What happened to
our $trategy?
WHY DO I CARE?Portfolio Management results in meaningful
projects04/15/2023 www.carolynreid.net 2
Portfolio Management supports achievement of strategy.
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The Big Picture
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What we should do to be successful
Strategic Planning
Maximized Value from Investments
Portfolio Mgt. Resource Mgt.
Project Mgt. Change Mgt.
Efficiently Achieved Strategic Objectives
Benefits Realization
OperationsStrategic Objectives
Optimized PortfolioProject Product
Strategic Realization
Portfolio Performance
Project Perfo
rmance
Benefits Realization
User Activity
Strategic Planning to Benefit Realization is a lifecycle process
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Imagine you are a little kid and you just found $40 and you can’t find
the rightful owner.
How do you make decisions about spending?04/15/2023 www.carolynreid.net 6
How does your business decide what to fund?04/15/2023 www.carolynreid.net 7
What is Portfolio Management?• Identify, Select, Prioritize,
govern and Monitor Projects– Objective and quantifiable
criteria for selecting investments• Based on Alignment to Strategy• With the goal of maximizing
ROI• Doing the right work
Portfolio Management aligns Strategy to what gets done.
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Why do we need Portfolio Management?
• Corporate Strategy is not being achieved• Failing Projects are not stopped • High Project Failure rate• The current Business Processes don’t keep
up with the pace of the constantly changing market
We need flexibility to keep up with constant change.04/15/2023 www.carolynreid.net 9
Business Drivers For Portfolio Management
An Organization has:• Many Ideas• Limited Resources• The need to
maximize profit• Strategy
This leads to the need to:• Compare
investments against each other
• Choose the portfolio of investments that provides maximum value
The Optimized Portfolio:• Define value for the
business• Derive Prioritization
model from this• Establish
disciplined Portfolio Mgt.
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You can’t do everything
We can’t do everything because we have limited resources.04/15/2023 www.carolynreid.net 11
The Solution: What do we need to do?
Strategy Project Portfolio PrioritizeCombine effortsImprove governanceImprove PM processResource Management
PPM maximizes ROI & ties projects to strategy.04/15/2023 www.carolynreid.net 12
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The Portfolio Management Process
• DoD (Dept. of Defense) Directive 8115.01 mandates management of IT investments through integrated Portfolio Management
• CPIC (Capital Planning and Investment Control) OMB (Office of Management and Budget) Exhibit 300 business case
• GAO (Government Accountability Office) Recommendations
Government and Military mandates for IT Portfolio Management04/15/2023 www.carolynreid.net 14
Where is my
going?
Visibility into budget performance & project value supports better decisions.
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“The strategic environment is constantly changing, requiring more flexibility to provide the best mix of capabilities and resources to meet Strategic Review priorities.”
Portfolio Review
Decisions
Performance
New
Strategic Goals
Review the portfolio for value, tie to strategy & performance
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Change is constant
Prioritize, Resource Management, Automate, Centralize, Synergies04/15/2023 www.carolynreid.net 17
Has been applied across merged
organizations for visibility to budget
across the organization
But is good Project Portfolio Management all we need to ensure we
meet our Strategic Goals?
Strategic Planning and Management
OperationsProject Management
With stove piped processes, we are not effective & efficient
Missing or malfunctioning Processes:• Resource Management• Organizational Change Management• Governance• Some process for selecting projects• Siloed Processes
Have you seen organizations like this?
Project Portfolio Management
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Realizing Strategy
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What we should do to be successful
Strategic Planning
Maximized Value from Investments
Portfolio Mgt. Resource Mgt.
Project Mgt. Change Mgt.
Efficiently Achieved Strategic Objectives
Benefits Realization
OperationsStrategic Objectives
Optimized PortfolioProject Product
Strategic Realization
Portfolio Performance
Project Perfo
rmance
Benefits Realization
User Activity
Strategic Planning to Benefit Realization is a lifecycle process
Research about the Agile Organization
• Strategic Planning is an evolving process
• Rigorous OCM• Robust Risk Management• Standardized processes• Strategic focus on People,
Process and Outcomes
• Portfolio Management• Agile Organization• Track Benefits realization
to verify ROI• Sponsorship• Strategic Alignment • Continuous improvement
MIT: Agile Org. Revenue growth 37% faster, 30% higher profit. 04/15/2023 www.carolynreid.net 21
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What happens when Change Management is ignored?
• UK Government (2010)– Electronic health record
initiative cancelled ($18 billion invested)
• FoxMeyer (worth $5 Billion)– 4th largest Pharma
distributor in US 1993– SAP & warehouse
automation system, $35 Million
– 1998 – filed for bankruptcy
04/15/2023 © Prosci, Inc. All rights reserved. Used with permission. www.change-management.com 23
Ignoring that people have to change can cause Project Failure.
Prosci® Research: projects with effective OCM nearly
6 times more likely to succeed.
The Change Ready Culture
OCM competency across organization
Leaders have a passion for change & communicate the benefit
Project Portfolio Management People understand the benefit of
the changes Early Employee involvement in the
solution
Executive level values PM and OCM and Executive leads PMO
Talent Management Knowledge Management Continuous Process
Improvement Project Management is a core
competency
Building the Organization that Achieves the Corporate Strategy04/15/2023 www.carolynreid.net 24
Strategic Realization
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What we should do to be successful
Strategic Planning
Maximized Value from Investments
Portfolio Mgt. Resource Mgt.
Project Mgt. Change Mgt.
Efficiently Achieved Strategic Objectives
Benefits Realization
OperationsStrategic Objectives
Optimized PortfolioProject Product
Strategic Realization
Portfolio Performance
Project Perfo
rmance
Benefits Realization
User Activity
Strategic Planning to Benefit Realization is a lifecycle process
Contact InfoThank you and I look forward to talking with you!
Email: [email protected] Cell: 602-882-5292Blog/ Website: www.carolynreid.netLink in with me on LinkedIn: http://www.linkedin.com/in/carolynreidMy consulting partner VISTX: www.vistx.comPlease join our local Arizona Change Management Group on LinkedIn
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Thank you!Achieve your Strategy!!!
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