Portfolio Management Balancing Adaptability with Stability

Dr. Saadi Adra, CEOPfMP, PgMP, PMP, PMI-RMP, PMI-SP, EVP, OPM3Recipient of PMIEF 2016 Snyder Award

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INDEX

1.  APor.olioStory2.  PMI’sTheStandardforPor.olioManagement

Rev.4.03.  TheVUCAChallenge:AchievingtheBalance–

AdaptandStabilize

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1.APor&olioStoryItTakesTwotoTango

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CAST

Jad–DirectorSam–ProjectManagerFarid–ProjectLeader

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JadassignsSamasProjectManager

Project Charter

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JadassignsFaridasSeniorProjectManager

Project Charter Project Charter1.  SPONSORSHIP2.  Delegation3.  Capacity Building

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Farid’sCharterCondiXons

1. Define Jad’s Role to Support Farid and the project

2. Agree on the specific delegation of authority sanctioned by Jad for Farid

3. Set Capacity Building Plan for all team, including Jad himself

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SponsorshipMakesSuccess

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WelcometoPor.olioManagement

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Por1olioManagement

DoingTheRightThings

ProjectManagement

DoingThingsRight

ItTakesTwotoTango!

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PMIGlobalStandardsTheStandardforPor.olioManagementFourthEdiXon

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Organisational Strategy

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Por.oliocomponents

•  RepresenthowOrganisaXonwillachieveitsstrategicgoalsandobjecXves

•  RepresentorganisaXon’sinvestmentprioriXestoachieveitsstrategy

•  RequiresmanagementandgovernancethatincludesallocaXngandsharingresources(e.g.,human,financial,asset,andintellectual)acrosspor.oliocomponents

•  ShouldbequanXfiable,evaluated,measured,ranked,andprioriXzed

•  Canbedirectedorcontrolledtoaccomplishpor.oliovalue

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Por.olioLifeCycleandtheSixPerformancedomains

Ini9a9on Planning Execu9on Op9misa9on

Portfolio Life Cycle

Portfolio Governance

Portfolio Capacity and Capability Management

Portfolio Stakeholder Engagement

Portfolio Value Management

Portfolio Risk Management

Portfolio Strategic Management

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Ini9a9on Planning Execu9on Op9misa9on

Portfolio Life Cycle

Portfolio Governance

Portfolio Capacity and Capability Management

Portfolio Stakeholder Engagement

Portfolio Value Management

Portfolio Risk Management

Portfolio Strategic Management

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•  Eachpor.oliocomponentshouldbealignedtooneormorestrategicobjecXves,andtheposiXveimpactshouldbeconstantlymonitored.

•  Thegoaloflinkingpor.oliomanagementwithOrganizaXonalstrategyistoestablishabalanced,executableplan.

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ProjectsandprogramsdrivechangeinorganisaXons

The Project Management Institute, PMBOK® Guide, Sixth Edition, Project Management Institute, Inc., 2017.

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PMI–PulseoftheProfessionsurveybyTheBrightline™Ini3a3ve

Strategydeliveryisjustasimportantasstrategydesign—buttoomanyleadersdon’tseemtorealizeit.OrganizaXonsfailtomeet20%oftheirstrategicobjecXvesbecauseofpoorimplementaXon,andOnly1in10organizaXonscandeliveralloftheirstrategiciniXaXvessuccessfully

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Ini9a9on Planning Execu9on Op9misa9on

Portfolio Life Cycle

Portfolio Governance

Portfolio Capacity and Capability Management

Portfolio Stakeholder Engagement

Portfolio Value Management

Portfolio Risk Management

Portfolio Strategic Management

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Ini9a9on Planning Execu9on Op9misa9on

AuthorizaXonCharter

HealthMonitorPerformance

Reports

ClosePhase,ProjectorProgram

FeasibilityBusinessCase

KillProjectorProgram

Portfolio Life Cycle

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Ini9a9on Planning Execu9on Op9misa9on

Portfolio Life Cycle

Portfolio Governance

Portfolio Capacity and Capability Management

Portfolio Stakeholder Engagement

Portfolio Value Management

Portfolio Risk Management

Portfolio Strategic Management

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Iden9fyNeededResourceRequirements

(Competencies,Skills,Experience)ToFulfillStrategies

ResearchMarketGAP(Demand)

SetStrategicAlignmentMethod

CheckExis9ngCapacity(Supply)

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UnusedCapacity

UnmetDemand

AllocatedResources

DemandResource

Requirement

SupplyResourceCapacity

Minimize

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UnmetDemand

UnusedCapacity

AllocatedResources

DemandResource

Requirement

SupplyResourceCapacity

Minimize

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MOREAllocatedResources

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Ini9a9on Planning Execu9on Op9misa9on

