This presentation discusses Procter & Gamble's journey to improve its portfolio management process. It began with decentralized project management and a bottom-up approach. P&G transitioned to a more top-down, program-centric structure with the goals of operationalizing strategy, simplifying processes, and creating mutual benefit between business units and IT. The new process focuses portfolio planning and execution around programs and measuring benefits realization. It has led to better strategic alignment, time savings, and management visibility. The presentation recommends further integrating programs into portfolio management and bringing portfolio managers into the project management office.

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Driving
Strategies,
Not Just
Executing
Projects
David Walton
Global Portfolio
Service Manager
Procter & Gamble
Global Business Services & IT

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Agenda
• Background
• Landscape
• Our Portfolio Management Challenge
• Highlights of Our Journey
• Where are We Now?
• Q&A

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A Company of Leading Brands

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P&G Today
Sales $65.1 Billion
Earnings $15.3 Billion
Countries of Operations ~70
Countries Where Our 180+
Brands are Sold

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GLOBAL
BUSINESS
SERVICES (GBS)
& IT
play a critical roles
in P&G’s success

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Data &
Analytics
ConsumerCustomer Financial Employee
Planning,
Transportation,
Warehousing
Product
Supply
Innovation,
Design,
Quality
Information
Security
IT Services
Services for
GBS & IT
Global Business Services (GBS) & IT

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Landscape for EPMO Work
• 5000 Resources In 70 Countries
• 750 PMs (Decentralized)
• 1000 Projects
• 150 Programs
• 170 Services
• 600 Solutions
• Generally a promote from within company

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GBS and IT:
Come-from State/Challenges
Good value, but let’s do more!
Bottom-up portfolio Distributed funding processAchieving goals?
Relatively new in areas Legacy PPM Reputation - “Project Police”

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EPMO Business
Transformation Objective
Operationalize
the strategy
Simplify
operational
processes
Create win-win
• Confidence in sufficiency to deliver goals
• Agility to react to changing business needs
• Better visibility and more insights
• Improved data quality to make decisions
• Fewer, better integrated tools
• Harmonized processes
• Industry standard best practices
• Less data entry
• Better user experience

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Design Principles
• We must deliver the strategy and goals
• Adopt industry standard best practices
• All service lines and partners are in
• Simplification and productivity

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Portfolio Management
High Level
Goals
Portfolio
Ideation
Iterate
Portfolio
Fund &
Detail
Program/Project Execution
& Monitor/Adjust Portfolio
Annual Portfolio Planning
Service
Strategy
• Aligned overall drumbeat
• Narrow choices throughout planning
• Minimize Hard Points  Where cross-organizational impacts
• Clear best practices for soft points
Portfolio Execution

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Programs:
Central for Delivering Strategy
Programs
Projects
Business
Operations
Strategy &
Goals

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Annual Program Process
Complete
Leadership
Pre-Review BU Boards
Corporate
Service Line
Leadership
Evaluate &
Reserve
Funding
Plan
Program
Execute &
Monitor
Deliver &
Realize
Benefits
Develop or
Update
Business
Case
STRATEGIES

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Business Case
General info
Objective
Business
Need &
Approach
Benefits
Expenses
&
Funding
• Accessible and digestible
• Ruthless focus on
benefits delivery

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Program Planning - The Tranche
Program Tranche:
Organizing a program’s
projects into manageable
chunks with review points
for managing progress and
assessing performance
and benefits realization

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Plan Programs in
Fiscal Year Tranches
Projects
…FY1 FY2 FY3
Capabilities &
Outputs
Vision
Strategy
Program
Costs & Benefits

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Program Manager:
Ensure Sufficiency to Achieve Fiscal Year Benefits
Sufficiency Check
Project
Business Cases
Program
Business Case
Benefits
& Costs

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Manage the Tranche and
Assess Program Health
Assess Health Status
• Are the component projects on track to
deliver capabilities / outputs?
• Is the overall program on track to deliver
the planned benefits at the planned
costs for this fiscal year?
• Are there significant risks associated
with delivering the benefits?
Manage
the
Tranche

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Update the Program
Business Case/Financial Plan
Whenever there is a
material change
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May May June
End of fiscal to
capture actuals
and next fiscal
forecast
Each fiscal year for
the portfolio build
© 2018 Procter & Gamble. All rights reserved.

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Top-Down Approach:
The Final Sale

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Portfolio Build Approaches:
Project-centric
1 Project business cases
Service Improvement

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Portfolio Build Approaches:
Project-centric
2
Not funded
Project business cases
Service Improvement
Business additions

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Portfolio Build Approaches:
Project-centric
3
Not funded
Can’t staff
Programs
Project business cases
Service Improvement
Business additions

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Portfolio Build Approaches:
Project-centric
3
Not funded
Can’t staff
Programs
Project business cases
Service Improvement
Business additions
Waste
Upset clients

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1
Portfolio Build Approaches:
Program-centric
Service improvement
project business cases
Program business
cases written

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Portfolio Build Approaches:
Program-centric
2
Service improvement
project business cases
Program business
cases written
Business additions
Not funded

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Portfolio Build Approaches:
Program-centric
3
Service improvement
project business cases
Program business
cases written
Business additions
Not funded
Project business cases

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Waste
Portfolio Build Approaches:
Program-centric
3
Service improvement
project business cases
Program business
cases written
Business additions
Not funded
Project business cases

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Portfolio Approaches:
Program vs. Project Focus
Less Wasted Effort ꟾ Fewer Upset Clients ꟾ Fewer Pet Projects ꟾ Better Results Delivery

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Data &
Analytics
ConsumerCustomer Financial Employee
Planning,
Transportation,
Warehousing
Product
Supply
Innovation,
Design,
Quality
Information
Security
IT Services
Services for
GBS & IT
Service Organization
Service Category
Portfolio Managers Play a Key Role

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What Many of Us are Doing
to Portfolio Managers

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Portfolio MonitoringPortfolio Planning
Portfolio Manager - Our View

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Value Verification -
Company Benefits Reporting
GBS Goals linked to Corporate Goals
Net benefits* totals reported for multiple fiscal years by:
- Overall GBS
- Service organization
- Program (top-down)
- Projects (bottom-up)
*Subtracts incremental ongoing costs
Existing
GBS
services
BU enabled
savings
New shared
services
GBS
enabled
revenue
growth
GBS
enabled
improved
cash flow
Margin Improvement / Hard Cost Savings
Soft savings
(cost
avoidance,
time savings)

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Current State
Significant progress in delivering our business objectives:
• More of top-down portfolio build – strategic focus + time savings
• Growing maturity on program management
• More focus on benefits definition and delivery
• One version of the truth
• Management visibility lead to increasing commitments to the company
• Some key concepts being applied beyond GBS & IT
Operationalize
the strategy
Simplify
operational
processes
Create win-win

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Bottom-Up
Portfolio
Blended
Portfolio
Top-Down
Portfolio
By Service
Line Strategic
Portfolio
Enterprise
Strategic
Portfolio
Our Journey

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Key Takeaways and
Recommendations
• Get crystal clear on the benefits being delivered
• Consider integrating/aligning programs and program
management concepts into the portfolio management processes
• To drive stronger strategic alignment
• To increase focus on benefits management
• To save time
• Consider bringing portfolio managers into the EPMO

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Thank You
Let’s continue the
conversation…
David Walton
walton.de@pg.com