategy is becoming convoluted and chaotic.
of traditional checkouts. In gaming, Pokémon, a twenty- There are too many choices. Finding the right level of agility
year-old media franchise, amassed more than 500 million for your business relies on the ability to identify, evaluate, and
downloads in a watershed moment for its augmented reality eliminate inefficiencies in real-time while maintaining core
app, Pokémon GO. Months after release, it still attracts nearly systems, technologies, and initiatives.
24 million daily active users1.
This white paper examines five trends that have the potential
Disruption is the new normal and it is relentlessly redefining to shape how hardware, software, and services are designed,
markets and industries. It’s changing how we work, sell, built, tested, and delivered, and how these trends impact your
collaborate, and think. Digital transformation remains a organization and, specifically, your project management
daunting initiative for businesses as rationalizing new office (PMO).
technologies and making decisions is an exercise that more
closely resembles contortion than business agility. The goal for 2017? Bring order to chaos.

Daptiv PPM is one of Changepoint’s work management solutions. changepoint.com/daptiv 2


TREND 1

Employee-obsession is the new


customer-obsession
Let’s start with the basics: your employees. Millennials are The increase in churn is creating steep financial implications
flooding the workforce, and Gen Z isn’t far behind. PwC2 across every industry. Gallup4 estimates millennial turnover costs
estimates that by 2020, millennials will make up half the global the U.S. economy $30.5 billion annually and as Gen Z enters
labor force; Forbes 3 expects this number to increase to 75% by the workforce, those costs will only accelerate. Cost-conscious
2030. Millennials bring with them new career aspirations and organizations will look to quickly address the negative impact
expectations that are fundamentally changing the nature of work. employee turnover has on productivity, quality, and service.
Adaptation will take the form of employee-obsession and directly
Deviating from their predecessors, millennials tend to be impact how PMOs manage resources to ensure project success.
uncomfortable with rigid corporate structures and turned off
by information silos. They prefer performance transparency
and feedback, and are more likely to stay engaged if they
know where they stand. They’re also more likely to be open to
new opportunities at any given time. The average tenure of a
millennial is two years. For baby boomers, it’s seven 3.
Employee-obsession is the new customer-obsession

What this means for your PMO:


While the influx of millennials sounds like an HR issue, your
PMO isn’t left unscathed. Gallup found that 21% of millennials
have changed jobs in the past year—more than three times the
number of non-millennials. To adapt to shorter employee tenure,
resource management and capacity planning for projects will
change. In response to the influx of digital natives, forward-
thinking companies will expand business planning to:
ƒƒ Invest in the right technology to make managing churn Processes that highlight critical paths and
simpler without sacrificng project success enable gap analysis amongst skill sets will
ƒƒ Cater to demands for transparency with systems that become more commonplace to ensure a project
communicate employee value to both employee and isn’t derailed if (and when) there’s a shift in resources.
stakeholders As more PMOs embrace multiple modes of execution,
tools that support both agile and traditional methodologies, and
the corresponding resource staffing requirements, will help keep
Managing the churn projects on track—regardless of employee churn or execution
method. Mature resource management functionality enables
Project success depends on team success. High attrition can PMOs to prioritize structure and standardization to maintain
drastically impact project budgets, timelines, and delivery. project timelines and team momentum.
While employers must work hard to understand, attract, and
retain new generations, PMOs should accept the inevitability In short, despite the revolving door, better processes invite
of higher employee turnover and build these new norms into order, not chaos.
resource planning.

Resource management remains one of the most important


functionalities for a project portfolio management (PPM) tool 5.
PPM tools that offer matured resource management and
planning functions will become the focus for PMOs. To ensure
proper staffing, project managers and resource managers
will look for integrated workflow and real-time visibility into
allocation, schedules, utilization, and performance metrics.

Daptiv PPM is one of Changepoint’s work management solutions. changepoint.com/daptiv 4


Employee-obsession is the new customer-obsession

Professionals will finally know their own


worth—and so will their employer
Millennials demand a new level of transparency about their
performance and are drawn to organizations that reflect their
values. Project software has matured to enable crystal-clear
transparency across the enterprise. At a staffing level, high-
tech data collection and analysis enable stakeholders to know Millennials are disrupting
which employees are project “keystones” and which are low traditional business models.
performers. For the organization, the result will be better project We’ve seen this in HR for years.
staffing. For employees, visibility into performance details will But now, everyday processes must be
level the playing field for compensation discussions and boost updated to accommodate new generations
engagement. of talent. They work differently and have
different expectations. Businesses that
Backed by an integrated PPM solution, the PMO will gain refined find that sweet spot—the one that attracts
capability and performance data to inform smarter project intake talent without detracting from the success
and resource planning. As data improves, organizations will be of the business—will gain happier staff and
able to measure ROI for developmental decisions. For example, happier stakeholders, regardless
investing in employee development will generate X-number of of the generation.
skill improvements moving forward.
Marianne Crann
Director, Human Resources
Average tenure by generation: Changepoint

