This document discusses how strategic portfolio management is the missing link for orchestrating business transformation. While being agile is important, there are still multiple project execution methodologies across enterprises. Strategic portfolio management can help by addressing the bi-modal reality, effectively aligning execution with strategy, improving financial visibility and control, optimizing resource utilization, connecting portfolios and automating roadmaps, and deriving insights from analytics. A new function, like a Strategy Realization Office, may be needed to go beyond just managing projects and orchestrate transformation.

1. Can PMOs Be Too Agile To
Orchestrate Business
Transformation?
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Strategic Portfolio Management is the missing link

2. experts in Project, Program
and Portfolio Management
solutions and consulting
services
how you manage the
project, program, IT asset,
capability and product
portfolios to align all
execution with strategy
critical business planning
and controls needed to
gain visibility across all
investments, optimize
resource utilization and
maximize ROI
We are We deliver We transform

3. Trying to be Disruptive? Or to avoid being
Disrupted?Disruptors($$)
Disrupted

4. The common
mistake most make
when responding to
the mandate of
digital business
transformation
1
2
3
Business Transformation is all
about Enterprise Agility &
Innovation
Enterprise Agility & Innovation
requires a fail fast mindset and Agile
delivery vs. Waterfall execution
Makes sense, we are going
100% Agile!!!!

5. Strategic Portfolio
Management Capabilities
Remain the Missing Link
1. Address the Bi-Modal / Tri-Modal Reality
2. Effectively Align all Execution with Strategy
3. Improve Financial Visibility & Control
4. Effectively Optimize Resource Utilization
5. Connect all Portfolios & Automate Roadmaps
6. Derive Insight & Enhance Analytics

6. Imperative 1:
Address the Bi-Modal /
Tri-Modal Reality

7. Agile Waterfall
Hybrid Six SigmaWork
Mgmt.
The challenge is to gain visibility across all work!
• The reality is, there will remain
multiple execution methodologies
across the enterprise
• Teams often have a choice in their
preferred tools
• Are we going to be able to impose
a one-size-fits-all solution across
the enterprise?

8. [ poll 1 ]
How badly have you been bitten
by the Agile bug?
•We have gone 1000% agile
•If it isn’t broke don’t fix – waterfall
•We have a mix bag of execution methodologies
•None – it’s the wild west

9. Imperative 2:
Effectively Align All Execution
with Strategy
• Establish the right top-down investment
approaches
• Move from an annual to a continuous
planning model

10. Common Investment Approaches to
Align All Execution with Strategy
Project-Driven
Investment
Approach
Program-Driven
Investment
Approach
Capability-Driven
Investment
Approach
Projects
Strategy
Strategy
Business
Capabilities
Applications
Technology
Programs
& Projects
Strategy
Programs
Projects

11. Project-Driven
Investment
Approach
Program-Driven
Investment
Approach
Product / Capability-
Driven Investment
Approach
Projects
Strategy
Strategy
Business
Capabilities
Applications
Technology
Programs
& Projects
Strategy
Programs
Projects
Common Investment Approaches to
Align All Execution with Strategy

12. Sprint Sprint
Agile Project 1
Sprint Sprint
Waterfall Project 1
Sprint Sprint
Sprint Sprint
Agile Project 3
Sprint Sprint
Agile Project 2
Sprint Sprint
Sprint Sprint
Sprint Sprint
Waterfall Project 2
Waterfall Project 3
Waterfall
Project 4
Projects
Sprint
Sprint
Sprint
Sprint
Sprint Sprint
Waterfall
Project 5
Agile Dev
Sprint Sprint
Sprint Sprint
Example of the Program-Driven
Investment Approach
Program 1
Strategy 1
Objective
Strategy 2
Program 2 Program 3
Strategy
Programs
$ $
$ $

13. Project-Driven
Investment
Approach
Program-Driven
Investment
Approach
Projects
Strategy
Strategy
Business
Capabilities
Applications
Technology
Programs
& Projects
Strategy
Programs
Projects
Common Investment Approaches to
Align All Execution with Strategy
Product / Capability-
Driven Investment
Approach

14. Strategy
Strategy 1
Objective
Strategy 2
Business Capabilities
Program 1 Program 2 Program 3
Programs
Sprint Sprint
Agile Project 1
Sprint Sprint
Waterfall Project 1
Sprint Sprint
Sprint Sprint
Agile Project 3
Sprint Sprint
Agile Project 2
Sprint Sprint
Sprint Sprint
Sprint Sprint
Waterfall Project 2
Waterfall Project 3
Waterfall
Project 4
Projects
Capability
1
Capability
2
Capability
3
Sprint
Sprint
Sprint
Sprint
Sprint Sprint
Waterfall
Project 5
Agile Dev
Sprint Sprint
Sprint Sprint
$ $
$ $
Example of the Product / Capability-Driven
Investment Approach
IT Impact
IT Service
Application
Technology

15. The Capability-Driven Approach is a Superset of
all Investment Approaches
Project-Driven Investment
Approach
Program-Driven Investment
Approach
Capability-Driven
Investment Approach
Projects
Strategy
Strategy
Business
Capabilities
Applications
Technology
Programs &
Projects
Strategy
Programs
Projects

16. [ poll 2 ]
Which investment approach do
you currently use today?
•Project Driven Investment Approach
•Program Driven Investment Approach
•Capability / Product Driven Investment Approach
•A Combination
•None of the above

17. [ poll 3 ]
Which investment approach are
you planning to use tomorrow?
•Project Driven Investment Approach
•Program Driven Investment Approach
•Capability / Product Driven Investment Approach
•A Combination
•None of the above

