how project portfolio management ties leadership, strategic iq, and organizational health together

Leadership, Strategic IQ, and Organizational Health

Tim Washington Boeing PM Conference October 3rd, 2012

Leadership, Strategic IQ, and Organizational Health: How Portfolio

Management Ties It All Together


Agenda

• PPM Overview • Strategic Leadership • Strategic IQ • Organizational Health • How PPM Ties It All Together


Portfolio Management is a critical piece for bridging strategic leadership, strategic IQ, and organizational health

Strategic IQ

Leadership

Organizational Health

PPM


What is “Project Portfolio Management”?


Project portfolio management is a combination of various management disciplines:

%Management Disciplines

General management

Business management

Project and program management


Project portfolio management (PPM) is a

management discipline that drives

strategic execution and maximizes

organizational value through the

selection, optimization, and oversight of

project investments which align to business

goals and strategies.

PMI Quote

Paradigm Shift #1: Projects are an important vehicle for executing strategy


“Portfolio management is the strategy-based, prioritized set

of all projects and programs in an organization reconciled

to the resources available to accomplish them.”

Stanford Quote

Paradigm Shift #2: The single project view to a total portfolio view.


“Managing [the] composite groups of projects

with the same rigor, balance, executive

leadership, and decision-making involvement

as the company’s financial

portfolio. Portfolio Management is an

ongoing process that includes decision-

making, prioritization, review, realignment,

and reprioritization.”

Financial Portfolio Quote Paradigm Shift #3: Projects are investments!


The Purpose of Portfolio Management

• Execute Strategy

• Deliver Maximum Value

• Enhance Decision Making

• Manage Organizational Change


• Higher return on project investments

• Lower organizational risk

• Greater confidence of meeting customer

commitments

• Balanced project portfolio workload

• Healthier organizations

• Increased project throughput

PPM Goals

Portfolio Management Benefits:


At the highest level, Project Portfolio Management has four basic components:

All the steps necessary to construct an optimal portfolio given current limitations and

constraints

Ensure value is delivered by comparing expected benefits

with actual benefits; drive PPM maturity

Selected projects must align with the business strategy and meet other important criteria

Optimize

Portfolio Value

Project benefits must be protected in order to deliver

maximum portfolio value

Protect

Portfolio Value

Improve

Portfolio Value The Goal: Maximize Value to the

Organization

Select the Right

Projects


PORTFOLIO GOVERNANCE (Strategic Planning)

A good governance structure is central to making PPM work.

Select the Right

Projects

Optimize

Portfolio Value

Improve

Portfolio Value

Protect

Portfolio Value

“Portfolio management without governance is an

empty concept.”


Strategic leadership Includes:

1) Business acumen

2) Active engagement

3) Proactive view

4) Balancing long-term and short-term needs

5) Communicating a consistent message


Trust

“The only way for teams to build real trust is for team members to come clean about who they are, warts and all”


Trust

Conflict

“When there is trust, conflict becomes nothing but the pursuit of the truth, an attempt to find the best possible answer”


Trust

Conflict

Commitment

“When leadership teams wait for consensus before taking action, they usually end up with decisions that are made too late and are mildly disagreeable to everyone. This is a recipe for mediocrity and frustration”


Trust

Conflict

Commitment

Accountability

“To hold someone accountable is to care about them enough to risk having them blame you for pointing out their deficiencies”


Trust

Conflict

Commitment

Accountability

Results

“No matter how good a leadership team feels about itself, and how noble its mission might be, if the organization it leads rarely achieves its goals, then, by definition, it’s simply not a good team”


“I’m convinced that if the rate of change inside the institution is less than the rate of change outside, the end is in sight. The only question is the timing of the end.”

--Jack Welch, former chairman of GE


Moderate IQ: Competent

High IQ: Expert

Low IQ: Ignorant

• Shape environment to own advantage • Organizational agility-capacity to change • Distributed strategic Intelligence • Mind-set of change

• Debating when to change • Keep pace and react to external change • Clear options, criteria, and processes

• Don’t realize the need to change • Strategically blind • Incompetent (“let’s pretend”)

Video

http://www.youtube.com/watch?v=vJG698U2Mvo


Two Requirements for Success

SMART • Good Strategy

• Creative Marketing

• Efficient Technology

• Quality Operations

HEALTHY • Open Communication

• Clear Direction

• High Morale

• Lots of Energy

• Solidly Engaged


We Need Clarity (aka alignment)

1) Why do we exist?

2) How do we behave?

3) What do we do?

4) How will we succeed?

5) What is most important for us, right now?

6) Who must do what?

These questions must be answered together, not in isolation


Leadership Needs to Over-communication Clarity

Problem: leaders confuse the mere transfer of information to an audience with the audience’s ability to understand, internalize, and embrace the message that is being communicated.

Great leaders see themselves as “Chief Reminding Officers”


The point of leadership is to mobilize people around

what is most important Most organizations are unhealthy precisely because they

aren’t doing the basic things, which require discipline, persistence, and follow-through more than sophistication or intelligence.

Employees hunger for consistent, authentic, and relevant

communication

Leadership Needs to Over-communication Clarity


How PPM Ties It All Together


How PPM Ties It All Together

Cohesive Leadership

(≈ Strong Governance)

Drives accountability and better decision making

better strategies and better strategic plans

Higher Strategic IQ

Organizational health Greater alignment to strategic goals which drives greater project execution.


DISCIPLINED PEOPLE

Level 5 Leadership

First Who, Then What

DISCIPLINED THOUGHT

Hedgehog Concept

Confront the Brutal Facts

DISCIPLINED ACTION

Culture of Discipline

Technology Accelerators

BUILD UP…

GOOD TO

GREAT

Some Closing Thoughts


For more information


Contact Information

@ppmexecution

http://www.linkedin.com/in/timawashington

Name: Tim Washington

Email: [email protected]

Web: www.ppmexecution.com

http://twitter.com/ppmexecution

http://www.linkedin.com/in/timawashington

how project portfolio management ties leadership, strategic iq, and organizational health together

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