Portfolio and Project Management for Innovation Success
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The document describes Mike Whitton and his company Right Projects Right Pty Ltd, which provides portfolio and project management services. Whitton has 27 years of experience in innovation roles. The company helps organizations generate good project ideas, focus on the right projects to deliver their strategy, and effectively deliver projects. The document discusses various approaches to portfolio management and emphasizes the importance of strategic alignment, maximizing value, balancing priorities, and focusing resources on the most important projects.
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Portfolio and Project Management for Innovation Success
- 1. Right Projects Right Pty Ltd Por1olio and Project Management Mike Whi9on Right Projects Right Pty Ltd
- 2. Right Projects Right Pty Ltd Por1olio and Project Management 27 years working in innova>on (R&D, process improvement and NPD): • Innova>on Manager, O-‐I Asia Pacific (2 years). • Innova>on Manager, Fonterra Brands Australia (5 years). • Innova>on Project and Por1olio Manager roles with Fonterra NZ (7 years). • Technology Champion, Interna>onal Paints UK (5 years) • Research Engineer / Project Manager roles with BHRG UK (8 years) • Worked for wide range of Chemical, Pharmaceu>cal and energy clients. Set up Right Projects Right to support organisa>ons to: " Generate great project ideas. " Focus on the right projects to deliver their strategy. " Effec>vely deliver those projects.
- 3. Right Projects Right Pty Ltd Por1olio and Project Management Ideas Concept Feasibility Development Commercialisa>on Gate 0 Gate 1 Gate 2 Gate 3
- 4. Right Projects Right Pty Ltd Por1olio and Project Management " You already have clear business and innova>on strategies. " “The essence of strategy is choosing what not to do”, Michael Porter. " You have a good understanding of the needs of your customers / consumers and the key opportuni>es / problems you need to address. " Market insights. " Ethnographic user studies.
- 5. Right Projects Right Pty Ltd Por1olio and Project Management " “Innova>on is a new idea that solves a problem” Steve Jobs. " “To drive real innova>on, more ideas must be captured and ideas must be allowed to feed off each other.” Strategic PPM, Simon Moore. " “Most innova>on is a process of accre>on” The Myths of Innova>on, Sco9 Berkun.
- 6. Right Projects Right Pty Ltd Por1olio and Project Management P1 L1 P2 L2 “Crea>vity is just connec>ng things” Steve Jobs
- 7. Right Projects Right Pty Ltd Por1olio and Project Management " Everyone can think crea>vely. " Keys for crea>ve thinking, e.g.: " Set the right environment. " Warm up your brain. " Use your subconscious mind. " Don’t get too se9led. " Give people recogni>on.
- 8. Right Projects Right Pty Ltd Por1olio and Project Management
- 9. Right Projects Right Pty Ltd Por1olio and Project Management " Lots of tools and techniques for encouraging crea>ve ideas from all of your people. " A con>nuous flow of great ideas requires: " Simple and transparent process. " Focus on solving important problems. " Consistent/visible encouragement, (rewards and recogni>on).
- 10. Right Projects Right Pty Ltd Por1olio and Project Management Ideas Concept Feasibility Development Commercialisa>on Gate 0 Gate 1 Gate 2 Gate 3
- 11. Right Projects Right Pty Ltd Por1olio and Project Management 11 Too many projects: • Lots of activity but all projects move at the same slow speed.
- 12. Right Projects Right Pty Ltd Por1olio and Project Management 12 Focusing resources on a few projects can result in rapid speed to market.
- 13. Right Projects Right Pty Ltd Por1olio and Project Management " “Say no to 1,000 things.” (Steve Jobs) " “Doing fewer projects improves the bo9om line.” (Harvey Levine, Project Por1olio Management). " CEO failure is driven mainly by poor execu>on not poor strategy. (Simon Moore, strategic PPM)
- 14. Right Projects Right Pty Ltd Por1olio and Project Management 14 Goals of Portfolio Management (Portfolio Management for New Products, Bob Cooper et al): • Strategic alignment • Maximum value • Balance* Note inherent conflict, e.g. max value may not be strategically aligned or balanced. Also need right number of projects for available resources*. • Focus on maximum output from available resources. • Effective resource allocation is essential.
