portfolio management knowledge development

Portfolio management

knowledge development

November 2014

Steve Leary

David Dunning

Euan Dean (IDBS)

Keeping portfolio management fresh -

discovering what works

• 6:00pm Registration, networking and refreshments

• 6:30pm Portfolio Mgt SIG research and findings

• 7:15pm Presentation - Portfolio mgt & product delivery

• 7:45pm Discussion on exploiting PfM research

• 8:30pm Close

2

Portfolio management

knowledge development

November 2014

• What was being sought

• How the process worked

• What was discovered

• How results might be used in future

ContextSIG strategic themes

CurrentSIG

FutureSIG

Develop new knowledge

Disseminate knowledge

Closer working with other SIGs

Engaging CxO community

SIG members more involved

Part 1

5

•People

•Process

•Organisation

•Technology

Complete and validate

6

Part 2

Primary/secondary

P S P

Apm BoK MoP

Validate

Findings – key process questions - 1

7

Problem Summary

Proactive &

visible senior

management

commitment

Alignment of

the portfolio

with strategic

objectives

Consistent &

effective

governance

alignment

Shared change

culture &

associated

behaviours

Coordination

through a

portfolio office

Annual budgeting cycles mean finance is often allocated before real need is understood. PBusiness change mechanisms and structures not in place to support benefit measurement. No continuity within the business as projects can get delivered by different people to those that started them to different customers to those who requested them

S S S P

Business practice will need to change. Revolution has its place, but so does evolution. Pick your fights - know when to compromise short term to succeed long term.

S S S P

Delivery efficiency and effectiveness not good within an organisation means that portfolio management is not a priority S PDue process bypassed for 'good reasons' S S P S SHabits may have formed which rely on strong leaders rather than effective collaboration. Portfolio process may be seen as un-necessary bureaucracy rather than due diligence

P S S S

Ineffective right sizing of approach for emergent projects and programmes S S PNo ownership means poor process and patchy adoption. Business system struggles to work effectively and efficiently as a result S S S P

Findings – key process questions - 2

8

Problem Summary

Proactive &

visible senior

management

commitment

Alignment of

the portfolio

with strategic

objectives

Consistent &

effective

governance

alignment

Shared change

culture &

associated

behaviours

Coordination

through a

portfolio office

Organisations know there is a problem, but can't express it, and don't have contemporary knowledge to deduce an answer P S SPerhaps the wrong approach to design is being taken (ever engineering phase 1?), or the case for doing it more fully is not being made effectively enough? Do something simple, get proof points, develop v2?

P S S

Poor prioritisation and related resource allocation process means definition is not effective at directing and delivery is not focused correctly. Sub optimal portfolio outcomes ensue

S S P S

Poor stakeholder engagement in the portfolio ecosystem designS S P S

Portfolio management 'intrudes' into senior management domains. Stakeholders may be content with the status quo, not recognise problems or the answers provided, and this resent interference. Proof points / persuasion needed?

P S S

Problems on projects are seen as sticks to beat people with rather than opportunities to improve. No formal method to capture lessons. No mechanism to get review. No mechanism to share experience. No mechanism to adapt practice to benefit all.

P S S

The meetings for benefit / portfolio management probably happen, but are non optimal. Change rather than revolutionise? P S

Process references

9

Pillar Problems Answers ID Pillar Category Problem Summary

Proactive and

visible senior

management

commitment

Alignment of

the portfolio

with strategic

objectives

Consistent and

effective

governance

alignment

Shared change

culture and

associated

behaviours

Coordination

through a

portfolio

office

Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating

Process

Constantly review / progress benefit estimation and

realisation. More accurate/realistic initial benefit

analysis and valuation. Is the benefit being realised, the

best that could be achieved in which case the original

estimating process is at fault, If benefit is not being

realised and should be then the BCM and SRO should be

held to account for delivery and an improvement plan

put in place.

Constantly review / progress benefit estimation and

realisation7

Change Creation /

Sustainment

Projects may start off with a business case, but are the benefits

estimated (as part of that) progressed, especially when delivery

gets more difficult. Do organisations support projects estimating

benefits, and require they keep those up to date to enable re-

prioritisation?

s s p s shttp://www.projectmanagement.c

om/blog/The-Money-Files/2731/

Simple benefit management

guidance, with a discussion

about the realism of taking a

project / programme approach

to benefit realisation.

Identifies the realism which

faces organisations that don’t

do projects regularly, hence do

not get that projects and

programmes can be used to

deliver benefits.

3

Mayer, W. G.,

2014. The

Effect of

Optimism Bias

on the

Decision to

Terminate

Failing

Projects.

Project

Management

Journal, 45(4),

pp. 7-20.

This research is related in that

the literature review looks at

Project, Psychological, Social

and Organisational factors that

affect peoples decisions to

continue with failing projects

which is related to why

people/organisations may not

maintain business cases when

projects become difficult.

Specifically it researches tests

for inherent managerial

optimism when making

decisions to continue troubled

projects. It finds that decision

makers will often escalate

commitment to failing projects

because of over-optimism that

actual benefits outweigh

forecast benefits (in the

business case) and having

sufficient influence to affect

the outcome. Therefore

managers have unrealistic

positive views of failing

projects and failing projects

will deliver better than

expected business benefits.

2

Young, R. et al.,

2012. Is

strategy being

implemented

through

projects?

Contrary

evidence from

a leader in

New Public

Management.

International

Journal of

Project

Management,

30(8), p.887-

900.

This paper reports on the

effectiveness of the project

management and investment

frameworks in the State of

Victoria. It finds project

management and investment

practices comparable to best

practice but also finds 100

billion dollars invested in

projects over the past decade

without any evidence of

improvement in strategic goals.

It concludes that there may be

systemic deficiencies in our

project management and

investment frameworks. It

suggests that deficiencies in

the way projects are currently

selected and managed limit the

capability to realise strategic

goals. Future research to

develop programme

management, portfolio

management and project

governance is recommended to

increase the likelihood that

strategy will be implemented.

