https://youtu.be/j8obKof2MDM

https://youtu.be/A7VbY12RA5c By watching both videos, we need to reflect on the PPM practices in the case of Aviva in textbook "Managing the PMO Lifecycle", page 147.

Aviva Canada Description of Aviva Canada Aviva Canada is one of the leading property and casualty insurance groups in Canada, providing home, automobile, recreational vehicle, group, and business insurance to more than 3 million customers. The company is a wholly owned subsidiary of UK-based insurance company. Aviva Canada has 3,200 employees, 25 locations, and 1,700 independent broker partners. Aviva Canada and its employees invest in positive change through the Aviva Community Fund and Eva's Initiatives, Aviva's partner in its global Street to School program to help the homeless and other at-risk youth reach their poten- tial (http://Avivacanada.com/content/member-companies). At the time of the case study, Aviva Canada had multiple PMOs, with each PMO potentially duplicating some efforts. Organization leaders were seeking efficiencies and consolidation of efforts as well as stan- dardization across all functions. Hence, the concept of the EPMO was born to denote the start of the enterprise-wide PMO, one unit with one standard for methodology-building and project delivery. The EPMO sits under the IT department, reporting to the EVP and the CIO. The EPMO is about 3 years old. Before the consolidation, they had 4 PMOs. The EPMO consists of 60 people, including contractors. The EPMO is structured as a function but operates in a projectized fashion. All staff members are identified as part of the delivery (PG manag- ers, PMs, PCs, BAs, and senior project financial analysts) and are assigned through the organization's demand and supply of initiatives. Once the delivery staff is assigned, the program or project manager is assigned to its executive sponsor and project owner, to whom they report to temporarily within a project structure. For all escalations, issue resolutions, and theirown respective development and reporting relationship, they continue to report to their line managers. More precisely: AVP, portfolio management and delivery for the PG managers, PMs and PCs, then the senior manager business analysis for the BAs, and then the manager of the EPMO Finance for the SPFAs. Initially, the head of the EPMO for Aviva Canada was accountable for portfolio management, planning, reporting, and delivery, in addition to enterprise resource pool management, QA and compliance, and port- folio risk management. All project managers, project coordinators, and business analysts report to the head of the EPMO. Table 7.3 Summary of Aviva Canada Organization (Canada) Organization Characteristics Details Ownership Public Industry Insurance Size Large (3,200 employees) Organization Matrix with focus on delivery through project initiatives Culture Rewards in job security and benefits for long-term employ- ment. Niche specialized long-term projects. Strategy for growth Two pillars: A great underwriting company Committed to the broker channelDescription of Aviva Canada's Four Practices Aviva Canada practiced project management prior to having an EPMO. As a matter of fact, the company had four PMOs, and one of the EPMO's mandates was to consolidate the various PMOs. Formation of the EPMO was also motivated by the need to unify standards in meth- odology, reporting, and opportunities to better assess demand manage- ment across the organization. 1. PMO vs. Project Management Project management was practiced at Aviva Canada prior to having PMOs. Then separate PMOs were created to promote the delivery of project management. Finally, the EPMO was created to consolidate and improve standards of effectiveness. 2. Temporary or Permanent The EPMO is a permanent function within the organization, as were the four PMOs prior to it. The drivers for a permanent PMO are the size of budget, resources, complexity, and ambiguity of indicators. Further, it also allows Aviva Canada to tailor processes and governance to fit orga- nization structure and culture. Although the EPMO is permanent, there are specific PMO mandates around large and complex initiatives (i.e. programs), where a PMO with the program structure can be required. This setup also allows for tailoring enterprise assets and processes to fit each need within agreed boundaries. Just like an initiative that has a start and end date, the PMO within a program is dismantled once the initia- tive is completed. 3. Outsourcing vs. Insourcing The EPMO within Aviva Canada is mainly insourced. PMO outsourc ing isn't considered because of the EPMO's reach and its strategic nature.However, the model the EPMC' uses to maximize benets from various resources and functions within the PMO led to a hybrid model. Project resource load is assessed and assigned to projects, as required with conr tractors. The PPM administration hybrid is an example where level 1 requests are outsourced and level 2 requests and above are insoul'oed, PPM tools are outsourced (SaaS), and contractor management and sourcing is outsourced. Project managers are insourced, and others are outsourced. Training and career development is outsourced to career development as well as inrhouse onrmejoh training programs. Everyone has a 70mm\") personal development plan. More precisely, when it comes to learning, 70% is onthejobtraining through assignment and involvement in other activities, 20% is provided externally, and 10% is selfrinitiated. 