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

Presented by David Dunning, Professional Services Director, CPS

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?

• Corporate Project SolutionsEstablished 1995Fifteen years Enterprise Solutions Implementation ExperienceExperts in Portfolio, Portfolio, Programme, & Project Management Over 700 Clients

• PeopleRecruitment• Permanent• Interim positionsTraining • Maturity/Capability Assessment• Planning / Process based• Microsoft Project• EPM Administration

• ProcessP3O® Services Change ManagementP3M Consulting

• TechnologyMicrosoft Platforms• Project Server (EPM)• Project Portfolio Server• MOSS / SharePointCPS 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?

AgendaEnterprise Project Management Organisation – joining strategy to delivery and back again. What have I got to do?”

Strategy – Where does it fit in?Vision

(Values, picture of future state)

Current State

Mission Strategy

BAU - Work

Programmes and Projects

Business Drivers

PipelineOutcomes /

Benefits

Strategy

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• “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”

Portfolio Management

Business Drivers

Pipeline

Work

Vision

Current State

Programmes and Projects

StrategyMission

Outcomes / Benefits

Consensus?

Problem areas?

Strategy into Business DriversClear 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

Business Drivers

Pipeline

Work

Vision

Current State

Programmes and Projects

StrategyMission

Outcomes / BenefitsNot what

expected

Problem areas?

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

Business Drivers

Pipeline

Work

Vision

Current State

Programmes and Projects

StrategyMission

Outcomes / Benefits

Priorities not agreed?

Problem areas?

Example Strategic Alignment Process

Align Investment to Strategypriorities

UnalignedUnaligned

OptimisedOptimised

Business Drivers

Pipeline

Work

Vision

Current State

Programmes and Projects

StrategyMission

Outcomes / Benefits

Poor control processes

Problem Areas?

http://www.mop-officialsite.com/home/AboutMoP/About_MoP.aspx

In one single diagram?

Organisational WILL

Portfolio ProcessesStrategy

Understand Categorise

Plan

Balance

PrioritiseTrigger

Verify

Delivery Processes

ManagementControl

BenefitsManagement Financial

ManagementRisk

ManagementStakeholder

Management

Governance / Compliance

ResourceManagement

Benefits

Business Drivers

Pipeline

Work

Vision

Current State

Programmes and Projects

StrategyMission

Outcomes / Benefits

Bad Resource Management

Problem Areas?

Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010]

Organisational Challenge – not a local issue

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.

Resource Planning Initiated

Resource Management Consolidated

Resource Management Initiated

Strategy

Business Drivers

Pipeline

Work

Vision

Current State

Programmes and Projects

StrategyMission

Outcomes / Benefits

Not what expected

Problem Areas?

Delivery to StrategyProject Outputs

Business Change

Side effects

Dis-benefits

Desired Outcomes

Intermediate/ End

BENEFITS

Strategic Objectives

Realise Further

Enable

Also cause

Result in

Create

Measured in

Towards one or more

Extrapolated from Managing Successful Programmes®, from the OGC

Delivery to Strategy

MSP® is a Registered Trade Mark of the Office of Government Commerce.

Output Change Outcome Benefit ObjectiveExample from P3O®

What do I need to have in place for this?

Gaps

Org

anis

ation

The Answers

Organisation Components

• 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?

• 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

Delivery Support

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?

PxOrganisation – Next?

Delivery Support Governance

Local support offices run from a Central ‘support’ office ?Project Start up? Planning help?Reporting? Gates? Closure?

Local compliance management?Process adherence? Standards usage?Plan quality?

Center of Excellence

Is this one central function?Process, Standards, Tools, PM Knowledge Owner, Learning Facilitator, Best practice owner

PxOrganisation – to finish…Center of Excellence

Governance

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?

Local compliance management?Process adherence? Standards usage?Plan quality?

Decision Support

Does this function exist?Scrutiny / OversightPriority Generation / ImplementationBusiness Perspective

Delivery Support

Project Organisation

Org

anis

ation

Proc

ess

Peop

le

Tech

nolo

gy

The Answers

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

• Bottom Up• Get something moving• More effort• Less effective (shoestring)• Greater penetration than

top down?• Better ‘stick’• Spending while waiting until

you get backing

How

What does this mean?• Can we collect enough ‘pain’?• Is this ‘pain’ to the right people?• The change road gets pretty congested at the

top!

Devise a problem statement

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?

• Capture proposals, prioritise drivers, changes scored, selection made.

• How much will Change cost? • Costs and Resource pinch points captured. And Risk.

• What is the value of the Change? • Benefits captured. Options are comparable.

• What happens if something changes?

• We can see what is affected, re-prioritise, re-plan.

• How can I check that Changes are happening?

• Visible Strategy plan, connected project and programmes, assurance of processes and benefit realisation

Enabling direction, leadership and control

What does this mean?• If you can’t get someone senior to ‘front’ this, how can this possibly succeed?

Appoint a Senior Responsible

What does this mean?• Beware the chalice of doing this in your spare time.

Appoint a capable Programme

Manager

What does this mean?• Increase the proportion of projects and programmesdirectly 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.

Set the capability / benefit

expectations

What does this mean? Map out the vision for how the

objectives can be met1

2

3

What does this mean?• How can we plot a journey if we don’t know where the start point is?• P3M3 Assessment

Assess the current state of strategy

management and 'P3 organisation’

provision

What does this mean?• How else to establish ‘buy in’ better than to get someone to put their hand in their

pocket?• Benefit plans• Milestones

Prepare Business Case, Programme Brief, Programme

Plan

All together….

Establish ‘Organisational Will’

Devise a problem statement

Appoint a Senior Responsible

Appoint a capable Programme

Manager

Set the capability / benefit

expectations

Assess the current state of strategy

management and 'P3 organisation’

provision

Map out the vision for how the

objectives can be met

Prepare Business Case, Programme Brief, Programme

Plan

Org

anis

ation

Proc

ess

Peop

le

Tech

nolo

gy

The AnswersStrategy

Thank you for listening!David.Dunning@CPS.co.uk01628 895600 / 07767 803540LinkedInhttp://uk.linkedin.com/pub/david-dunning/3/bb9/ba7