Outcomes Management:
            Prelude to a Portfolio

                     PMI OVOC PMO LIG Chapter
                   ...
Disclaimer
•   The content of this presentation is the commercial confidential property of BSS Nexus Global Inc used
    u...
The Professional Me
•   30+ years in IT in public/private sector in Canada and USA
•   B.Sc. Computer Science, M.A. (Publi...
Agenda
•   Portfolio Premise-Challenges
•   Outcomes Management
•   The Project Context
•   The Approach
•   The Results
•...
Project Selection

Typical Project “selection process”
1. Identification
2. Categorization
3. Evaluation
4. Selection
5. P...
Project Selection

Typical Project “selection process”          Issues?
1. Identification                            • Do ...
When Business Strategy is not driving project definition

 Situation                                              Leads to...
On-Strategy?
•   Following traditional Project Management practices does not guarantee that what
    you are delivering is...
Business-IT Alignment?
•   Following traditional Project Management practices does not guarantee that what
    you are del...
Agenda
•   Portfolio Premise-Challenges
•   Outcomes Management
•   The Project Context
•   The Approach
•   The Results
•...
Outcomes Management
• Enables organizations to define and use specific indicators to continually
  measure how well servic...
Outcomes Management answers the 4 “Are’s”
The Strategic question. Is the        For Business and IT           The Value qu...
Types of Outcomes
• Good and intended
      Ones that we planned for and intended to happen
• Good but unintended
      On...
Types of Outcomes
• Good and intended                                             The only ones we get
                   ...
Measurement of Outcomes
• Individual Performance
      How well the individual performs their role within a business unit ...
Designed-in Performance
• Performance against those outcomes that are both defined and desirable
  is cumulative up throug...
Levels of Outcomes
• Immediate Outcomes
      Accrue on delivery of the new or updated product or Service
• Intermediate O...
Outside-in Thinking?
•   “Here’s the solution, what’s the problem?”
•   “I know exactly what you need”
•   “I saw this rea...
Outside-in Thinking
•   “Here’s the solution, what’s the problem?”
•   “I know exactly what you need”
•   “I saw this real...
Focus on Desired Outcomes First
• Outcomes must be focused on the delivery of defined business strategies,
  this means th...
Achieving Desired Outcomes means that ‘Change’
                    must happen
• An Outcomes focus highlights the fact tha...
The Drive to Results

Define Strategy
                     Execute Projects
Identify Desired
Strategic Outcomes           ...
Reflection
• “It’s incredibly easy to get caught up in an activity trap in the busy-ness of
  life, to work harder and har...
Agenda
•   Portfolio Premise-Challenges
•   Outcomes Management
•   The Project Context
•   The Approach
•   The Results
•...
Project Context
• Typical Project Direction was Given:
       “Buy and Implement a <tool>”
• Direction Taken:
       We br...
Typical Executive/Management Involvement Profile
             “The Executives Paradox”




     As project issues arise ar...
Executive/Management Ability to Influence
                  Outcomes




An aid to re-profiling management engagement was ...
Agenda
•   Portfolio Premise-Challenges
•   Outcomes Management
•   The Project Context
•   The Approach
•   The Results
•...
The Original Tool – An LMS
                                           Learning Management
                                ...
A few more were Needed!
                      Content Authoring
                                           Content Authori...
A few more were Needed!
                    Content Management
                                           Content Manageme...
A few more were Needed!
                      Process Automation
                                           Process Automa...
The Value Map




   BSS Nexus Global © 2010
Projects aim to deliver desirable Outcomes through
measurable Benefits and observable Value that reflect defined
         ...
Value Streams




   BSS Nexus Global © 2010
The Outcomes Management Parts
                                                                                     Impleme...
The Next-up Value Stream




        BSS Nexus Global © 2010
Project Results
• Outcomes were defined in context of Strategic Goals
• Business Services were defined to deliver Outcomes...
A Shift in Thought Process….
                                     Competition for IT and Business resources
              ...
Larry’s 10 Postulate’s
1.    Business Value is defined in terms of both desirable and measurable Outcomes that
      achie...
“It’s so much easier to suggest solutions,
when you don’t know much about the problem”
                                   ...
For more information
Larry.Cooper@BSSNexus.com
     11-300 Earl Grey Drive
      Ottawa, ON K2T 1C1
        1-888-316-2745...
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Outcomes management prelude to a portfolio oct 20,2010 ottawa

