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Transcript of November 8 th, 2014 1 Andy Jordan President, Roffensian Consulting Inc., Management Consulting firm...
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Portfolio Management or Bust!(a very real possibility for PMOs today)
November 8th, 2014Andy Jordan
President, Roffensian Consulting Inc., Management Consulting firm specializing in PMOs and portfolio management.
Author, facilitator and in demand speaker featured on ProjectManagement.com & [email protected]
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Portfolio Management• What it is (and what it isn’t)?• The portfolio lifecycle• Strategic execution
Portfolios and the PMO• A business focused PMO• An independent, objective partner• Up and out, not just down and in
Starting the journey• Gaining permission• Delivering success
Contents
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PPM leaders must prepare for extreme transformation of must prepare new résumés
Gartner Predicts, 2014. December 5th, 2013
PPM has ‘defaulted’ to PMOs up until now That will change (and is changing) if PMOs fail
to deliver PMOs must evolve or become marginalised
Before we start…….
What is a portfolio?Portfolio
Program A
Project 1
Project 2
Program B
Project 3
Project 4
Project 5
Program C
Project 6
Project 7
Cons
olid
ated
Info
rmat
ion
Strategic Managem
entX
Vehicle for delivering strategic priorities Aligned with goals and objectives May be multiple portfolios• Departmental• Business function• Regional• Etc.
A portfolio is the management framework for effective project execution
What is a portfolio?
The portfolio lifecycle
Slide 6
Idea Business Case Selection Execution Benefits Realization
Project
P o r t f o l i o Portfolio begins with the seeds of an idea and lives
through the harvesting of the benefits
Successful portfolios need nurturing at all stages of development
The implication is that the PMO spans all portfolio elements and all portfolio departments
Is that the reality in most organizations?Before the
projectViewed as a departmental responsibility
Ideas compartmentalized
Business cases inconsistent
Proposals champion departmental priorities over organizationalPolitics plays a major role in selection
After the project
Returns to operational silo
Little to no benefits tracking
No accountabilityDoes that maximize the ability to achieve the organizational goals?
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Put yourself in their shoes – what is the likely reaction of these roles to what you have heard so far?• Executive• Department head• PMO manager• Project or program manager
The portfolio perspective
Strategic project execution
Slide 9
STRAT
EGY
If portfolio management doesn’t provide a strategic portfolio framework then projects will make deliverable focused decisions that ignore the organizational goals
Projects cannot be managed as self contained entities – they are part of the organizational ecosystem
Effective project management means understanding how the project fits within that ecosystem
Execution – Context = Failure
Deliverables are only relevant to the extent that they deliver business results
A project can only be successful if it delivers its planned benefits
Change decisions are often driven by the project’s alignment rather than anything internal to the project
Project management is a sub-discipline of portfolio management
Priorities and expectations are dynamic and must be managed as such
Principles of strategic execution
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A logical alignment for portfolio delivery, but……• PMOs must be business functions, not project
functions• PMOs must be viewed as trusted, independent
advisors• PMOs must be given clear mandates supported by
organizational commitment
If PMOs fail to embrace portfolio management they will become increasingly irrelevant
Portfolio management & the PMO
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A PMO is a department – it persists beyond any individual project
As such it is no different from other departments – sales, HR, IT, etc.
So why do so few PMOs have:• Annual goals / objectives?• A business plan?• A regular review of performance against KPIs?
Or even……• A clearly defined role within the organization?
The business focused PMO
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The business focused PMO
PMO
Purpose
Goals
Structure
PMO must be supported by a clear organisational mandate, otherwise it cannot succeed
If the organisation cannot (or will not) provide the mandate then perhaps the PMO is not required
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Independent & objective•Central Planning Support•Screening•Business Case Development
Facilitator
•Portfolio Modeling•Capability & Capacity•Constraints AnalysisAdvisor•Variance Tracking•Strategic Execution•Benefits RealisationManager
Which three of the following would you choose as your year one priorities – and why?
Establishing priorities
To Do List
Organization wide
idea capture Collabora
tive idea enhance
ment
Preliminary idea
screening
Standardized
business case
formats
Portfolio modelin
g
Capacity and
capability planning
Strategic project
execution
Centralized
benefits tracking
Benefits accountability
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Up and out, not just down and in Broader scope than traditional PMOs• Managing out to the organization, not in to project
execution• Connecting projects with objectives
Project execution support focuses on context• How projects can be better executed to support
the business• Development of business focused PMs
Existing support functions may still exist• Provide a foundation, not a differentiator• Not enough to justify existence
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Change only comes from a recognition of need• If your organization doesn’t feel execution pain then
they won’t recognise the value Commitment must be meaningful or it won’t
last• Executives and department heads must ‘live’ the
commitment You need a champion to sponsor the concept Approval will always be conditional• You will need to demonstrate success to maintain
support
Gaining permission to change
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What is your leverage for making this change? Why should the executives buy in?• What’s the benefit for them?
What does success look like?• In year 1?• As a roadmap?
What has to happen to deliver the change? What’s the plan?• Costs• Milestones• Stakeholders
The elevator pitch
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Delivering successPain
points
Goals
PlanActions
Metrics
It’s not rocket science!
Consistency between approaches taken elsewhere help gain buy in.
Early results show value and drive commitment.
Focus on needs demonstrate alignment with stakeholders.
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Questions?