South Wales and South West of England Branch

Thursday 26th February 2015

Emily Hall-Strutt and Tim Warren

10 Lessons in Setting Up

a Portfolio Office

Agenda

Introductions

Scene Setting

10 lessons of setting up Portfolio Office

Questions

Introductions

Emily – Civil Service Fast Streamer

- Policy (DCLG)

- Agile project management (OPG)

- portfolio management (VOA)

Tim – Management Consultant

- P3M and P3O in Defence, Transport, Energy and Government

- Portfolio Manager

Questions

Q – Who here works in a Portfolio Office?

Q – Who currently reports into a Portfolio Office?

Q – What does a Portfolio Office do?

Q – Does every organisation need a Portfolio Office?

Misconceptions

A Portfolio Office is another layer of management

It’s duplication of a programme management office

It’s a promotion route for programme management

Key Points

A Portfolio Office is an internal assurance platform

It allows the Board/Executive Team to make informed decisions on

programme and project prioritisation and where to best invest

capital and resource. Boards can focus on strategy

It allows programmes and projects to concentrate on delivery

Champion P3M and P3O good practice

Management of Portfolios (MoP)

Programme and project management offices are temporary

structures set up to support a specific change initiative.

Portfolio Offices are usually permanent and integrated into

the organisational governance structure.

Portfolio Office ensure that programme and projects remain

strategically aligned, co-ordinating delivery at a collective

level and monitoring benefits realisation.

Portfolio Offices report directly to the Management Board.

Management of Portfolios (MoP) 2011.

10 lessons in setting up a

Portfolio Office

Secure senior management

buy-in

Executive Sponsor

Involve the Sponsor in recommendations

Involve senior management (the Board) in designing a

transition plan

1

Engage your stakeholders

Identify your stakeholders at all levels

Determine which will be most influential

Plan how best to engage with them

Keep them involved as much as possible in changes

2

Design for steady state

Transition plan from current ‘as is’ towards ‘to be’

Transparency

Manage as a Project

- Stakeholders

- Delivery plan

- Risks

- Resources required

- Understand the requirement of a Portfolio Office

3

Understand the capability within

your organisation

Determine the membership of your PPM community

Understand the culture of the organisation

Undertake work to understand the capability there

Design the transition plan with that in mind but include

upskilling

4

Delegate decision-making

authority

The Board MUST delegate decision making authority to

Programme and Project Management

Failure to delegate creates low morale

Set tolerances and thresholds

- Capital and operational spend

- Project initiation

“Bottle necks are always at the top of a bottle”

Dr. Norma Wood, ex MPA DG

5

Don’t be afraid to pause, stop

or say ‘no’

Categorise and prioritise the portfolio with the Board

Understand where money is allocated and where it is being

spent

Encourage and enable the Board to make tough decisions

when necessary

6

Ensure one decision making body

Avoid decisions being made in multiple committee meetings

Appoint one body (Board) to make all portfolio decisions

This creates coherence and enables better investment

decisions

7

Maintain focus on delivery

Portfolio categorisation and prioritisation

– Mandatory and Legal

– Critical to strategy

– Critical to mitigate risk

– Keeping the lights on

– Enabling

– Discretionary

Allow programme and project managers to deliver

8

Enable the Board to make

strategic decisions

Link back to Lesson 5 - Delegate

decision making authority

The Board needs to set and

maintain focus on strategy

Be firm with the Board – show them

what they need to KNOW not what

they think they need to SEE.

9

Principles focussed on coherence,

resilience and realism

The Portfolio is the platform for coherence and consistency

across all the change initiatives in the organisation.

- Overview of all programmes and projects

- Bridge the gaps caused by stove-pipe organisations

- One source of truth

- Head of Profession

10

Resilience

- Structured governance and portfolio management processes

- Clearly defined roles & responsibilities and accountabilities

Principles focussed on coherence,

resilience and realism 10

Realism

- Simplify

- Tailor

- Use a maturity model to grow

- Set expectations early

- Changing a culture takes time!

Principles focussed on coherence,

resilience and realism 10

10 Lessons

1. Secure senior management buy-in

2. Engage your stakeholders

3. Design for steady state, recognising a need for an implementation plan

4. Understand the capability within your organisation

5. Delegate decision-making authority

6. Don’t be afraid to pause, stop or say ‘no’

7. Ensure there is only one decision making body

8. Maintain focus on delivery

9. Enable the Board to make strategic decisions

10. Principles focussed on coherence, resilience and realism

Thank you!

Tim Warren

Principal Consultant

BMT Hi-Q Sigma Ltd

email: tim.warren@bmt-hqs.com

Mob: 07834 254291

LinkedIn: uk.linkedin.com/pub/tim-

warren/11/96a/986

Emily Hall-Strutt

Civil Service Fast Stream

email: ehallstrutt@gmail.com

Mob: 075215 01019

LinkedIn: uk.linkedin.com/pub/emily-hall-

strutt/96/853/395/en