Portfolio Management SIG
AGM

SIG established Sept 2010

Business Plan in place – many thanks to Steve Jenner

Joint 1 day session with Assurance SIG

Survey

Active blogging – and debate

Had committee Strategy workshop – themes for year ahead

Knowledge Share next week

PfM & BM session in planning

Moving forwards – all that contribute, benefit
Proposed committee
 Chairman – Matt Rawson
 Committee members - Achilleas Mavrellis,
Adrian Pyne, Nigel Bell, Martin Samphire,
Paul Hirst, Peter Parkes, David Dunning,
Stephen Parrett, Christine Rigby, Chris
Beach
Enterprise Project Management
Organisation – joining strategy to
delivery and back again. What have I got
to
do?”
Where does strategy come from? How might we envision the connection of strategy through to delivery of
change / business as usual items, to the confirmation that strategy is being fulfilled. Assuming we have
planted a seed, how might we make this grow?”
Following on from the successful event entitled “Enterprise project management organisation - What does it
look like?” in January that looked at the release of MoP® and the P3O® Best Practice guidance, and the
necessity in a recovering economy to focus on the right projects and programmes for scarce business
resources, we turn our attention to the maturing of the enterprise project management organisation from
specific components of support offices, processes and solutions, to a ‘vision’ of how we see the connection of
strategy through to delivery of change and business as usual, to the confirmation that strategy is being
fulfilled.
This presentation answers the question of how do I connect this all up so that we can manage changes
thrown at us by our environment and- ensure the outcomes and benefits of change are reaching our vision /
mission?
Presented by David Dunning, Professional Services Director, CPS
• Corporate Project Solutions
Established 1995
Fifteen years Enterprise Solutions
Implementation Experience
Experts in Portfolio, Portfolio,
Programme, & Project Management
Over 700 Clients
• People
Recruitment
•
•
Permanent
Interim positions
Training
•
•
•
•
Maturity/Capability Assessment
Planning / Process based
Microsoft Project
EPM Administration
• Process
P3O® Services
Change Management
P3M Consulting
• Technology
Microsoft Platforms
• Project Server (EPM)
• Project Portfolio Server
• MOSS / SharePoint
CPS Solutions
P3O® is a Registered Trade Mark of the Office of Government Commerce.
Introduction:
If we are to introduce change for the
good – we have to attract CxO
attention and priority
What is the Cx level interested in?
• Assuming I know my strategy…
• What is does my strategy mean in terms of Change? Can we
actually do it?
• How much will Change cost (resource, money, risk)?
• What is the value of the Change? (Benefit, revenue, saving)
• What happens if something changes?
• How am I assured my business system works?
• How can I check that Changes are happening?
• Am I realising the value of those changes?
Enterprise Project Management
Organisation – joining strategy to delivery
Agenda and back again. What have I got to do?”
• Strategy – what do I mean by that?
Strategy
Portfolio
Management
Change Plan
to Delivery
Delivery to
Strategy
• I know what our vision is – what next?
• Ideally - Who is going to make this happen?
• Answers to Key Questions
Gaps
• What is missing from my organisation to do this?
How
• Top down and / or bottom up?
Strategy – Where does it fit in?
Strategy
Vision
(Values, picture of future state)
Mission
Current State
Strategy
Business Drivers
Pipeline
Programmes and
Projects
BAU - Work
Outcomes /
Benefits
How do I connect this all up so that
we can:
- manage changes thrown at us by
our environment
and
- ensure the outcomes and benefits
of change are reaching our vision /
mission?
Portfolio Management
Portfolio
Management
• “A portfolio is the investment in the changes
required to meet strategic objectives “
– P3O®
• Portfolio Management - Coordinated strategic
processes and decisions to balance organisational
change and business as usual
• “It is shocking that some organisations continue
to waste effort and resources by delivering the
wrong projects and programmes”
Problem areas?
Consensus?
Vision
Mission
Current State
Strategy
Business Drivers
Pipeline
Programmes and
Projects
Work
Outcomes /
Benefits