?? 2012 Elsevier Ltd. APM and

1

OGC, 2002.

Successful

Delivery

Pocketbook:

Preparation

Getting Ready

for

Programme/Pr

oject

initiation..

Norwich:

Crown

Copyright.

Covers the techniques needed

to understand and maintain

project benefits.

E.g.

- Benefits Cascade between

vision, objectives and

proposed solutions.

- Outcome mapping.

- Benefits management

Strategy.

- Strategic Context

- Achievability / Worth Doing

Matrix

- Options appraisal

- Goal Question Metric (GQM)

- Stakeholder mapping

1Managing

Benefits

APMG International Guide on

Managing Benefits - a very

comprehensive guide.

1

http://www.fr

edcomm.com/

articles/detail/

stop_guesstim

ating_start_est

imating/

Reasonable overview on how

to achieve better estimates

rather than guesstimates.

2

Process

Align delivery, benefit measurement, and financial

governance cycles. Add benefit reporting to PMO

responsibility

Align delivery, benefit measurement, and financial

governance cycles. Add benefit reporting to PMO

responsibility

8 Conflict with OrganisationAnnual budgeting cycles mean finance is often allocated before real

need is understood.p

http://www.projectmanagement.c

om/discussion-topic/3720/IT-

Budgeting-Versus-Project-or-

Portfolio-Planning

Interesting illustration of how

budgeting cycles do not

support effective selection and

execution of projects /

programmes, and how they are

abused to support headcount

defence rather than benefit

case.

3Management

of Portfolios

OGC guidance on how to

manage portfolios - in

particular principles that

describe alignment with

current budgeting cycles.

1

Project and

Programme

Accounting

John Chapman,

2006

ISBN-

10:1900391147

Covers designing a financial

approach that works in your

organisation

Process

One place for project information, prioritisation and

approval of projects. Use standards and provide

independent assurance. Single approval authority

based on agreed cost/benefit ratio and alignment to

strategic objectives as criteria for approval.

One place for project information, prioritisation and

approval of projects. Use standards and provide

independent assurance

9 Doing things wrong Due process bypassed for 'good reasons' s s p s s


om/articles/275994/When-

Strategy-Met-Projects

Why do projects have nothing

to do with strategy2 MSP/MoP/P2

OGC guidance on how to

manage P3. 1

https://www.g

ov.uk/governm

ent/uploads/sy

stem/uploads/

attachment_da

ta/file/220541/

green_book_co

mplete.pdf

Treasury Green Book 1

http://en.wiki

pedia.org/wiki

/Cost%E2%80%

93benefit_anal

ysis

Cost benefits analysis 2

Process

Change management and timescales processes to be

simple. Create, publicise and enforce use of a common

P3M glossary. Use Champion Challenger model to draw

out differences in terminology.

Change management and timescales processes to be

simple42

Change Creation /

Sustainments p


om/articles/282203/Do-You-Speak-

Stakeholder-

Examples of when using

practitioner language does not

work with business

stakeholders

3 MSP/MoP/P2OGC guidance on how to

manage P3M. 1

Managing

Change: Robert

Heller, 1998

ISBN-10:0-7513-

0633-9

Essential Managers guide

covering all aspects of

implementing change

Process Use lead indicators. 43 No Proof of the pudding

Business change mechanisms and structures not in place to support

benefit measurement. No continuity within the business as

projects can get delivered by different people to those that started

them to different customers to those who requested them

s s s p

http://www.pmi.org/Knowledge-

Center/Academic-

Research/~/media/PDF/Surveys/C

arlosSerra-BenefitsRealization-

Summary-EngUS.ashx

Discussion of benefits

realisation tactics and how they

support 'success' in benefits

realisation

2

https://www.g

ov.uk/governm

ent/uploads/sy

stem/uploads/

attachment_da

ta/file/220541/

green_book_co

mplete.pdf


http://en.wiki

pedia.org/wiki

/Cost%E2%80%

93benefit_anal

ysis

Cost benefits analysis 2

Process

Gap analysis. I.e. measure current maturity, ideal

maturity target and develop improvement plan to close

the gap.

Gap analysis 48 Starting changeOrganisations know there is a problem, but can't express it, and

don't have contemporary knowledge to deduce an answerp s s

http://www.resultspositive.com/u

ploads/news/files/four-starting-

points.pdf

This is a preamble to a software

solution, but this is an

interesting perspective on

getting PPM off the ground

3

http://onlineli

brary.wiley.co

m/doi/10.1002

/pmj.21307/ful

l

The findings enable managers

to address stakeholders more

effectively through an

increased understanding of

stakeholder behaviour and its

consequences.

Kotter, J. P.,

2007. Leading

Change: Why

Transformation

Efforts Fail.

Harvard

Business

Review,

January.

Most major change

initiatives—whether intended

to boost quality, improve

culture, or

reverse a corporate death

spiral—generate

only lukewarm results. Many

fail miserably.

Why? Kotter maintains that too

many

managers don’t realize

transformation is a

process,

not an event. It advances

through

stages that build on each other.

And it

takes years. Pressured to

accelerate the

process, managers skip stages.

But shortcuts

never work.

Equally troubling, even highly

capable

managers make critical

mistakes—such as

declaring victory too soon.

Result? Loss of

1

Kotter, J. P. &

Cohen, D. S.,

2002. The Heart

of Change:

REAL-LIFE

STORIES OF

HOW PEOPLE

CHANGE THEIR

ORGANIZATIO

NS. Boston,

MA: Harvard

Business

School Press.

By interviewing 400 individuals

from 130 distinct businesses to

get their change sagas,

authors John P. Kotter and Dan

S. Cohen further develop the

approach to organizational

change presented in Kotter’s

Leading Change (1996). Their

central insight is that

organizations change when

their people change. And

people change for emotional

reasons.