Millennials: 2 years
Gen X: 5 years
Baby Boomers: 7 years3

Daptiv PPM is one of Changepoint’s work management solutions. changepoint.com/daptiv 5


TREND 2

Portfolio Managers are the next


Chief Strategy Officers
Every business is built on a plan—a plan bolstered by budget Forward-thinking companies realize business agility starts with
and strategy. Traditionally, this trifecta is created behind a current look at the enterprise portfolio and assets. Many will
closed doors once a year. But annual planning relies entirely resurrect the importance of the Portfolio Manager in the PMO
on retrospective data, which is then chiseled into stone and and use real-time data to identify dependencies, perform impact
communicated across the business for the next four quarters. analysis, and draw actionable insights to inform project planning.

Business models have changed. Big data and analytics poked While overarching strategy and budget decisions will still be
holes in traditional planning and budgeting processes. Today, made by executives, planning processes will become more
competitive differentiation comes down to how quickly a iterative. Organizations will look to Portfolio Managers for
business can utilize real-time analytics to pivot and meet market insights and information to guide smarter decision making that
demands. True agility is only possible when businesses have accommodates market shifts.
access to relevant data and are agile enough to adapt “the plan”
as needs change.
Portfolio Managers are the next Chief Strategy Officers

What this means for your PMO:


It’s hard to see the forest for the trees. Most PMOs are concerned
with execution—using PPM tools for straightforward project
management. That won’t change overnight, but the PMO will
evolve. Don’t panic. Despite predictions of the death of the PMO,
97% of organizations believe project management is critical to
business success 6.

In the coming years, an enlightened PMO will emerge. This As business evolves, so does
organization will actively include the often-overlooked middle the project management office.
“P” in PPM—portfolio management. Using a robust project AND The PMO isn’t just about getting
portfolio management tool, Portfolio Managers will utilize real- work done on time and on budget anymore.
time information to assess portfolio health, recognize opportunity, It’s stepping away from just managing
align execution and strategy, and communicate insights and the chaos and moving toward a smarter,
recommendations to the executive team. Their observations and more impactful mandate for creating order
performance analytics will inform the planning process and help across the business. Portfolio Managers
shape the pipeline. play a big role here. It will be their job
to ensure organizational alignment and
The PMO will shift from “process management” to “strategy maximize the impact of investments.
management.” Project execution will address more pressing
initiatives that weren’t chiseled into stone at the start of the The truth is, the Portfolio Manager will be
year, but instead pertain more closely to the actual state of the more influential and more essential than
business. This move will ultimately secure strategic thinkers, like ever before.
Portfolio Managers, a seat at the executive table under a title that
communicates this change: Chief Strategy Officer. Eric Bergman
Vice President, Product Management
So, the PMO isn’t dead—it’s different. Changepoint

Daptiv PPM is one of Changepoint’s work management solutions. changepoint.com/daptiv 7


TREND 3

Success will be measured


in outcomes
Modern businesses, especially those born in the digital era, Measuring outcomes is a systematic way to evaluate whether a
will shift to focus more on outcomes than outputs. Digitalization project or program achieved its intended results and can provide
is driving big change and alignment between IT projects and proof of value to customers, stakeholders, and investors. Mature
business goals is more important than ever. In this new world, PPM tools can capture the more nuanced data and performance
it doesn’t matter if a project is delivered on time if it doesn’t metrics needed for outcome-specific measurements—meaning
positively impact business goals like customer satisfaction businesses finally have the opportunity to evaluate project
or retention. success beyond just time, cost, and scope. The PMO can then
identify what’s holistically aiding project success and what’s
While tracking project success has long been an essential abetting it.
function of the PMO, timeline and budget are outdated metrics
that deliver an incomplete view of success. They’ve become
basic hygiene for project managers. Today’s measurements of
success have to include outcomes such as quality, impact, and
realized benefits.
Success will be measured in outcomes

What this means for your PMO:


