PMI Sweden Chapter

Passion for projects 2013

Balance your project portfolio to reach the strategic

targets

Malin Hedmark – Condesign

malin.hedmark@condesign.se

Agenda

• Short introduction to Condesign and Planisware

• Project Portfolio Management (PPM) in brief and the values of

PPM

• Setting the portfolio framework

• Tools and methods for achieving a balanced portfolio

• Questions?

Content

• Short introduction to Condesign and Planisware

• PPM in brief and the values of PPM

• Setting the portfolio framework

• Tools and methods for achieving a balanced portfolio

• Questions?

About Condesign

Technical Documentation

Engineering

Marketing Communication

Processes & System

Document Management

Condesign efficiently transforms information to effective communication

Stockholm

Linköping

Karlstad

Karlskoga

Göteborg

Jönköping

Ljungby

Founded in Gothenburg 1984

200 employees

Offices in 7 cities

ISO 9001/14001 certified

Ranked ”Top 10” of best employers

in Sweden

Services within Project Portfolio Management

(PPM)

Analysis and process

design.

Requirement specification

and design of system

solutions.

Advice and support in

establishing models and

tools for PPM.

Project management during

PPM implementations.

Training and support

Planisware: Global leading

supplier of Enterprise Project

Portfolio Management

software solution.

• Planisware is a global leading supplier of PPM (Project Portfolio Management) systems since 1996

• Planisware 5 is a system for PPM (Project Portfolio Management) that supports the organizations complete

project scope: from strategic level to operational level

• Strong support within NPDI (New Product Development and Innovation)

• Extensive financial capabilities to support economic planning, budgeting, follow-up and simulation

• Planisware’s PPM-system is used by more than 250 organizations worldwide with +200 000 users in market

segments such as: Pharma, Energy, IT, Aerospace & Defense, Automotive

Sample references:

Condesign is a Planisware partner

Planisware main functions

Do the Right Projects Do the Projects Right

Strategic Buckets

Investment scenarios

Business Case &

Sales Market Analysis

Portfolio Performance

Project Management

Resource Management

Detailed

Roadmap

Project

Development

Strategic

Orientation

Launch

Strategic

Roadmap

Idea

Management

Content

• Short introduction to Condesign and Planisware

• PPM in brief and the values of PPM

• Setting the portfolio framework

• Tools and methods for achieving a balanced portfolio

• The challenges

PPM in brief Project portfolio management (PPM) is a process for analyzing and managing the project portfolio in an

organization. PPM is about selecting the right projects to achieve your strategic goals. By building your project

portfolio based on your strategic goals and constraints only the ideas that best fulfill your roadmap and available

resources are invested in.

The values of PPM

By implementing PPM processes, methods and tools you are able to balance your

strategic goals and limitations, increase the value from your investments and execute your

projects with high efficiency.

Focus for today’s seminar

Content

• Short introduction to Condesign and Planisware

• PPM in brief and the values of PPM

• Setting the portfolio framework

• Tools and methods for achieving a balanced portfolio

• Questions?

From Company strategy to portfolio targets

Company strategy:

• Grow product segments x and y with increased or maintained Profitability

• Defend market position within product segment z

• Maintain technology leadership

• Achieve a balance between defending our core markets and growing in new

opportunity markets

• Grow our services offer to achieve a total solution offer

From Company strategy to portfolio targets

Company strategy:

• Grow product segments x and y with increased or maintained Profitability

• Defend market position within product segment z

• Maintain technology leadership

• Achieve a balance between defending our core markets and growing in new

opportunity markets

• Grow our services offer to achieve a total solution offer

Portfolio targets:

• Investment in product segment x, y, z

• Balance investments in core vs new technologies

• Balance investments in core vs new market segments

• Balance the investment in NPD, R&D, Services, IT

Categorizing the projects to achieve

steering and follow up of the portfolio

Product segment Type of Investment

Targeted Market segment Technology level

Project abc

What are your portfolio targets?

• Questions to think of

– What is the long term and short term company strategy?

– What risk level should we have in our portfolio?

– What is the market outlook for the coming 5 years?

– What investments is necessary in the company

infrastructure?

Define the framework for each portfolio target Strategic buckets

Type of investment

R&D

NPD

IT

Servicesdevelopment

Technology level

CoreTechnology

NewTechnology

Product Segment

Productsegment x

Productsegment y

Productsegment z

Targeted market segment

Marketsegment 1

Marketsegment 2

Marketsegment 3

Marketsegment 4

How can you define your framework?

• Questions to think of:

– What information is needed to define the framework?

– Which parts of your company is influencing the framework?

– Who are the key stakeholders that needs to be involved?

– Is the framework already defined on different levels of your

organization?

To think of: Short versus long term portfolio targets

• The long term strategy may be known and we should of course

set up our portfolio targets towards that but

– On short term we might have other constraints that need to

be fulfilled, e.g. we have an ERP implementation this year or

we have a legal demand for next year that requires

substantial resources

• This means that you will not be able to achieve your balance

year one but should steer towards achieving it going forward.

Content

• Short introduction to Condesign and Planisware

• PPM in brief and the values of PPM

• Setting the portfolio framework

• Tools and methods for achieving a balanced portfolio

• Questions?

Other important input for PPM Prioritization criterias and constraints

• To achieve an optimzed and balanced portfolio it is not enough to only

look at portfolio targets, we also need:

– Prioritization criterias like scoring, costs and benefits

– Constraints in terms of resources or budgets

• Sample scoring criterias:

Portfolio analysis step by step

1. Analyse the current portfolio alignment, evaluate current portfolio of

projects in relation to strategic targets

– Capture strategic fit and white spots

2. Define prioritization criterias and constraints

3. Capture opportunities, score, categorize and rank them as well as the

current project portfolio

4. Based on current project portfolio, opportunities and identified white

spots

– Evaluate different portfolio scenarios in relation to cost and

resource constraints

– Simulate the different scenarios to optimize and balance portfolio

Aligning Project Portfolio with Strategic Vision Illustrate and compare strategic alignment with respect to different strategic buckets before making investment decisions.

A visual

representation of

project alignment

with the corporate

strategy. Project

budgets are

consolidated and

compared to the

Strategic Buckets

allocated for each

dimension.

Strategic Buckets This functionality let you compare the funds for one or more strategic buckets with the projects that are linked to them.

Compare your current

portfolio with your strategic

vision, which is entered

before this step. Change the status of projects or

opportunities to Go or No go and immediately

see how it affects the strategic alignment

diagrams to the right.

Content

• Short introduction to Condesign and Planisware

• PPM in brief and the values of PPM

• Setting the portfolio framework

• Tools and methods for achieving a balanced portfolio

• Questions?

Questions

Malin Hedmark

Business area: PPM

Condesign Operations Support AB

Knarrarnäsgatan 7

164 40 Kista

malin.hedmark@condesign.se

Tel: +46 8 477 9620