The authors warn against trying

to promote transformation in

your organization by relying

purely on spreadsheets or

reports, and provide

background information on

why it is

important also to address

employees’ emotions. They

explain that the best way to

engage

the emotions is not to “tell”

but to “show” – via videos,

displays or even office design.

The visual sense, they point

1

Beer, M. &

Nohria, N.,

2001. Cracking

the Code of

Change.

Harvard

Business

Review,

May–June.

To effect successful change,

first

grasp the

two basic theories of change:

1)Theory E change emphasizes

economic value—as measured

only by shareholder returns.

This “hard” approach boosts

returns through economic

incentives, drastic layoffs, and

restructuring. “Chainsaw Al”

Dunlop’s

firing 11,000 Scott Paper

employees

and selling several

businesses—tripling

shareholder value to $9

billion—is a stunning

example.

2) Theory O change—a “softer”

approach— focuses on

developing corporate culture

and human capability, patiently

building trust and emotional

commitment

to the company through

1

Beer, M.,

Eisenstat, R. A.

& Spector, B.,

1990. Why

Change

Programme

Don't Produce

Change.

Harvard

Business

Review,

November-

December.

Two years after launching a

change program

to counter competitive threats,

a

bank CEO realized his effort

had produced...

no change. Surprising, since he

and

his top executives had

reviewed the company’s

purpose and culture, published

a

mission statement, and

launched programs

(e.g., pay-for-performance

compensation)

designed to push change

throughout the

organization.

But revitalization doesn’t come

from the

top. It starts at an

organization’s periphery,

led by unit managers creating

ad hoc arrangements

to solve concrete problems.

Through

task alignment

1

Manage

ment of

Portfolio

s

OGC

guidance

on how

to

manage

portfolio

s - in

particular

principle

s that

describe

alignmen

t with

current

budgetin

g cycles.

1

Process

Join APM. Establish reason for low maturity via P3M3

assessment, develop improvement plan and implement

plan to improve maturity.

Join APM 49 Organisational ignoranceDelivery efficiency and effectiveness not good within an

organisation means that portfolio management is not a prioritys p

Reyck, B. D. et al., 2005. The impact

of project portfolio management

on information technology

projects. International Journal of

Project Management, Volume 23,

p. 524–537.

The ever-increasing

penetration of projects as a

way to organise work in many

organisations necessitates

effective management of

multiple projects. This has

resulted in a greater interest in

the processes of project

portfolio management (PPM),

with more and

more software tools being

developed to assist and

automate the process. Much of

the early work on PPM

concentrated on the

management

of IT projects, largely from the

perspective of the

management of resources and

risk. Many of the recent articles

have been

by vendors of the software,

promoting the value of the

PPM process. However, the

claims made in those articles

are typically only

supported by anecdotal

evidence. In this paper, we

1 AXELOS.COMP2, MSP and P3M3 on the

AXELOS.Com site1

Process

Educate top management - Join APM. Undertake

upskilling via APMP/APMPQ, PRINCE2 and MSP training

as appropriate

Educate top management - Join APM 50 Organisational ignoranceOrganisations know there is a problem, but can't express it, and

don't have contemporary knowledge to deduce an answerp s s

http://www.apmg-

international.com/en/qualificatio

ns/change-management


Making Sense of Change.

Guidance addressing

behavioural aspects is

supposed to be particularly

good.

1

B4BHow

technology and

big data are

reinventing

the customer-

supplier

relationship, JB

Wood, Todd

Hewlin &

Thomas Lah,

2013

ISBN:978-0-

9860462-0-9

A technology and big data book

reviewing B4B model and

customer-supplier

relationships. Chapter 6

discusses capabilities-led

transformation

Process

use KPIs to measure benefits – use organisations pre-

existing measures.

Conduct robust benefit valuation exercise, conduct

independent analysis, capture in Benefits Management

Realisation Plan. Make owner of benefit accountable

for delivery, by signing up to benefits profile delivery.

use KPIs to measure benefits – use organisations pre-

existing measures51

Change Creation /

Sustainment

Business change mechanisms and structures not in place to support

benefit measurement. No continuity within the business as

projects can get delivered by different people to those that started

them to different customers to those who requested them

s s s p Managing Benefits


Managing Benefits - a very

comprehensive guide.

1

Process

Post event/activity workshops couple with culture

change. Mandate process for lessons identification and

learning before new project/programme is launched.

Behavioural change in seniors required to show that

they value the lessons learned process and problems

being identified early rather than waiting until its too

late.

Post event/activity workshops couple with culture

change52 Doing things wrong

Problems on projects are seen as sticks to beat people with rather

than opportunities to improve. No formal method to capture

lessons. No mechanism to get review. No mechanism to share

experience. No mechanism to adapt practice to benefit all.

p s shttp://www.tlainc.com/articl82.ht

m

Discussion of a lessons learned

approach as part of a general

knowledge management

approach. Can project LL be

effective if the organisation

does not have an underlying

KM culture?

2

http://www.ar

raspeople.co.u

k/camel-

blog/projectm

anagement/do-

we-really-

learn-from-

lessons-learnt/

Short piece on the subject of

do we really learn from lessons

learnt

2

http://www.pr

ojectsmart.co.

uk/avoid-the-

same-old-

mistakes-by-

focussing-on-

lessons-

learned.php

Good short article on some

practical advice on lessons

learnt and how to make the

process more effective.

2

http://www.ap

m.org.uk/cont

ent/lessons-

learned

APM Blog on Lessons Learnt.

Note interesting comment

from Paul Raynor re "Cranfield

University School of

Management has been doing

some research into what helps

projects to succeed or

contributes to failure. They

have found that the biggest

differentiating factor between

organisations that generally

succeed with their projects and

those that don't is "the

willingness to publish and

distribute lessons learnt"."

