Principles of Execution

How to Improve Your Organization's PPM

Maturity Level

Helping Organizations Develop a Culture that Works!

Gerald’s Background

Gerald is currently the President &

CEO of Principles of Execution, a

Strategic Project Portfolio

Management and IT

Governance consulting firm based

in the Metro Washington, DC area.

19 years as an IT Project

Management consultant and

earned the PMP, MCSE, MCTS,

CQIA, ITILv3 and COBIT 4.1

Certifications

Acquired certifications in PM and

BI from the University of California,

Berkeley, as well as an Executive

Leadership Certification from

Cornell University.

Objective

What is Portfolio Management?

The Goal of Project Portfolio Management Maturity

Areas to Analyze

Gartner’s Model of PPM Maturity

Pains that Prompt a Maturity Assessment

Capability Assessment Dashboard

5 Levels of PPM Maturity

What is Project Portfolio

Management?

Portfolio Management is a capability that

enables organizations to analyze, select and

manage a collection of project investments

that are aligned with your company’s goals

and objectives within a data driven decision

making framework.

Portfolio Management also coordinates the

acceptance, approval, postponement,

rejection or cancelation of a project which will

not realize the proposed benefits or the

corporation’s strategic outcomes.

The Goal of PPM Maturity

The organization is able to adjust and align IT

investment budgets and projects with business needs at

least quarterly.

There is alignment between the business strategy and

the selection and execution of IT projects throughout the

organization.

Executives have clear insight into the selection,

prioritization, budgeting, resource allocation and

scheduling of project investments.

The organization continually measures and manages

the IT budget for the optimal mix of discretionary and non-

discretionary spending.

Areas to Analyze

People Process

Technology Governance

Gartner’s Five Progressive Levels

of the Maturity

Pains that Prompt a Maturity Assessment

Lack of accountability regarding who owns the oversight of the IT

portfolio.

Project investments that are not aligned to the business objectives

of the corporation.

Lack of standardized processes leading to project execution

heroics.

Roles and responsibilities are not clearly defined which creates

confusion within the organization.

Limited or no visibility into the portfolio performance.

Project outcomes are not verified to determine if the investment

produce the expected return.

Constrained resources are used sub-optimally due to lack of

appropriate alignment and allocation.

Why PPM Maturity Is Important

84% of companies do not use a

business case for their IT project

investments

83% of companies only adjust their

budgets once or twice a year

67% of IT organizations are not

able to adjust to market trends when

needed

57% of companies believe they

have a balanced IT budget.

http://www.principlesofexecution.com/psgs/2013/08/bo

ok-review-it-portfolio-management-step-by-step.html

Don’t Underestimate the Power of

CultureImplementing Project Portfolio

Management should establish

a culture, not just a system,

that enables a process for

systematically aligning the

organization’s attitudes,

behaviors and actions, which

should result into a

interrelated and prioritized

portfolio that yields better

outcomes while minimizing the

investment of the organization

resources.

Maturity Process

Ad Hoc Planned Optimized Integrated Sustained

5 Levels of PPM Maturity

Ad Hoc

Planned

Optimized

Integrated

Sustained

Assessment Process

Develop As Is

Proposed To Be

Conduct Gap

Analysis

Analyze Gap & Action Plan

Develop Road Map

Conducting the As Is Assessment

Personal and Group Interviews

Collecting Artifacts and Evaluation of existing processes.

Conduct Surveys

Benchmark comparisons against established standards

Develop a Capability Assessment

DashboardCapabilities Demand

Mgt

Portfolio

Selection

Portfolio

Tracking

Portfolio

Reporting

Financial

Planning

Financial

Tracking

Benefits

Realization

Project

Scheduling

and

Tracking

Overall

People

Process

Technology

Governance

Conduct a Gap Analysis

The Maturity Matrix

High-level Roadmap

Maturity Process

Ad Hoc Planned Optimized Integrated Sustained

Level 1 Ad Hoc

• No Governance processes in place

• Project are selected on a first come basis

Portfolio Governance

• No Standard Processes exist for initiating projects

• Project inventory has not been established

Project Opportunity

• No processes to prioritize proposed or active projects

• Projects are funded with no promised return

Prioritization and Selection

• No portfolio communication processes

• Portfolio Information reports have not been definedCommunication

• No Performance processes

• Project reviews are not conductedPerformance

• Resource allocation is ad hocResources

Maturity Process

Ad Hoc Planned Optimized Integrated Sustained

Level 2 Planned

• Process for Portfolio Review Board (PRB) established

• Business cases are developed for each project

Portfolio Governance

• Processes exist for identifying proposed projects

• Project Charters are developed for each project

Project Opportunity

• Roles and Responsibilities have been defined

• Project are prioritized using a simple PPM model

Prioritization and Selection

• A list of proposed and active projects are maintained

• Project status reports and portfolio information in providedCommunication

• Portfolio Information is reviewed regularly

• Project performance data is provide to the PRBPerformance

• Resource are identified by availability, role and skills

• Guidelines are provided for allocating resources to high priority projects

Resources

Maturity Process

Ad Hoc Planned Optimized Integrated Sustained

Level 3 Optimized

• Project Portfolio’s are aligned to strategy

• Business drivers are defined

Portfolio Governance

• Identifying and tracking project opportunities is documented

• Documented processes are provided determining business value for each project

Project Opportunity

• Processes are well defined for prioritizing projects

• Executives analyze and prioritize new projects

Prioritization and Selection

• Portfolio information is aggregated for greater insight

• The portfolio risk information is tracked at all levelsCommunication

• Organizational Standards and Processes exist

• The Portfolio is actively analyzedPerformance

• An enterprise resource pool exist

• Resources are optimally allocated to prioritized projectsResources

Maturity Process

Ad Hoc Planned Optimized Integrated Sustained

Level 4 Integrated

• Lessons Learned are integrated in to PPM Processes

• The PRB reviews the fit of each project across the portfolio

Portfolio Governance

• Post implementation reviews are conducted

• The PRB focuses on Value Creation and Strategic Alignment

Project Opportunity

• Standard Models and Business Prioritization processes exist

• Prioritization models are periodically update

Prioritization and Selection

• Portfolio Information is audited to validate the data

• Project Investment information is available for decision makersCommunication

• A Standard set of KPIs and Metrics exist

• Standard metrics are integrated into management’s decision processes

Performance

• Enterprise Resource analysis and reports existResources

Maturity Process

Ad Hoc Planned Optimized Integrated Sustained

Level 5 Sustained

•Baseline data is available for the Governance Processes

•Portfolio Governance Processes are continuously improved

Portfolio Governance

•Baseline data is collected for project opportunities

•Project Opportunity processes are continuously improved

Project Opportunity

•Baseline data is collected for prioritization and selection processes

•The Prioritization and Selection processes are continuously improved.

Prioritization and Selection

•Baseline data is collected on portfolio communication processes

•Portfolio Communication Processes are continuously improvedCommunication

•Baseline Performance data is collected

•Reports and metrics processes are continuously improvedPerformance

•Baseline data is collected on Enterprise Resources

•Resource processes are continuously improvedResources

Where Should You Start?

Q&A

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Principles of Execution, LLC

Gerald J. LeonardPMP, MCTS, CQIA, ITIL, COBIT

President/CEOGerald@Principlesofexecution.com

http://www.principlesofexecution.com

Helping Organizations Develop a Culture that

Works!

Building the foundation for effective execution to increase your organization’s productivity!