A PMOs Role in Mergers, and Acquisitions

and other Organizational Transformations

Lou Pack
ICF International
PMO15BR14
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Agenda
1. Introduction

2. What is Organizational Transformation?

3. The Challenge
4. Role of the PMO
5. Importance of Change Management
6. Key Takeaways

Introduction
Program management and a PMO are very
relevant as enablers for successful
organizational transformations
However
Organizational transformations have unique
needs that inform the approach for effective
managementwhat are they?

Show of handswho here has been

involved in an organizational
transformation?

The PMO
RESPOSITORY
OF PROJECT
MANAGEMENT
INFORMATION

COMPLEXITY

BEGIN PMO
ESTABLISHMENT
Establish Need
Develop
Requirements
Establish
Collaborative
Website
Communicate
Availability
Basic Functions

Policy
Process
Procedures
Templates
Best Practices
Lessons Learned
Standards
Methodology
Software
Project Status
Reports
Project
Performance

MANAGEMENT
OF MULTIPLE
PROJECTS
Inter-project
Linkages
Process
Standardization
& Repeatability
Inter-project
Resources
Internal
Audits/Reviews
Standardized
Reporting
Dashboards
Training/
Certification
Internal Consulting

ENTERPRISE
LEVEL
LEADERSHIP
Linking Projects &
Programs to
Organizational
Strategy
Investment
Selection
Enterprise Resource
Management
Strategic Business
Planning
Results
Management
Portfolio
Management
Governance
Structures

PMO MATURITY

What Drives an Organizational

Transformation?

Need for growth

Increase profitability
Cut operating costs
Changing regulatory environment
Other legal mandates
Competitive challenges

ExerciseGroup Discussion:

What kinds of organizational

transformations have you been involved in
(or maybe you soon will be involved in)
and why were/are these transformations
undertaken by your organization?

Types of Organizational
Transformation

Merger
Acquisition
Reorganization
Restructuring

Establishment of
Shared Services
Right Sizing
Outsourcing

Organizational Transformations are

Characterized By
Getting it done!
Many different work streams
Multiple internal and external
stakeholders
People, process and technology
Ultimate outcome expected from any
organizational change is improved performance
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Organizational Transformation
Transition Approaches
Incremental
Not urgent or a crisis
Disruptions to business
results to be minimized
Organizational capacity to absorb
change is limited

Wave
Multiple sitescommon features,
business similarities
Implementers are available
Organization has capacity to
absorb the change

Big Bang
Urgent organizational
transformation needed
Implementation takes place
all at once
Requires a lot of resources
Little resistance anticipated
recognized need for change
More routine standardized approach
may be possible

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The Challenge

No vision
No road map
Poorly defined or communicated vision
Unrealistic expectations of outcomes
Undefined or ill-defined benefits
Stakeholders not identified, engaged
and coordinated
Communication inadequate
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The Challenge
Research shows that only

30% - 50%
of organizational
transformations succeed

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Key Considerations
Goals

Enablers

Deliver expected
synergies

Focus on intended
benefits

Minimize business
disruptions

Cross-functional
coordination

Manage risk

Project management
process and tools

Engage stakeholders

Communication and
Change management
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The Need
Organizational transformation often

involves combining legacy vertical

organizational structures into a single
organization
There can be barriers to horizontal linkage
These barriers make participation in the
transformation uncomfortable as
individuals want to preserve the status quo

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The Need
The transformation is characterized by a

defined current state and end state

So, treat transformations like a project
Organizational transformations are
uniqueone size does not fit all
Involves a variety of stakeholders across
organizations and functional areas
Up front planning and proper execution
are needed
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ExerciseGroup Discussion:
For those who have experience with an
organizational transformation, what were
the challenges/problems you had to deal
withor for those who will be involved in
an organizational transformationwhat do
you expect they will be?

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Ingredients for Success

A vision translated into clearly
defined goals, scope, and
expected benefits
Impacted teams (stakeholder
groups) need to know how
they fitdeveloping a shared
understanding
The need to measure it, to
manage it
Effective risk and issue
management
Effective change management

Roles, responsibilities, and

accountabilities are defined,
communicated and updated
Overcoming stakeholder
(employee) resistance and
management behaviors that
do not advance the desired
change
Enable and encourage
employees to be contributors
to the change
Establish clear metrics
and milestones
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Role of PMO

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Role of Project Management

and the PMO
A critical enabler of transformation As the honest broker surface
differences and commonalities
Assess current PM maturity levels
in processes, culture and
and business cultures to fit the
perceptions
combined organization
Strive to have an adequate amount Stakeholders should view the PMO
as a transformational
of rigor to carry out the mission
agentnot just checkers
Systematically identify obstacles to
and trackers
change as part of a thoughtful and
Provide targeted expertise to
nuanced approach
overcome the UNK-UNKS
then manage
the easy button

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What to Call It
Integration PMO
Transformation Support Office
Transition Support Office

Change Management Office

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PMO Functions
Being the champion for project management process
and tools:
Scoping of the effort
Coordinate the effort through consolidated

implementation planning
Being a lookout
Establishing a governance process
Measure and monitor progress towards business goals
and other measures of success
Be the homeroom for the transformation manager

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planning

behaviors

resistance

integration

partners

team

communication

strategy

relationships

change

focus

rethink

buy-in

schedule

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ExerciseGroup Discussion:
I think we have made the case that
organizational transformations have
unique needswhat qualities do you
think are needed by an organizational
transformation project manager?

