five foundations of portfolio management slide show
TRANSCRIPT
Innotas © 2014
Today’s Presenters
Andy Jordan
Founder & President, Roffensian Consulting Inc.
Author of Risk Management for Project-Driven Organizations
Contributing author for ProjectManagement.com
Innotas © 2014
Project Portfolio Management or PPM is a ‘hot’ trend
o Organizations want to become more strategic
o Consolidated portfolio wide view of projects becoming more important
o Economies of scale driving centralized services around project execution
But……
Introduction
Many Organizations Fail To Understand What PPM Really Means Or How To Deliver It
Innotas © 2014
PPM success doesn’t happen overnight, but the wrong approach can doom it to failure before it starts
Growth depends on 5 key foundations
Starting your PPM journey
Definition Structure Lifecycle Accountability Consistency
Innotas © 2014
Portfolio and portfolio management are not ‘standard’ terms
o They mean different things to different organizations
o Variations in scope, focus, organizational level, etc
Definition Definition
But some meanings should not be negotiable o Strategic management tool, not
reporting consolidation
o Evolving vehicle to deliver organizational goals, not fixed scope ‘super project’
Super Project
Reporting
Consolidation
Innotas © 2014
Definition
IT
Capital Maintenance
Refresh
Upgrade
Finance
Regulatory Operations
Sales
Growth
New Markets
Existing Markets
Consolidation
Scope may vary
Reach
may v
ary
Alw
ays
ma
na
ge
d d
ow
n
Definition
Innotas © 2014
Portfolios must be created in the right way
o Integrated with existing project execution approach to minimize disruption
o Aligned with current planning approach to maximize effectiveness
Structure has to align with existing functions
o PMO likely owns
o Functional leaders cannot ignore their role
Structure Structure
Change is Mandatory, Disruption is Optional
Innotas © 2014
Structure
PMO
Portfolio
Program 1
Project A Project B
Program 2
Project C Project D
Functions Executive
Structure
Innotas © 2014
The starting and finishing points for the portfolio lifecycle need to be determined
o May start with idea generation and capture
o May end with benefits realization
o May need to ‘grow’ into that broad span of control
Lifecycle needs to reflect organizational capability and appetite
o Alignment with existing processes / accountability
o Ability to be effective
Lifecycle Lifecycle
Idea Generation /
Capture
Benefits
Realization
Organizational Change
Innotas © 2014
Portfolio
Idea Generation
Collaborative Enhancement
Preliminary Screening
Standardized Business
Cases Portfolio Modeling
Strategic Project
Execution
Portfolio Change
Management
Centralized Benefits Tracking
Benefits Accountability
Lifecycle Lifecycle
Innotas © 2014
Successful portfolio management requires organizational commitment
o Meaningful agreement to change the way that an organization operates
o Words backed by actions
o May require cultural change
Needs to be backed by accountability to have real impact
o Organizational and personal goals tied to portfolio success
o Real accountability for delivery of success criteria
Accountability Accountability
Innotas © 2014
Accountability
Accountability
• Organizational focus
• Integrated project execution
• Focus on benefits realization
No Accountability
• Departmental focus
• Standalone project execution
• Focus on deliverables
Accountability
Innotas © 2014
By their nature portfolios are slow to evolve
o Commonly annual planning cycles with quarterly review
Portfolio management will take several cycles to become embedded
o Organizations need to be patient
o Without consistency the perception will be that ‘it doesn’t matter’
o Change comes from evolution, not revolution
Consistency Consistency
Innotas © 2014
Consistency
Implement
Learn
Accept
Evolve
Consistency
Innotas © 2014
There are no ‘sure fire’ solutions, success comes from hard work and commitment
Laying the groundwork can help to deliver early wins
o Recognition and acceptance that things can improve – by all levels
o Agreeing on what portfolio management means to you – scope, scale, ownership, etc
o Active engagement from all stakeholders
Roadmap for a Successful Start
Innotas © 2014
Define the five pillars for your organization
o Understanding and buy in from executives to frontline
o Clarity and completeness
o Plan for evolution
Build a support infrastructure
o Tools
o Skills development
o Assess and adjust processes
Roadmap for a Successful Start
Definition Structure Lifecycle Accountability Consistency
Innotas © 2014
Questions?
Contact Andy Jordan at:
www.projectmanagement.com/profile/andyjordan
www.roffensian.com
@RoffensianPM
Contact Innotas at:
www.Innotas.com/contact
@Innotas
Learn More: www.Innotas.com/resources