Consider the bimodal or multimodal PMO. Tracking outcome-
specific metrics will be particularly important as more execution
methods are introduced and adopted. Multiple modes of
execution require varying planning processes, staffing
requirements, and metrics to complete initiatives and measure
success. PPM technology capable of managing multimodal
processes aggregates the appropriate data for measuring Whether you call it ‘bimodal’ or
outcomes across the PMO. ‘multimodal,’ it’s here. And it’s no
For the first time, project managers and executive stakeholders
longer an option for PMOs to ignore.
will be able to track progress in real-time and ensure plans
But that’s not news. The foundation to success
meet business objectives. And it’s about time. Despite available
in a multimodal environment is about the
technology, 57% of PMO professionals 5 still rely on delayed
technology PMOs use to manage execution and
reporting methods including spreadsheets and outdated,
measure outcomes—regardless of method.
disconnected systems. If your teams are stuck using disconnected
Now’s the time to fix that disconnect. PMOs that embrace
systems to get work done, the benefits of a
multimodal planning and execution models should look for
multimodal PMO are already lost. Vanguard
solutions that provide visibility across every project and deliver
teams using a PPM solution that creates a
in-depth metrics and real-time reporting about where the
singular and connected ecosystem can report
project and the portfolio stand. An integrated PPM tool isn’t just
against business-critical outcomes. And they’re
paramount to measuring success—it helps organizations adapt
the organizations that will find themselves
faster and more efficiently. In fact, multimodal PMOs reported a
ahead of the pack in the coming years.
19% increase in business agility over those that are not currently
Alan Shefveland
running multiple modes of execution 5. Director, Product Management – Strategy & Innovation
Changepoint
Moving forward, a strong PPM foundation will be crucial for
smarter execution to deliver outcomes that support a business’s
overarching strategic goals.

Daptiv PPM is one of Changepoint’s work management solutions. changepoint.com/daptiv 9


TREND 4

Business capabilities will take


center stage
Visionary companies are known for adapting their buying Many will turn to inorganic growth to accomplish these
habits to enable critical capabilities and their teams. From mandates. The EY 15th US Capital Confidence Barometer8
application rationalization to risk management to enhancing core found that 75% of U.S. executives plan an M&A transaction
competencies of staff, the coming year will throw a spotlight on in the next 12 months, nearly double the long-term average
improving the capabilities that enable teams to work smarter. of 45%.

This is a big deal, especially for industries experiencing mergers Record-setting deal intentions mean M&A will remain a key
and acquisitions (M&A). Worldwide in 2016, announced M&A strategy for deploying capital, diversifying into new markets,
deals year-to-date have topped $3.29 trillion7, putting the year making transformational changes to business models, and
at an only slightly slower pace than 2015’s record $4.7 trillion. achieving growth.
In 2017, the “adapt to thrive” mentality shaping business is
While megadeals take years to unfold and HR and
expected to find U.S. companies increasingly turning to M&A to
marketing wrestle with workforce integration and branding,
drive business growth.
rationalizing processes and technology across business units
The uptick will come as executives are simultaneously to adapt is a foundational step. For those navigating M&A activity,
to dramatic market shifts and drive growth in a stunted economy. consolidating assets means a full pipeline for the PMO.
Business capabilities will take center stage

What this means for your PMO:


Enhancing business capabilities affects the PMO in two ways:

1. While mergers and acquisitions are just one use


case, identifying opportunity extends beyond project
management and directly impacts in-flight initiatives and
ongoing maintenance plans

2. IT PMOs will be responsible for rationalizing new


When businesses grow, their
technologies, mitigating risk, and identifying the
portfolios grow, too. Smart,
applications that best support the business
simple, and social tools for identifying
critical applications and processes are
Rationalizing the portfolio paramount to rationalizing the portfolio
Another shout out to Portfolio Managers. As business architects and reducing the technology footprint. The
rationalize portfolios across the organization, Portfolio Managers benefits of this are enormous. From security
will play a part in identifying which initiatives the PMO can take to data hygiene, growing businesses have
on. It will be the PMO’s responsibility to execute against these to streamline processes, not get stuck in the
recommendations and provide outcome-specific metrics that muck of the coolest technology that doesn’t
convey successful workflow and benefits realization for the add value to the business.
business.
Paul Cramer
Businesses will need a PPM solution capable of providing real- General Manager, Enterprise Portfolio Management
time data about the project portfolio. With a single PPM solution, Changepoint
Portfolio Managers can analyze initiatives across the entire
business to identify redundancies and keep the pipeline healthy.