  1. 1. Outcomes Management: Prelude to a Portfolio PMI OVOC PMO LIG Chapter October 20, 2010 Larry Cooper, B.Sc., M.A. (Public Administration) PMP, ITIL Expert, CSM, ISO 20000 Consultant, CPM, Project+ Hosted by: Coradix Technology Consulting May 2010 BSS Nexus Global © 2010
  2. 2. Disclaimer • The content of this presentation is the commercial confidential property of BSS Nexus Global Inc used under license from the following companies where applicable: Geo-Spatial Project Learning Institute and AltNexus Corporation • The approach presented was customized based on the project environment, organizational context, and evolving circumstances and may or may not work exactly as presented for another project context • What is presented is only a portion of the overall approach used in the project as it relates specifically to how outcomes management was done using one of the adapted methods. An understanding of the overall approach (all adapted method’s) is needed for individual portfolio success • No single method is a “Silver Bullet” – EVER BSS Nexus Global © 2010
  3. 3. The Professional Me • 30+ years in IT in public/private sector in Canada and USA • B.Sc. Computer Science, M.A. (Public Administration) • PMP, CSM, ITIL V3 Expert, ISO 20000 Consultant, CPM, Project+ • Background in: Software Development, Systems Integration, IT Operations, Business Process Design, Methodology Development and Adaptation Science-based, HR, Learning Management, Financial and Supply Management business areas • Author of industry articles, white papers, and in books • Top ITIL whitepaper download on www.Forbes.com in 2007 (written for Global Knowledge – “Implementing ITIL using the PMBOK in Four Repeatable Steps”) • Created the Capability Release Strategy for the worlds largest web-enabled Supply Chain system • Instructor since 2006 in ITIL/ITSM, Project Management and Soft Skills • Roles: Programmer, Programmer Analyst, Manager IT Operations, Director, PM, Test Manager, Instructor, Author, Business Process Designer, Courseware Developer, Strategic Advisor, Business Analyst, Capacity Manager, Configuration Manager, invited speaker Main trait: I LOVE VARIETY AND CHANGE! New Motto: “I never met a method that I could not adapt” BSS Nexus Global © 2010
  4. 4. Agenda • Portfolio Premise-Challenges • Outcomes Management • The Project Context • The Approach • The Results • What’s next BSS Nexus Global © 2010
  5. 5. Project Selection Typical Project “selection process” 1. Identification 2. Categorization 3. Evaluation 4. Selection 5. Prioritization 6. Portfolio Balancing 7. Authorization BSS Nexus Global © 2010
  6. 6. Project Selection Typical Project “selection process” Issues? 1. Identification • Do you see any reference to 2. Categorization strategic goals? 3. Evaluation • Do you see any reference to 4. Selection desirable outcomes? 5. Prioritization • Projects are not purpose-defined to satisfy strategic goals or 6. Portfolio Balancing desirable outcomes – that is the 7. Authorization “Business-IT alignment” exercise this implies • “Skyward looking” – what is up there that I can “align” to? BSS Nexus Global © 2010
  7. 7. When Business Strategy is not driving project definition Situation Leads to.. Results in.. Budget overruns Reluctance to say no to Project delays projects Too many projects Business needs not met Lack of Strategic Focus Benefits not Can’t kill projects Quality of execution received Projects are “sold” on suffers Increased emotional basis -- not Complexity selected Sub-optimal use of Underestimation of resources No strong review process risks and costs Finger pointing Overemphasis on Projects not Financial ROI integrated into Lack of confidence No clear strategic criteria for Business Strategy (in IT) initiation or selection Source: Fujitsu BSS Nexus Global © 2010
  8. 8. On-Strategy? • Following traditional Project Management practices does not guarantee that what you are delivering is “on-strategy” – only that it can be delivered well – even when it is the wrong thing! • Being “on-strategy” requires that the project be defined and delivered from the perspective of the strategy itself and not as an after the fact alignment exercise BSS Nexus Global © 2010
  9. 9. Business-IT Alignment? • Following traditional Project Management practices does not guarantee that what you are delivering is “on-strategy” – only that it can be delivered well – even when it is the wrong thing! • Being “on-strategy” requires that the project be defined and delivered from the perspective of the strategy itself and not as an after the fact alignment exercise • The notion of “Business-IT Alignment” is not achievable and in fact it never really was! BSS Nexus Global © 2010
  10. 10. Agenda • Portfolio Premise-Challenges • Outcomes Management • The Project Context • The Approach • The Results • What’s next BSS Nexus Global © 2010