4. PPM vs. PMO The PPM resides within the EPMO and is not a separate function. The PPM is located in me EPMO to ensure projecttoprograrn to portfo lio linkages, leveraging SaaS and offering to streamline planning and reporting. The PMO assumes the responsibility of PPM planning and prioritization and reviewing monthly results with executives. The main drivers for having me PPM embedded within me PMO are based on me strategic position of the PMO. Additionally, the PMO is set at me Crievel, and there are no other Functions that perform similar work and all described functions report to the head of the EPMO. The benet is centralizing dle PPM under one governance structure and better col laboration on handover between the functions relating to projects. Sustainability Elements and Value Add The PMO value add was visible immediately upon closing 3540 medium to large projects. All initiatives are reviewed and approved by le executive committee. The portfolio is reviewed on a monthly basis widr a nancial view of all initiatives. Tiered governance allows for srnooth decisionmaking, empowering employees at the various levels to make decisions. Visible capacity planning and transparency across the organization are major wins and value adds. The EPMO value base was visible in le human resources value and customer value as follows: 1. HR factor: Full demand and supply view FTEs vs. contractors based on the project demand Book of Work {Bo'W}. Tiered gover nance allows junior staEto be assigned to initiatives that match their skillsets and experience. Support career path {i.e. PC to junior PM to PM to senior PM to program manager}. Support companywide expense challenge discussions {who is assigned to whatd1erefore, which initiative should stop}. 2. Quality factor: The Bow is fully visible, transparent, and refreshed every mond1. Status and progress rolled up mondily to a portfolio view\"die steps and rationale to bring back the project status to Green from amber and red is published and visible. Budget (actual vs. forecast} is always available, hence, where resources (money, people, assets) are consumed is always transparent. CAR and PAR are issued to le project core management team. They are tracked against employees' personal objectives and tied in to dleir respective bonus stmcture. 3. Delivery factor: Because of transparency and because employees can't work on initiatives that are not approved, the delivery factor has increased throughout as a result of having reduced mvarorlvzrinrthev dark\" projects. The (RAG (Red, Amber, Greem} status is well understood by everyone. There are four dimensions to RAGtwo objective and two subjective. Objective: The cost is derived from CPI (cost per fonnance indicator}, and the schedule is derived from SPI (schedule performance indicator}. Subjective: Resources and scope. Overall RAG: two ambers, overall arnber. One red, overall red. 4. Cost factor: Dollars in budget (actual vs. forecast) is always avail- able. Hence, where resources (money, people, and assets) are con- sumed is always transparent. Benefits and Summary In summary, the EPMO has achieved its objectives in consolidating the PMOs, running a successful PPM, and the ability to apply hybrid models between outsourcing and insourcing where it best fits their needs. While the EPMO is a permanent strategic function, there are temporary project functions that run large and complex programs. Below is a summary of the benefits the EPMO achieved. 1. Quantitative . Portfolio is able to deliver around 10-15% below budget each year because of strong financial management, status, and progress visibility company-wide and reassign FT resources to contractors (reducing the premium they need to pay as the result of using a contractor) . Contractor to FTE ratio is about 1:4, managing their corporate knowledge as a critical asset (not to go beyond 30%) . Delivering 35-40 change initiatives per year consistently for the past three years (inclusive of present) . Using one managed service provider for all contractor needs has reduced Aviva Canada's total contractor spending by 20%. 2. Qualitative . Benefits realization embedded-on closeout activities, updates shared with all respective business unit cost center . Motivated staff, because everyone is aware of the change agenda' Able to attract talent From throughout do: organization, because people want to be part of the success stories ' Global, countrywide, and regional portfolio rollrups were availr able, creating synergies across the globe on similar initiatives Onoe you have reviewed the videos and the Aviva case in your textbook, answer the following questions: 1. How do they rank and do you agree? 2. Do these practices help their PMO? How? Outsourcing: In your book, search for a PMO that was outsouroedivirtualized, and answer the following questions based on the case 3. What were the drivers for this organization's outsourcing? 4. How does this map with what you learned about why organizations outsouroe PMO? 4. Which functions were outsourced