Daptiv PPM is one of Changepoint’s work management solutions. changepoint.com/daptiv 11


Business capabilities will take center stage

New talent, new technology… new risk?


Back to the millennial mindset. Eighty-five percent of millennials
access the Internet from their phones 8. These first-generation
digital natives are constantly on the lookout for solutions
that make work simpler, easier, and smarter. That gumption,
paired with evolving technology and digital transformation, is
introducing new technologies into the workplace faster than IT
can keep up.
PPM solutions have evolved and become
Collaboration tools like Slack and Skype, or work management
integrated (and integral) solutions that create
tools like Trello, are easy to download and device-agnostic.
a central repository for enterprise-wide data.
They help teams communicate and work from anywhere. While
However, if your PMO is working with a subpar solution
these technologies break down physical and virtual barriers to
(or no solution!), it loses the ability to organize data. In search of
collaboration, the ubiquity of work management apps negatively
simplicity, teams that constantly download new, quicker solutions
impacts security.
to solve problems that aren’t met by their PPM solution actually
This results in serious risks of data loss and compliance creat more disconnections. The more work management apps in
violations due to risky, unsecured file-sharing practices. The use, the less likely these solutions are integrated and the more
Ponemon Institute 9 recently found that 72% of IT security content and project-critical information lives in silos. Not only is
practitioners are not confident in their organization’s ability to this workaround counterproductive, it puts business IP at risk.
manage and control employee access to confidential documents
Instead of being lost in the glitz and glam of new work
and files. In these organizations, more than half (58%) have
management tools, the enhanced PMO will implement a PPM
employees using free versions of consumer file sync and share
solution that offers collaborative features or can integrate with
applications like Slack, Dropbox, and Google Drive.
work management tools in use. That way, content managed
through free apps doesn’t belong to the app—information
still belongs to the business, and project data stays in the
right place.

Daptiv PPM is one of Changepoint’s work management solutions. changepoint.com/daptiv 12


TREND 5

Businesses will become IoT-ready


The Internet of Things (IoT) isn’t new this year, but it’s going to Tech-savvy decision makers seeking to harness the power of IoT
pick up speed. In fact, in the next five years, businesses are for their customers know IoT will impact every area of their own
expected to be the top IoT solutions adopters. The result will business as well—project planning, staffing, budget, execution,
be a boom in connected devices—from 10 billion in 2015 to 34 and measurement. Consider sporting goods manufacturer,
billion, an estimated spend of $6 trillion10. Wilson, and its recently released Wilson X, a smart football
that measures velocity, spiral efficiency, and spin rate. As
The pervasiveness of the Internet of Things is changing how we Wilson releases smart sporting goods to the market, it’s also
work, live, and interact. Extra layers of visibility have the potential considering how these connected devices can improve data
to enable real-time decisions and boost business agility, yet the measurement within its own offices. And that requires IT.
influx of data signals a fundamental shift in business strategy
and work management. This has wide-reaching implications for
project management as IoT shapes business—even in industries
and projects once unrelated to the Internet.
Businesses will become IoT-ready

What this means for your PMO:


Traditionally, IT and operational technology (OT) have been
managed separately. Each group brings different approaches,
methodologies, processes, and relationships to the table.
Staffing IoT projects demands a new range of skills. Software-
driven organizations must account for skills like circuit design,
AutoCAD, and microcontroller programming to incorporate new
form factors, customer expectations, and system requirements.
Hardware-focused businesses must consider data analysis,
security, and privacy concerns. IoT brings with it a slew of conditions that
To adapt, industry analysts encourage an increasingly integrated impacts how IT and PMOs manage technology
approach to technology. In a recent Hype Cycle for the Internet across the business. Every device will need to be secured
of Things, Gartner11 states, “Integration should extend at least and maintained. Who will manage the maintenance apps and
to data exchange and platform maintenance, with particular communication systems? While implementation may be iterative,
attention paid to communications, cybersecurity and enterprise will ongoing maintenance lend itself to traditional execution
architecture. In some organizations, this will result in a fully methods? How will cross-departmental collaboration work in an
integrated staff that is no longer delineated between IT and OT.” IoT environment? One thing’s for sure: IT will be in high demand.