1

Process

Quick wins build momentum and give an incentive for

the laggards to join the early adopters. Mandate

process.

Quick wins build momentum and give an incentive for

the laggards to join the early adopters59 Conflict with Organisation

Portfolio management 'intrudes' into senior management domains.

Stakeholders may be content with the status quo, not recognise

problems or the answers provided, and this resent interference.

Proof points / persuasion needed?

p s s

http://www.sciencedirect.com/sci

ence/article/pii/S026378631200162

7

This sounds just the ticket - but

you have to buy it!!

Alleman, G. et

al., 2003.

Strategies for

Effective

Portfolio

Management,

Arlington, MA:

The Cutter

Consortium.

2

Hirschhorn, L.,

2002.

Campaigning

for Change.

Harvard

Business

Review, July.

Many executives try to change

organizations. Few succeed.

And as most executives who

have lived through change

initiatives will admit, fewer

still want to try again. Who can

blame them for their

reluctance? The process is

terribly painful, the logistics

are enormously complex, the

organization wants deeply not

to change—and the success

rate is abysmal. Yet most

organizations must change, and

change profoundly, if they’re

to stay alive. It’s the oldest

cliché in the book, and it’s also

true. Successful change agents

I’ve observed employ three

distinct but linked campaigns in

their initiatives. A political

campaign creates a coalition

strong enough to support and

guide the initiative. A

marketing campaign taps into

employees’ thoughts and

feelings and also effectively

communicates messages about

2

Jonas, D., 2010.

Empowering

project

portfolio

managers: How

management

involvement

impacts project

portfolio

management

performance.

International

Journal of

Project

Management,

28(8),

pp.818–831.

Available at:

http://linkingh

ub.elsevier.co

m/retrieve/pii

/S02637863100

00980

[Accessed

December 12,

2013].

Along with the increasing

diffusion of project portfolio

management a new managerial

role evolves: the project

portfolio manager. This new

role is supposed to be pivotal

in planning and controlling

complex project landscapes

more effectively and more

efficiently, in implementing

project portfolio management

practices as a management

innovation, and in coping with

traditional conflicts between

line and project managers in

matrix organizations. However,

by empowering project

portfolio managers and giving

their role more clarity and

significance, the complex

power

balance between senior

managers, line managers, and

project managers also has to

change. These changes are

assumed to lead to new

tensions

between traditional key

1

http://www.ap

mg-

international.c

om/en/qualific

ations/change-

management



Guidance addressing



good.

1

ProcessUse existing meetings for BM and PfM, rather than

creating new meetings

Use existing meetings for BM and PfM, rather than

creating new meetings60 Conflict with Organisation

The meetings for benefit / portfolio management probably happen,

but are non optimal. Change rather than revolutionise?p s

Project Governance, Ralf Muller,

2009

ISBN:978-0-566-08866-7

Chapter 4 covers governance of

programs and portfolios

including governance shared

with projects and fitting

governance to structure and to

contract type.

Process

use common sense to apply more rules to higher risk/

higher impact projects, and apply lighter touch to lower

risk/ lower cost projects

use common sense to apply more rules to higher risk/

higher impact projects, and apply lighter touch to lower

risk/ lower cost projects

61 Conflict with Organisation

Business practice will need to change. Revolution has its place, but

so does evolution. Pick your fights - know when to compromise

short term to succeed long term.

s s s p MoPTailorability of the

methodology.1

http://www.ap

mg-

international.c

om/en/qualific

ations/change-

management



Guidance addressing



good.

1

Process

Informed leaders will see the value of good Portfolio

Management and will support/champion its

implementation. However, we do need some good

examples of effective implementation.

79 Conflict with Organisation

Habits may have formed which rely on strong leaders rather than

effective collaboration. Portfolio process may be seen as un-

necessary bureaucracy rather than due diligence

p s s s MoPTailorability of the

methodology.1

http://www.ap

mg-

international.c

om/en/qualific

ations/change-

management



Guidance addressing



good.

1

Process

Must allow for judgement calls and balancing the

objective & subjective. Introduction of Portfolio

Management should be seen as a change programme

and the benefits that it will deliver should be the

accountability of the SRO. Making someone accountable

for the delivery and benefits to be delivered will enable

a more effective implementation. This statement is

typically made by low P3M maturity organisations. Once

you are at Level 4 you will be able to prove the benefits

of the changes you are making as you will have the

measurement systems in place to do this. London

Underground a great example of this in practice.

Must allow for judgement calls and balancing the

objective & subjective80 Organisational ignorance

Habits may have formed which rely on strong leaders rather than

effective collaboration. Portfolio process may be seen as un-

necessary bureaucracy rather than due diligence

p s s s

http://www.apmg-

international.com/en/qualificatio

ns/change-management



Guidance addressing



good.

1

All Change The

project leaders

secret

handbook,

Eddie Obeng,

1996

ISBN: 0-273-

62221-8

Aimed at PMs but learning

apply across PfM. Extensive

chapter on stakeholder

management practicalities

Process

Needs effective leadership and governance to drive the

changes necessary. Effective governance with process

accountability is required to drive effective process

implementation and compliance.

81 Missing InfrastructureNo ownership means poor process and patchy adoption. Business

system struggles to work effectively and efficiently as a results s s p P2, MSP and MoP.

These methodologies are all

about making sure the

governance and accountability

system is in place.

1

Project

Governance,

Ralf Muller,

2009

ISBN:978-0-566-

08866-7

Chapter 4 covers governance of

programs and portfolios

including governance shared

with projects and fitting

governance to structure and to

contract type.

Process

Develop & implement improved resource management

& project prioritisation using P3M3 perspectives as a

framework for improvement for resource management

and MoP table 6.7 keys to success to improve

prioritisation system.