18. Annual Planning
Is it that time of
year again?!

19. Agile / Continuous Portfolio Planning Process
Original
Portfolio
Releases
Redirects
Revised
PortfolioGive Backs
& Under-Runs
Not to exceed the
“Original Budget &
Headcount” limit
Original FY
Budget &
Headcount
Quarterly / Monthly Governance Meeting
New
Projects
Quarterly / Monthly Steering
Committee Meeting
Incremental Funding &
Resource Requests
Optimize Spend &
Value

20. Imperative 3:
Improve Financial Visibility &
Control

21. Become the
CFO of your
Project &
Program
Portfolios
• Financials have been treated as a second-class
citizen in PPM tools and methodologies
• Need to bridge the worlds of enterprise
finance and project delivery
• Automate and streamline budgeting, tracking
& forecasting
• Gain insight to reallocate funds throughout
the year, maximizing budget utilization
• Establish a framework to estimate and track
benefits and value

22. Imperative 4:
Effectively Optimize Resource
Utilization

23. Optimize the
most important
assets…
your people!
• Enterprise Resource Management continues
to be a challenge!
• We must provide people with the right tools:
• PMs: Need intuitive ways to improve resource
estimates & forecasts
• Resource Managers: Need easier ways to allocate
the right people / teams to each initiative
• Portfolio Managers: Need better support to assess
the impact of portfolio changes on capacity
• Finance Managers: Need a simpler way to forecast
and track capitalized work across all projects

24. Imperative 5:
Connect all Portfolios &
Automate Roadmaps

25. You’ll need to
go beyond just
managing
projects
Gain a 360 degree view across all enterprise portfolios

26. 1. Functional
2.
Resources
3. Time-
based
Understand the six degrees of separation between entities (e.g.
project -> application -> capability) in your portfolio model
Derive cost of ownership and
gauge financial and resource
impacts across the portfolios
Generate and automate roadmaps
to assess the time-based impact of
changes across portfolios
Managing Cross
Project, Program
and Enterprise
Portfolio
Dependencies is
Key
3 foundational dependencies in Strategic
Portfolio Management

27. Automate Roadmaps to Stay On CourseAutomate Powerful Roadmaps
• Understand the six degrees of separation
between a project and other portfolios (e.g.
programs, application)
• Document and track cross-project and program
dependencies (e.g. give/gets)
• Automatically maintain varying portfolio
roadmaps to assess performance and support
investment decisions
• Strategic Transformation Roadmaps
• Technology Roadmaps
• Portfolio Heat Maps
• Etc..
• Assess redundancy (such as projects impacting
the same application or capability)

28. Imperative 6:
Derive Insight &
Enhance Analytics

29. Unlock the
Vault of
Valuable PPM
Data
• Automate and streamline reporting on
project, program & portfolio performance
• Enable self-service Business Intelligence to
easily build adhoc reports and dashboards
• Utilize modeling & what-if analysis techniques
model the impact of portfolio changes
• Track benchmarks and key portfolio metrics
• Take advantage of AI, Bots and Machine
Learning

30. Strategic Portfolio Management Capabilities
Remain a Critical Area of Investment
Align All Execution with
Strategy
Gain Financial Visibility &
Control
• Enhanced top-down planning
techniques to align all execution with
strategy
• Need to move from an annual to a
continuous planning model
• Automate and streamline budgeting,
tracking & forecasting
• Gain insight to reallocate funds
throughout the year to maximize budget
utilization
• Establish a framework to estimate and
track benefits
Optimize Resource
Utilization
Derive Insights & Enhance
Analytics
Connect Portfolios &
Automate Roadmaps
• Provide intuitive ways for all PMs and
Demand Mangers to consolidate
resource demand
• Empower Resource Managers to
allocate the right people to each
project
• Enable capacity planning and analysis
techniques
• Automate and streamline reporting on
project, program & portfolio
performance
• Utilize modeling & what-if analysis
techniques to optimize spend and
maximize value
• Enable self-service BI to easily build ad
hoc reports
• Difficult to manage cross project,
program and portfolio
interdependencies
• Generate and maintain powerful
Roadmaps
• Connect projects to the business and IT
assets that they are transforming
Address the Bi-Modal
Reality
• Projects across the enterprise will always
be executed in multiple methodologies
(Agile, waterfall, back-of-the-napkin)
• Integrating related systems & tools is key
(Agile, PPM, ERP, etc.)

31. It’s time to focus on the second “P” in PPM

32. A new
function
responsible for
orchestrating
business
transformation
is required
Strategy
Realization
Office
Program
Execution
Strategic
Planning
Business
Architecture
Enterprise
Architecture
Finance
Team
Business
Executives /
Sponsors

33. Key Takeaways
• Agile execution is part of the
solution….not the entire solution!
• There will always be a variety of
execution methodologies and tools
across an enterprise
• Invest in Strategic Portfolio Management
capabilities in parallel with
improvements to your project execution
• To orchestrate business transformation
you need to go beyond managing
projects

34. Next steps.
Request a Demo VIC Assessment Cloud Migration
See UMT360’s Strategic
Portfolio Management
solution in action
Assess your PMO’s readiness
to orchestrate business
transformation
Move your PPM tool and
processes to the Cloud
(Office365)
Learn more by visiting www.umt360.com

35. Thank you for joining us today!
Visit www.UMT360.com to learn
more.
www.UMT360.com
@UMT360
LinkedIn.com/company/umt360/
#StrategicPMO