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Presentation KCPMI 2016 PDD Days Portfolio Balance

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Presentation given on 9/20/2016 at the KC PMI PDD Days. Goals of the presentation are to raise awareness of the problems with project portfolio balance and to stimulate thoughts on how to achieve and maintain balance.

Published in: Leadership & Management
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Presentation KCPMI 2016 PDD Days Portfolio Balance

  1. 1. Strategic Planning Project Portfolio Management Project Execution
  2. 2. Strategic Planning Project Portfolio Management Project Execution * Kotter International. Forbes, July 9, 2013. “When CEOsTalk Strategy, 70% of the Company Doesn’t Get it.” What strategy? 71% Got it 29%
  3. 3. Successful 16% Challenged 53% Failed 31% Strategic Planning Project Portfolio Management Project Execution
  4. 4. “The four biggest universal problems in project portfolios are: 1. Too many active projects 2. Wrong projects 3. Projects not linked to strategic goals 4. Unbalanced portfolio” * * Kendall, Rollins. Advanced Project Portfolio Management and the PMO (p. 207) Strategic Planning Project Portfolio Management Project Execution
  5. 5. Kendall, Rollins on Balance, cont. * • “Too much on the supply side, not enough on market side • Too much development, not enough research • Too much short term, not enough long term • Not reflective of the organization’s most important assets…” * Kendall, Rollins. Advanced Project Portfolio Management and the PMO (p. 207) Benefit Risk
  6. 6. • Benefits are speculative & not audited • Risks are difficult to envision & compare • Portfolios change over time and no one notices • “The PPM Zone” Benefit Risk
  7. 7. 1 – Establish rules for profiling projects 2 – Monitor projects to reflect changes 3 – Governance to optimize balance
  8. 8. Strategy Speed time to market Increase efficiency Products for millennials Goals / Objectives Grow revenue 10% Reduce policy admin costs 5% Launch 4 new products Mission /Vision Financial security Be “top of mind” among customers
  9. 9. • 1 = Expand the quantity of new products • 2 = Increase penetration of millennial market • 3 = Both External Focus • 1 = Reduce admin costs / increase efficiency • 2 = Reduce time to market for new products • 3 = Both Internal Focus • 1 = ROI less than 5% • 2 = ROI between 5% and 15% • 3 = ROI greater than 15% Financial Return
  10. 10. • 1 = We do this all the time • 2 = We have done something similar • 3 = We don’t know what we don’t know Solution Experience • 1 = A small work group • 2 = More than one business leader involved • 3 = Enterprise-wide Scope of Business Impact • 1 = No need for external vendor support • 2 =Vendor support for key deliverables • 3 =Vendor support for ALL deliverables Vendor Dependency • 1 – Minimal need for choke point resources • 2 – Some need for choke point resources • 3 – Choke point resources essential Choke Point Resources
  11. 11. Project Requests “Top down” or “bottom up” Request form: • Value Profile • Risk Profile • Project Attributes Governance Team Project Request Process Project Database & Dashboards Initial Decisions: • Reject • Return – Not in Good Order • Accept Monitor Projects
  12. 12. Exercise – Project Profiles inYourWorld • What are 2-3 key strategies in your organization? What Benefit profile attributes are needed to align projects with these strategies? List the Benefit profile attributes on a 3x5 card • Think of some projects that “went south” – what risk profile attributes would have predicted their failure? List the Risk profile attributes on a 3x5 card
  13. 13. Project Status Reporting Focus on changes to: • Benefit profile • Risk profile PMO Reporting & Dashboard Preparation • Validate reports • Reflect external environment • Coordinate governance meetings Project Reports Dashboards
  14. 14. New sponsor questions predecessor’s decisions A “choke point” resource, takes a new job Unproven vendor with niche skills
  15. 15. New branding = project less valuable Scope change = many new stakeholders New software platform New focus on career agents
  16. 16. Project / Risk Category Solution Experience Scope of Business Impact Vendor Dependency Choke Point Resources Project 1 Project 2 Project 3 Project 4 Project 5 Low Risk Med. Risk High Risk Risk concentration - experience & choke point resources
  17. 17. Admin Costs 46% Product Pipeline 23% Millenial Mkt 15% Time to Mkt 8% Multiple 8% Too much effort on reducing admin costs
  18. 18. Exercise – Plot 2-3 Projects (3x5 card)
  19. 19. Mark Price Perry, Business Driven Project Portfolio Management
  20. 20. VP Operations CIO VP Marketing VP Finance EPMO Sponsor – C.O.O.
  21. 21. Decision Making: • Start • Continue • Delay • Stop Portfolio Governance Meetings Project Dashboards Stakeholder Communication Process Guiding Principle: Stop Starting – Start Finishing!
  22. 22. Benefit Risk Projects 3 & 5 - lack of solution experience Projects 3 & 5 rely on choke point resources Too much effort on admin Need more effort on new products Benefit Risk
  23. 23. Project Name ProjectType Risk Score Value Score Start Date End Date Status Decision (Start, Continue, Delay, Stop) Project 3 Admin – Incremental 9 4 8/16 12/16 Develop Delay (review next meeting) Project 5 Compliance 10 4 7/16 10/16 Testing Continue (risk mitigation plan) Project 6 Admin – Incremental 4 4 9/16 12/16 Planning Delay (review next meeting) Project 9 Admin – Incremental 12 3 8/16 11/16 Develop Stop Project 11 New product 7 8 ASAP ASAP Pending Start
  24. 24. Review your 3x5 cards and identify your action plan to: • Provide a clearer picture of your portfolio • Connect projects with strategy • Establish governance processes that support effective project decisions decisions • Replace “Really Bad Idea” projects with “Improve the Business” projects

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