Develop & implement improved resource management

& project prioritisation82 Missing Infrastructure

Poor prioritisation and related resource allocation process means

definition is not effective at directing and delivery is not focused

correctly. Sub optimal portfolio outcomes ensue

s s p s

Sharpe, P. & Keelin, T., 1998. How

Smith Kline Beecham Makes Better

Resource-Allocation Decisions.

Harvard Business Review, March-

April, pp. 45-57.

Major resource-allocation

decisions are never easy. For a

pharmaceuticals company like

SmithKline Beecham, the

problem is this: How do you

make good decisions in a high-

risk, technically complex

business when the information

you need to make those

decisions comes largely from

the project champions who are

competing against one another

for resources? In 1993, the

company experimented with

ways of depoliticizing the

process and improving the

quality of decision making. In

most resource-allocation

processes, project advocates

develop a single plan of action

and present it as the only

viable approach. In SB's new

process, the company found an

effective way to get around the

all-or-nothing thinking that

only reinforces the project-

champion culture. Project

teams were required--and

1

Saaty, T. L.,

1980. The

analytic

hierarchy

process :

planning,

priority

setting,

resource

allocation.

New York:

McGraw Hill

Covers how organisations can

analytically define and

evaluate relative importance of

their strategic drivers into

numerical weighting through

pairwise comparison of each

driver by surveying senior

management/multiple

stakeholders.

1 P3M3

Use P3M3 to determine where

the issues are that need to be

fixed in your organisation.

1

ProcessA robust investment appraisal/cost benefits analysis will

underpin the case for change. 110 Starting change

Portfolio management 'intrudes' into senior management domains.

Stakeholders may be content with the status quo, not recognise

problems or the answers provided, and this resent interference.

Proof points / persuasion needed? Funding may not therefore be

forthcoming.

p s s

https://www.gov.uk/government/

uploads/system/uploads/attachm

ent_data/file/220541/green_book

_complete.pdf


Project and

Programme

Accounting

John Chapman,

2006

ISBN-

10:1900391147

Practical guide to for

professional services

organisations and IT including

implementing benefits analysis

and issues that maybe

encountered

Process

Effective implementation of change (introduction of

Portfolio Management) requires effective business

change managers in the business to understand what

changes are required for the respective areas of the

business to right size the changes required for their

particular part of the organisation.

111 Conflict with OrganisationIneffective right sizing of approach for emergent projects and

programmess s p

Ernst & Young, 2012. Strategy

deployment through portfolio

management: A risk-based

approach. [Online]

Available at:

http://www.ey.com/Publication/v

wLUAssets/Strategy-deployment-

through-portfolio-

management/$FILE/Insights_on_G

RC_Strategy_deployment_through

_Portfolio_Management_AU1275.p

df

Covers many of the challenges

and risks facing portfolio

management from a strategy,

governance, management and

data perspectives. Then

suggests a risk based approach

to overcome ppm challenges.

2

http://www.ap

mg-

international.c

om/en/qualific

ations/change-

management



Guidance addressing



good.

1

Process

MoP is designed to be tailorable to the size of the

organisation. The principles of MoP in the two cycles

can be readily tailored to any organisation regardless of

its size. Read the MoP pocket guide in an evening and

implement the following day on an element of the

business at first to pilot an approach and prove its

worth!

112 Conflict with OrganisationIneffective right sizing of approach for emergent projects and

programmess s p

http://flightmap.wordpress.com/2

013/09/09/the-rhythm-of-portfolio-

management/

Article on the rhythm of

portfolio management in terms

of use of a software tol called

Flightmap

3

Process

Effective implementation of change (introduction of

Portfolio Management) requires effective business

change managers to understand how the required

changes can be best integrated into the current system.

113 Conflict with Organisation Poor stakeholder engagement in the portfolio ecosystem design s s p s

PWC, 2012. Strategic portfolio

management : How governance

and financial discipline can

improve portfolio performance.

[Online]

Available at:

http://www.pwc.com/en_US/us/i

ncreasing-it-

effectiveness/assets/pwc-

strategic-portfolio-management-

governance-financial-

discipline.pdf

Covers the reasons for why

PPM governance is essential.

Specifically issue escalation,

culture of accountability,

communications, cross

functional coordination,

calendar alignment, process

automation, financial

discipline and benefits

realisation.

2

Beringer, C.,

Jonas, D. &

Gemünden, H.

G., 2012.

Establishing

Project

Portfolio

Management:

An Exploratory

Analysis of the

Influence of

Internal

Stakeholders’

Interactions.

Project

Management

Journal.

Project portfolio management

(PPM) is viewed as a

management innovation that

must be further established

and professionalized in many

firms. Stakeholder

behaviour and stakeholder

management are key success

factors for project portfolios.

Furthermore, stakeholder

management must not only

focus on single stakeholders

but also account for

stakeholders influencing one

another in fairly complex

interactions of multiple and

potentially interdependent

stakeholders.

Our quantitative study of

internal key stakeholders’

engagement in the PPM

process is based on a survey

using 223 project portfolios

from medium to large

firms in Austria, Germany, and

Switzerland. We investigate

the intensity of stakeholders’

engagement in

1

http://www.ap

mg-

international.c

om/en/qualific

ations/change-

management



Guidance addressing



good.

1

Process

Effective change management is required here, to prove

that the cost of change will result in benefits that will

for example reduce running costs of the operations or

increase revenue etc. An investment appraisal/cost

benefit analysis is required.

114 Starting change

Perhaps the wrong approach to design is being taken (ever

engineering phase 1?), or the case for doing it more fully is not

being made effectively enough? Do something simple, get proof

points, develop v2?

p s s

ESI International, 2009.. View from

the Ground: The Project Manager

Perspective on Project Portfolio

Management Effectiveness.

[Online]

Available at: http://www.esi-

intl.co.uk/resource_centre/white_

papers/progman/The%20Project%

20Manager%20Perspective%20on

%20Project%20Portfolio%20Manag

ement%20Effectiveness.pdf

Covers a survey of the issues

facing the introduction of PPM

from project managers

perspective.