Strategy into Business Drivers
Clear articulation of the enterprise strategy;
– Fosters executive consensus on strategic priorities
– Focuses idea generation
Reduce Expense Base
Improve Employee Satisfaction
Improve Product Quality
Standardise and Streamline
Processes
Increase Market Share in
Existing Markets
Improve Customer Satisfaction
Expand into New Market
Segments
Change Plan
to Delivery
Problem areas?
Vision
Mission
Current State
Strategy
Business Drivers
Pipeline
Not what
expected
Programmes and
Projects
Work
Outcomes /
Benefits
Answer – P3M3 Assessment.
Independent, standard, structured,
informative
• Using an objective standard with a consistent set of
questionnaires and scoring to determine a maturity
level
• Understanding desired maturity level and what that
means
• Gaining a better understanding of strengths and
weaknesses to focus and prioritise improvements
• Independent verification (and certification)
• Justifying investment in portfolio, programme and
project management improvements
Problem areas?
Vision
Mission
Current State
Priorities not
agreed?
Strategy
Business Drivers
Pipeline
Programmes and
Projects
Work
Outcomes /
Benefits
Example Strategic Alignment Process
Align Investment to Strategy
priorities
Unaligned
Optimised
Problem Areas?
Vision
Mission
Current State
Poor control
processes
Strategy
Business Drivers
Pipeline
Programmes and
Projects
Work
Outcomes /
Benefits
Strategy
Portfolio Processes
Categorise
Understand
Delivery Processes
In one single diagram?
Verify
Benefits
Management Management Financial
Plan
Management
Control
Stakeholder
Risk
Resource Management Management
Management
Governance /
Prioritise
Compliance
Trigger
Balance
Benefits
http://www.mop-officialsite.com/home/AboutMoP/About_MoP.aspx
Organisational WILL
Problem Areas?
Vision
Mission
Current State
Strategy
Business Drivers
Pipeline
Bad Resource
Management
Programmes and
Projects
Work
Outcomes /
Benefits
Organisational Challenge
– not a local issue
Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010]
EPM Solutions
Re-definitions
• Resource Planning – creating a model of resource
demand, maintaining it, reporting off it.
• Resource Management – using the model of
resource demand in the context of emerging
requirements, priority, progress and capability in
order to carry out planned work.
Strategy
Resource Planning
Initiated
Resource Management
Initiated
Resource Management
Consolidated
Problem Areas?
Vision
Mission
Current State
Not what
expected
Strategy
Business Drivers
Pipeline
Programmes and
Projects
Work
Outcomes /
Benefits
Delivery to Strategy
Project Outputs
Enable
Business
Change
Desired
Outcomes
Measured in
Side effects
Result in
Intermediate
/ End
BENEFITS
Towards one or more
Dis-benefits
Extrapolated from Managing Successful Programmes®, from the OGC
MSP® is a Registered Trade Mark of the Office of Government Commerce.
Strategic
Objectives
Delivery to
Strategy
Example from P3O®
Output
Change
Outcome
Benefit
Objective
Gaps
What do I need to have in place for
this?
The Answers
Organisation
Organisation Components
CEO
CFO
CIO
LOB
Executive A
• Strategy Office
– Do we have “bright buttons” who
can assist thought leaders with detail
and analysis?
– Can we put a high level agreeable
strategy in place to work around,
then develop further?
– How do we publicise this?
– How do we change this?
LOB
Executive B
Strategy
Group
Px
Organisation
• Portfolio, Programme, Project Office
– If there is no strategy, can we get
down a set of assumptions to be
going on with?
– Can we supply visibility, scrutiny and
oversight?
– Can we assist delivery and support?
– Can we provide experts to define
how to run things?
PxOrganisation – Now?
Center of
Excellence
Is this one central function?
Process, Standards, Tools,
PM Knowledge Owner, Learning
Facilitator, Best practice owner
Local support offices run from a
Central ‘support’ office ?
Project Start up? Planning help?
Reporting? Gates? Closure?
Delivery Support
PxOrganisation – Next?
Center of
Excellence
Is this one central function?
Process, Standards, Tools,
PM Knowledge Owner, Learning
Facilitator, Best practice owner
Local support offices run from a
Central ‘support’ office ?
Project Start up? Planning help?
Reporting? Gates? Closure?
Delivery Support
Local compliance management?
Process adherence?
Standards usage?
Plan quality?
Governance