  11. 11. Outcomes Management • Enables organizations to define and use specific indicators to continually measure how well services or programs are leading to the desired results • Used extensively in health care and not-for-profit sectors • Basis for TBS’ Results-based Management Accountability Framework • First articulated in the “The Information Paradox” by John Thorpe of DMR in 1998 • Embedded into the ValIT Framework from the IT Governance Institute, John Thorpe, Lead Author BSS Nexus Global © 2010
  12. 12. Outcomes Management answers the 4 “Are’s” The Strategic question. Is the For Business and IT The Value question. Do we have: investment: • In line with our vision • A clear and shared understanding of • Consistent with our businesses the expected benefits principles • Clear accountability for realizing the • Contributing to our strategic benefits objectives • Relevant metrics • Providing optimal Value, at affordable cost, at an acceptable • An effective benefits realization level of Risk process The Architecture question. Is the investment: The Delivery question. Do we have: • In line with our architecture • Effective and disciplined management, • Consistent with our architectural delivery and change management principles processes • Contributing to the population • Competent and available technical and of our architecture business resources to deliver: • In line with other initiatives – The required capabilities – The organizational changes required to leverage the capabilities From ValIT, ITGI BSS Nexus Global © 2010 12
  13. 13. Types of Outcomes • Good and intended Ones that we planned for and intended to happen • Good but unintended Ones that we did not plan for, but that have a positive effect on the organization or its Customers/Clients • Bad and unintended Ones that we did not plan for and that have a negative effect on the organization or its Customers/Clients AKA “the law of unintended consequences” – Blackberry and iPhone BSS Nexus Global © 2010
  14. 14. Types of Outcomes • Good and intended The only ones we get without Outcomes Ones that we planned for and intended to happen Management • Good but unintended Ones that we did not plan for, but that have a positive effect on the organization or its Customers/Clients • Bad and unintended Ones that we did not plan for and that have a negative effect on the organization or its Customers/Clients AKA “the law of unintended consequences” – Blackberry and iPhone Without Outcomes Management, it’s a little bit like getting “a box of chocolates” – you never really know which ones you are going to get! BSS Nexus Global © 2010
  15. 15. Measurement of Outcomes • Individual Performance How well the individual performs their role within a business unit of the organization against defined and desirable business unit outcomes • Team (or Business Unit) Performance How well the Team performs against defined and desirable organizational outcomes • Organizational Performance How well the organization performs against its defined and desirable outcomes BSS Nexus Global © 2010
  16. 16. Designed-in Performance • Performance against those outcomes that are both defined and desirable is cumulative up through the layers • BUT…the collective capability that is required to do so is defined in the context of and delivered to ensure that such performance can actually occur • That means the desired performance must actually be “designed in” through a network of linked outcomes – Immediate, Intermediate, and Ultimate Note: This means that you need to create a Measurement and Analytics Framework BSS Nexus Global © 2010
  17. 17. Levels of Outcomes • Immediate Outcomes Accrue on delivery of the new or updated product or Service • Intermediate Outcomes Are necessary for some other product, Service or Initiative to start (i.e. they are used by or are a prerequisite to) • Ultimate Outcomes Highest level of Outcome that can be reasonably attributed to the Initiative in a causal manner, and is the consequence of one or more intermediate Outcomes having been realized These are in essence the raison d'être for the Initiative and are required in order to achieve the Strategic Outcomes of the organization BSS Nexus Global © 2010
  18. 18. Outside-in Thinking? • “Here’s the solution, what’s the problem?” • “I know exactly what you need” • “I saw this really cool tool at the conference, we need to get it” • “But the Customer is willing to pay for it…” BSS Nexus Global © 2010
  19. 19. Outside-in Thinking • “Here’s the solution, what’s the problem?” • “I know exactly what you need” • “I saw this really cool tool at the conference, we need to get it” • “But the Customer is willing to pay for it…” • Thinking in terms of Outcomes means we also need to think of what the eventual Customer/Client needs, rather than just about ourselves • And sometimes we need to protect our customer/client from themselves! BSS Nexus Global © 2010
  20. 20. Focus on Desired Outcomes First • Outcomes must be focused on the delivery of defined business strategies, this means that the projects to deliver them are not “just” IT Projects (and they never really were) • While technology is often a key enabler to outcomes realization, simply getting the technology installed is not what the business desires • Organizations don’t want a “tool”, they want what a tool enables “People don’t want quarter inch drills. They want quarter inch holes.” Theodore Levitt, Harvard Business Professor BSS Nexus Global © 2010 20