- 15. Right Projects Right Pty Ltd Por1olio and Project Management " Popular financial models (no ma9er how sophis>cated) yield the poorest por1olio results and strategic alignment when used alone. " The data on which these methods rely is very poor at the start of an innova>on project. " Top down strategic methods (e.g. Product & Technology Roadmaps or Strategic Buckets): " Yield strategically aligned por1olios. " Require a lot of effort to define and can be made obsolete by sudden changes in the market.
- 16. Right Projects Right Pty Ltd Por1olio and Project Management " Scorecards are very easy to use and yield strategically aligned and valuable por1olios but do not address balance. " If they incorporate the key criteria that separate winners from losers. " Bubble diagrams: " Can see whole por1olio visually. " Best way of dealing with balance.
- 17. Right Projects Right Pty Ltd Por1olio and Project Management Best prac>ce scoring criteria (from Cooper): • Strategic alignment. • Product and Compe>>ve advantage. • Market a9rac>veness. • Leverage core competencies. • Technical feasibility. • Financial reward vs risk. The key is to develop a simple model that decision makers will use. • Typically with 6 to 10 ques>ons.
- 18. Right Projects Right Pty Ltd Por1olio and Project Management " I implemented a simple score card with only 4 factors (all rated H, M or L): " Strategic ra>ng " Customer >er " Incremental $ " Commercial ra>ng " Focus is what is important to the business not ease of comple>on. " Low hanging fruit omen ro9en.
- 19. Right Projects Right Pty Ltd Por1olio and Project Management PROJECT(NAME COUNTRY CATEGORY DESCRIPTION SCORE Project(6 200 Project(36 200 Project(1 200 Project(7 190 Project(50 190 Project(2 190 Project(8 180 Project(49 180 Project(3 180 Project(5 175 Project(4 175 Project(35 170 Project(11 170 Project(9 160 Project(10 155 Project(12 140 Project(18 135 Project(55 130 Project(45 130 Project(34 130 Project(13 130 Project(46 125 Project(41 120 Project(40 120 Project(14 120 Project(16 110 Project(15 110 Project(54 100 Project(33 100 Project(32 100 Project(17 100 Project(39 95 Project(30 95 Project(53 90 Project(44 90 Project(28 90 Project(38 85 Project(29 85 Project(52 60 Project(43 60 Project(24 60 Project(37 55 Project(27 50 Project(25 50 Project(31 45 Project(26 40 Project(23 40 Project(51 35 Project(42 35 Project(20 35 Project(47 30 Project(22 30 Project(19 25 Project(21 20 Project(48 15 " Forced ranked all projects. " Resources were applied from the top down. " Ranking and resourcing was reviewed monthly by all business managers. " Project tracking tools showed significant reduc>on in late projects as a result of this process.
- 20. Right Projects Right Pty Ltd Por1olio and Project Management " Diversity is the essence of risk management. " Examples of parameters to consider: " Reward " Risk " Resources required " Launch >ming " Market segments " Product categories or produc>on lines " Project types
- 21. Right Projects Right Pty Ltd Por1olio and Project Management Risk Reward Spreads Yoghurt Beverages Pearls Bread & Bu9er Oysters White Elephants
- 22. Right Projects Right Pty Ltd Por1olio and Project Management PROJECTS OBJECTIVE,1 OBJECTIVE,2 OBJECTIVE,3 OBJECTIVE,4 OBJECTIVE,5 1 X X 2 X 3 X X 4 X 5 X X 6 X X 7 X X 8 X X 9 X X 10 X X 11 X X 12 X 13 X 14 X 15 X X 16 X X 17 X 18 X 19 X 20 X X STRATEGIC,OBJECTIVES
- 23. Right Projects Right Pty Ltd Por1olio and Project Management " There is no singular PPM best prac>ce. " Need a holis>c approach. " Need to use a selec>on of tools to consider fit to strategy, value, balance and right number of projects. " Exec por1olio reviews need to be held regularly, typically quarterly, to complement the stage gate process.