2

http://www.cp

s.co.uk/Succes

s-

Stories/Pages/

CaseStudies.as

px

Some good examples of where

CPS have developed solutions

to the issues of resourcing

concurrent projects.

1

APM 2006/7

Yearbook

Improving

business

through

people and

process - Bob

Oweb &

Professor Lauri

Koskela

Covers system development

using agile and shiws impact on

organisational skills,

productivity and business

satisfaction.

Process

Training workshops and forums. Effective

implementation of a portfolio management system

requires effective business change managers to

determine the benefit of operating the new system.

Determine the octs of the change. Develop a business

case for the change.

Training workshops and forums 139 Starting change Poor stakeholder engagement in the portfolio ecosystem design s s p s

Managing Change: Robert Heller,

1998

ISBN-10:0-7513-0633-9

Essential Managers guide

covering all aspects of

implementing change

http://www.ap

mg-

international.c

om/en/qualific

ations/change-

management



Guidance addressing



good.

1

How to

Manage

Organisational

Change, DE

Hussey, 200

ISBN: 0-7494-

3251-9

Part of the Sunday Times range

that covers various strategies

for implementing change.

Process

A business needs to start somewhere. If it hasn't got

accurate benchmarks, then the business needs to learn

through low risk implementation to start to improve

capability in this respect. Once low risk changes are

enacted, then higher risk changes can be made to build

confidence.

140 Doing things wrong

Programmes are uncertain - is the organisation taking the right

approach to risk tolerance? Projects may start off with a business

case, but are the benefits estimated (as part of that) progressed,

especially when delivery gets more difficult. Do organisations

support projects estimating benefits, and require they keep those

up to date to enable re-prioritisation?

s s p s s

Cantor, M., 2011. Calculating and

Improving ROI in Software and

System Programs.

Communications of the ACM ,

54(9), pp. 121-130.

The investment value of

innovation follows from a

technology’s uncertain net

present value and derived ROI

calculations. Constrained by

limited budgets, most

enterprises find it essential to

apply unprecedented business

discipline to the business

function of software and

system delivery (SSD) across

entire software and system life

cycles. For this reason, the CIO,

CTO,

or VP of software or systems

development may be under

increased scrutiny from the

corporate chief finance office

(CFO). When conversing with

the CFO, money talks, so only

one of two sorts of

conversations can take place:

software and systems as cost

centre or software and systems

as value-creation centre and

System Programs

1

http://www.fr

edcomm.com/

articles/detail/

stop_guesstim

ating_start_est

imating/

Reasonable overview on how

to achieve better estimates

rather than guesstimates.

Approach could be widened to

address this issue.

2

The Good

Manager's

Guide, Trevor

Boutall,1997

ISBN: 1-897587-

80-5

A guide which is a series of

check lists. Chapter 4 covers

managing information and

establishing the information

management and

communications systems

Process

Organisation needs to have a feedback loop to prove the

impact of lack of rigour in business cases, and improve

capability in areas of business case development and

benefits delivery.

141 Doing things wrong Due process bypassed for 'good reasons' s s p s s

PWC, 2012. Strategic portfolio

management : How governance

and financial discipline can

improve portfolio performance.

[Online]

Available at:

http://www.pwc.com/en_US/us/i

ncreasing-it-

effectiveness/assets/pwc-

strategic-portfolio-management-

governance-financial-

discipline.pdf

covers the reasons for why

PPM governance is essential.

Specifically issue escalation,

culture of accountability,

communications, cross

functional coordination,

calendar alignment, process

automation, financial

discipline and benefits

realisation.

2

https://www.g

ov.uk/governm

ent/uploads/sy

stem/uploads/

attachment_da

ta/file/220541/

green_book_co

mplete.pdf


Around 50 examples of articles related to the listed problems

Findings – key organisation questions

10

Problem Summary

Proactive &

visible senior

management

commitment

Alignment of

the portfolio

with strategic

objectives

Consistent &

effective

governance

alignment

Shared change

culture &

associated

behaviours

Coordination

through a

portfolio

office

How can PfM help the organisation develop

and manage its strategy?S P P S

How can PfM ensure all the organisation’s

projects and programmes align with the

strategy?

P P P S

How can PfM demonstrate that projects and

programmes are delivering benefits (in line

with the strategy)?

S P S S

What organisational management

capabilities are needed to enable effective

PfM?

S P S S

Findings – key people questions

11

Problem Summary

Proactive &

visible senior

management

commitment

Alignment of

the portfolio

with strategic

objectives

Consistent &

effective

governance

alignment

Shared change

culture &

associated

behaviours

Coordination

through a

portfolio

office

Aligned with strategy?

Lack of understanding – what is Portfolio

Management? Why do it? What are the

benefits?

Adequate knowledge & skills?

Degree of resistance to change?

Common/consistent language &

communications?

Building on existing processes &

continuous improvement?

Findings – key technology questions

12

Problem Summary

Proactive &

visible senior

management

commitment

Alignment of

the portfolio

with strategic

objectives

Consistent &

effective

governance

alignment

Shared change

culture &

associated

behaviours

Coordination

through a

portfolio

office

How do we build in the keys to success by

understanding any portfolio through

analysis of data?

S P P

How do we ensure collaborative working

between any portfolio office and key

departments for change?

P S P

Is there one (or a series of tools) that will

cover a range of generic categorisation plus

prioritisation for a portfolio?

P S P

Should we set up a specific portfolio office? P S P

Technology references

13

Pillar Problems Answers ID Category Problem Summary Proactive and

visible senior

management

commitment

Alignment of the

portfolio with strategic

objectives

Consistent and

effective governance

alignment

Shared change culture

and associated

behaviours

Coordination

through a portfolio

office

Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis

Technology No / poor decision data available Define delivery and decision making

data, make sure the delivery team

produces is as a consequence of

management, not special 'rekey'.