PxOrganisation – to finish…
Project
Organisation
Decision Support
Does this function exist?
Scrutiny / Oversight
Priority Generation /
Implementation
Business Perspective
Local support offices run from a
Central ‘support’ office ?
Project Start up? Planning help?
Reporting? Gates? Closure?
Delivery Support
Center of
Excellence
Is this one central function?
Process, Standards, Tools,
PM Knowledge Owner, Learning
Facilitator, Best practice owner
Local compliance management?
Process adherence?
Standards usage?
Plan quality?
Governance
The Answers
Technology
People
Process
Organisation
What game to play?
•
•
•
•
Top Down – Strategic
Very fast or very slow
All or nothing
Dependent on the
personalities involved
• Resources
• Energy and drive can be
very effective
• Missing out on benefits
while waiting until you get
backing
•
•
•
•
•
How
Bottom Up
Get something moving
More effort
Less effective (shoestring)
Greater penetration than
top down?
• Better ‘stick’
• Spending while waiting until
you get backing
What does this mean?
Devise a problem
statement
• Can we collect enough ‘pain’?
• Is this ‘pain’ to the right people?
• The change road gets pretty congested at the
top!
Barriers
• CXO agenda full
• No perceived problem
• No CXO knowledge of
Portfolio Management
• Uncertainty of cost /
benefit
• Culture ‘wrong’
• Wait, or make an
assertion
• Gather evidence, present
• Pick the right way /
moment, brief.
• Seek funding to define
costs / benefits
• Hmmmm! Excuse?
What does this mean?
• Can we reach / does this come
from the right people?
• Cost / Benefit?
• Timing?
Establish
‘Organisational Will’
Answers to CXO Questions:
•
What is does my strategy mean in terms of •
Change? Can we actually do it?
• How much will Change cost?
Enabling
Capture proposals, prioritise drivers,
changes scored, selection made.
• Costs and Resource pinch points
captured.
And Risk.
direction,
leadership
• What is the value of the Change?
• Benefits captured. Options are
and control
comparable.
• What happens if something
changes?
• We can see what is affected, reprioritise, re-plan.
• How can I check that Changes are
happening?
• Visible Strategy plan, connected
project and programmes,
assurance of processes and
benefit realisation
What does this mean?
Appoint a Senior
Responsible
• If you can’t get someone senior
to ‘front’ this, how can this possibly succeed?
What does this mean?
• Beware the chalice of doing this in
your spare time.
Appoint a capable
Programme
Manager
What does this mean?
•
•
•
•
•
•
Set the capability /
benefit
expectations
Increase the proportion of projects and programmes
directly linked to the corporate strategy, saving time /
resource from being spent on the ‘wrong’ stuff
Directly save costs through standard, repeatable processes and simplified cost
effective reporting
More output from resources through effective prioritisation and efficient
scheduling
Directly support measurement of project and programme benefits, maximising
what is possible and encouraging the ‘right’ projects in the first place
Initiate cost effective, consistent Governance of projects and programmes to
provide assurance of delivery quality making the decision making process more
reliable
Saving wasted resources by learning from experience and implementing changes
from lessons learned.
What does this mean?
1
2
3
Map out the vision
for how the
objectives can be
met
What does this mean?
Assess the current
state of strategy
management and
'P3 organisation’
provision
• How can we plot a journey if we
don’t know where the start point is?
• P3M3 Assessment
What does this mean?
Prepare Business
Case, Programme
Brief, Programme
Plan
• How else to establish ‘buy in’ better
than to get someone to put their hand in their
pocket?
• Benefit plans
• Milestones
Appoint a capable
Programme
Manager
Establish
‘Organisational Will’
Appoint a Senior
Responsible
Devise a problem
statement
All together….
Set the capability /
benefit
expectations
Map out the vision
for how the
objectives can be
met
Assess the current
state of strategy
management and
'P3 organisation’
provision
Prepare Business
Case, Programme
Brief, Programme
Plan
Strategy
The
Answers
Technology
People
Process
Organisation
Thank you for listening!
David.Dunning@CPS.co.uk
01628 895600 / 07767 803540
LinkedIn
http://uk.linkedin.com/pub/da
vid-dunning/3/bb9/ba7