Improved Business Performance Through Effective Portfolio Management

  • 1,684 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,684
On Slideshare
0
From Embeds
0
Number of Embeds
2

Actions

Shares
Downloads
35
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved. This is the Corporate Presentation. Use these slides in every presentation. Is the globe in our logo showing? If not, adjust the projector for less brightness / more contrast.
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.
  • Events: Key project milestones used to manage and monitor the natural evolution of the maturity of the product . Examples: Proceed With Promising Idea … 1. Performance Understood. 2. Engineering Feasible. 3. Remaining Risk Acceptable to Carry Forward … 1. All Design Verification Passed or Acceptable pass? 2. Ready to verify Manufacturing design . … Product is : Manufacturable at required volumes, Shippable and ready to be sold and distributed Gates: Business decision to confirm alignment with business strategy and projected marketplace. Is the quality of execution of the project sufficient enough to continue. Based on recommendation of the event deciders (the ‘D’s) Accomplishment Criteria: Question-based framework measuring progress of a project through the maturity of the product. Used by a decision maker to apply intelligent and accountable decision-making
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.
  • Copyright © 1998-2007 Empowered Networks Inc. All rights reserved.

Transcript

  • 1. Improved Business Performance Through Effective Portfolio Management Doing the Right Things Right and Fast! Mark Feher [email_address] 416-726-3578
  • 2. Content
    • The Business Challenge
    • Addressing the Business Challenge
    • Doing The Right Things
    • Doing Things Right
    • Closing
  • 3. THE BUSINESS CHALLENGE
  • 4. Business Challenges
    • Symptoms
      • Resource Management
        • Can’t forecast mid and long term capacity, roles and skills needed
        • Can’t find integrated view of resource profiles and demands
        • We don’t have enough resources to get the work done.
      • Portfolio Management
        • Business Investments have poor returns
        • We don’t prioritize our projects, or every project is a #1 priority, or our priorities are constantly changing with no explanation.
        • We can’t kill a project.
        • If we do kill a project, it always seems to show up again.
        • We never have any objective measurements to overcome the real or apparent politics in decision-making.
        • Somehow we end up with redundant activities going in different directions.
      • Process Management
        • Everyone is doing end-runs around the approval process
        • More exceptions than the rule
      • Business Planning
        • Funding appears to be very political – can’t explain, must be political
        • Can’t use project plans to produce business financial plans or forecasts - Instead historical burn rate is used
        • Effort required for quarterly business forecasting, fiscal year end, or fiscal year plan submission is excessive and time consuming
  • 5. Business Challenges
    • Causes
      • Wrong projects – not linked to strategy/goals
      • Projects are not prioritized
      • Too many projects – not in line with resources
      • Projects use strategic resources inefficiently
      • Projects invest in non-strategic activities
      • Projects are not monitored and managed collectively to determine if projects should be slowed, stopped, helped or modified – tradeoffs are not identified and exploited
      • Unbalanced investment mix (short/long-term, supply/market-side, development, research, strategic assets/resources, revenue opportunity, risk, etc.)
      • More than 40% of projects fail to deliver intended results (cost, schedule, performance)
  • 6. Business Challenges…
    • Causes…
      • Related Process Issues
        • Gaps in related processes
          • Project estimation and planning
          • Resource Management
          • Portfolio Management
          • Financial Management
          • Functional Management
          • Important stakeholder processes missed
        • Process effectiveness
          • Inconsistent application of the process
          • Weak project team integration with unclear accountabilities
          • Complex process and deliverables
          • Poor Understanding and buy in by the delivery teams
          • Process or methods not aligned with Business needs (e.g., definition of quality)
        • Inadequate Risk Management
  • 7. ADDRESSING THE BUSINESS CHALLENGE
  • 8. It comes down to Two Primary Dimensions Doing the right things The ability of project and service delivery to partner with the business to maintain alignment and maximize return from internal investments Doing things right The ability of the provider to make the best use of its people, budgets and assets
  • 9. Define Success to Establish a Target
    • Every Business has different priorities and goals!
    • Some Key business scorecard metrics that have the most impact on business outcomes
        • investment alignment to business strategy
        • business value of investments
          • IT, R&D, Operations, Manufacturing, Business Improvement
        • program budget balances
        • service level excellence
        • operational excellence
      • These five metrics should form the core of any performance scorecard
    1 April 4, 2008, The Five Essential Metrics For Managing IT , by Craig Symons with Alexander Peters, Alex Cullen, and Brandy Worthington
  • 10. Don’t try to do everything at once
    • Establish an effective plan of evolution?
    • Eye on the Big Picture
    • While you achieve incremental value rapidly using a plan tailored to your business needs for early wins
  • 11. Define and Manage Processes To Rapidly Achieve High Quality Decisions Portfolio Management Program Management Project and Activity Management Information Management
  • 12. Enterprise-wide Processes for Doing the Right Things Right
    • Include
      • Governance Models
      • Portfolio, Program and Project Management
      • Engineering methods, tools and processes
      • Manufacturing methods, tools and processes
  • 13. Process Management - Governance
    • Governance:
      • The processes and relationships that lead to reasoned decision-making
    • 3 Key Questions:
      • What decisions need to be made?
      • Who is accountable for making decisions?
      • How will decisions be made?
    • Decisions require fact-based information – This requires a systematic approach to collect, integrate, analyze and provide meaningful data
  • 14. Governance Model
    • Example portion of Product Development Process