Portfolio Life Cycle

Portfolio Governance

Portfolio Capacity and Capability Management

Portfolio Stakeholder Engagement

Portfolio Value Management

Portfolio Risk Management

Portfolio Strategic Management

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Stakeholdermapping

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Stakeholderengagement

• ThegoalofthistechniqueistoidenXfy:

q Which stakeholders should receive project

communicaXons

q WhatcommunicaXonstheyshouldreceive

q HowtheyshouldreceivethesecommunicaXons

q HowoXentheyshouldreceivethem

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CommunicaXonsplan

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Ini9a9on Planning Execu9on Op9misa9on

Portfolio Life Cycle

Portfolio Governance

Portfolio Capacity and Capability Management

Portfolio Stakeholder Engagement

Portfolio Value Management

Portfolio Risk Management

Portfolio Strategic Management

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StrategyPor1olio:

ValueDecisions

Programs/Projects:ResultsDelivery

Opera9ons:BusinessValueRealisaXon

Organisational Environment Portfolio Review and Adjustments

Business Impact Analysis

Value Performance Analysis

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Componentsofvaluemanagement

q  NegoXateexpectedvalue

q Maximizereturn

q  Realizevalueq Measure

performanceq  Reportvalue

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Ini9a9on Planning Execu9on Op9misa9on

Portfolio Life Cycle

Portfolio Governance

Portfolio Capacity and Capability Management

Portfolio Stakeholder Engagement

Portfolio Value Management

Portfolio Risk Management

Portfolio Strategic Management

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Youwillalwaysmiss100%oftheshotsyoudonottake

WayneGretzky

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Riskstrategy

RiskCapacity

RiskTolerance

RiskAppeXte

The risk you can AFFORD to take (Financial)

The risk you NEED to take (strategic)

The risk PREFER to take (physiological)

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3.Howdoesyourorganiza9onAdapttoachieveStabilityinaVUCAworld?

Vola6lity–Uncertainty–Complexity-Ambiguity

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TheanX-VUCAPor.olio

Volatile Vision – Cultural Change Management, Transformation & Adaptation

Uncertainty Embrace Disruptive Technologies for the right Opportunities

Complexity Aim for Clarity, Engage Stakeholders, Sponsors, Executives Employees, Customers and Partners

Ambiguity Agility geared on Execution for the Realization of the Strategy

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TheanX-VUCAPor.olio

Volatile Vision – Cultural Change Management, Transformation & Adaptation

Uncertainty Embrace Disruptive Technologies for the right Opportunities

Complexity Aim for Clarity, Engage Stakeholders, Sponsors, Executives Employees, Customers and Partners

Ambiguity Agility geared on Execution for the Realization of the Strategy

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Por.olio–VolaXlity

Por.olioresolvesvolaXlityhurdlesby:

•  WorkingtowardsaVisionthatenablesCulturalChangeManagement,TransformaXon&AdaptaXon

•  EnablingbusinessestoovercomeculturalandorganizaXonalchallenges,andwhyaformalprojectmanagementcapabilityisbestsuitedtosupportchangemanagementandlinkstrategydesigntostrategydelivery

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Por.olioEliminaXngUncertainty:EmbraceDisrupXveTechnologiesfortherightOpportuniXes

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“InnovatororganizaXonsrealizethatdisrupXvetechnologiescangivethemacompeXXveadvantagebyimprovingthecustomerexperience,enhancingemployeeefficiency,andshorteningprojectXmelines.”

MARKA.LANGLEY,PMIPresidentandCEO

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Por.olioandComplexity:

•  Employeesaremoreengaged•  Dedicatedcustomerbase.

•  C-levelexecuXvesmustlearntomanagetheinfluxandinfluenceofdisrupXvetechnologies.

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Por.olioanX-Ambiguity:AgilitygearedonExecuXonfortheRealizaXonoftheStrategy

•  Por.olioisthestrategicenabler—bridgingthegapbetweenacompany’svisionandhowthatvisioncomestolife.

•  EnsurestheorganizaXoncanwithstandfuturechallengesandcapitalizeonfutureopportuniXes.

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Dr.SaadiAdra,CEOPfMP,PgMP,PMP,PMI-RMP,PMI-SP,EVP,OPM3RecipientofPMIEF2016SnyderAward(+961)3338-254saadi.adra@advisors.cohfps://www.linkedin.com/in/saadiwww.advisors.co

AllFrameworks,charts,graphs,cartoonsanddrawingareADVISORS’

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