The document discusses the challenges of traditional portfolio review methods and emphasizes the need for improved portfolio analytics and visualization for better governance. It highlights the shortcomings of existing approaches, including project duplication and missed opportunities, while proposing recommendations for enhancing resource management and decision-making through data-driven insights. Overall, it advocates for a new paradigm in portfolio management that leverages analytics to identify risks, dependencies, and performance issues.

1. Portfolio intelligence:
analytics and visualisation
October 2017
www.pwc.com.au
Bryan Fenech
Business Transformation Consultant

2. Traditional portfolio review approaches
A list of projects with health indicators
Initiative Sponsor Budget Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Comments
Planned
Forecast
Planned
Forecast
Planned
Forecast
Planned
Forecast
Planned
Forecast
Planned
Forecast
Planned
Forecast
Planned
Forecast
Planned
Forecast
Planned
Forecast
Resource issues - technology
Phoenix Stage II T Smith $28,000,000
On track
$16,000,000
Significant delays due to resource availability
$24,000,000
Minor schedule delay - otherwise on track
$45,000,000
Issues with vendor delays
$1,200,500
Issues with vendor delays
$1,000,500
Difficulty quantifying benefits and finding resources
On track
$5,000,000
T McCann
Schedule blowout - replanning underway
$13,000,000
$85,000,000
Global Infrastructure
Workday
IQ2020
S Born
M Percival
S Chandler
T McCann
A Daley
M Percival
T Smith
Resource availability being managed
Claims Rationalisation
FFFP
Pulse
PMO Refresh
OH&S
2017 2018 2019
Finance Transformation T Smith $25,650,000
Overall
Cost
Schedule
Resources
Risk
Benefits
Strategic portfolio for XYZ corporation

3. Shortcomings of traditional approaches
Duplication and missed opportunities
3
Duplication
The Portfolio Governance Board can do little more than
delegate back with interest what the Sponsor has escalated
up to them
Missed opportunities
Structural and systemic issues impacting projects and
programs across the portfolio are obscured from the
Portfolio Governance Board

4. Portfolio data analytics
A more valuable approach
4
What is the combined
value of investment
dollars, or benefits, by
traffic light ratings? Is
the position improving
over time?Is there a point of
increasing complexity
at which delivery
performance and
throughput tends to
'fall off a cliff'?
Are there “break
points” in the portfolio
– ie, projects upon
which there is a high
degree of dependency?
What is the health of
the most significant
break points?
What types of risk are
the most common
across the portfolio? Is
there a particular type
of resource bottleneck
that presents
regularly?

5. Portfolio visualisation
Inspiration from Charles Minard’s famous graph
The best statistical
graphic ever
drawn – Edward
Tufte
The greatest value
of a picture is
when it forces us
to notice what we
never expected to
see – John Tukey

6. 6
Types of data visualisation
Communicating quantitative messages
Time series
A single variable captured over a period of
time to demonstrate a trend
Part to whole
Categorical subdivisions measured as a
ratio
Frequency distribution
Number of observations of a variable for a
given interval
Ranking
Categorical subdivisions ranked in
ascending or descending order
Deviation
Categorical subdivisions compared against
a reference
Correlation
Comparison between observations
represented by 2 variables (x, y)
Nominal comparison
Comparing categorical subdivisions in no
particular order
Geographic or geospatial
Comparison of a variable across a map or
layout

7. 1. 2. 3.Profile Performance Risk
$314m invested across 6
strategic drivers.
Net positive benefits
planned to be
delivered in 2 years.
Delivery tracking behind schedule
and overspending. This is driven by
resource shortfalls in 2 categories.
Portfolio load is very aggressive given
delivery history. Contingency levels are
not sufficient for Tier 1 ($10m+)
projects.
Resource health is most
common red risk. $70m of
project spend at highest risk.
Recommendations:
1. Immediate priority – source
resources in the 2 key areas of
enterprise and data architect
2. Bring forward health checks on all
Tier 1 with focus on assessment of
contingency requirements.
Strategic portfolio infographic for XYZ corporation

8. Benefits of portfolio intelligence
Knowledge, decision making and capability
Knowledge
Deeper and more systemic and structural insights about the portfolio
Decision making
Evidence-based decision making to steer the portfolio
Identifying and resolving root causes rather than symptoms
Capability and capacity
Quantitative information to make the business case to undertake improvements to capability
and capacity
8

9. Impact on portfolio management roles
The portfolio analyst and portfolio assurance
Portfolio Analyst
New skills required
• Data analytics and interpretation
• Data visualisation
Portfolio Assurance
New assurance services
• Providing access to the relevant skills and tools
• Provision of independent portfolio health reviews as an adjunct to reviews of individual
projects and programs
9

10. Questions ...
© 2017 PricewaterhouseCoopers. All rights reserved.
PwC refers to the Australian member firm, and may sometimes refer to the PwC network.
Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
Liability limited by a scheme approved under Professional Standards Legislation