Elevate Your PMO

© 2016 Opptiv LLC Proprietary www.opptiv.com© 2016 Opptiv LLC Proprietary
www.opptiv.com
Make the value leap from a PROJECT mindset to an INVESTMENT mindset.
#PMO3.0
Executive Brieﬁng
Elevate your PMO.

© 2016 Opptiv LLC Proprietary www.opptiv.com
How do PMOs show
business value today?

Meet
The
PMO…
We’re Certified!

Meet the
PMO’s
Favorite
Tool!
The GANTT Chart
© 2016 Opptiv LLC

CFO
CEO
BOARD

What happens when the
PMO’s Gantt Chart meets
the PMO’s Bosses?

Cost, Schedule
& Scope!
Strategic Growth,
Value Creation,
Risk-Return &
Execution?
PMO C-Suite
© 2016 Opptiv LLC
© 2016 Opptiv LLC

The PMO of the future will be a portfolio
office…it will think and speak in the
language of money…
The PMO Mission: “Move The
Strategic Needle For The Company”.
In organizations the focus is now
shifting to what is competitive
advantage…that makes the
success of the planned
investments more important...
Sixty-one percent of respondents admit that
their firms often struggle to bridge the gap
between strategy formulation and its
day-to-day implementation.
42 percent of PMOs believe a more
strategic orientation among project owners
and stakeholders is a top way to increase
the effectiveness of the PMO.

So, what’s the problem?

The PMO is “speaking in
PROJECTS”, while the C-Suite
is “thinking in INVESTMENTS”.

Make the value leap from a PROJECT mindset to an INVESTMENT mindset.
Time to Elevate
Your PMO?
7 Key Principles

1 With an investment mindset, the Project Management Office and the
basic “project” unit of management becomes the inherently more
strategic Portfolio Management Office with “investments” as the basic
unit. An investment approach begins with viewing business units,
initiatives, or strategic opportunities not as independent entities, but
as logical portfolios of investments. This holistic view is a pre-condition
for the value-based dialogue, decision-making, day-to-day investment
management and governance that maximize value and performance
across the portfolio.

2 Successful companies make strategic choices about where and how
much to invest their finite resources in order to realize their strategic
ambitions. With an investment mindset, PMOs equip their companies
to operationalize those choices by informing the difficult trade-offs
between what to do and what not to, and rationalizing investment
resources between existing sources of revenue and emerging revenue
streams in ways that are most closely aligned with strategic success.

3 Companies with investment mindsets can use the power of strategic
portfolio management to maximize the performance and value of
their investment portfolios by maximizing returns per unit of risk. The
principle of risk-return optimization involves maximizing upside
revenue capture, while minimizing downside risk exposure by
quantifying (in financial terms) the material risks associated with
investments, providing insight into the volatility inherent in those
investments, and actively mitigating and exploiting risks in ways that
turn them into new sources of opportunity.

4 At the end of the day, "it's all about execution”. With an investment
mindset, execution means taking preemptive action to reallocate
resources, adjust course and optimize the portfolio - the opposite of
passive management or reacting to competitor moves. PMOs can
apply active management and promote preemptive action by using
value-based metrics and leading indicators to monitor the real-time
performance and health of individual initiatives and in aggregate
across the investment portfolio.

5 Even after discovering the need for it, many companies don't adjust
to changing business conditions, choosing instead to stay locked
into unattractive businesses, low-value opportunities, or poorly
performing initiatives. Investment-minded PMOs can help overcome
this behavior through the principle of “optionality”. Borrowing from
the financial industry concept of "real options” and applied to
portfolio execution, this proven management concept provides
senior business leaders with options - the “right”, but not the
“obligation” to invest, or continue to invest in strategic initiatives
based on changing business circumstances.

6 Responsibility for strategic and commercially-focused initiatives, and
the investment resources that they require, is often spread across
multiple organizations such as corporate strategy, finance, M&A,
product, R&D or individual business units. With an investment
mindset, the PMO takes on the role of integrating these disparate
pools of investments, and bridging critical governance and
organizational gaps. With this principle, the PMO provides a higher
level of transparency across the investment life-cycle, allowing
CEOs, CFOs, Boards and senior business leaders to make decisions
that make the whole greater than the sum of the parts.

7 Next-generation strategic initiatives, revenue streams and growth
platforms are expected to deliver multiple times their actual capital
investment in returns. Communicating value and measuring
performance in this context requires management in business terms vs.
project terms. With an investment mindset, PMOs can expand their
visibility and management focus beyond the “traditional cost-schedule-
scope of project management” to “managing the aggregate strategic
growth, capital efficiency and risk-return across portfolios of
investments” with the net present value (NPV), internal rate of return
(IRR), benefits-cost ratio (BCR) and other investment controls to paint a
more complete portfolio picture, and answer critical governance and
value questions over the investment life-cycle.

7
6
5
4
3
2
1

So, what happens when the
PMO makes the value leap?

The PMO starts to speak the
investment-grade language that
CFOs, CEOs, Boards and other
stakeholders understand and
REALLY care about…

Opportunities Risk-Return
Strategy Execution
Portfolio Management Office (PMO 3.0)
PMO
3.0
© 2016 Opptiv LLC
© 2016 Opptiv LLC

Our Featured Solutions: Accelerate time-to-value.
Opptiv is an award-winning portfolio management and governance company based in metropolitan
Washington D.C. From our foundation working with some of the largest capital investment portfolios in the
world, we work across industries and the globe to help organizations invest in strategic growth, maximize
enterprise value and achieve enduring impact through portfolio excellence. To match the complexity and
urgency of our mission, we provide the industry’s only “Investment-Grade” cloud-based software platform,
processes and services purpose-built to turn these powerful concepts into operational reality.

Visit us to learn more and downlaod more content today!
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855-806-3760

™
OpptivEnterprise™ is cloud-based strategic portfolio management software. Unlike traditional project-based or
IT portfolio management tools, this next-generation portfolio management platform was built from the ground up
to speak the financial and commercial language that CEOs, CFOs, Boards and other stakeholders understand and
really care about.
UNMET NEED UNMET NEED REVENUE STREAM DIS-INVEST STATUS
KPI
MILESTONE
RISKSATURATED
FIND
"See the things that matter"
SHAPE
"Do the right things"
CAPTURE
"Do the right things right"
How does OpptivEnterprise™
Work? PORTFOLIO EXCELLENCE IN THE CLOUD.
If you work in strategy, finance, M&A, product or R&D, OpptivEnterprise provides the visibility that you need to
build and actively manage your portfolio of next-generation strategic opportunities, revenue streams and growth
platforms with confidence. It’s comprehensive, yet intuitive and ready to use on day one. It works the way you want,
to translate the concepts that you already know into the value-based visual language that you need to succeed.
DISCOVER DELIVERDEFINE

QuickStart™ Proof of Concept
Strategic Portfolio Management (SPfM)
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855-806-3760
Jump-start your Strategic Portfolio Management initiative today!
VISUAL PORTFOLIO REVIEW.
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© 2016 Opptiv LLC

Executive Briefing
Executive Briefings are exclusive introductory sessions for Senior Executives and/or direct
reports in diverse industries where we present a common challenge, introduce best practice
solutions and facilitate discussions.
Overview Description
At Opptiv, we do ONE thing:
We help companies invest in the
future with confidence through
purpose-built strategic portfolio
management software,
processes and services.
The Executive Briefings defines the key principles, core and supporting operating processes
and underlying metrics associated with investment governance, Strategic Portfolio
Management and related management disciplines.
Overview Content Description
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info@opptiv.com
Call us toll-free
855-806-3760
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