Independently validate / assure

10 Inconsistent/Inaccurate

data

How do we build in the keys to success by

understanding any portfolio through analysis of

data?

S P P Gaining an Understanding of

Your Customers

Using Portfolio Analysis

By: Ruby C. Kerr

http://www.crfonline.org/or

c/pdf/ref6.pdf

Recognises the importance of

customers but distinguishes

the planning and in particular

the analysis to sort the 'wood

from the trees' with worked

examples

1 24 Stakeholder

Management

By: Open Group.org

http://pubs.opengroup.o

rg/architecture/togaf9-

doc/arch/chap24.html

Whilst not directly linking with

the problem summary it has

appeared in the search and

relates to a key aspect being

Stakeholder Management as

although the the analsysis is

key, who and what quickly

follows

3 Project Portfolio

Management:

Metrics that Work

James C. Brown

https://www.bw.edu/ac

ademics/cpd/forums/Pr

oject_Portfolio_Manage

ment_March_2011.pdf

Only a presentation but

provides an overview

including some interesting

points

3 MANAGING

CUSTOMER

RELATIONSHIPS

RUTH N. BOLTON

AND CRINA O.

TARASI

http://www.ruthn

bolton.com/Publi

cations/01Malhotr

a-V3-Chap1.pdf

Features on customer

relationship management

(CRM) but parralels can be

drawn with portfolio areas

around the process approach

Technology No common means of planning Implement a common means of planning

from idea, though to the 'hopper' of

candidates, through to delivery and

benefits, and BAU resource plans

11 Poor access to data How do we build in the keys to success by

understanding any portfolio through analysis of

data?

Project Management:

Achieving Competitive

Advantage, Second Edition,

by Jeffrey K. Pinto.

Published by Prentice Hall.

Copyright © 2010 by Pearson

Education, Inc.

http://wps.pearsoncustom.c

om/wps/media/objects/722

5/7398617/MGT310_Ch03.pd

f

Provides a good overview and

check list models with worked

examples albeit from an

Amercian perspective

2 Portfolio Management:

Fundamental for

New Product Success

By Dr. Robert G. Cooper,

Dr. Scott J. Edgett and Dr.

Elko J. Kleinschmidt

http://www.stage-

gate.com/downloads/wp

/wp_12.pdf

Another USA based paper but

gives good examples of success

criteria

2

Technology Separation of delivery tool form reporting tool Common tool for delivery and reporting 12 Poor access to data Is there one (or a series of tools) that will cover a

range of generic categorisation plus prioritisation

for a portfolio?

P S P https://www.gartner.com/d

oc/1763914/ppm-market-

universe-using-ppm

Gartner's magic quadrant on

PPM tools - their relevant

capability and maturity

- however need to pay unless

we have permission to use this

in the APM group

3 http://www.bestoutcom

e.com/how-to-select-a-

project-portfolio-

management-ppm-

solution-html.html

How to select the right PPM

tool - goes through basic

method of selecting a PPM

solution (objectives,

requirements, selection/RFP)

1 http://prioritysystem.co

m/tools.html

Summary of PPM tools and

their various capabilities

1 http://www.priori

tysystem.com/pp

mselectionaid.ht

ml

Selecting a PPM tool using

multiple criteria/requirements

- includes a handy excel

requirements catalogue for you

to rank importance in prep for

issuing an RFP

Technology High cost of assembling data Implement and support a common tool

to reduce cost

12 Too costly/poor value for

money

Is there one (or a series of tools) that will cover a


for a portfolio?

Technology Data out of date / not believable Implement a common tool and carry out

compliance management on data quality


money



for a portfolio?

.

Technology How to put IT in place that people will use and

not see as control/threat

deciding on a solution with proj.

managers. Ensuring it is fit for purpose as

a tool that adds value to their work

29 Not fit for purpose - not

"exec friendly"



for a portfolio?

Technology ? Having an enterprise information portal 30 Inflexible tools Is there one (or a series of tools) that will cover a


for a portfolio?

Technology Fit for purpose software – appropriate Consider current and future

requirements


"exec friendly"



for a portfolio?

Technology Solution owned by business establish focal point and change

champions

54 Purpose unclear How do we ensure collaborative working between

any portfolio office and key departments for

change?

P S P

Technology Review and Refresh to assure sustainability n/a 55 Poor access to data Should we set up a specific portfolio office? P S P

Technology Any technology solution needs to be

easy and accessible

62 Poor access to data Is there one (or a series of tools) that will cover a


for a portfolio?

Technology The current focus on analysis tools at the

expense of getting the right info to make the

decision to the board

83 Purpose unclear Is there one (or a series of tools) that will cover a


for a portfolio?

Technology "We need a tool" before we can start. Is this

statement correct?



for a portfolio?

Technology When do we start to use "sophisticated tools?" 85 Inflexible tools Is there one (or a series of tools) that will cover a


for a portfolio?

Technology Outputs not "exec" friendly Clear and simple reporting tool back to

the business


"exec friendly"



for a portfolio?

Technology Lack of holistic "joined upness", manual

interfaces take time & erode "perceived value"

of this

Defining need first & identifying the

tools from that



for a portfolio?

Technology Is not seen as a priority for investment versus

others


money



for a portfolio?

Technology No single tool?? 89 Inflexible tools Is there one (or a series of tools) that will cover a


for a portfolio?

Technology The need for a system that is a one stop shop

for information to prevent any duplication of

reporting i.e. a balanced system that achieves

the required priorities

115 Poor access to data Is there one (or a series of tools) that will cover a


for a portfolio?

Technology Data/ information capture; reporting the true

status of projects and the necessary accuracy by

selecting the right data


data



for a portfolio?

Technology The stakeholders do not like technology, they

prefer simple dashboards


"exec friendly"



for a portfolio?

Technology Tools can be too sophisticated, not understood

and thus ignored; people always hate the

introductions of new systems


"exec friendly"



for a portfolio?