    Events : Key project milestones used to manage and monitor the natural evolution of the maturity of the product . Accomplishment Details and Success Criteria: Question-based framework measuring progress of a project through the maturity of the product. Gates : Business decision to confirm alignment with business strategy and projected marketplace. Is the quality of execution of the project sufficient enough to continue.
  • 15. DOING THE RIGHT THINGS
    • The Project and Portfolio Management (PPM) Solution
  • 16. Provide for Fact-based information to make business decisions
    • Support and Promote Innovation and Ideas and Include them in the Portfolio Process
    • Maintain a series of interrelated roadmaps for your business needs (market, product line, …)
    • Investment and Prioritization
      • How much do we spend?
      • What do we spend it on?
      • How do we reconcile the needs of
      • different constituencies?
      • Ensures spending reflects strategic
      • priorities
      • Requires business-led and enabled
      • Portfolio Management directly tied to
      • decision-making and accountability
      • Enterprise-wide Information systems Play
      • a Pivotal role in today’s Business Environments
  • 17. Support Business Agility
    • Distribute Accountability and decision-making to the lowest level in the organization that is reasonable
    • Support these decision-makers with processes and high quality and timely information to ensure the best quality decisions fast.
  • 18. DOING THINGS RIGHT
    • The Project and Portfolio Management (PPM) Solution
  • 19. Develop PPM Solutions in Context
    • Develop a roadmap for change that works for your business in the context of its current state of capability and maturity
  • 20. Other Considerations in Planning and Executing Change
    • Cultural Change can take 2-3 years to institutionalize!
    • Understand the ramifications of different approaches
      • “ Flip the switch”
      • Phased over short time (3-6 months)
      • “ Grandfathered”
    • Don’t underestimate training needs
    • Consider post launch support period
      • Mentoring
      • Facilitation
      • FAQs and e-mail support
      • Helpdesk
  • 21. Most Businesses Today
    • 95% of Projects Delivered Higher than initial cost and schedule
    • High variability
    • Pro’s
      • None
    • Con’s
      • Will take on high risk projects resulting in poor or negative ROIs
      • Reputation for delivery is very poor
      • All stakeholders start managing there own contingencies
      • Portfolio ROIs are significantly less than possible
      • Resource Management is extremely inefficient
      • Almost All Projects are in “Alarm” state
  • 22. Some Businesses Today
    • 95% of Projects Delivered Lower than initial cost and schedule
    • Wide variability
    • Pro’s
      • More Predictable and Repeatable
      • Conservative business opportunity decisions
    • Con’s
      • May result in killing projects that could have good returns
      • Projects that could be started would be delayed due to lack of funds
      • Resource management is very difficult
      • Most Projects are in “Alarm” state
  • 23. The High Performing Company
    • 50% of Projects Delivered Lower than initial cost and schedule
    • 95% lower than 110% of cost and schedule
    • High predictability and repeatability and low variability
    • Pro’s
      • Highly Predictable and Repeatable
      • Accurate business opportunity/risk decisions
      • Excellent Reputation for delivery
      • Stakeholders no longer maintain large contingency buckets
      • More projects can be funded
      • High Portfolio ROI...
      • Very Few Projects are in “Alarm” state
  • 24. The High Performing Company
    • Enterprise/Business Planning and Control
      • Business forecasting
        • available and up–to-date continuously
      • Portfolio/Pipeline planning
        • 5-10 years out, reflects business strategies
      • Portfolio Management
        • all activities including overhead and Business Improvement programs
      • “ Cradle to grave” lifecycle processes
      • Effective Portfolio Risk Management
      • Performance metrics
        • available and up–to-date continuously for all levels
  • 25. The High Performing Company …
    • Agile and Organic operation
      • Business governance integrated with all processes and tools
      • Business goals traceable from Goals/Strategies down and from activities up
      • Processes integrated seamlessly with Information Systems/Tools
      • Accountability and Decision-Making integrated with processes and tools
  • 26. The High Performing Company…
    • Operational Planning and Control
      • Rational Resource Planning short-, mid-, and long-term
        • Optimized Resource Utilization
        • Effective Co-Development
        • Effective Outsourcing
      • A single source of consistent and up-to-date information for all decision-makers
      • Activity-based cost control
        • employee time management automatic with assignment of tasks
        • expense management is automatic with assignment of tasks
      • Information system management/maintenance is minimal
  • 27. The High Performing Company…
    • Information is disseminated to the right people at the right time and is always up to date
      • Communicating direction and status of portfolios, programs and projects is an output of normal activities and not an extra task
  • 28. The High Performing Company…
    • Data Integrity and Configuration Management
      • All information systems are in agreement on the data
      • Data is continually updated and reflects current status at all times
  • 29. The High Performing Company…
    • PMs are highly skilled, trained and supported
      • Effective Risk Management
        • Integrated directly into project architectures
      • Project Architectures Optimized
        • Fully integrated with processes, decision-making, and accountabilities
      • PMs Manage Teams and Activites, not schedules
        • PMs Supported
          • Consistent support and mentoring available when needed – automatic triggers highlight need for action
          • Templates are available and meet 95% of project needs
        • Project Administrative activity is minimum
          • Communication of Project status and forecasts is automatically derived from existing data – no extra effort is required
          • Highest possible “wrench time”
      • Early Estimates are Accurate - +10% to -20%
  • 30. The High Performing Company: All PPM Functions Supported and Integrated
  • 31. The High Performing Company: Fully Integrated PPM - Information, Operation and Processes Enterprise PPM Do Things Right Business Relationship Management Do the Right Things Demand/Idea Management Portfolio Management Program Project & Resource Management Process Management
  • 32. CLOSING
  • 33. Take Away’s
    • You tell me
  • 34. Summary
    • Improving business performance requires
    • Effective Portfolio, Program and Project Management Plays a Key Role!
      • Best in Class
      • People + Processes + Tools
      • =
      • Delivering Business Value