Condesign is a consulting firm that partners with Planisware, a global leader in project portfolio management (PPM) software. The document discusses why PPM is important, common pitfalls organizations face with PPM ("seven deadly sins"), and provides a four-step process for implementing an effective PPM system: analyze the current approach, galvanize support for changes, standardize processes and metrics, and optimize the portfolio through iterative reviews. The presentation emphasizes engaging stakeholders, defining clear governance models, and continuously improving PPM practices to balance corporate oversight with local business needs.

1. Powerful Product Planning &
Portfolio Management
Projektverktygsdagen 27/5 2010
Torbjörn Grahn, Condesign AB
torbjorn.grahn@condesign.se

2. Agenda
• Condesign & Planisware, who we are…
• Vattenfall and PPM
• Why PPM ?
• The seven deadly sins of PPM
• An implementation process
• Summary & Thoughts

3. Information Knowledge since 1984
• Founded in Göteborg 1984 VÄSTERÅS
• 200 employees KARLSTAD KARLSKOGA
STOCKHOLM
• Offices at 9 different sites
• Business Areas:
- Engineering
- Communication
- IT/Operations Support GÖTEBORG LINKÖPING
JÖNKÖPING
LJUNGBY
MALMÖ

5. Condesign is a partner
Planisware is a global leadning supplier of PPM (Project Portfolio Management) systems since
1996
Planisware 5 is a system for PPM (Project Portfolio Management) that supports the organizations
complete project scope: from the operational level to the strategic level.
Focus on NPDI (New Product Development and Innovation)
Stage-Gate-certified – Best Practice for NPDI is integrated in the tool
Planisware’s PPM-system is used by more than 200 organizations worldwide with +200 000 users
in market segments such as: Pharma, Energy, IT, Aerospace & Defence, Automotive
A few examples:

6. The Powerful perspective ...

8. Vattenfall is Europe's fifth largest electricity
producer and the largest heat producer.
Vattenfall acts in all parts of the electricity
value chain: generation, transmission,
distribution and sales. Vattenfall also
generates, distributes and sells heat.
Operations are conducted in Sweden,
Denmark, Finland, Germany, Poland,
Great Britain, Netherlands and Belgium.
Vattenfall has more than 40 000
employees.

9. Vattenfall - Geographics

11. Portfolio Management
Which projects do we run ?
NOT

12. From the Project Tunnel …

13. … to the Project Funnel !

14. Strategic project planning

15. The vision with PPM – key benefits
• Shorter Time to Market
• High project efficiency – low failure rates
• Many Successful projects
• Supporting the Business Strategy

16. The seven deadly sins
of PPM

17. Sin I – Narrowly defining the portfolio

18. Sin II – Investments decisions are like
New Year’s resolutions

19. Sin III – Decibel-driven versus
data-driven decision making
”Acoustic prioritization”

20. Sin IV – Too many metrics, not enough time

21. Sin V – One-Size-Fits-All Portfolio Management

22. Sin VI – ”If we install this software, then we will be
able to optimize our corporate portfolio.”
”A fool with a tool
is still a fool”

23. Sin VII – Driving without rear mirrors
Close the loop !

24. A suggested implementation
process

25. A four step approach
Analyze
Optimize Galvanize
Standardize

26. Analyze
• How are we doing with regards to PPM? Unconsciuosly Competent
 Process and discipline Consciously Competent
 Organizational behavior Consciously Incompetent
 Attitude and readiness
Unconsciously Incompetent
• Which are our challenges (weaknesses)?
• Which are our strengths?

27. Galvanize
• Build a business case for the PPM effort
• Educate and get organizational buy-in
 Leverage Your champion
 Build a coalition
 Do not confront sceptics
 Win small, win early, win often
• Get senior sponsorship and commitment
• Change organizational behaviour on
an ongoing basis

28. Standardize
Standardize financial, strategic and risk evaluation methods
 What is an investment/project/portfolio/... ?
 Which metrics are important? – and which are not !?
 Modelling of investment projections?
 Investments that do not generate returns?
 How is the data collected?
 How often should the data be collected?
 How to evaluate qualitative factors such
as risk and strategic benefit?

29. Optimize – setting up the first Portfolio Review
• Understand the current portfolio
• Define the short-term goals
• Get approval for the goals by the sponsor
• Educate the stakeholders in the review process
• Develop a hypothesis – what if scenario?
• Refine and resolve
• Implement recommendations and decisions
• Do a review on the Portfolio Review itself

30. Summary & Thoughts

31. The main realms for Governance
 Business processes definition
Business Guiding Principles  Strategy alignment
 Aggregation level of data
 Systems requirements
IT integration  Systems integration
 Systems security

32. The level of Governance
Too decentralized setup Right balance Too centralized setup
Company level
Locally adapted portfolio Transparent portfolio management,
management, however, limited Top level aggregation model* however, limited possibility to
holistic portfolio management adapt to local business
requirements
Key cluster specific models**
Local adaptations
Local specific info Cluster specific info Top level specific info
The challenge is to find the right balance between what needs to be managed in a common
structure and what needs to be managed according to unique local requirements

33. Some final thoughts ...
• Think big – start small
• Engage the decision makers (sponsors)
• Know your organisation – the culture and behaviours
• Encourage the ambassadors
• Define the nomenclature and the metrics
• Find a good ambition level for governance and aggregation
• Find and build a success story
• Think change management
• Iterate and improve continuously

34. References
• Portfolio Management for New Products
 Robert G Cooper
 Scott J Edgett
 Elko J Kleinschmidt
• Product Leadership
 Robert G Cooper
• Project Portfolio Management
 Harvey A Levine
• Advanced Project Portfolio Management and the PMO
 Gerald I Kendall
 Steven C Rollins
• Optimizing Corporate Portfolio Management
 Anand Sanwal

35. Thank You !
Torbjörn Grahn, Condesign AB
torbjorn.grahn@condesign.se