Andy Jordan
October 3rd, 2013



Portfolio management vs. consolidated project
management
End to end management
◦ Before the project
◦ During the proj...
Consolidation

Portfolio

Program

Project

Portfolio
Management

Program

Project

Project
•Idea generation and development

Pre

•Portfolio modeling and selection
•Management and control

Project •Alignment monit...


Communicate priorities



Encourage idea capture and sharing



Consistent business cases



Portfolio modeling



...


Manage to portfolio goals and objectives



Adjusting execution to changing needs



Compensating for delivery varian...







Adjust expectations based on actual
deliverables
Ensure planned benefits are achieved
Identify and implement co...
Programs
Projects

Portfolio

Goals






All work is driven by the need to achieve
goals and objectives
Project and program needs are of secondary
importa...


Strong relationship building



Understanding of strategic priorities



Understanding of individual contributions

...







Requires ongoing executive support
Requires commitment from all stakeholders
at all levels
Can fundamentally ch...
Jay Hoskins
October 3rd, 2013
Recipe for the PPM Sweet Spot
Defining the problem
Key themes for success
Implementation scope

Implementing the themes
Pr...


PMI compliance



Project Management



Time reporting



Status reporting

What Business Leaders Want


Competitiv...
Close to Project /
Far From Results

Don’t bother me with status, I have a project to run

Team Member

I never know what ...
• Adoption – Easy to use and simple
• Crawl, Walk, Run – Use easy, effective, and proven processes first
• Enterprise syst...
















Strategy Management – Ability to model, quantify, and measure business strategy
Demand Management...
Crawl

Walk

Run

Project Portfolio Management Maturity Capability Levels
Project Portfolio Management Maturity Levels
Several key portfolio management capabilities were missing and will
significantly improve value delivery and productivity ...
• Adoption
• Alignment
• Performance
The top 3 responses all had to do with
ease of use, the “just-right” level of
functionality and being simple and
appropria...
Close to Project /
Far From Results

Projects status manages itself and my reporting time is
reduced by 75%

Team Member

...
About PowerSteering
PowerSteering combines the robust project and portfolio
management (PPM) functionality demanded by glo...
Contact Andy Jordan at:

www.projectmanagement.com/profile/andyjordan
www.roffensian.com
andy.jordan@roffensian.com
@Roffe...
Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM
Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM
Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM
Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM
Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM
Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM
Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM
Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM
Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM
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Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM

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Many organizations claim that they practice project & portfolio management (PPM), but it frequently turns out that they are only carrying out consolidated project management. True portfolio management is a much more strategic approach, which regards the project portfolio as the means of executing upon organizational goals.

This distinction, though minor on its surface, is profound in its implications. Organizations that fail to adopt portfolio management risk making costly mistakes throughout all aspects of project delivery – including approving the wrong projects, managing them incorrectly, failing to recognize business-related warning signs, and consistently failing to achieve expected results.

Learn how to:

Achieve a strategic portfolio management focus
Manage PPM as an end-to-end process, from ideas to benefit realization
Create consistency in developing proposals and business cases
Focus on business outcomes rather than project deliverables
Build a successful portfolio management culture at the grass roots level