As businesses adopt IoT solutions, implementing and supporting More and more companies are positioning
devices will increase project volume and transform project types. IoT as a business strategy. They understand
The influx of data from smart devices will also require a new level that connecting their products to the Internet
of management and will impact resource demands as projects takes innovation to a new level. It also
arise and evolve. transforms IT departments from cost
To add another dimension, B2B businesses have to consider
centers to profit centers as these companies
two things: where does IoT fit in the product portfolio and
work to align IT strategy with business
where does it fit in internal operations? For software companies,
strategy. This transformation requires IT to
product development will have to consider if, where, and how
focus on business outcomes and drive value
IoT is going to affect R&D and the roadmap in the coming
for their companies.
years. For internal operations, IT will have to figure out if smart Brandon Evans
devices are right for the office, how they’ll be maintained, and Vice President, Technology
how cross-departmental adoption will be inventoried to reduce Changepoint
redundancies.

Daptiv PPM is one of Changepoint’s work management solutions. changepoint.com/daptiv 14


SUMMARY

2017: the year of transforming


chaos into order
Like we said, it’s a jungle out there. If there’s one thing And while there’s urgency (and there always is in
we can predict with certainty, it’s that the evolution of technology), it’s better to do it right than to do it first for the
technology is not going to slow down. But the chaos isn’t “inevitables” on the horizon. Smart leaders don’t look to do it
insurmountable. The collision of disruption and innovation all at once, they look to do it well and with lasting relevance.
is where change and adaptation is born. Organizations Remember Google Wave? Nokia N-Gage? Palm Pilots?
looking to embrace change and evolve with technology are Microsoft Zune? Clinkle? Facebook Slingshot? How about
already considering these five trends. They’re assessing the Microsoft Tablet PC from 2002 or the Courier tablet
every facet involved in transforming, spearheading best from 2008? Exactly.
practices, taking calculated risks, and pursuing the
necessary measures to ready themselves for what’s next.

Daptiv PPM is one of Changepoint’s work management solutions. changepoint.com/daptiv 15


About Changepoint
Daptiv PPM is a project portfolio management tool and one of Changepoint’s
work management solutions.

Changepoint is a leading provider of project portfolio management (PPM),


professional services automation (PSA), and enterprise architecture (EA)
solutions. We help more than 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. The result? Align execution
with strategy, drive digital transformation, and enable new business growth.
For more information, visit: http://www.changepoint.com/.

Citations:

1. AppInstitute; “Pokemon Go App Downloads and Revenue in Real Time”; Retrieved from: http://appinstitute.com/pokemongo-realtime-stats/

2. PwC; “Millennials at Work: Reshaping the workplace”; Retrieved from: https://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/assets/reshaping-the-workplace.pdf

3. Forbes; “Millennials in the Workplace: They Don’t Need Trophies but They Want Reinforcement”; Retrieved from: http://www.forbes.com/sites/jefffromm/2015/11/06/millennials-in-the-workplace-they-dont-need-trophies-but-they-want-
reinforcement/#1609e0945127

4. Gallup; “How Millennials Want to Work and Live”; Retrieved from: http://www.gallup.com/reports/189830/millennials-work-live.aspx?utm_source=gbj&utm_medium=copy&utm_campaign=20160512-gbj

5. Changepoint; “Business Agility Report: Is It Easy to Pivot?”; Available: http://changepoint.com/resources/white-papers/ppm-business-agility-survey-report?search=wp_ppm_business_agility_cp_daptiv&pls=Website

6. PwC; “Insights and Trends: Current Programme and Project Management Practices”; Retrieved from: http://www.pwc.com/us/en/people-management/assets/programme_project_management_survey.pdf

7. Dealogic; Retrieved from: http://knowledge.wharton.upenn.edu/article/whats-behind-latest-merger-mania/

8. EY 15th US Capital Confidence Barometer; Retrieved from: http://www.ey.com/gl/en/services/transactions/ey-capital-confidence-barometer

9. Ponemon Institute; Retrieved from: http://en.fasoo.com/Ponemon-Risky-Business-How-Company-Insiders-Put-High-Value-Information-at-Risk

10. Business Insider; “How the ‘Internet of Things’ will impact consumers, businesses, and governments in 2016 and beyond”; Retrieved from: http://www.businessinsider.com/how-the-internet-of-things-market-will-grow-2014-10

11. Gartner; “Hype Cycle for the Internet of Things, 2016”; Hype Cycle for the Internet of Things, 2016; Authors: Alfonso Velosa, W. Roy Schulte, Benoit J. Lheureux; Published: 14 July, 2016; Available: https://www.gartner.com/doc/3371743/hype-cycle-
internet-things-

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