APM Portfolio Management SIG Conference - 23rd May 2019.

1. Balancing Your Portfolio
In The Digital Age
Portfolio Management Conference
23 May 2019
Simon Harwood, DirectLine Group

2. Introducing
Simon Harwood
Head of Portfolio Management, Business Planning & PMO
Technology Services, DirectLine Group
23-May-19 2
The content of this presentation and any views or opinions expressed are those of the presenter only.

3. The Exam Question
3
Costs
Risks /
Issues
Achieve strategic
goals
Optimise value
Maximise
benefits …
quickly
Changing
Priorities
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4. Portfolio management … the theory
4
Manage risks
Vision Corporate
goals &
strategy
Deliver
benefits
Achieve
goals
Portfolio governanceCreate
strategic
plan
Construct &
prioritise
portfolio
Review
portfolio
Assess
performance
of portfolio
Develop, monitor & control the portfolio
(Manage & deliver the programmes & projects)
Reporting on the portfolio
Management of
different
delivery methods
According to the APM BoK …
Portfolio management is the selection, prioritisation and control of an
organisation's projects and programmes in line with its strategic objectives
and capacity to deliver. The goal is to balance change initiatives and
business-as-usual while optimising return on investment.
This is a continuous process to achieve the evolving strategy of the
organisation.
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5. Portfolio management … the reality
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6. Triangulating the Portfolio
6
High Level Intentions
• List of Programmes / Projects
• Budget allocations
Bottoms Up Programme /
Project Demand
• Individual plans by internal skill
and 3rd Party by month
• FTE Demand & £ views
Resource Supply
• Planned capacity by skill and
3rd Party by month
• FTE Supply & £ views
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7. Prioritising & Scheduling
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On-going

8. Understanding Capacity & Framework
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Headcount
FTE
Available
FTE
Resource Pool
Current
Change
Capacity (FTE)
per month
Change
Capacity (£k)
Forecast
Annual cost
(£k)
May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20
Business Group 1 6.00 702 6.00 6.00 6.00 6.00 6.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 6.00
Business Group 2 3.00 324 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Business Group 3 7.00 756 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Business Group 4 5.00 540 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Business Group 5 8.00 864 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
Technology Group 1 7.00 756 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Technology Group 2 5.00 540 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Technology Group 3 10.00 1,080 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
Technology Group 4 4.00 405 4.00 4.00 4.00 4.00 4.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Technology Group 5 3.00 324 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Technology Group 6 1.00 1,166 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
3rd Party 1 1,000 0 0 25 25 0 0 0 0 0 0 0 0 0 0 0
3rd Party 2 500 0 0 0 0 0 40 40 20 10 10 10 10 5 5 0
3rd Party 3 750 0 0 0 0 0 0 0 0 10 10 20 10 10 0 0

