Johnson & Johnson - SCALING UP Infrastructure in a global and diversified company
Scaling project management capabilities in a big company requires expert organization design.
Johnson & Johnson has many lines of business and 250+ operating companies across 60+ countries. The Information Technology Department was created as a shared service for the enterprise. Shared Services was organized in terms of Plan, Build, and Run functions, and within this structure Global Portfolio Services delivered portfolios of infrastructure projects. Infrastructure had been characterized by operational excellence focused on running and protecting the business; delivery of commitments focused on cost savings and predictability; the reduction of environmental complexity; and the intention to “get back to basics.” The imperative was reliability, predictability, and credibility through delivery of expected results. Critical success factors had been skills (and sometimes heroics) of personnel, dedication, and a sense of urgency. However, the challenges were many: high turnover in executive positions, too much leadership worship, a lack of transparency, unclear and changing priorities, slow decision-making, beleaguered partner relationships, duplicative efforts, and so on.
OPM Experts performed an assessment of the PMO and the organizations served by the PMO. We were able to make recommendations regarding the creation of a Product Management group, which would productize requests to have relevance to the business. The group would also look to see what was available outside and bring competition into the services arena, owning their own P&L and exerting pressure on the Build and Run organization. Our assessment was documented in a report that included specific and actionable recommendations for improving JNJ’s project and portfolio management functions and routines.
Johnson & Johnson hired us repeatedly. After our initial assessment we facilitated the prioritization of JNJ’s multi-million dollar project portfolios for infrastructure globally, resulting in consensus across all key stakeholder groups. Johnson & Johnson adopted an approach that enabled strategy to come from demand from the Business Groups and Architecture. Product Management interacted with the business to develop product roadmaps, culling demands that would result in excessive customization. They committed to seamless integration between Product Management and GPS, acting as one Plan organization interacting capably with Build and Run. We advised leadership how to develop standards and governance structures, recognizing that group designations would be fluid as the new structure emerged and that Product Management would position itself as a proxy for GPS customers, emphasizing SLA’s and funding metrics.