ogc portfolio management guidance - apm | the chartered ... p3o and p3m3 new format, ... project and...

The InspirationThe Inspiration

OGC Portfolio Management GuidanceCraig Kilford : Author

OverviewOverview

Owned by OGC and created in

partnership with Cabinet Office

friends

Available for public consultation

from OGC website (3500+

downloads so far)

Aligns with all best practice

specifically P3O and P3M3

New format, concepts and models

and focuses on reality

Corporate Level Portfolio

Management

What is it

The Model

PfM and your PO

Why it’s exciting

© 2009 cansoti.com

The future

What is a PortfolioWhat is a Portfolio

Official definition:

The totality of an organisations

investment (or segment thereof) in

the changes required to achieve its

strategic objectives

Investment & Return

Changes

Strategic Objectives

Whole Organisation

© 2009 cansoti.com

What is Portfolio ManagementWhat is Portfolio Management

Official definition:

Portfolio Management is a co-

ordinated collection of strategic

processes and decisions that

together enable the most effective

balance of organisational Change

and Business as Usual

Strategic Processes

Decisions

Balance

Together

© 2009 cansoti.com

Key differences Key differences

Portfolio Management is about

doing the right things.

Project and Programme

Management is about doing those

things right.

Never ending

Doing right things

Strategy

Cycles not stages

© 2009 cansoti.com

Board Involvement

Change and Business As UsualChange and Business As Usual

© 2009 cansoti.com

Historic PerceptionsHistoric Perceptions

• More bureaucracy

• It takes too long to start a change with this process

• I don’t have control over my own changes any more

• Big brother is watching me and telling tales

• This is an ‘initiative’ not a project/programme

• The project people can deal with that

Lack of control

Being watched

Not my problem

Hoops

© 2009 cansoti.com

Why should I be excited?Why should I be excited?

• Better informed

• Enhanced decisions

• Do more of the right projects

and programmes (changes)

• Get rid of redundant change

• Implement changes better

• Use resources better

• Realise benefits better

• Improved engagement with

teams

• Improved change culture – one

team

Decisions

Resources

Culture

The right things

© 2009 cansoti.com

Link to PO Business Case

The PfM ModelThe PfM ModelSenior

Management Commitment

Organisational

Governance

Alignment

Energised Change Culture

P3O and

Portfolio

Office

Organisational

Strategy

Alignment

Definition

Delivery

© 2009 cansoti.com

Org

Energy

A few notesA few notes

• Principles discussed using

Target Situations and Keys to

Success

• Everything happens at the same

time

• No mandated starting point (it

is created or it evolves)

• Every action is part of Defining

or Delivering Cycle

• PfM Practices are within the

cycles

• Needs energy to grow and

rotate the cycles

OrgEnergy

Senior

Management Commitment

Organisational GovernanceAlignment

Energised Change Culture

P3O and

Portfolio Office

Organisational

Strategy Alignment

Definition

Delivery

© 2009 cansoti.com

The PfM CyclesThe PfM Cycles

UnderstandCategorise

Prioritise

Balance

Benefits

Management

Financial

ManagementManagement

Control

Resource

Management

Portfolio Definition Portfolio Delivery

Risk

Management

Stakeholder

Engagement

Organizational

Governance

Plan

Organisational

Energy

© 2009 cansoti.com

Portfolio Definition CyclePortfolio Definition Cycle

UnderstandCategorise

Prioritise

Balance

Portfolio Definition

Plan

Purpose: Clarity for everyone

1. Bring together key information

2. Collaborative working

3. Management Board involved

4. Provide clarity

5. Confident about the ‘right’ things

6. Portfolio Office lead

7. Communication

8. Skills / experience is critical

9. Portfolio Delivery Strategy

© 2009 cansoti.com

Portfolio Delivery CyclePortfolio Delivery Cycle

Benefits

Management

Financial

ManagementManagement

Control

Resource

Management

Portfolio Delivery

Risk

Management

Stakeholder

Engagement

Organizational

Governance

Purpose: The strategic objectives

1. Implement the right things the

right way

2. Use best practice processes

3. Understand progress , risks and

issues

4. Make effective decisions

5. Adapt to the environment quickly

6. Review

7. Develop change culture

8. Succeed

© 2009 cansoti.com

What does this mean for Portfolio What does this mean for Portfolio

Offices?Offices?• Portfolio Management is non-

negotiable

• Must have Management Board

involvement

• You cant have Portfolio

Management without P3O

• P3O implements Portfolio

Management

• Use PfM as part of a “Target

Situation” for your

implementation

© 2009 cansoti.com

P3O Implements

PfM

Management Board

PfM is the target

PfM + P3O = Happy

Non-Negotiable

The FutureThe FutureYour next steps?

• Read the guidance (or summary)

• Ask key questions at your Board

Meetings

• Create or evolve Portfolio

Management within your

organisation

• Portfolio Management is a

collective and not one person

• Take small steps

• Do not underestimate its

importance

© 2009 cansoti.com

Free Audio Briefings with Craig

Kilford and Sue Vowler discussing

Portfolio Management and P3O

are available to down load at :

www.craigandsue.co.uk

A collaborative project between Sue Vowler (Project Angels Ltd) and Craig Kilford

(Cansoti.com) : Sponsored by