9. Understanding Estimating
Need to understand:
• Effort
which enables costs
• Duration
• Assumptions
• Impact on BAU / run
• Benefits
 Leads to an understanding of
confidence
 Is a living exercise
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10. Understanding Demand & Scheduling
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Business Group 1 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Business Group 2 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Business Group 3
Business Group 4 4.00 4.00
Business Group 5
Technology Group 1 0.50 0.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.25
Technology Group 2 0.25 0.25
Technology Group 3 3.00 3.00 3.00
Technology Group 4
Technology Group 5 0.25 2.00 2.00 0.50 0.50
Technology Group 6
3rd Party 1 25 25
3rd Party 2 10 10 10
3rd Party 3
Apr-20 May-20 Jun-20 Jul-20Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20Resource Pool May-19 Jun-19 Jul-19 Aug-19 Sep-19
Individual
Rolling Total
Business Group 1 6.50 5.50 5.50 5.50 6.50 8.50 8.50 7.50 9.50 9.50 8.50 8.50 8.00 8.00 6.00 112.00
Business Group 2 4.00 3.50 3.50 5.50 6.00 6.50 6.50 6.50 5.00 5.00 4.00 4.00 4.00 3.00 3.00 70.00
Business Group 3 7.00 7.00 7.00 9.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 8.00 8.00 7.00 5.00 135.00
Business Group 4 5.00 5.00 5.00 6.00 6.00 6.00 6.00 10.00 10.00 6.00 6.00 6.00 5.50 5.50 5.00 93.00
Business Group 5 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 10.00 12.00 10.00 10.00 8.00 130.00
Technology Group 1 8.50 8.00 8.00 8.00 8.00 9.00 9.00 9.00 9.00 8.25 8.00 8.00 5.00 4.00 3.50 113.25
Technology Group 2 5.25 5.25 5.00 6.00 6.00 6.50 6.50 7.00 7.00 7.00 7.00 7.00 6.25 6.00 5.25 93.00
Technology Group 3 10.00 10.00 10.00 10.50 10.50 13.25 13.25 14.00 11.00 11.00 11.00 11.00 11.00 10.50 10.25 167.25
Technology Group 4 4.00 4.00 4.00 4.00 4.00 4.25 4.25 4.00 7.00 7.00 8.00 7.00 7.00 4.00 4.00 76.50
Technology Group 5 3.00 3.25 3.00 3.00 3.00 5.25 5.25 3.50 3.50 3.00 4.00 5.00 5.00 3.00 3.00 55.75
Technology Group 6 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 15.00
3rd Party 1 0 0 25 25 0 0 0 0 0 0 0 0 0 0 0 50.00
3rd Party 2 0 0 0 0 0 40 40 20 10 10 10 10 5 5 0 150.00
3rd Party 3 0 0 0 0 0 0 0 0 10 10 20 10 10 0 0 60.00
Apr-20 May-20 Jun-20 Jul-20Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20Resource Pool May-19 Jun-19 Jul-19 Aug-19 Sep-19
Aggregated

11. Understanding Supply vs Demand
23-May-19 11
Heatmap Using Planned Capacity
TS Resource Pool
Change
Capacity (FTE)
per month
Change
Capacity (£k)
Average
Monthly
Demand (FTE)
May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20
Business Group 1 6.00 7.47 108% 92% 92% 92% 108% 106% 106% 94% 119% 119% 106% 106% 100% 100% 100%
Business Group 2 3.00 4.67 133% 117% 117% 183% 200% 217% 217% 217% 167% 167% 133% 133% 133% 100% 100%
Business Group 3 7.00 9.00 100% 100% 100% 129% 157% 157% 157% 157% 157% 157% 157% 114% 114% 100% 71%
Business Group 4 5.00 6.20 100% 100% 100% 120% 120% 120% 120% 200% 200% 120% 120% 120% 110% 110% 100%
Business Group 5 8.00 8.67 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 125% 150% 125% 125% 100%
Technology Group 1 7.00 7.55 121% 114% 114% 114% 114% 129% 129% 129% 129% 118% 114% 114% 71% 57% 50%
Technology Group 2 5.00 6.20 105% 105% 100% 120% 120% 130% 130% 140% 140% 140% 140% 140% 125% 120% 105%
Technology Group 3 10.00 11.15 100% 100% 100% 105% 105% 133% 133% 140% 110% 110% 110% 110% 110% 105% 103%
Technology Group 4 4.00 5.10 100% 100% 100% 100% 100% 142% 142% 133% 233% 233% 267% 233% 233% 133% 133%
Technology Group 5 3.00 3.72 100% 108% 100% 100% 100% 175% 175% 117% 117% 100% 133% 167% 167% 100% 100%
Technology Group 6 1.00 1.00 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Heatmap Using Current Capacity
TS Resource Pool
Change
Capacity (FTE)
per month
Change
Capacity (£k)
Average
Monthly
Demand (FTE)
May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20
Business Group 1 6.00 7.47 108% 92% 92% 92% 108% 142% 142% 125% 158% 158% 142% 142% 133% 133% 100%
Business Group 2 3.00 4.67 133% 117% 117% 183% 200% 217% 217% 217% 167% 167% 133% 133% 133% 100% 100%
Business Group 3 7.00 9.00 100% 100% 100% 129% 157% 157% 157% 157% 157% 157% 157% 114% 114% 100% 71%
Business Group 4 5.00 6.20 100% 100% 100% 120% 120% 120% 120% 200% 200% 120% 120% 120% 110% 110% 100%
Business Group 5 8.00 8.67 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 125% 150% 125% 125% 100%
Technology Group 1 7.00 7.55 121% 114% 114% 114% 114% 129% 129% 129% 129% 118% 114% 114% 71% 57% 50%
Technology Group 2 5.00 6.20 105% 105% 100% 120% 120% 130% 130% 140% 140% 140% 140% 140% 125% 120% 105%
Technology Group 3 10.00 11.15 100% 100% 100% 105% 105% 133% 133% 140% 110% 110% 110% 110% 110% 105% 103%
Technology Group 4 4.00 5.10 100% 100% 100% 100% 100% 106% 106% 100% 175% 175% 200% 175% 175% 100% 100%
Technology Group 5 3.00 3.72 100% 108% 100% 100% 100% 175% 175% 117% 117% 100% 133% 167% 167% 100% 100%
Technology Group 6 1.00 1.00 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