  21. 21. Achieving Desired Outcomes means that ‘Change’ must happen • An Outcomes focus highlights the fact that all projects are hinged on changing something – we want to change from a current state that is not desirable to a more desirable new future state • You cannot lose sight of the changes that will be needed, their nature, and how they will be achieved: Do we have a clearly articulated vision of what our desired future state will look like? Will this desired future state require a ‘group re-think’ in terms of what we do and how we do it? Do we have clearly defined governance? Do we have clearly defined roles and processes? Are we approaching our project investments (the enablers) as change catalysts? Do we truly understand all of the project investments we will need to undertake and the sequence in which we need to do them? • Most outcomes are not achieved simply by completing the project – outcomes “stickiness” is achieved long after the project “lights” are turned off Knowing whether the future state was achieved requires measurement of the effects of the changes that were made well after the projects are over, which means the changes to be made had to have been understood, planned, implemented, and measured BSS Nexus Global © 2010 21
  22. 22. The Drive to Results Define Strategy Execute Projects Identify Desired Strategic Outcomes Build Capacity Projects Defined to deliver “on-strategy” Build Required Operational, Business, and Technical Capacity BSS Nexus Global © 2010
  23. 23. Reflection • “It’s incredibly easy to get caught up in an activity trap in the busy-ness of life, to work harder and harder at climbing the ladder of success only to discover it’s leaning against the wrong wall”. Stephen Covey • “There is nothing worse than doing well that which should not be done at all”. Peter Drucker BSS Nexus Global © 2010
  24. 24. Agenda • Portfolio Premise-Challenges • Outcomes Management • The Project Context • The Approach • The Results • What’s next BSS Nexus Global © 2010
  25. 25. Project Context • Typical Project Direction was Given: “Buy and Implement a <tool>” • Direction Taken: We brought the project team and sponsor back to Strategic Goals, Desired Outcomes, Business Services, Processes and then the Tools BSS Nexus Global © 2010
  26. 26. Typical Executive/Management Involvement Profile “The Executives Paradox” As project issues arise around scope, resourcing, time, costs, etc. management involvement also increases but by then it is usually too late to influence project outcomes BSS Nexus Global © 2010 26
  27. 27. Executive/Management Ability to Influence Outcomes An aid to re-profiling management engagement was the introduction of Agile practices As we went into execution of projects, their involvement followed above profile BSS Nexus Global © 2010 27
  28. 28. Agenda • Portfolio Premise-Challenges • Outcomes Management • The Project Context • The Approach • The Results • What’s next BSS Nexus Global © 2010
  29. 29. The Original Tool – An LMS Learning Management Foundation platform for learning framework Self-service learning content Course scheduling and registration Facilities and instructor management Competency alignment with learning content Individual learning history The LMS is a key building block to the organizations longer term goals in areas such as Learning Management System performance management, talent management, and succession planning and is an integral part of advanced HR self-service and enhanced corporate web capabilities BSS Nexus Global © 2010
  30. 30. A few more were Needed! Content Authoring Content Authoring eLearning content development based on recognized industry standards (SCORM) Authored content is managed through Learning Content Management and delivered via LMS Content authoring tools are used to create content that can be delivered via the appropriate modality or combination of modalities (physical classrooms, Content Authoring virtual classrooms, eLearning, collaboration spaces, etc.) Learning Management System BSS Nexus Global © 2010
  31. 31. A few more were Needed! Content Management Content Management and Collaboration Learning content repository Course development collaboration Course collaboration areas (instructor, learners) Process collaboration areas via wiki’s (task details, etc) Content Management Learning Content Management addresses the need Authoring Tools manage both content development and content delivery and encompasses proper content release management to ensure that only approved and tested Learning Management System content makes its way into the LMS production environment BSS Nexus Global © 2010
  32. 32. A few more were Needed! Process Automation Process Automation Foundation platform for process models High level process flows Process Automation Metrics for process measurement and improvement Links processes with learning (competencies, Content Management learning opportunities) Uses Out-of-the-box (OOTB) capabilities Authoring Tools Process Automation ensures consistency in defined processes and enables continuous process Learning Management System improvements via process improvement methods such as Lean 32 BSS Nexus Global © 2010
