Building Smarter and Healthier Organizations

Tim WashingtonCamp IT ConferenceMarch 14th, 2013

Building Smarter and Healthier Organizations Through Project

Portfolio Management

Building Smarter and Healthier Organizations

Agenda

• PPM Overview• Leadership• Processes• Tools• PPM 2.0

Building Smarter and Healthier Organizations

What is “Project Portfolio Management”?

Building Smarter and Healthier Organizations

Project portfolio management is a combination of various management disciplines:

%Management Disciplines

General management

Business management

Project and program management

Building Smarter and Healthier Organizations

Project portfolio management (PPM) is a

management discipline that drives

strategic execution and maximizes

organizational value through the

selection, optimization, and oversight of

project investments which align to business

goals and strategies.

PMI Quote

Paradigm Shift #1: Projects are an important vehicle for executing strategy

Building Smarter and Healthier Organizations

“Portfolio management is the strategy-based, prioritized set

of all projects and programs in an organization reconciled

to the resources available to accomplish them.”

Stanford QuoteParadigm Shift #2: The single project view to a total portfolio view.

Building Smarter and Healthier Organizations

“Managing [the] composite groups of projects

with the same rigor, balance, executive

leadership, and decision-making involvement

as the company’s financial

portfolio. Portfolio Management is an

ongoing process that includes decision-

making, prioritization, review, realignment,

and reprioritization.”

Financial Portfolio QuoteParadigm Shift #3: Projects are investments!

Building Smarter and Healthier Organizations

The Purpose of Portfolio Management

• Execute Strategy

• Deliver Maximum Value

• Enhance Decision Making

• Manage Organizational Change

Building Smarter and Healthier Organizations

At the highest level, Project Portfolio Management has four basic components:

All the steps necessary to construct an optimal portfolio given current limitations and

constraints

Ensure value is delivered by comparing expected benefits

with actual benefits; drive PPM maturity

Selected projects must align with the business strategy and meet other important criteria

OptimizePortfolio Value

Project benefits must be protected in order to deliver

maximum portfolio value

ProtectPortfolio Value

ImprovePortfolio Value The Goal:

Maximize Value to the Organization

Select the Right Projects

Building Smarter and Healthier Organizations

A Pragmatic View of Project Portfolio Management

LEADERSHIP

The right leaders for:

• Determining what decisions will be made

• Establishing which information is needed to make strategic decisions

• Using the data to make better strategic decisions

• Driving accountability

PROCESS

The right processes for:

• Governance• Portfolio optimization• Project monitoring• How stakeholders get

data into the PPM tool• How to use the data to

make better decisions

TOOL

The right tool for:

• Storing project and portfolio data

• Displaying project and portfolio information for general consumption

• Transforming the data for reporting and analytics

Building Smarter and Healthier Organizations

Strategic Leadership Includes:

1) Business acumen

2) Active engagement

3) Proactive view

4) Balancing long-term and short-term needs

5) Communicating a consistent message

Building Smarter and Healthier Organizations

Trust

Conflict

Commitment

Accountability

Results

“The only way for teams to build real trust is for team members to come clean about who they are, warts and all”

“When there is trust, conflict becomes nothing but the pursuit of the truth, an attempt to find the best possible answer”

“When leadership teams wait for consensus before taking action, they usually end up with decisions that are made too late and are mildly disagreeable to everyone. This is a recipe for mediocrity and frustration”

“To hold someone accountable is to care about them enough to risk having them blame you for pointing out their deficiencies”

“No matter how good a leadership team feels about itself, and how noble its mission might be, if the organization it leads rarely achieves its goals, then, by definition, it’s simply not a good team”

Leadership Teams

Building Smarter and Healthier Organizations

Healthy organizations start with healthy leadership teams

Building Smarter and Healthier Organizations

“I’m convinced that if the rate of change inside the institution is less than the rate of change outside, the end is in sight. The only question is the timing of the end.”

--Jack Welch, former chairman of GE

Building Smarter and Healthier Organizations

High IQ: Expert(Proactive)

• Shape environment to own advantage• Organizational agility-capacity to change• Distributed strategic intelligence• Mind-set of change

Moderate IQ: Competent

(Reactive)

• Debating when to change• Keep pace and react to external change• Clear options, criteria, and processes

Low IQ: Ignorant(Not Active)

• Don’t realize the need to change• Strategically blind• Incompetent (“let’s pretend”)

Video

Building Smarter and Healthier Organizations

Building Smarter and Healthier Organizations

Strategic Planning (the big WHAT’s)

Portfolio Planning (WHEN)

Project Planning (HOW)

Smart organizations plan on many levels

Building Smarter and Healthier Organizations

We Need Clarity (aka alignment)

1) Why do we exist?

2) How do we behave?

3) What do we do?

4) How will we succeed?

5) What is most important for us, right now?

6) Who must do what?

These questions must be answered together, not in isolation

Building Smarter and Healthier Organizations

Leadership Needs to Over-communicate Clarity

Problem: leaders confuse the mere transfer of information to an audience with the audience’s ability to understand, internalize, and embrace the message that is being communicated.

Great leaders see themselves as “Chief Reminding Officers”

Building Smarter and Healthier Organizations

Governance as the Framework Which Enables Accountability

A Shared Vision With Strategic Goals

to Demonstrate Accountability

Leadership to Drive

Accountability

Critical Components of Accountability

Building Smarter and Healthier Organizations

What Kind of Governance Do You Need?

PPM is only bureaucratic if you have the wrong infrastructure

Building Smarter and Healthier Organizations

What Kind of Direction Do You Need?

“Informed Intuition” Strategic Roadmap with Metrics

Strategic Goals

Building Smarter and Healthier Organizations

LEADERSHIP

Leadership determines what data is important for managing the portfolio and drives accountability for getting the right data.

PROCESS

The right processes get the right data into the system at the right time.

TOOL

A portfolio system stores and transforms the data for general consumption (reporting and analytics).

LEADERSHIP

Leadership then uses the data to make better investment decisions at the right time.

The Data Perspective of Project Portfolio Management

Good data is the fuel that makes the portfolio engine run!

Building Smarter and Healthier Organizations

1. Sr. Mgt. Uses the

Data

2. Sr. Mgt. Communicates That the Data is

Being Used

3. Sr. Mgt. Demonstrates How the Data Is Being Used

4. Data Quality

Improves

5. Better Decision Making Ensues

Building Smarter and Healthier Organizations

If the cost of putting data into your PPM System exceeds the value of information coming out of your PPM system, then leadership needs to re-think its processes or the organization is using the wrong tool.

ReportsAnalytics

Information

Data PPM SYSTEM

Think about it!

Building Smarter and Healthier Organizations

Current State

Future State(expected benefit)

Actual Benefit(post-completion)

Benefit Gap

1. What benefits are we expecting in the future?

(business case)

2. What benefits have we realized? (benefits tracking)

3. How do we ensure we realize full benefits

on future projects? (lessons learned)

Benefits Realization Summary

Building Smarter and Healthier Organizations

PPM 2.0

Stronger Community

Social Collaboration

PPM 2.0 is about building smarter and healthier organizations

Building Smarter and Healthier Organizations

For more information

Building Smarter and Healthier Organizations

Contact Information

@ppmexecution

http://www.linkedin.com/in/timawashington

Name: Tim WashingtonEmail: timw@ppmexecution.comWeb: www.ppmexecution.com