This document discusses how to make Project Portfolio Management (PPM) more relevant. It argues that defining projects from an "inside-out" perspective focused on technical boundaries rather than business needs is a key challenge. An alternative approach is proposed that introduces more "outside-in" thinking from a business architecture viewpoint during project conception to make projects better aligned with evolving business realities. It also emphasizes the importance of learning lessons from past projects and auditing actual performance against objectives to improve future project success.

1. Project Management
Chapter 2:
How to make Project Portfolio
Management (PPM) relevant?
Part of a series considering different aspects of Business Change
1Understanding and Supporting Business Change – by Martin Schyns/ FILE: Project Management_Chap_2_Final.pptx

2. IntroductionWho am I?
My headline would be…..Global Engineer Understands Transition Success Approach
Key take away is that I have been doing projects my whole career. I am an engineer at heart with a diverse
background and I recognize that all organizations, and individuals for that matter, must continually seek to
proactively change and adapt. As I am sure most organization can attest, Change is hard. I thought I would
try using this medium to collect various themes and ideas on the subject of Business Change and share my
insights.
Understanding and Support Business Change
Naturally enough, Project Management is my first theme. It is a rich and complex endeavor and it is certainly an
area where I think most organizations would acknowledge they could do better. Typically the challenge is
that if you ask five people within an organization, what needs to change, you get five different responses.
The Initial Path for this Enquiry
1. Chapter 1 – 10: Project Management – 10 questions to explore some involved situations
2. Chapter 11 > : Sustaining Business Health – physiology of a modern business
3. Chapter X > : Insights on making relevant Change happen – road map to the future
4. Chapter Y : CONCLUSIONS – reflection on the relevance / value of what we have uncovered
Approach
I thought it would be interesting to use the Socratic method to explore what can often be some
what dry material; and, because it helps me understand, a series of supporting diagrams
that, I hope, encapsulate and convey the key ideas and their context.
I would welcome any comments and alternative views to help challenge my desire to grow and
make a difference.
Thank you, Martin Schyns. 2

3. Ten common Project Management situations
that are not easily understood…why?
3
SITUATION KEY QUESTION
1. Reflection Was the Project a Success?
2. Prioritization How to make Project Portfolio Management (PPM) relevant?
3. Right Approach? How do you define a project?
4. Realism Level of confidence in the Project?
5. Sponsorship What does Project Sponsorship mean?
6. Planned results How will the Project impact Business Performance?
7. Justification What is the business case for the Project?
8. What or How? Is the business strategy working?
9. Audit Why am I not seeing results?
10. Soft value What are the lessons to take forward?
Do these questions echo you own experiences? How well do you really
understand the challenges of Project Management?
Chap. 2:

4. Chapter 2: How to make Project Portfolio
Management (PPM) relevant?
REF. Fig 2A - Introduction
• What is PPM? Basic definition is… the centralized management of the processes,
methods, and technologies used by Project Managers and Project Management Offices
(PMOs) to analyze and collectively manage current or proposed projects based on
numerous key characteristics
• What does that mean? Typically this means balancing prioritized demand with time
based resource supply & logic conditions
• What are the key issues?..... typically benefits shortfall; in terms of qty and / or timing.
• Why is this?.... most often companies tend to be too reactive and so needs /
expectations are typically out of line with the do-able capabilities / rates of reasonable
change
• Is this the only reason?... No. It has been my experience that companies that have
struggled to establish a strong Project Management culture tend to be too conservative
when defining project targets /project plans.
4

5. Project Portfolio Management
How to make Project Portfolio Management (PPM) relevant?
5
Project.: A First Project B: Second Project C: Third
Project X: First Project Y: Second Project Z: Third
PROJECTS
BENEFITS
TIMEQ1 Q2 Q3 Q4 Q1
Required Benefit
Profile Current Planned
Benefit Profile
Planned Delay
Benefit
Shortfall /
by time
Actual Realized
Benefit
Bed-in
Portfolio
The basics…balancing What needs to be done with What can be done.
Is that all Project Portfolio Management should be?
FIGURE 2A

