five foundations of portfolio management slide show

Innotas © 2014

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

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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

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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

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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

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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

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Structure

PMO

Portfolio

Program 1

Project A Project B

Program 2

Project C Project D

Functions Executive

Structure

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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

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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

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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

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Accountability

Accountability

• Organizational focus

• Integrated project execution

• Focus on benefits realization

No Accountability

• Departmental focus

• Standalone project execution

• Focus on deliverables

Accountability

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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

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Consistency

Implement

Learn

Accept

Evolve

Consistency

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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

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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

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Questions?

Contact Andy Jordan at:

www.projectmanagement.com/profile/andyjordan

www.roffensian.com

andy.jordan@roffensian.com

@RoffensianPM

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