how to improve your organization's ppm maturity level
TRANSCRIPT
Principles of Execution
How to Improve Your Organization's PPM
Maturity Level
Helping Organizations Develop a Culture that Works!
Gerald’s Background
Gerald is currently the President &
CEO of Principles of Execution, a
Strategic Project Portfolio
Management and IT
Governance consulting firm based
in the Metro Washington, DC area.
19 years as an IT Project
Management consultant and
earned the PMP, MCSE, MCTS,
CQIA, ITILv3 and COBIT 4.1
Certifications
Acquired certifications in PM and
BI from the University of California,
Berkeley, as well as an Executive
Leadership Certification from
Cornell University.
Objective
What is Portfolio Management?
The Goal of Project Portfolio Management Maturity
Areas to Analyze
Gartner’s Model of PPM Maturity
Pains that Prompt a Maturity Assessment
Capability Assessment Dashboard
5 Levels of PPM Maturity
What is Project Portfolio
Management?
Portfolio Management is a capability that
enables organizations to analyze, select and
manage a collection of project investments
that are aligned with your company’s goals
and objectives within a data driven decision
making framework.
Portfolio Management also coordinates the
acceptance, approval, postponement,
rejection or cancelation of a project which will
not realize the proposed benefits or the
corporation’s strategic outcomes.
The Goal of PPM Maturity
The organization is able to adjust and align IT
investment budgets and projects with business needs at
least quarterly.
There is alignment between the business strategy and
the selection and execution of IT projects throughout the
organization.
Executives have clear insight into the selection,
prioritization, budgeting, resource allocation and
scheduling of project investments.
The organization continually measures and manages
the IT budget for the optimal mix of discretionary and non-
discretionary spending.
Areas to Analyze
People Process
Technology Governance
Gartner’s Five Progressive Levels
of the Maturity
Pains that Prompt a Maturity Assessment
Lack of accountability regarding who owns the oversight of the IT
portfolio.
Project investments that are not aligned to the business objectives
of the corporation.
Lack of standardized processes leading to project execution
heroics.
Roles and responsibilities are not clearly defined which creates
confusion within the organization.
Limited or no visibility into the portfolio performance.
Project outcomes are not verified to determine if the investment
produce the expected return.
Constrained resources are used sub-optimally due to lack of
appropriate alignment and allocation.
Why PPM Maturity Is Important
84% of companies do not use a
business case for their IT project
investments
83% of companies only adjust their
budgets once or twice a year
67% of IT organizations are not
able to adjust to market trends when
needed
57% of companies believe they
have a balanced IT budget.
http://www.principlesofexecution.com/psgs/2013/08/bo
ok-review-it-portfolio-management-step-by-step.html
Don’t Underestimate the Power of
CultureImplementing Project Portfolio
Management should establish
a culture, not just a system,
that enables a process for
systematically aligning the
organization’s attitudes,
behaviors and actions, which
should result into a
interrelated and prioritized
portfolio that yields better
outcomes while minimizing the
investment of the organization
resources.
Maturity Process
Ad Hoc Planned Optimized Integrated Sustained
5 Levels of PPM Maturity
Ad Hoc
Planned
Optimized
Integrated
Sustained
Assessment Process
Develop As Is
Proposed To Be
Conduct Gap
Analysis
Analyze Gap & Action Plan
Develop Road Map
Conducting the As Is Assessment
Personal and Group Interviews
Collecting Artifacts and Evaluation of existing processes.
Conduct Surveys
Benchmark comparisons against established standards
Develop a Capability Assessment
DashboardCapabilities Demand
Mgt
Portfolio
Selection
Portfolio
Tracking
Portfolio
Reporting
Financial
Planning
Financial
Tracking
Benefits
Realization
Project
Scheduling
and
Tracking
Overall
People
Process
Technology
Governance
Conduct a Gap Analysis
The Maturity Matrix
High-level Roadmap
Maturity Process
Ad Hoc Planned Optimized Integrated Sustained
Level 1 Ad Hoc
• No Governance processes in place
• Project are selected on a first come basis
Portfolio Governance
• No Standard Processes exist for initiating projects
• Project inventory has not been established
Project Opportunity
• No processes to prioritize proposed or active projects
• Projects are funded with no promised return
Prioritization and Selection
• No portfolio communication processes
• Portfolio Information reports have not been definedCommunication
• No Performance processes
• Project reviews are not conductedPerformance
• Resource allocation is ad hocResources
Maturity Process
Ad Hoc Planned Optimized Integrated Sustained
Level 2 Planned
• Process for Portfolio Review Board (PRB) established
• Business cases are developed for each project
Portfolio Governance
• Processes exist for identifying proposed projects
• Project Charters are developed for each project
Project Opportunity
• Roles and Responsibilities have been defined
• Project are prioritized using a simple PPM model
Prioritization and Selection
• A list of proposed and active projects are maintained
• Project status reports and portfolio information in providedCommunication
• Portfolio Information is reviewed regularly
• Project performance data is provide to the PRBPerformance
• Resource are identified by availability, role and skills
• Guidelines are provided for allocating resources to high priority projects
Resources
Maturity Process
Ad Hoc Planned Optimized Integrated Sustained
Level 3 Optimized
• Project Portfolio’s are aligned to strategy
• Business drivers are defined
Portfolio Governance
• Identifying and tracking project opportunities is documented
• Documented processes are provided determining business value for each project
Project Opportunity
• Processes are well defined for prioritizing projects
• Executives analyze and prioritize new projects
Prioritization and Selection
• Portfolio information is aggregated for greater insight
• The portfolio risk information is tracked at all levelsCommunication
• Organizational Standards and Processes exist
• The Portfolio is actively analyzedPerformance
• An enterprise resource pool exist
• Resources are optimally allocated to prioritized projectsResources
Maturity Process
Ad Hoc Planned Optimized Integrated Sustained
Level 4 Integrated
• Lessons Learned are integrated in to PPM Processes
• The PRB reviews the fit of each project across the portfolio
Portfolio Governance
• Post implementation reviews are conducted
• The PRB focuses on Value Creation and Strategic Alignment
Project Opportunity
• Standard Models and Business Prioritization processes exist
• Prioritization models are periodically update
Prioritization and Selection
• Portfolio Information is audited to validate the data
• Project Investment information is available for decision makersCommunication
• A Standard set of KPIs and Metrics exist
• Standard metrics are integrated into management’s decision processes
Performance
• Enterprise Resource analysis and reports existResources
Maturity Process
Ad Hoc Planned Optimized Integrated Sustained
Level 5 Sustained
•Baseline data is available for the Governance Processes
•Portfolio Governance Processes are continuously improved
Portfolio Governance
•Baseline data is collected for project opportunities
•Project Opportunity processes are continuously improved
Project Opportunity
•Baseline data is collected for prioritization and selection processes
•The Prioritization and Selection processes are continuously improved.
Prioritization and Selection
•Baseline data is collected on portfolio communication processes
•Portfolio Communication Processes are continuously improvedCommunication
•Baseline Performance data is collected
•Reports and metrics processes are continuously improvedPerformance
•Baseline data is collected on Enterprise Resources
•Resource processes are continuously improvedResources
Where Should You Start?
Q&A
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Principles of Execution, LLC
Gerald J. LeonardPMP, MCTS, CQIA, ITIL, COBIT
President/[email protected]
http://www.principlesofexecution.com
Helping Organizations Develop a Culture that
Works!
Building the foundation for effective execution to increase your organization’s productivity!