Introduction to MoP™ - APMG-International Webinar
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Introduction to MoP™ - APMG-International Webinar

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Wednesday 2nd November 2011 / 14:00 GMT

Wednesday 2nd November 2011 / 14:00 GMT
Presented by Stephen Jenner

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  • 3 - via management of the project pipeline, dependencies and constraints
  • Decision Conferencing6.2 criteriaDon’t wait for perfect information – use MbyE

Introduction to MoP™ - APMG-International Webinar Introduction to MoP™ - APMG-International Webinar Presentation Transcript

  • www.apmg- international.com International International APMG-International Webinar Introduction to MoP™ Wednesday 2nd November 2011 / 14:00 GMT Presented by Stephen Jenner www.APMG-International.com MoP™ is a Trade Mark of the Cabinet Office.
  • International Agenda • Welcome & introduction • About your presenter • Introducing MoP™ – Overview – An Active Process – A Value-Led Process – An Evidence-Based Process – Fast and Frugal Decision Making • Questions & Answers
  • International About APMG-International • Global Examination & Accreditation Institute • Official accreditation/qualification body for Cabinet Office (formally OGC) PPM portfolio • Full portfolio of professional management qualifications • Accredit ATOs & ACOs (250) • HQ in UK; Operational offices in 9 countries • Over 15,000 examinations sat every month • Full details at www.APMG-International.com
  • International Presenter • Stephen Jenner Mst, MBA, BA (Hons), FCMA, FAPM • MoP Chief Examiner & Co-author • Portfolio and Benefits Management Professional • Author of several publications in portfolio and benefits management fields • Extensive experience in managing large and complex portfolios, programmes and projects • Designed, implemented and operated the CJS IT approach to Portfolio & Benefits Management, recognized internationally • www.stephenjenner.com / Stephen.Jenner5@btinternet.com
  • International Introducing Management of Portfolios Realizing Business Benefits from Project Portfolio Management
  • International Project Portfolio Management Understand Categorise Prioritise Balance Benefits Management Financial Management Management Control Resource Management Portfolio Definition Portfolio Delivery Risk Management Stakeholder Engagement Organisational Governance Plan Organisational Energy Doing the „right‟ things Doing things „right‟ © Crown Copyright 2011 Reproduced with permission from the Cabinet Office
  • International With potential benefits in terms of... • Improved strategic alignment - more of the „right‟ projects are undertaken • Removal of redundant, duplicate and low value/high risk projects • More effective implementation of projects and programmes • More efficient utilization of limited resources • Greater benefits realization • Improved accountability and corporate governance
  • International But... • Jeffery and Leliveld at MIT found that 65% of CIOs surveyed believed IT project portfolio management yields significant business value, although only 17% appeared to be realizing the potential value in practice • P3O® notes that around half P3Os are restructured or closed within 2 years • One APM report notes that, “of fifty portfolio management implementations…fewer than 25% were still in operation 12 months later.” • And in the US, a survey reports, “only 30% of portfolio management functions had been in place for more than two years.” P3O® is a Registered Trade Mark of the Cabinet Office.
  • International Perceptions of Project Portfolio Management Maturity Average rating out of 10 1. There is a clear view on what projects and programs are being planned and undertaken, what they will cost and what business impact is anticipated. 5.52 2. Our investment appraisal and portfolio prioritization processes ensure limited resources (money, skills, equipment etc) are allocated to those projects/programs with the greatest impact on organizational priorities subject to consideration of risk. 4.69 3. The forecasts used to inform investment decisions are accurate and reliable. 5.21 4. Project/Program scheduling is matched to the organization‟s capacity and capability to deliver projects and programs and manage business change. 4.77 5. Funding allocations are adjusted to reflect changes in current organizational priorities and project/program performance so that spend remains aligned with strategy. 5.37 6. Limited resources (e.g. skilled staff) are managed to ensure efficient delivery i.e. demand and supply for in-house resources are matched, with appropriate and managed reliance on consultants and contractors. 5.06 7. Portfolio Delivery Management - dependencies, inter-dependencies and risks are managed effectively and for the benefit of the portfolio as a whole. 4.56 8. There is a clear view of project and program performance against key milestones and costs, and effective action is taken to address any slippage that might affect portfolio delivery. 5.63 9. Projects and programs are delivered consistently on time and to budget. 5.15 10. Benefits forecast are realized in practice and value created is optimized from our accumulated investment in change. 3.83 And a recent survey indicates room for improvement
  • International A “discipline whose time has come”
  • International Effective Portfolio Management is built on... © Crown Copyright 2011 Reproduced with permission from the Cabinet Office
  • International Realizing the (potential) Business Benefits of Project Portfolio Management 1. An Active process 2. A Value-led process 3. An Evidence-based process 4. With Fast and frugal decision-making
  • International 1. An Active Process – Staged Release of Funding “You got to know when to hold „em, know when to fold 'em. Know when to walk away, know when to run.” Kenny Rogers, The Gambler
  • International 1. An Active Process The BCG Matrix Portfolio Planning Model
  • International 1. An Active Process The result should be a funnel, not a tunnel
  • International 2. A Value-Led Process – Portfolio Segmentation STRATEGIC Investment in IS/IT applications that are critical to sustaining future business strategy HIGH POTENTIAL Investment in IS/IT applications that may be important in achieving future business strategy OPERATIONAL Investment in IS/IT applications on which the organisation currently depends for success SUPPORT Investment in IS/IT applications which are valuable but not critical to success The Cranfield IS Investment Portfolio
  • International 2. A Value-Led Process – Strategic Contribution Analysis
  • International 2. A Value-Led Process – ‘Driver-based’Analysis Heskett, Jones, Loveman, Sasser and Schlesinger, (2008) Putting the Service Profit Chain to Work.
  • International 2. A Value-Led Process – ‘Driver-based’ Analysis Citizen Trust & Confidence In Public Institutions Citizen/Client Service Satisfaction Employee Engagement DRIVERS OF PERFORMANCE DRIVERS OF PERFORMANCE DRIVERS OF PERFORMANCE ©Heintzman and Marson 2006
  • International 3. An Evidence-based Process “The best project selection system in the world is worthless unless the data is sound.” Bob Cooper & Scott Edgett BUT (and it’s a big BUT)....
  • International 3. An Evidence-based Process Unfortunately... “There is a demonstrated, systemic tendency for project appraisers to be overly optimistic. This is a worldwide phenomenon that affects both the private and public sectors…appraisers tend to overstate benefits, and underestimate timings and costs.” HM Treasury “it is found with overwhelming statistical significance that the cost estimates…are highly and systematically misleading.” and demand forecasts are “significantly misleading (inflated). The result is large benefit shortfalls”. Flyvbjerg “Delusional optimism: we overemphasize projects‟ potential benefits and underestimate likely costs, spinning success scenarios while ignoring the possibility of mistakes.” Lovallo and Kahneman
  • International 3. An Evidence-based Process So... 1. A Benefits Eligibility Framework 2. Reference Class Forecasting 3. With Staged release of funding 4. And Multiple-criteria analysis - appraising potential investments from more than one perspective…
  • International 3. An Evidence-based Process – Considering Risk and Return
  • International 4. Fast and Frugal Decision Making
  • InternationalInternational QUESTIONS & ANSWERS
  • www.apmg- international.com International International Find out more about us at our website: www.APMG-International.com