- 24. Right Projects Right Pty Ltd Por1olio and Project Management " This feedback will drive more realis>c es>mates for future projects resul>ng in be9er por1olio decisions. " Focus becomes performance in market not just launch. " Visibility changes behaviours.
- 25. Right Projects Right Pty Ltd Por1olio and Project Management Ideas Concept Feasibility Development Commercialisa>on Gate 0 Gate 1 Gate 2 Gate 3
- 26. Right Projects Right Pty Ltd Por1olio and Project Management Key aspects of Project Execu>on: " Scope " Quality " Timeline " Financials " People " Communica>on " Risk " Procurement " Integra>on of all of above
- 27. Right Projects Right Pty Ltd Por1olio and Project Management Key aspects of Project Execu>on: " Scope " Quality " Timeline " Financials " People " Communica>on " Risk " Procurement " Integra>on of all of above
- 28. Right Projects Right Pty Ltd Por1olio and Project Management " Innova>on involves many func>ons. " Effec>ve cross-‐func>onal team work is cri>cal on innova>on projects. " The first step must be to define the following together: " Purpose (Why does this team exist?). " Values (How will all team members behave?). " Vision (What does success look like?). " Roles and responsibili>es.
- 29. Right Projects Right Pty Ltd Por1olio and Project Management Overlap Gap Gap
- 30. Right Projects Right Pty Ltd Por1olio and Project Management PERFORMANCE Plan Execute Evaluate SETTLED TEAM Meeting Expectations DISINTEGRATION DYNAMIC BALANCE Exceeding Expectations FORMATION Below Expecta>ons INSIDE FIGHTS Unacceptable Dynamic Team Average Team
- 31. Right Projects Right Pty Ltd Por1olio and Project Management " Scope and deliverables. " Work Breakdown Structure before >meline. " Defines deliverables and accountabili>es.
- 32. Right Projects Right Pty Ltd Por1olio and Project Management IN#SCOPE ####OUT#OF#SCOPE Great tool for clarifying accountabili>es across func>ons and elimina>ng gaps and double ups.
- 33. Right Projects Right Pty Ltd Por1olio and Project Management " Probably where most teams struggle. " Many small scope changes accepted without consequence leading to significant scope creep. " With each scope change request, need to consider consequences of accep>ng / rejec>ng the change " Quality " Time " Cost
- 34. Right Projects Right Pty Ltd Por1olio and Project Management TODAY 11'Oct 18'Oct 25'Oct 1'Nov 8'Nov 15'Nov 22'Nov 29'Nov 6'Dec 13'Dec 20'Dec 27'Dec 3'Jan 10'Jan 17'Jan 24'Jan 31'Jan 7'Feb 14'Feb 21'Feb 28'Feb 7'Mar 14'Mar 21'Mar 28'Mar 4'Apr 11'Apr 18'Apr 25'Apr 2'May 9'May 12'Oct ! ! ! ! !!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! FunctionBkey Status!key Commercial Delivered Technical!&!Quality On!track Logistics Up!to!1!week!behind!schedule IT >1!week!behind!schedule Construction!&!Engineering Plant!Management HR Note: S>ll need a detailed cri>cal path plan
- 35. Right Projects Right Pty Ltd Por1olio and Project Management " Need to involve stakeholders throughout the process, e.g. " Project Sponsor " Customers / consumers / users. " Risk analysis " Omen conducted at start then filed. " Innova>on is risky and risks change, so must revisit risk analysis and capture mi>ga>on ac>ons.
- 36. Right Projects Right Pty Ltd Por1olio and Project Management Mike Whi9on Right Projects Right Pty Ltd