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Qualities of a Good PM
Comfortable with complex
situations
Can relate to many levels
of authority
Bridge gaps in culture
and perception
World class PM skills
Understanding of as-is and
to-be organizations
Have enough clout to
be impactful

Comfortable with ambiguity

(no job description)
Emotional intelligence
Understand the importance of
the transformation the
organization, manage
accordingly
Forge partnerships
Ability to be onsite

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Functional Coordination
Accounting
Tax
Human
Resources
Finance
Legal
Communications

Change
Management

Project
Management
Operations
Information
Technology
Risk/
Compliance
Process Redesign
Brand
Management

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Enable Structure
Tailored PM tools
Governance
Executive and team
status reviews

Expedite Efforts
Champion of the plan
Push for actions/
decisions
Be a lookout

Value Add
of a PMO
Enable Connections
Across impacted
organizations
Across functions
Be accessible

Enable Success
Identify quick wins
Identify & share best
practices
Provide resources

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Governance
Rigid enough to ensure a thoughtful and

disciplined approach
Must accommodate cultural differences
A tiered or hierarchical structure may be
(and usually is) required
Assess capacity to absorb changethe
right touch

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Governance Structure
Ultimate responsibility
Align strategy and outcomes
Facilitated by PMO as executive secretary

Executive Steering
Committee

Transformation
Working Group

Functional
Teams

PMO

Weekly/bi-weekly focus
Develop, execute, monitor transformation plan
Crossfunctional focus
Led by PMO

Day-to-day focus
Develop, execute, monitor detailed functional plan
Keeps PMO informed
Day-to-day, cross-functional and strategic focus
Overall champion and coordinator
Process owner for governance

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Governance StructureMembership
Executive
Steering
Committee

Transformation
Working
Group
Functional
Teams

COO Chair
CFO Vice Chair
CIO, CSO, CMO, CHCO, CAO Members
Group leads of affected organizations Members
Transformation PM
PMO

PMO Lead Chair

Transformation PM
Functional Leads (usually direct reports to C level)

Led by functional leads

Various SMEs within the function
Participation by transformation PM & PMO as appropriate

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Steering CommitteeFunctions
Monitor and ensure

Monitor and review

achievement of
transformation status
outcomes aligned with Provide guidance in
strategic direction
management of critical
Direct work efforts
risks
consistent with
Balance conflicting
integration vision
priorities and resources,
Monitor progress
as needed
against goals

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Steering CommitteeFunctions
Provide approvals as needed for:
Modification to

Key activity

strategic direction
Prioritization of goals
and outcomes
Critical risk mitigation
strategies

implementation
Needed investments
not originally
planned for

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Transformation Working GroupFunctions

Facilitate planning and coordination
Review and update of the consolidated cross-functional

planshare information on activities underway

and upcoming
Identify and manage cross-functional interfaces,
conflicts, resource constraints, risks, other issues
sharing and acquiring situational awareness
Primary value is the opportunity for functional leads to
hear what is going on in each of the functional areas
Led by the PMO

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Ingredients for Success

Have a plan

Try and show some

quick wins
Get the right people
on the bus and in
the right seats

Deliver on expectations

Governance and
leadership

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Metrics
What are the metrics organizations use?
Sales/profit increases
Sales pipeline
Cost reduction
Other efficiencies

Voluntary Turnover (%)

30%
25%
20%
15%
10%
5%
0%

Customer satisfaction
Employee retention

Nov - Jan

Feb

Apr

May

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Change Management
A structured approach for transitioning from
a current state to a future state
Integrate and align:
Strategies
Organization structures
Processes
Staff
Cultures

Change
Management

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Change Management
Managing cultural bias of legacy
You go first!
organizations
Common sense of identity and purpose
Establishing communities
of interest
Change
is
good
Employee engagement early
Celebrate intermediate success
Find time to pay attention to mind-sets
and behavior
Find the best ways to communicate
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PMO Functional Architecture

Governance
Governance structure
& organizational design
Development of
governance processes
& artifacts
Staffing of governance
model

Process
Ownership
Planning, monitoring,
controlling, statusing
Risk management
Issue management
Goals & performance
metrics development &
reporting
Governance

Staff Resources

Goals & Metrics

Transformation project
manager
Staff to support process
ownership
Special projects

Establish cost, schedule,

performance, outcome
metrics
Design metrics mgt.
Support environment
Build metrics management
environment
Status, variance analysis,
corrective action report

PM Toolset

Collaboration

Schedules
Responsibility
assignment
Risk register
Issue register
Status reporting formats
Variance analysis

Organizational focal
point for collaboration
Program portal
Establishment of
communities
Being a crossorganizational champion
and lookout

Change
Management

Special Projects
Easy Button

Strategic communications
Communication planning
Messaging &
communication content
Target audience

Inter-organizational
enabling processes
Intellectual property
policy
FAQs
Position descriptions
Management tool
development

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Key Takeaways
Organizational transformation is the new normal
A thoughtful tailored approach to project
management is required
The skillset of the project manager is somewhat
specialized for this environment
An effective governance structure is a critical success
factor
The importance of tailored change management

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Thank you.
Lou Pack
www.icfi.com
LPack@icfi.com
www.linkedin.com/in/loupack

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