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  • Today we will be discussing PowerSteering's recipe for hitting the PPM sweet spot in your PMO implementations.I am going to expand further on Dan’s assessment that the market contains two types of audiences, making that concept more concrete with a practical definition of the problem.I will look at the key themes that need to be emphasized to insure implementation success.I will also discuss how to manage implementation scope and define the capabilities that are needed to reliably hit the sweet spot.Finally, I will show some off a few examples of how the implementation themes are realized in PowerSteerings PPM system. Then we should have time to wrap up with a few questions.
  • Going a little deeper into the audience we can see the gap between results and projects has many stakeholders involved, all with different concerns.In fact, project governance processes and activities tend to have the widest scope and diversity of any business process in your organization. This situation actually compounds the change management issues that Dan mentioned previously.Without a proper understanding of what it means to hit the PPM sweet spot, it’s impossible to put all these people in a room and have them agree on an PPM deployment strategy.If success is expected, a PPM sweet spot implementation is going to have to address the needs of each of these roles in simple and direct way.
  • Before moving on to the implementation themes and capabilities required, I want to spend a moment on complexity.Paraphrasing a quote from Einstein, he once said, “Any intelligent person can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction”This chart describes this effect and shows the process most organizations take when learning how to implement a PPM system.During the learning process, the system design gets overly complex and not very effective.The needs of our audience aren’t satisfied across the board and the implementation becomes what I call a science project.This is the most dangerous point of the implementation because it impedes adoption. This is also the point at which many implementation fail.Our goal at PowerSteering is to skip the science project and go straight to the sweet spot where we have a simple system that aligns with the audience and is more effective in achieving results.I’m sure you would like that as well so let me show you how we do it.
  • First we focus on three main implementation themes, Adoption, Alignment, and Performance.To facilitate adoption we use our crawl, walk, run methodology that not only limits implementation scope, but does it in such a was so as to implement the most important capabilities first.For alignment, we focus on the goals of the business leaders and not so much the execution level details. For example we will forego time keeping in favor of deliverable and milestone management.We implement clear business cases and prioritization process that model the leaders goals and objectives, handle cost / benefit targets, and manage risk.Finally, we want to measure our results so that transparency is achieved and we can know that the implementation is successful.
  • One of the keys to a simple implementation is to understand the PPM capabilities that deliver the best outcomes.PowerSteering has spent over 12 years understanding PPM capabilities, and have documented them in our crawl, walk, run maturity model.Listed here are the “Must Have” capabilities for a sweet spot implementation.We must have…The good news, is that these capabilities are also the easiest to implement and adopt. They don’t require much time or overhead to operate and even simple approaches have huge impact.No need to be precise, just relevant.You will also notice that complex resource management, earned value, time keeping, critical path, and so on are not on the list.
  • We’re now ready to look implementing the themes in PowerSteering and how the PPM sweet spot looks to our audience.
  • When we look at adoption, we know that the biggest obstacle to success is ease of use. This is confirmed by analysts.Here we see that there is much dissatisfaction with PPM systems and that the top three reasons revolve around ease of use.Making a system easy for our audience is not easy and requires some serious homework and hard work.PowerSteering’s approach can minimize the learning curve and reduce your risk.So lets see how a sweet spot implementation with PowerSteering can make it easy for our audience.
  • First we want to make it easy for the project team.From a simple dashboard like this, they can see all their work, drill into it, review work instructions, report status, post issues, and ultimately mark it complete.These are very simple activities that require almost no effort on a daily basis. We don’t need to have them enter any time or do any complicated reporting.Dan mentioned perhaps not including them during the crawl phase of an implementation, but I like to always include them because it facilitates collaboration, communication, and efficiency and makes for less work for the project manager. Also team members appreciate having a clear understanding of their work and an easy way to communicate with the team.
  • Likewise, project managers need an easy way to see their projects and this simple dashboard fits the bill.This includes status information being automatically produced with little or no effort by the project manager.It includes project workspaces for all project information and artifacts.Here we see PowerSteering’s SBIDR process for communicating the key project performance attributes of schedule, budget, issues, deliverables, and risk.Most of this information is created with little or no interaction with the project manager.
  • We want it easy for portfolio managers.Here we see all the key value drivers like, alignment, cost, benefit, probability of success all rolled into priority and ranking scores.It is fast and easy to inventory new ideas, enter business cases, and present them to the business for better decision making.The portfolio manage also has a clear way to communicate project value to the business.
  • Its easy for resource managers.While there is no need to go deep into resource management, it is a good idea to manage capacity and have an understanding of who is working on what.It is very easy to create simple resource plans and create a roadmap that doesn’t overdrive the capacity of the organization.
  • Finally easy for our business leaders to see the impact and results of the project they fund.Reporting can be totally automated and give the leaders exactly the perspective they need see the results clearly.
  • The alignment theme ensures that we have a system that captures the goals of the organization.In this example we know which projects support which goals and we have ways to measure progress against the goals.All the dots are connected from execution level deliverables to the outcomes they support.
  • Lets revisit our audience and see how they came out after our sweet spot implementation.As you can see everyone is living happily ever after.Maybe not a simple as that, but with PowerSteering you have a better chance of staying on the “Yellow Brick Road”.
  • Whitepaper: Portfolio Management 101: Moving from ‘Just’ Project Management to True PPM

