V i s i o n ACCOMPLISHED ™ Portfolio Management Breakthroughs Shelley Gaddie President Project...

v i s i o n ACCOMPLISHED™

Portfolio Management Breakthroughs

Shelley Gaddie

President

Project Corps

Pacific Northwest Portfolio Management Roundtable

November 07, 2006


v i s i o n ACCOMPLISHED™ © Copyright 2006. Project Corps. All Rights Reserved.

Strategy

EnterpriseGovernance

Initiate

Analyze

Design

Strategy

Goals

ObjectivesInternal Assessment

ExternalAssessment

Initiatives

Approval

Prioritization

Lessons Learned

ProjectDelivery

Business Case

Programs & Projects

Ongoing MetricsAnalysis

Build

Validate

Implement

A continual flow ofplanning and executionprocesses that supportongoing:

shifts for customer and marketplace driven changes.

analysis of progress against goals and objectives.

incorporation of improvements based upon lessons learned.

The Enterprise Framework


In Theory it’s Simple but…

EnterpriseGovernance

Strategy

Project Delivery

…executive planning processes oftenstop short of providing the clarityrequired to execute effectively.

Portfolio Management

Program Management

Project Management

… program management organizations build project tracking systems rather than management decision making support systems.

…project teams focus on timely, onbudget delivery at the expense of market and customer priorities, quality and outcomes.


ALIGNMENT: Support of the organization’s strategic direction.

VALUE: Return on investment and long-term benefit for the organization.

ACHIEVABILITY: Capacity to deliver successfully.

BALANCE: Diversification across multiple dimensions and competing priorities.

The Principles


Three Companies

Financial Services Dramatic growth by acquisition; Redundant systems and services; Bureaucratic and risk averse; Declining margins in core business; and Must make immediate improvements in

financial performance or face take-over.


Three Cultures

Financial Services Focus on Mission

Performance Results Bottom Line


Telecommunications New market (Eastern Europe) start-up; #3 against top two global contenders; Young leadership and staff; Customer and innovation focused; and Goal to grow to #1 in three years.

Three Companies


Three Cultures

Telecommunications Focus on Involvement and Adaptability

Team Creativity Risk


Insurance Strong brand; Declining membership; Growth by merger resulting in divergent

processes and systems; Aging technology infrastructure; and New leadership with strong

transformational vision.

Three Companies


Three Cultures

Insurance Focus on Consistency

Leadership Processes Systems


Three Questions

Insurance asked HOW? Focus on effective structures, processes and systems

for portfolio management, take iterative steps and establish and work toward long term results.

Telecommunications asked WHO and WHAT? Support shared ownership and development, apply a

market focus in portfolio definition and management and deliver customer targeted results.

Financial Services asked WHY? Build a direct relationship to the primary business

problem, define the value statement for portfolio management in relationship to the bottom line and deliver immediate results.


Why?

Capture the bottom line

impact

Analyze, Document, Vet, Educate and Communicate Build the business case for portfolio management in

alignment with current strategies, goals and objectives. Define standard terminology, minimize jargon. Obtain executive ownership. Enroll and educate key staff in the concept. Communicate the vision, framework, plan and financial

targets.

A Burning Platform


Why? Who?

Engage key leadership

across multiple

functions


impact

Engage, Focus, Plan, Transfer Ownership and Prioritize Establish an advisory body that owns the portfolio

management plan. Identify and prioritize portfolio management challenges. Develop a simple and iterative solution roadmap. Establish a governing body that defines and oversees the

portfolio. Identify and prioritize the key enterprise-wide initiatives.

It’s Up to Us


Why? What?Who?


across multiple

functions

Market demands

balanced by company capacity

Research, Understand Capacity, Benchmark, Develop Metrics Support portfolio management with market research. Design the solution based upon industry best practice

and organizational readiness. Measure results of the process and system with

customers and against past performance and the industry.

and


impact

We’re the Experts


Why? What? How?Who?

Simplify and maintain the integrity of

processes and data

The Devil’s in the Detail

Promote, Define Roles, Establish Value, Prototype Promote portfolio management at the executive and staff

levels Define benefit of and leadership and staff roles and

responsibilities for practices and processes. Focus on reporting and providing meaningful information. Design value added processes and tools. Prototype.

and


impact


across multiple

functions

Market demands

balanced by company capacity


Three Breakthroughs

Telecommunications The right PEOPLE engaged in the right way for

the right reasons.

Insurance A new way of doing business built with attention

to DETAIL from the bottom up.

Financial Services A VALUE proposition with immediate bottom line

impact.


Finance - Value

A strategic alliance between the corporate PMO and Finance, Internal Audit and Risk Management.

Bottom line relative results oriented 3-year business case based upon past three years project data.

Small, centralized, directive executive level governance.


Finance - Differentiators

1. Neither PMO led or exclusive.

2. A business case built with cross functional participation and based upon real organizational experience.

3. Addressed the burning platform.

4. An executive team ready to make hard decisions.


Telecommunications - Engagement

A strategic alliance between Strategic Planning and Sales and Marketing.

Business planning aligned with corporate strategies, key financial targets and key performance indicators.

Large broad based multi-level collaborative governance.

Market, customer and industry focus.


Telecommunications - Differentiators

1. Positioned as support for annual planning.

2. Engaged widespread participation in first advisory and then governing roles.

3. Established priorities exclusive of capacity.

4. Market, customer and industry feedback and metrics.


Insurance - Leadership

A strategic alliance between units of the EPMO, executive leadership, Strategic Planning, Change Management and IT.

An EPMO and IT plan and project focused on designing, building and testing a prototype system.

Centrally coordinated parallel tracks of developmental work.

Transformation focused.


Insurance - Differentiators

1. Iterative strategic development steps implemented over time.

2. Multiple service department sponsorship.

3. A prototype with test and refinement time.

4. Introduced as a transformation delivery and measurement system.


Conclusion

Alignment Value Achievability Balance Values and Culture


Summation

Three unique approaches. Three similar results.

Number of projects ▼ Reduced by an average 37%.

Project on-time delivery ▲ Increased by an average 20% in first two years.

Project on-budget delivery ▲ Increased by an average 38% over three years.

Portfolio management is here to stay.


Portfolio Management Breakthroughs

Questions?Shelley Gaddie

President

Project Corps

206.932.7077

www.projectcorps.com

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