elevate your pmo

© 2016 Opptiv LLC Proprietary www.opptiv.com© 2016 Opptiv LLC Proprietary www.opptiv.com

Make the value leap from a PROJECT mindset to an INVESTMENT mindset.

#PMO3.0

Executive BriefingElevate your PMO.

© 2016 Opptiv LLC Proprietary www.opptiv.com

How do PMOs showbusiness value today?


MeetThe PMO…

We’re Certified!


Meet thePMO’s Favorite Tool!

The GANTT Chart

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CFO

CEO

BOARD


What happens when the PMO’s Gantt Chart meets the PMO’s Bosses?


Cost, Schedule & Scope!

Strategic Growth,Value Creation,

Risk-Return & Execution?

PMO C-Suite

©2016OpptivLLC

©2016OpptivLLC


The PMO of the future will be a portfolio office…it will think and speak in the

language of money…

The PMO Mission: “Move TheStrategic Needle For The Company”.

In organizations the focus is now shifting to what is competitive

advantage…that makes the success of the planned

investments more important...

Sixty-one percent of respondents admit that their firms often struggle to bridge the gap

between strategy formulation and itsday-to-day implementation.

42 percent of PMOs believe a more strategic orientation among project owners

and stakeholders is a top way to increase the effectiveness of the PMO.


So, what’s the problem?


The PMO is “speaking in PROJECTS”, while the C-Suite is “thinking in INVESTMENTS”.



Time to ElevateYour PMO?

7 Key Principles


1 With an investment mindset, the Project Management Office and the basic “project” unit of management becomes the inherently more strategic Portfolio Management Office with “investments” as the basic unit. An investment approach begins with viewing business units, initiatives, or strategic opportunities not as independent entities, but as logical portfolios of investments. This holistic view is a pre-condition for the value-based dialogue, decision-making, day-to-day investment management and governance that maximize value and performance across the portfolio.


2 Successful companies make strategic choices about where and how much to invest their finite resources in order to realize their strategic ambitions. With an investment mindset, PMOs equip their companies to operationalize those choices by informing the difficult trade-offs between what to do and what not to, and rationalizing investment resources between existing sources of revenue and emerging revenue streams in ways that are most closely aligned with strategic success.


3 Companies with investment mindsets can use the power of strategic portfolio management to maximize the performance and value of their investment portfolios by maximizing returns per unit of risk. The principle of risk-return optimization involves maximizing upside revenue capture, while minimizing downside risk exposure by quantifying (in financial terms) the material risks associated with investments, providing insight into the volatility inherent in those investments, and actively mitigating and exploiting risks in ways that turn them into new sources of opportunity.


4 At the end of the day, "it's all about execution”. With an investment mindset, execution means taking preemptive action to reallocate resources, adjust course and optimize the portfolio - the opposite of passive management or reacting to competitor moves. PMOs can apply active management and promote preemptive action by using value-based metrics and leading indicators to monitor the real-time performance and health of individual initiatives and in aggregate across the investment portfolio.


5 Even after discovering the need for it, many companies don't adjust to changing business conditions, choosing instead to stay locked into unattractive businesses, low-value opportunities, or poorly performing initiatives. Investment-minded PMOs can help overcome this behavior through the principle of “optionality”. Borrowing from the financial industry concept of "real options” and applied to portfolio execution, this proven management concept provides senior business leaders with options - the “right”, but not the “obligation” to invest, or continue to invest in strategic initiatives based on changing business circumstances.


6 Responsibility for strategic and commercially-focused initiatives, and the investment resources that they require, is often spread across multiple organizations such as corporate strategy, finance, M&A, product, R&D or individual business units. With an investment mindset, the PMO takes on the role of integrating these disparate pools of investments, and bridging critical governance and organizational gaps. With this principle, the PMO provides a higher level of transparency across the investment life-cycle, allowing CEOs, CFOs, Boards and senior business leaders to make decisions that make the whole greater than the sum of the parts.


7 Next-generation strategic initiatives, revenue streams and growth platforms are expected to deliver multiple times their actual capital investment in returns. Communicating value and measuring performance in this context requires management in business terms vs. project terms. With an investment mindset, PMOs can expand their visibility and management focus beyond the “traditional cost-schedule-scope of project management” to “managing the aggregate strategic growth, capital efficiency and risk-return across portfolios of investments” with the net present value (NPV), internal rate of return (IRR), benefits-cost ratio (BCR) and other investment controls to paint a more complete portfolio picture, and answer critical governance and value questions over the investment life-cycle.


7654321


So, what happens when thePMO makes the value leap?


The PMO starts to speak the investment-grade language that CFOs, CEOs, Boards and other stakeholders understand and REALLY care about…


Opportunities Risk-Return

Strategy Execution

Portfolio Management Office (PMO 3.0)PMO3.0

©2016OpptivLLC

©2016Opp

tivLLC


Our Featured Solutions: Accelerate time-to-value.

Opptiv is an award-winning portfolio management and governance company based in metropolitan Washington D.C. From our foundation working with some of the largest capital investment portfolios in the world, we work across industries and the globe to help organizations invest in strategic growth, maximize enterprise value and achieve enduring impact through portfolio excellence. To match the complexity and urgency of our mission, we provide the industry’s only “Investment-Grade” cloud-based software platform, processes and services purpose-built to turn these powerful concepts into operational reality.


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™

OpptivEnterprise™ is cloud-based strategic portfolio management software. Unlike traditional project-based or IT portfolio management tools, this next-generation portfolio management platform was built from the ground up to speak the financial and commercial language that CEOs, CFOs, Boards and other stakeholders understand and really care about.

UNMET NEED UNMET NEED REVENUE STREAM DIS-INVEST STATUS

KPI

MILESTONE

RISKSATURATED

FIND

"See the things that matter"

SHAPE

"Do the right things"

CAPTURE

"Do the right things right"

How does OpptivEnterprise™ Work? PORTFOLIO EXCELLENCE IN THE CLOUD.If you work in strategy, finance, M&A, product or R&D, OpptivEnterprise provides the visibility that you need to build and actively manage your portfolio of next-generation strategic opportunities, revenue streams and growth platforms with confidence. It’s comprehensive, yet intuitive and ready to use on day one. It works the way you want, to translate the concepts that you already know into the value-based visual language that you need to succeed.

DISCOVER DELIVERDEFINE


QuickStart™ Proof of ConceptStrategic Portfolio Management (SPfM)

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Jump-start your Strategic Portfolio Management initiative today!

VISUAL PORTFOLIO REVIEW.

Powered by OpptivEnterprise™Strategic Portfolio Management Software

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Executive Briefing

Executive Briefings are exclusive introductory sessions for Senior Executives and/or direct reports in diverse industries where we present a common challenge, introduce best practice solutions and facilitate discussions.

Overview Description

At Opptiv, we do ONE thing: We help companies invest in the future with confidence through purpose-built strategic portfolio management software,

processes and services.

The Executive Briefings defines the key principles, core and supporting operating processes and underlying metrics associated with investment governance, Strategic Portfolio Management and related management disciplines.

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#PMO3.0

Executive BriefingElevate your PMO.

elevate your pmo

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