    1. 1. Andy Jordan October 3rd, 2013
    2. 2.   Portfolio management vs. consolidated project management End to end management ◦ Before the project ◦ During the project ◦ After the project  Strategic Management ◦ Goals and objectives focus ◦ Harmonizing portfolio, program and project management ◦ Portfolio management culture  Questions
    3. 3. Consolidation Portfolio Program Project Portfolio Management Program Project Project
    4. 4. •Idea generation and development Pre •Portfolio modeling and selection •Management and control Project •Alignment monitoring •Benefits realization Post •Variance correction
    5. 5.  Communicate priorities  Encourage idea capture and sharing  Consistent business cases  Portfolio modeling  Decision support  KPI alignment
    6. 6.  Manage to portfolio goals and objectives  Adjusting execution to changing needs  Compensating for delivery variance  Ensuring alignment at all levels of project execution
    7. 7.     Adjust expectations based on actual deliverables Ensure planned benefits are achieved Identify and implement corrective actions if required Lessons learned (benefits realization)
    8. 8. Programs Projects Portfolio Goals
    9. 9.    All work is driven by the need to achieve goals and objectives Project and program needs are of secondary importance Projects may be „sacrificed‟ for the good of the portfolio
    10. 10.  Strong relationship building  Understanding of strategic priorities  Understanding of individual contributions  Establishing concept of a complex ecosystem
    11. 11.     Requires ongoing executive support Requires commitment from all stakeholders at all levels Can fundamentally change the organization‟s effectiveness May drive structural change for project execution – EPMO, new processes, etc
    12. 12. Jay Hoskins October 3rd, 2013
    13. 13. Recipe for the PPM Sweet Spot Defining the problem Key themes for success Implementation scope Implementing the themes Problem solved Questions
    14. 14.  PMI compliance  Project Management  Time reporting  Status reporting What Business Leaders Want  Competitive advantage  Do more for less  Innovation and alignment  Better decision making
    15. 15. Close to Project / Far From Results Don’t bother me with status, I have a project to run Team Member I never know what to do next and am constantly interrupted with changing priorities Program Manager My program roadmap is constantly in jeopardy Resource Manager I have to do major adjustments every month to the resource plan Executive Sponsors / Approvers Your asking me to approve stuff with no clear business case or priority Portfolio Managers / Business Unit Managers I keep asking for improvements but never see any results PMO Far From Project / Close To Results Project Manager No one is communicating status with us CEO / CIO / Executives / Management I can’t see how your project benefits the P&L but your asking for more money?
    16. 16. • Adoption – Easy to use and simple • Crawl, Walk, Run – Use easy, effective, and proven processes first • Enterprise systems that follow adoption principles are enablers • Alignment – Business driven Business Leader… (Do this) PPM Deployment Manager… (not this) Improve competitiveness in our markets Visibility, Project Status, PMI standards, Be on time, Report Status, Time tracking • Performance – Measure your results • Top performers only have 10% unplanned work • Top performers regularly meet revenue and savings targets
    17. 17.          Strategy Management – Ability to model, quantify, and measure business strategy Demand Management – The ability to define work in terms of business strategy Prioritization – Ability to score and select demand based on business value and strategy goals Governance Board – Ability for stakeholders to create business strategy, and execute portfolio decisions based on that strategy Quality of Execution – Ability to measure the quality of executing the currently defined PMO process and strategy execution System of Record – A single source of truth (like PowerSteering! ) to manage the portfolio and relevant information Collaboration – The ability for everyone to have visibility and transparency in order to easily participate in the governance process. Milestone/Deliverable Management – The ability to ensure that key milestones are met and visible Benefits Realization – The ability to measure the results or impact of the portfolio on the business strategy.
    18. 18. Crawl Walk Run Project Portfolio Management Maturity Capability Levels Project Portfolio Management Maturity Levels
    19. 19. Several key portfolio management capabilities were missing and will significantly improve value delivery and productivity when deployed. These are organized across four capability categories: Governance - No major gaps. Optimize Demand:     Prioritization Selection Roadmap Resource Capacity Execute:  Deliverable Management  Project Health Analyze:  Benefits Realization  Quality of Execution  Roadmap As-Is
    20. 20. • Adoption • Alignment • Performance
    21. 21. The top 3 responses all had to do with ease of use, the “just-right” level of functionality and being simple and appropriate for each person. Satisfaction is all about adoption and value delivery, not features
    22. 22. Close to Project / Far From Results Projects status manages itself and my reporting time is reduced by 75% Team Member My work dashboard is clear, easy to use, and the project managers leave me alone to get more work done Program Manager The program roadmap now has clear objectives and we are delivering results more predictably Resource Manager The resource plan has stabilized with more focus on the right work and much less unplanned work Executive Sponsors / Approvers It’s clear the budget is going to important work with business impact Portfolio Managers / Business Unit Managers My portfolio review meetings have been cut in half and we make better project decisions PMO Far From Project / Close To Results Project Manager I seldom have to bother the managers with status reports and the executives get the right reports at the right time automatically CEO / CIO / Executives / Management We are spending less and getting better service levels than our peers
    23. 23. About PowerSteering PowerSteering combines the robust project and portfolio management (PPM) functionality demanded by global organizations with the cost & speed-to-value benefits of cloud delivery and an unmatched level of flexibility. Easy to use and administer, it enables top-down program & portfolio management without requiring granular task & resource tracking, and provides class-leading analytic and financial tracking capabilities. Leading global organizations, including Merck, Staples, the US Department of Defense, and the UK National Health Service, rely on PowerSteering to accelerate results in IT, New Product Development, Process Excellence and Business PMOs. PowerSteering is part of the Upland family of cloud-based project, portfolio, and work management software products. Visit www.powersteeringsoftware.com for more information.
    24. 24. Contact Andy Jordan at: www.projectmanagement.com/profile/andyjordan www.roffensian.com andy.jordan@roffensian.com @RoffensianPM Contact Jay Hoskins at: www.powersteeringsoftware.com jhoskins@powersteeringsoftware.com PowerSteering‟s Business-Driven PPM Blog http://www.powersteeringsoftware.com/blog/
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