12. What about working with Agile teams?
12
Sprint
Ref
19_10
19_11
19_12
19_13
19_14
19_15
19_16
19_17
19_18
19_19
19_20
19_21
19_22
19_23
19_24
19_25
19_26
20_01
20_02
20_03
20_04
20_05
20_06
20_07
20_08
Sprint
Start
09-May-19
23-May-19
06-Jun-19
20-Jun-19
04-Jul-19
18-Jul-19
01-Aug-19
15-Aug-19
29-Aug-19
12-Sep-19
26-Sep-19
10-Oct-19
24-Oct-19
07-Nov-19
21-Nov-19
05-Dec-19
19-Dec-19
02-Jan-20
16-Jan-20
30-Jan-20
13-Feb-20
27-Feb-20
12-Mar-20
26-Mar-20
09-Apr-20
Sprint
End
22-May-19
05-Jun-19
19-Jun-19
03-Jul-19
17-Jul-19
31-Jul-19
14-Aug-19
28-Aug-19
11-Sep-19
25-Sep-19
09-Oct-19
23-Oct-19
06-Nov-19
20-Nov-19
04-Dec-19
18-Dec-19
01-Jan-20
15-Jan-20
29-Jan-20
12-Feb-20
26-Feb-20
11-Mar-20
25-Mar-20
08-Apr-20
22-Apr-20
Release
08-Jun-19
06-Jul-19
03-Aug-19
31-Aug-19
28-Sep-19
09-Nov-19
07-Dec-19
11-Jan-20
01-Feb-20
29-Feb-20
28-Mar-20
Team 1
MVP1
MVP2
MVP6
MVP8
Team 2
MVP5
MVP4
MVP3
MVP10
Backlog Estimate
MVP7 8
MVP9 5
MVP11 6
MVP12 7
MVP13 4
UAT Go LiveRegressionDevelopAnalysis
Team 1 Day Rate Units Cost per Sprint
Scrum Master 650 10 6,500
Business Analyst 600 10 6,000
Business Analyst 625 10 6,250
Developer 525 10 5,250
Developer 550 10 5,500
Developer 550 10 5,500
Tester 475 10 4,750
Tester 450 10 4,500
Environments 3,500 1 3,500
Management 5,000 1 5,000
52,750 full or @ 85% 44,838
23-May-19

13. Bringing it together / maintaining it
Proactive
stakeholder
management
Living
demand
capture &
prioritisation
Closely
monitor
delivery
progress
Monthly
reforecasting
(Capacity &
Demand)
1323-May-19

14. What has my experience taught me?
23-May-19 14
1. Understand the individuals
2. Assume nothing
3. Be inquisitive
4. Communicate, communicate, communicate some more
5. The principles of balancing your portfolio in the Digital
Age isn’t any different to how it’s always been!