PfM Survey 2012

Results & Analysis Update

Stephen Parrett (SIG Committee Member)

APM Portfolio Management SIGAGM – 14 June 2012

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Contents

Survey Coverage

Shapes & Sizes of Portfolios

– Approaches for performing PfM

– Where PfM is managed

– Views on inclusion of BAU

PfM Principles

– Importance & Effectiveness

PfM Challenges

– What is working and what people want to debate

What Next....................?2

Coverage

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• C. 150 submissions so far• Good range of roles• PfM under various job titles?

Coverage

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• Shows a good spread• Would like more even coverage• Reflects levels of PfM adoption?

Portfolio Shapes & Sizes

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• Overall 66% = “Formal”• Maturity levels rising?• SIG Survey “bias”?

Portfolio Shapes & Sizes

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• Not Sector-specific• Many at “Corp” level• Most successful model?

Portfolio Shapes & Sizes

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• No Sector-specific trend• Should there be a common measure of a Portfolio size?

Portfolio Shapes & Sizes

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Sectors with most Projs/Progs >£10m are: Government, Defence, Energy & Financial Services

Portfolio Shapes & Sizes

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• No Sector-specific trend• What is BAU?• Does inclusion help/hinder?

Principles(*) Considered

Proactive and visible senior management commitment

Consistent and effective governance alignment

Alignment of the Portfolio with strategic objectives

Co-ordination through a Portfolio Office

Energised change culture and associated behaviours

(*) Principles from: MoP™ - Office of Government Commerce, 2011

PfM Survey asked how each of these were perceived in organisations in terms of their Importance and Effectiveness

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Principles(*) (Importance)

(*) Principles from: MoP™ - Office of Government Commerce, 201111

Top 3 = Alignment Commitment Governance

Principles(*) (Effectiveness)

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• Room for improvement• May reflect relative PfM maturity of implementing principles• Not easily measured?

(*) Principles from: MoP™ - Office of Government Commerce, 2011

Principle Importance Effectiveness

Alignment of the Portfolio with strategic objectives

63% 37%

Proactive and visible senior management commitment

57% 42%

Consistent and effective governance alignment 43% 27%

Shared change culture and associated behaviours

29% 18%

Co-ordination through a Portfolio Office 28% 22%

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• Comparing “High” ratings for Importance with those for Effectiveness• Work needed to close the performance gaps• Can Portfolio Offices increase impact and add value?

Principles(*) (Compared)

(*) Principles from: MoP™ - Office of Government Commerce, 2011

Challenges Faced1. Gaining Board buy-in to a single agreed view of business objectives

2. Developing an initial portfolio

3. Getting portfolio management started

4. Securing and sustaining business unit management commitment

5. Prioritising and balancing the portfolio

6. Dealing with tensions between Portfolio and BAU/Operational objectives

7. Securing and developing people with the right portfolio skills/capabilities

8. Putting in place the right tools & techniques to support PfM

9. Delivering overall portfolio benefits

10. Setting up, and gaining compliance with, portfolio management processes

11. Achieving the goals set for a portfolio management function

12. Applying lessons learnt from regular reviews of PfM performance

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Are Challenges being met?Challenge Rated

HighInterest

Developing an initial portfolio 40% 15

Gaining Board buy-in to a single agreed view of business objectives 37% --

Getting portfolio management started 36% 42

Securing and sustaining business unit management commitment 20% 38

Prioritising and balancing the portfolio 20% 58

Delivering overall portfolio benefits 18% 58

Putting in place the right tools/techniques to support PfM 18% 61

Dealing with tensions between Portfolio and BAU/Operational objectives 17% 46

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• A long way to go in many cases • But strong interest in more discussion via SIG etc• Examples of where good practice works?

Some Questions

• Does performing PfM under various job titles matter?

• Are some sectors better at adopting PfM?

• Does 66% with a “Formal” approach to PfM mean high maturity levels?

• Many portfolios are run at “Corp” level – is this a successful model?

• Does the inclusion of BAU (once defined) help/hinder good PfM?

• How easy will it be to close the Importance/Effectiveness “gap”?

• How can Portfolio Offices prove their worth?

• What can the SIG do to help address the Challenges? 16

What Next.................?

Gather more Survey input – 200+

Consider what further analysis might reveal

Develop some Case Studies

– 51 people have offered to help

– Several now being followed up

Respond to feedback on Challenges:

– More APM/SIG debates

– Publish discussion papers, blogs etc

Use as part of SIG input at future APM events 17