whitepaper: portfolio management 101: moving from ‘just’ project management to true ppm
DESCRIPTION
Many organizations claim that they practice project & portfolio management (PPM), but it frequently turns out that they are only carrying out consolidated project management. True portfolio management is a much more strategic approach, which regards the project portfolio as the means of executing upon organizational goals. This distinction, though minor on its surface, is profound in its implications. Organizations that fail to adopt portfolio management risk making costly mistakes throughout all aspects of project delivery – including approving the wrong projects, managing them incorrectly, failing to recognize business-related warning signs, and consistently failing to achieve expected results. Learn how to: Achieve a strategic portfolio management focus Manage PPM as an end-to-end process, from ideas to benefit realization Create consistency in developing proposals and business cases Focus on business outcomes rather than project deliverables Build a successful portfolio management culture at the grass roots levelTRANSCRIPT
Portfolio Management 101Moving from ‘just’ project management to true PPM
Andy Jordan
Portfolio Management 101Successful Deployment Strategies
Jay Hoskins
Portfolio Management 101Moving from ‘just’ project management to true PPM
Andy JordanOctober 3rd, 2013
Portfolio management vs. consolidated project management
End to end management◦ Before the project
◦ During the project
◦ After the project
Strategic Management◦ Goals and objectives focus
◦ Harmonizing portfolio, program and project management
◦ Portfolio management culture
Questions
Contents
Portfolio
Program
Project Project
Program
Project
Portfolio Management vs. Consolidated Project Management
Consolidation PortfolioManagemen
t
Pre
• Idea generation and development• Portfolio modeling and selection
Project
• Management and control• Alignment monitoring
Post
• Benefits realization• Variance correction
End to End Management
Communicate priorities Encourage idea capture and sharing Consistent business cases Portfolio modeling Decision support KPI alignment
Before the Project
Manage to portfolio goals and objectives Adjusting execution to changing needs Compensating for delivery variance Ensuring alignment at all levels of project
execution
During the Project
Adjust expectations based on actual deliverables
Ensure planned benefits are achieved Identify and implement corrective actions if
required Lessons learned (benefits realization)
After the Project
All work is driven by the need to achieve goals and objectives
Project and program needs are of secondary importance
Projects may be ‘sacrificed’ for the good of the portfolio
Goals and Objectives Focus
Strong relationship building Understanding of strategic priorities Understanding of individual contributions Establishing concept of a complex
ecosystem
Harmonizing Portfolio, Program and Project Management
Requires ongoing executive support Requires commitment from all stakeholders
at all levels Can fundamentally change the
organization’s effectiveness May drive structural change for project
execution – EPMO, new processes, etc
Portfolio Management Culture
Jay HoskinsOctober 3rd, 2013
Portfolio Management 101Successful Deployment Strategies
Portfolio Management 101Successful Deployment Strategies
Recipe for the PPM Sweet Spot
Defining the problem
Key themes for success
Implementation scope
Implementing the themes
Problem solved
Questions
PMI compliance Project Management Time reporting Status reporting
What the PMO Wants
What Business Leaders Want Competitive advantage Do more for less Innovation and alignment Better decision making
Close to Project / Far From Results
Project Manager Don’t bother me with status, I have a project to run
Team Member I never know what to do next and am constantly interrupted with changing priorities
Program Manager My program roadmap is constantly in jeopardy
Resource Manager I have to do major adjustments every month to the resource plan
Executive Sponsors / Approvers
Your asking me to approve stuff with no clear business case or priority
Portfolio Managers / Business Unit Managers
I keep asking for improvements but never see any results
PMO No one is communicating status with us
Far From Project / Close To Results
CEO / CIO / Executives / Management
I can’t see how your project benefits the P&L but your asking for more money?