  33. 33. The Value Map BSS Nexus Global © 2010
  34. 34. Projects aim to deliver desirable Outcomes through measurable Benefits and observable Value that reflect defined Business Strategies Value Management But… they need business and IT to work collaboratively… throughout the Value Management lifecycle… BSS Nexus Global © 2010 34
  35. 35. Value Streams BSS Nexus Global © 2010
  36. 36. The Outcomes Management Parts Implement Learning Management Customer Engagement Stream Learning Management Contribution to Strategic Outcomes Capabilities O1 Quality C1 I1 Learning Customer Implement Customer Management Engagement Triage Process and Advisory Provided Content Management Stream O2 C2 I2 Learning Learning Implement Learning Content Content Design Content Design and Relevant to and Development Processes Client Development Needs C3 Leaning I3 Value Streams Implement Learning O3 Efficient and Effective Content Content Management Learning O9 Management Processes Content Individual Management Performance Aligned with Implement Corporate Goals and Objectuves Learning 0 Management Learning Management and Delivery Stream O12 Quality of Services to Canadian O8 Exporters O7 O10 Increase O4 Efficient and I4 Learning Rewarding, Blended Effective Implement Learning Anytime, Flexible and Learning Knowledge Management System Anywhere, Progressive Facilitated Transfer Anypace Workplace Facilitated C4 Learning Delivery I5 Integrate LMS with O5 Informal Learning O11 Be a Learning Initiatives Register SharePoint Organization Management Formalized Support Stream O6 I6 Effective and C5 Conduct Training and Efficient Support Knowledge Transfer to Support Support Staff Provided Benefits Register Outcomes Register BSS Nexus Global © 2010 36
  37. 37. The Next-up Value Stream BSS Nexus Global © 2010
  38. 38. Project Results • Outcomes were defined in context of Strategic Goals • Business Services were defined to deliver Outcomes • Processes were defined to support Business Services • Tools identification and selection was based on Strategic Goals, Desired Outcomes, Business Services, and Process needs • Original Tool that was requested ended up being one of five (5) sets of different tools that were actually needed for successful implementation Original Tool, Workflow, Authoring Tools, Content Management, Measurement and Analytics • Originally identified tool is embedded as but one of the tools needed to support just one of the four major process areas that are required for the business unit to support its defined Strategic Goals BSS Nexus Global © 2010
  39. 39. A Shift in Thought Process…. Competition for IT and Business resources Business Cases not clearly comparable Shift the focus from From…ROI Alignment between Business and IT strategy unclear managing inputs Financial worth open to interpretation (costs) ... Sponsored by those who ‘do the work’ Unit Mangers and Project Mangers left to “sort it out” Executive engagement ramps up when project is in trouble Clear path to understanding the logic and likelihood of business case benefits to managing with To…ROV (Value) Objective, business Value approach to selection an outcomes Sponsored by those who ‘seek the benefits’ (benefits) focus Executive decision making “sorts it out” Executive engagement at beginning where it matter’s most BSS Nexus Global © 2010 39
  40. 40. Larry’s 10 Postulate’s 1. Business Value is defined in terms of both desirable and measurable Outcomes that achieve a defined Business Strategy 2. Business Strategy creation and execution requires leadership that is hands-on 3. Business Strategy focuses on the organization’s products and/or Services and is provisioned via projects 4. Business Strategy must be considered in the contexts of systems and tools, processes, information sources, training/education, motivation and incentives, and resource/capability acquisitions 5. It is rare that a single project can deliver on a business strategy 6. All organizations, and all parts of an organization, deliver products and/or Services to a Customer – whether internal or external 7. All products and/or Services have a lifecycle – they are defined, provisioned, operated, improved and eventually retired 8. All projects constitute a change - be it new or modified processes, systems, organizational structures, products, or Services 9. All changes require collaboration and communications across the entire stakeholder base 10. Leadership is needed throughout the products and/or Services lifecycle BSS Nexus Global © 2010
  41. 41. “It’s so much easier to suggest solutions, when you don’t know much about the problem” Malcom Forbes BSS Nexus Global © 2010
  42. 42. For more information Larry.Cooper@BSSNexus.com 11-300 Earl Grey Drive Ottawa, ON K2T 1C1 1-888-316-2745 (613) 868-0982 (cell) BSS Nexus Global © 2010

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