Technology Sometimes information download loses sight of

true objectives - in some cases there is too

much information on the wall! A real challenge

to keep it updated.


data



for a portfolio?

Technology Tools flexible enough to provide consistency

across different and diverse contexts within the

business.

Engage with leaders to agree what

information (rather than what data) is

needed to inform decisions.

142 Inflexible tools Is there one (or a series of tools) that will cover a


for a portfolio?

Technology How to find useful technology to turn data into

information to support decisions.



for a portfolio?

Technology Tools flexible enough t provide consistency

across different and diverse contexts within the

business.



for a portfolio?

Around 10 examples of articles related to the listed problems

Part 2 - PfM SIG collateral

14

Year Event Link to Event Organisation Presenter SubjectLink to

PresentationStr Pty Sel Ben Rsk Est Man Ass Gov PMO Tls Oth Govt Pub Pte Oth SMC Align Gov Cult PMO

2010

PfM SIG

Discovery Day

(Sep)

http://www.apm.org.uk/news/portfo

lio-management-sig-discovery-

day#.U_9flqPgUQI

Benefits

Management

SIG

Peter Glynne

BM – A

Strategic

Business Skill

http://www.apm.org

.uk/news/portfolio-

management-sig-

discovery-

day#.U7hLDUCmVDQ

1 1

2010

PfM SIG

Discovery Day

(Sep)



day#.U_9flqPgUQI

Open University

Business School

Cranfield

School of

Management

Professor

Elizabeth Daniel

Professor John

Ward and Dr

Arnoud Franken

Project

Portfolio

Management:

Balancing Risk

and

Performance in

Turbulent

Times

http://www.apm.org

.uk/sites/default/fil

es/02_John_Ward_El

izabeth_Daniels_CIM

A_PPM_Research_A

PM_210710.pdf

1 1

2010

PfM SIG

Discovery Day

(Sep)



day#.U_9flqPgUQICabinet Office Steve Jenner

History of the

Government

PfM SIG & the

new OGC

Management of

Portfolios

(MoP)

http://www.apm.org


es/01a__Steve_Jenn

er__APMSIG21.7.10.

pdf

1 1

2010

PfM SIG

Discovery Day

(Sep)



day#.U_9flqPgUQI

Departmental

Transformation

Programme

HMRC

Paul Hirst, Head

Of Programme

and Project

Management

Making Tough

Decisions in

tough Times, or

The Case for

Portfolio

http://www.apm.org


es/01b_Paul_Hirst_A

PM_Discovery_Day_

100721.pdf

1 1

2010

Inaugural PfM

SIG Meeting

(Nov)


lio-management-idea-whose-time-

has-come#.U_9gXaPgUQI

Efficiency and

Reform Group,

Cabinet Office

Philip Cooper

Portfolio

Management in

Government

http://www.apm.org


es/PORTFOLIO%20M

ANAGEMENT%20IN%

20GOVERNMENT.pdf

1 1

MoP Principles:

Str = Strategy Alignment etc Pty = Prioritisation

Sel = Selection & Decision-Making Ben = Benefits Realisation (Portfolio)

Rsk = Managing Portfolio Risk Est = Establishing PfM

Man = Managing PfM Ass = Assurance

Gov = Governance PMO = Portfolio Office

Tls = Tools and Techniques Oth = General PfM

SMC = Proactive and visible senior management

commitment

Align = Alignment of the portfolio with strategic

objectives

Gov = Consistent and effective governance alignment

Cult = Shared change culture and associated

behaviours

PMO = Coordination through a portfolio office

Organisation TypeTopics Covered:

Portfolio Management SIG - Presentation Analysis (2014)

37 presentationsAnalysis to be validated

Volunteers?

Part 2 – initial presentation analysis

15

Question Learning from B&Q

How can PfM help the organisation develop and

manage its strategy?

(Nothing obvious from their presentation – they don’t talk about

reviewing the benefits, just the project)

How can PfM ensure all of the organisation’s

projects and programmes align with the strategy?

PMO gives a single view of all project costs and benefits; ensures

alignment between strategy, financial planning, capacity planning and

PMO (slide 17)

How can PfM demonstrate that projects and

programmes are delivering benefits (in line with

the strategy)

Key projects documented in a standard way and managed in a highly

visual manner (slide 16)

PMO communicates across the organisation (slides 10 and 11)

How can PfM support the effective delivery of

projects and programmes?

Key projects documented in a standard way and managed in a highly

visual manner (slide 16)

Sharepoint site giving guidance on documentation, which meetings to

attend (slide 15)

Governance tailored to match scale and complexity of projects and

programmes – three levels, gold, silver and bronze (slide 12)

What organisational management capabilities are

needed to enable effective PfM?Project management capability (slide 6)

Continuation, next steps & volunteers

• Complete the analysis

– Questions analysis, mapping to MoP principles

• Seek further references for the defined problems

• Further categorisation of presentations

– APM BoK

– MoP principles

• Validate PfM presentations & collateral analysis

• Provide link on APM website

16

A portfolio management and product

delivery case example

Euan Dean

ID Business Solutions (IDBS).

17

Exploiting research

& collateral

November 2014

Exploiting research and collateral

• How the SIG should further develop PfM

resources for members

– Did this research process work?

– How could we improve it, was it effective?

• As SIG members, what do you want?

• How you can help

19

Continuation, next steps & volunteers

• Complete the analysis

– Questions analysis, mapping to MoP principles

• Seek further references for the defined problems

• Further categorisation & validation of presentations

• Provide link on APM website

20

21

Wednesday 22nd April 2015

London

APM Portfolio Management conference

“Making Portfolio Management work for you/your organisation”

Thank you

22

portfolio management knowledge development

Education

portfolio officetls

pm portfolio mgt sig

managing portfolio risk

pm discussion

presentation analysis

pm registration

strategic objectivesgov

provisional analysis