PPM Implementation Hurdles
Avoid Complexity
“Sweet Spot” Keys to Success
Business Leader… (Do this)
PPM Deployment Manager…(not this)
Improve competitiveness in our markets
Visibility, Project Status, PMI standards, Be on time, Report Status, Time tracking
• Adoption – Easy to use and simple• Crawl, Walk, Run – Use easy, effective, and proven processes first• Enterprise systems that follow adoption principles are enablers
• Alignment – Business driven
• Performance – Measure your results• Top performers only have 10% unplanned work• Top performers regularly meet revenue and savings targets
Strategy Management – Ability to model, quantify, and measure business strategy Demand Management – The ability to define work in terms of business strategy Prioritization – Ability to score and select demand based on business value and strategy
goals Governance Board – Ability for stakeholders to create business strategy, and execute
portfolio decisions based on that strategy Quality of Execution – Ability to measure the quality of executing the currently defined PMO
process and strategy execution System of Record – A single source of truth (like PowerSteering! ) to manage the portfolio
and relevant information Collaboration – The ability for everyone to have visibility and transparency in order to easily
participate in the governance process. Milestone/Deliverable Management – The ability to ensure that key milestones are met and
visible Benefits Realization – The ability to measure the results or impact of the portfolio on the
business strategy.
Critical Capabilities
Project Portfolio Management Maturity LevelsProject Portfolio Management Maturity LevelsProject Portfolio Management Maturity Capability Levels
Crawl RunWalk
The Result: Increased Speed to Value
Benchmark your capabilities
Governance - No major gaps.Optimize Demand:
Prioritization Selection Roadmap Resource Capacity
Execute: Deliverable Management Project Health
Analyze: Benefits Realization Quality of Execution Roadmap
Several key portfolio management capabilities were missing and will significantly improve value delivery and productivity when deployed. These are organized across four capability categories:
As-Is
Implementing the themes
• Adoption• Alignment• Performance
Integrated PPM Capabilities
The top 3 responses all had to do with ease of use, the “just-right” level of functionality and being simple and
appropriate for each person.
Satisfaction is all about adoption and value delivery, not features
Why is Ease of Use Important?
Easy for the Team Members
Easy for Project Managers
Easy for Portfolio Managers
Easy for Resource Managers
Easy for Business Leaders
Align PMO to the Business
Close to Project / Far From Results
Project Manager Projects status manages itself and my reporting time is reduced by 75%
Team Member My work dashboard is clear, easy to use, and the project managers leave me alone to get more work done
Program Manager The program roadmap now has clear objectives and we are delivering results more predictably
Resource Manager The resource plan has stabilized with more focus on the right work and much less unplanned work
Executive Sponsors / Approvers
It’s clear the budget is going to important work with business impact
Portfolio Managers / Business Unit Managers
My portfolio review meetings have been cut in half and we make better project decisions
PMO I seldom have to bother the managers with status reports and the executives get the right reports at the right time automatically
Far From Project / Close To Results
CEO / CIO / Executives / Management
We are spending less and getting better service levels than our peers
“Sweet Spot” PMO results
Questions?About PowerSteering
PowerSteering combines the robust project and portfolio management (PPM) functionality demanded by global organizations with the cost & speed-to-value benefits of cloud delivery and an unmatched level of flexibility. Easy to use and administer, it enables top-down program & portfolio management without requiring granular task & resource tracking, and provides class-leading analytic and financial tracking capabilities. Leading global organizations, including Merck, Staples, the US Department of Defense, and the UK National Health Service, rely on PowerSteering to accelerate results in IT, New Product Development, Process Excellence and Business PMOs. PowerSteering is part of the Upland family of cloud-based project, portfolio, and work management software products. Visit www.powersteeringsoftware.com for more information.
Contact InformationContact Andy Jordan at:
www.projectmanagement.com/profile/andyjordanwww.roffensian.com
@RoffensianPM
Contact Jay Hoskins at:www.powersteeringsoftware.com
PowerSteering’s Business-Driven PPM Blog http://www.powersteeringsoftware.com/blog/