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Building smarter and healthier organizations through project portfolio management
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Transcript of Building smarter and healthier organizations through project portfolio management
Building Smarter and Healthier Organizations
Tim WashingtonCamp IT ConferenceMarch 14th, 2013
Building Smarter and Healthier Organizations Through Project
Portfolio Management
Building Smarter and Healthier Organizations
Agenda
• PPM Overview• Leadership• Processes• Tools• PPM 2.0
Building Smarter and Healthier Organizations
What is “Project Portfolio Management”?
Building Smarter and Healthier Organizations
Project portfolio management is a combination of various management disciplines:
%Management Disciplines
General management
Business management
Project and program management
Building Smarter and Healthier Organizations
Project portfolio management (PPM) is a
management discipline that drives
strategic execution and maximizes
organizational value through the
selection, optimization, and oversight of
project investments which align to business
goals and strategies.
PMI Quote
Paradigm Shift #1: Projects are an important vehicle for executing strategy
Building Smarter and Healthier Organizations
“Portfolio management is the strategy-based, prioritized set
of all projects and programs in an organization reconciled
to the resources available to accomplish them.”
Stanford QuoteParadigm Shift #2: The single project view to a total portfolio view.
Building Smarter and Healthier Organizations
“Managing [the] composite groups of projects
with the same rigor, balance, executive
leadership, and decision-making involvement
as the company’s financial
portfolio. Portfolio Management is an
ongoing process that includes decision-
making, prioritization, review, realignment,
and reprioritization.”
Financial Portfolio QuoteParadigm Shift #3: Projects are investments!
Building Smarter and Healthier Organizations
The Purpose of Portfolio Management
• Execute Strategy
• Deliver Maximum Value
• Enhance Decision Making
• Manage Organizational Change
Building Smarter and Healthier Organizations
At the highest level, Project Portfolio Management has four basic components:
All the steps necessary to construct an optimal portfolio given current limitations and
constraints
Ensure value is delivered by comparing expected benefits
with actual benefits; drive PPM maturity
Selected projects must align with the business strategy and meet other important criteria
OptimizePortfolio Value
Project benefits must be protected in order to deliver
maximum portfolio value
ProtectPortfolio Value
ImprovePortfolio Value The Goal:
Maximize Value to the Organization
Select the Right Projects
Building Smarter and Healthier Organizations
A Pragmatic View of Project Portfolio Management
LEADERSHIP
The right leaders for:
• Determining what decisions will be made
• Establishing which information is needed to make strategic decisions
• Using the data to make better strategic decisions
• Driving accountability
PROCESS
The right processes for:
• Governance• Portfolio optimization• Project monitoring• How stakeholders get
data into the PPM tool• How to use the data to
make better decisions
TOOL
The right tool for:
• Storing project and portfolio data
• Displaying project and portfolio information for general consumption
• Transforming the data for reporting and analytics
Building Smarter and Healthier Organizations
Strategic Leadership Includes:
1) Business acumen
2) Active engagement
3) Proactive view
4) Balancing long-term and short-term needs
5) Communicating a consistent message
Building Smarter and Healthier Organizations
Trust
Conflict
Commitment
Accountability
Results
“The only way for teams to build real trust is for team members to come clean about who they are, warts and all”
“When there is trust, conflict becomes nothing but the pursuit of the truth, an attempt to find the best possible answer”
“When leadership teams wait for consensus before taking action, they usually end up with decisions that are made too late and are mildly disagreeable to everyone. This is a recipe for mediocrity and frustration”
“To hold someone accountable is to care about them enough to risk having them blame you for pointing out their deficiencies”
“No matter how good a leadership team feels about itself, and how noble its mission might be, if the organization it leads rarely achieves its goals, then, by definition, it’s simply not a good team”
Leadership Teams
Building Smarter and Healthier Organizations
Healthy organizations start with healthy leadership teams
Building Smarter and Healthier Organizations
“I’m convinced that if the rate of change inside the institution is less than the rate of change outside, the end is in sight. The only question is the timing of the end.”
--Jack Welch, former chairman of GE
Building Smarter and Healthier Organizations
High IQ: Expert(Proactive)
• Shape environment to own advantage• Organizational agility-capacity to change• Distributed strategic intelligence• Mind-set of change
Moderate IQ: Competent
(Reactive)
• Debating when to change• Keep pace and react to external change• Clear options, criteria, and processes
Low IQ: Ignorant(Not Active)
• Don’t realize the need to change• Strategically blind• Incompetent (“let’s pretend”)
Video
Building Smarter and Healthier Organizations
Building Smarter and Healthier Organizations
Strategic Planning (the big WHAT’s)
Portfolio Planning (WHEN)
Project Planning (HOW)
Smart organizations plan on many levels
Building Smarter and Healthier Organizations
We Need Clarity (aka alignment)
1) Why do we exist?
2) How do we behave?
3) What do we do?
4) How will we succeed?
5) What is most important for us, right now?
6) Who must do what?
These questions must be answered together, not in isolation
Building Smarter and Healthier Organizations
Leadership Needs to Over-communicate Clarity
Problem: leaders confuse the mere transfer of information to an audience with the audience’s ability to understand, internalize, and embrace the message that is being communicated.
Great leaders see themselves as “Chief Reminding Officers”
Building Smarter and Healthier Organizations
Governance as the Framework Which Enables Accountability
A Shared Vision With Strategic Goals
to Demonstrate Accountability
Leadership to Drive
Accountability
Critical Components of Accountability
Building Smarter and Healthier Organizations
What Kind of Governance Do You Need?
PPM is only bureaucratic if you have the wrong infrastructure
Building Smarter and Healthier Organizations
What Kind of Direction Do You Need?
“Informed Intuition” Strategic Roadmap with Metrics
Strategic Goals
Building Smarter and Healthier Organizations
LEADERSHIP
Leadership determines what data is important for managing the portfolio and drives accountability for getting the right data.
PROCESS
The right processes get the right data into the system at the right time.
TOOL
A portfolio system stores and transforms the data for general consumption (reporting and analytics).
LEADERSHIP
Leadership then uses the data to make better investment decisions at the right time.
The Data Perspective of Project Portfolio Management
Good data is the fuel that makes the portfolio engine run!
Building Smarter and Healthier Organizations
1. Sr. Mgt. Uses the
Data
2. Sr. Mgt. Communicates That the Data is
Being Used
3. Sr. Mgt. Demonstrates How the Data Is Being Used
4. Data Quality
Improves
5. Better Decision Making Ensues
Building Smarter and Healthier Organizations
If the cost of putting data into your PPM System exceeds the value of information coming out of your PPM system, then leadership needs to re-think its processes or the organization is using the wrong tool.
ReportsAnalytics
Information
Data PPM SYSTEM
Think about it!
Building Smarter and Healthier Organizations
Current State
Future State(expected benefit)
Actual Benefit(post-completion)
Benefit Gap
1. What benefits are we expecting in the future?
(business case)
2. What benefits have we realized? (benefits tracking)
3. How do we ensure we realize full benefits
on future projects? (lessons learned)
Benefits Realization Summary
Building Smarter and Healthier Organizations
PPM 2.0
Stronger Community
Social Collaboration
PPM 2.0 is about building smarter and healthier organizations
Building Smarter and Healthier Organizations
For more information
Building Smarter and Healthier Organizations
Contact Information
@ppmexecution
http://www.linkedin.com/in/timawashington
Name: Tim WashingtonEmail: [email protected]: www.ppmexecution.com