PMOUNCONversations #2

Driving Transformation with the IPMO (Innovation Portfolio Management Office): An Interview with Ivan LLoyd

In the second episode of PMOUNCONversations, brought to you by PMOUNCON - The PMOGA World Unconference , we're thrilled to dive deep into an exciting discussion with Ivan Lloyd , the CEO of edison365 and a global thought leader in innovation and business transformation.

edison365 stands at the forefront of delivering top-tier innovation management solutions, enabling organizations to align their innovation initiatives seamlessly with their core business goals.

We're proud to announce edison365 as our esteemed Diamond Sponsor for PMOUNCON 2023, the PMOGA World Conference, taking place in Paris on December 4 and 5. Discover more at https://www.pmouncon.world.

?PMOUNCON: Ivan, for our readers who might be unfamiliar, please briefly explain what the IPMO stands for and its primary objective.

??Ivan Lloyd: The IPMO stands for Innovation and Portfolio Management Office. It's a concept we propose as a revised model to integrate both innovation offices and project management offices. The primary objective of the IPMO is to ensure that innovation and transformation align perfectly with a corporate business strategy, allowing for a more streamlined and efficient approach to executing business transformation plans.

?PMOUNCON:?In what ways does the IPMO differ from the traditional PMO (Project Management Office)?

??Ivan Lloyd:?Traditional PMOs focus on managing and controlling project deliveries within predefined parameters like time and budget. On the other hand, the IPMO not only manages projects but also ensures that innovation is fostered and properly aligned with corporate strategy. It essentially replaces the PMO by integrating both the innovation and project management aspects to drive real change across businesses.

?PMOUNCON:?Why is business transformation critical for enterprises today?

??Ivan Lloyd:?Business transformation is the lifeblood of every enterprise in today's dynamic environment. With the rapid pace of external business trends, organizations need to constantly innovate to stay relevant and competitive. Without a steady stream of innovation, companies risk becoming obsolete or even facing extinction.

?PMOUNCON:?How does integrating innovation and project management lead to better business outcomes?

??Ivan Lloyd:?By embracing both innovation and project management, companies can significantly enhance their impact on their business. The integration ensures that the right business ideas are advanced, experimentation is encouraged, lessons are learned, and there's a long-term measurement of change, ensuring that innovation aligns with the business strategy.

?PMOUNCON:?How does the IPMO ensure that the right business ideas are prioritized and moved forward?

??Ivan Lloyd:?The IPMO has a holistic view of innovation and project management. It manages resources and provides governance, oversight, and end-to-end reporting. It evaluates ideas to guarantee only the most aligned and promising ones advance to become executable projects.

?PMOUNCON:?Many PMOs have been criticized for their performance. Why do you think that is?

??Ivan Lloyd:?Many PMOs, while set up with commendable aims, often fail to adapt to the rapidly changing business landscape. Some common criticisms include being overly bureaucratic, failing to meet project goals, and a high implementation failure rate. Furthermore, traditional PMOs often lack the flexibility required for the innovation age and may inhibit the flow of value across the enterprise.

?PMOUNCON:?How does the IPMO tackle the issue of projects whose benefits are realized long after completion?

??Ivan Lloyd:?The IPMO's role doesn't end with project execution. It assumes long-term ownership, assessing success beyond project completion. It ensures that the benefits claimed in business cases are continually monitored and realized over time.

?PMOUNCON:?How can businesses transition from their traditional PMOs to the IPMO model effectively?

??Ivan Lloyd:?Transitioning requires a change in mindset, processes, and structure. It begins with recognizing the value of integrating innovation and portfolio management. Organizations need to create their IPMO, instilling responsibility for the entire spectrum of idea generation to benefit delivery. It's about championing the best of both worlds: fostering a culture of rapid learning and taking a long-term view of benefit assessment.

?PMOUNCON:?Gartner mentions that the current PMO model might be unsuitable for innovation projects involving emerging technologies. Can you expand on that?

??Ivan Lloyd:?Indeed. Gartner has expressed concerns that traditional PMOs are not equipped to handle projects involving cutting-edge technologies like AI and IoT. The conventional model often doesn't embrace the uncertainties of digital disruption or the global economy, which hampers its effectiveness in today's innovative projects.

?PMOUNCON:?Can you provide some insights into how innovation offices typically function and how they differ from the legacy PMO?

??Ivan Lloyd:?Innovation offices are central hubs for promoting and managing a new culture across a business. They focus on designing processes for capturing new ideas, setting challenges, and managing rewards. They differ from PMOs in that they're more forward-thinking, fostering a culture of change and innovation, whereas traditional PMOs are more about control and project execution.

?PMOUNCON:?Can you give an example of a successful IPMO implementation?

??Ivan Lloyd:?Its difficult to pick one organisation. We had a live chat with Cisco, BDO, Salvation Army and HS2; all of whom have great insight to share on their journey.

If I had to choose one, it would be HS2. Based in the UK, it’s Europe’s largest infrastructure project. and whilst its been a controversial project at times, the IPMO team have been producing amazing results in the Business Transformation space both for the project itself, and also for the future of construction projects as a whole, driving down cost and optimising carbon reduction.

?PMOUNCON:?To wrap up, what message would you like to convey to hesitant organizations about the IPMO approach, and how edison365 can support them in this journey??

??Ivan Lloyd:?Embrace the change! Understand that in today's business environment, the traditional PMO might not be the most effective model. Transitioning to the IPMO approach not only enhances your organization's innovation capacity but also sets the stage for sustainable and transformative success. edison365 supports the Innovation Portfolio Management Office (IPMO) by providing integrated tools for ideation, project portfolio management, and business case development, accelerating transformation and ensuring alignment of project delivery with organizational strategy.

?PMOUNCON:?That's an incredibly insightful perspective, Ivan. We truly appreciate the depth of knowledge you've brought to the table. Your expertise is invaluable, and we're grateful for the time you've taken to share it with us today.

??Ivan Lloyd:?Thank you; I appreciate that. It’s a subject I’m passionate about and always happy to discuss. We can truly make a difference if we set our organisations up to accelerate innovation, drive the right project choices and maximise successful delivery of outcomes and benefits.