6. Chapter 2: How to make Project Portfolio
Management (PPM) relevant?
REF. Fig 2B – Typical Approach Logic
• What is the best way to scope / formulate a project? Should it be
‘inside – out’ or ‘outside-in’?
• Why is this important? It has been my experience that projects are
defined, typically, by technology, process, function or budget
boundaries
• Why would this be so? The overarching consideration of any project
owner / sponsor is to ensure success. Controlling and influencing a
limited scope/better focused project is more conducive to success!
• ‘Inside- Out’ projects then ‘Assume’ an artificial box to contain the
risk / exposure from external factors ( to the project).
• The challenge for most Portfolio Management organizations is
managing a group of such projects and understanding how they
may inter-operate- either during build or in production.
6

7. Typical Logic in Compiling a Project Portfolio
7
1. Project conceived
around a concept, a
technology, or a function
e.g. CRM, SAP Cloud, Purchasing
2A. Many stand alone
projects grouped
together as a portfolio
Portfolio Management then tries to
aggregate individual benefits into a net
performance benefit picture
2B. There are many issues
with this approach. Top
three being….
1. Dependencies – assumed conditions
2. Benefits not fully aligned to Business needs
3. Capacity / Capabilities – of shared resources
3A. Actual and Projected
benefits fall short of
business need…..
Leads to ongoing need to re
prioritize the portfolio to
alleviate near term deficits
3B. Situation ultimately
deteriorates to a point ..
drives bigger decisions
Projects cancelled ,
outsourcing and/ or
mergers seen as better
alternative way
forward
Regular prioritization shifts > major overhead
Projects cancelled / deferred > waste & inefficiency
How could we improve this approach?
FIGURE 2B

8. Chapter 2: How to make Project Portfolio
Management (PPM) relevant?
REF. Fig 2C – An adapted Approach
• How can we inject some pragmatism into the process? By providing a
challenge early in the conception / definition of a project – Role 1 ( #1A) it is
possible to strike a compromise between Inside-Out and Outside-In
• Should a project be cast in stone or adapt to evolving realities ? #1B & #1C
bring more external factors to bear, early on in the Project, in consideration of
flexing the project to a more time sensitive, full business context reality
• How do you ever get better? The key is to learn as an organization – not just
the closely connected individuals – ref role #2. The learning's need to be
contextually sensitive. Would this have always worked or were there some
beneficial conditions?
• Does the organization think the project was a success?- ref Role #3. If not, why
not? What can we learn from the analysis to impact the next project cycle? –
ref Role #4
• How do you ensure well documented lessons are, in fact, considered when
conceiving a new project / project change ? The real challenge tends to be
reconciling the way it can be done and what is needed. How do you you
evaluate the probable impact of short-cuts and consequent risks? Do you
even have time to understand the true logic of the situation? These points hi-
light the need to spend more time upfront balancing project options before
expectations become solidified.
8

9. Logic of an alternative approach to Project
Portfolio
9
1. Initial Project conceived
around a concept, a
technology, or a function
Typical ‘Inside - Out’ approach e.g.…CRM, SAP Cloud, Purchasing
Four Factors that progressively drive greater business value
Evolve / Adapt the
Project to fit to the
business needs
SCOPE/ FORMULATION – refinement driven by time phased
business architecture view point – ‘Outside-In’ – what is needed –
NOT what can be done, controlled or managed!
1B. Consider delivery
phasing to manage risk /
capacity and benefit timing
BENEFIT TIMING – driven by what is needed and
other projects in the portfolio ( inter-dependencies).
Consider risks associated with objectives, scope and
approach.
1C. Consider the need for
changes to other Projects
within the portfolio
Balanced set of changes to meet
business needs & circumstances –
reducing risks
2. Portfolio Management
Accountability
for Timing &
Benefits
4.
Conditions &
Learnings
3. Audited
business results
Performanc
e to Plan
Was the Project/Program a Success? ( See Chap.1)
Evolve / Adapt the
Project to fit to the
business needs
1A. Evolve / Adapt the
Project to fit to the
business needs
Role:
Business
Architect
Challenge iterations
1
4
2
3
FIGURE 2C
Active / Other Planned Projects
Project Execution lessons

10. Chapter 2: How to make Project Portfolio
Management (PPM) relevant?
REF. Fig 2C – CONLUSIONS
• Defining a Project standalone (Inside – Out) – is the single biggest
business challenge to PPM relevancy
• A collection of stand-alone projects does not necessarily make a
tenable portfolio
• Project & Portfolio performance can be greatly enhanced by
introducing a business architect viewpoint challenge during the
conception / formulation phase of a project
• Project execution lessons must be intelligently extracted, shared
and followed
• Audited performance and understanding the business organizations
view of Project ‘success’ is critical to driving a higher performing
project management culture.
10