Presentation Transcript

1. Portfolio Planning Engaging With Stakeholders Andy Robinson Ninth Wave
2. Agenda Drivers for using a Portfolio and Project Management system Key components of a PPM framework Organisational maturity Stakeholders Successful steps to implementing a PPM system Pitfalls Questions
3. Landscape Survey of executives on organisational portfolio management capabilities found that: 47% of organisations do not monitor and track projects centrally 57% have no criteria defining project success 68% don’t track project benefits 89% don’t use earned value to track project success (Kellogg, 2003) 68% projects don’t deliver to time, budget or business goals (MIT Sloan, 2004) A Total Economic Impact™ (TEI) analysis shows that a comprehensive PPM tool investment is likely to provide an ROI of more than 250% (Forrester Research, May 2009) Enterprises with good IT governance earn at least 20% higher growth rate (CIO, 2005) Portfolio planning reduced failed project rates by 25% (Gartner)
4. Definitions A portfolio management system should deliver a balanced view across the enterprise that takes into account risks, returns and business goals Investment based as opposed to cost and schedule bias of projects PPM is a governance process and should be a cyclical process Driven from a top down approach – linked to strategic objectives Benefits realisation is a key factor to success Balance of initiatives through “what –if” modelling Market and competitive assessment
5. What is the focus for PPM? Are we doing the rights things? Are we doing them in the best way? Are we getting the expected benefits? Are we doing them well?
6. Portfolio Goals Match to strategic priorities – grouped by themes (portfolios) Investment assessment Benefits realisation More accurate resource estimates Market and competitive assessment Portfolio Planning Objectives Deliver on strategy Maximise value through prioritisation Achieve a balance – risk, timescales, business areas Improve resource utilisation Manage and track performance
7. Key Features of a PPM system Ease of use Project evaluation process Cost and benefit measurement Status reporting and trend analysis Resource and capacity planning Communication of key portfolio and project data Not just a tool for IT – integrated with the business objectives/strategy Support for phased implementation
8. Implementing a Portfolio Planning System Assess project management maturity matrix Attributes Hero PM culture Cost, time, quality 1 Standard PM methodology Repeatable outcomes 2 Benefits realisation Benefits achieved 3 Alignedto strategy Strategy implemented 4
9. Implementing a Portfolio Planning System Moving up a level Hero PM culture 1 Standard PM methodology Requires methodology 2 Benefits realisation Benefits Management Alignedto strategy 3 Portfolio management 4
10. Organisation Maturity Levels - Overall
11. Maturity Levels - Strategy
12. Stakeholders Executive management Finance Business unit managers (sponsors) Portfolio steering group Programme/project managers Project office/ PMO Change managers Customers/partners/key suppliers
13. PPM Benefits for Stakeholders Transparent project selection and prioritisation process Simplification and speedier workflow processes through automation High level aggregate reporting with ability to show exceptions Status reporting automated with no need for “cut and paste” What-if modelling Trend analysis - of historic data to support better estimates and methods (later stage activity) Early beneficiaries are senior managers not necessarily PMs PMs benefit most from automation as they are the most active users
14. Engaging stakeholders – before PPM Transparent framework for deciding which projects get done Organisation focuses on doing the right projects aligned to strategy Better resource management – who allocates? Up to date project status information – report templates What-if modelling – choose small set of standard scenarios Interview stakeholders to develop questionnaires
15. Manage Stakeholder Expectations PPM part of a change programme Phased programme likely to take18-24 months Portfolio planning a continuous activity not a budget planning exercise PMs – may look like more work upfront – automation of the mundane Resource allocation – may require major change Projects may get stopped/re-evaluated
16. Implementing – Key Issues To Consider Changes the way an organisation operates – change programme Governance process that requires process transformation Central selection committee of senior execs. Assess project management maturity matrix Interview stakeholders to understand their requirements and priorities
17. Implementing – key issues to consider Communication programme Tie project plans to risks, issues, action items, events, approval process, financials, benefits and resources Quarterly review of all projects Phased approach
18. Implementing – Starting Points Good investment decision making process- delivers centralised data demand Standardised project selection criteria Consider Delphi before other more “scientific” techniques Develop questionnaires to standardise process
19. Implementing – Questionnaires Simplifies the information gathering process Maps to organisation maturity Easier to analyse and rank candidates
20. Implementing – Starting Points Good investment decision making process- delivers centralised data demand Standardised project selection criteria Consider Delphi before other more “scientific” techniques Develop questionnaires to standardise process Adopt good IT PM processes and then capture project related data in a tool first to justify a narrower demand funnel for projects Inventory of existing projects Automate mature project processes first – quick win Get representative individuals on portfolio steering group
21. Implementing - Observations Changes the way an organisation operates Phased approach – incremental delivery Communication programme Incorporate feedback loops for adjustments Create selection criteria for scoring and ranking projects Scorecards for rating projects – risk, schedule, cost, function, competitiveness.... Bubble diagrams for risk/reward BCG quadrant for technical ease/commercial value Weighted ranking using pairwise/Delphi comparison
22. Implementing – Screenshots
23. Implementing - Screenshots
24. Implementing - Screenshots
25. Project Managers Project Managers On On - - going going RTSM Portfolio Portfolio Steering Group Project Managers Project Managers On On - - going going RTSM Portfolio RTSM Portfolio RTSM Director PMO RTSM Director RTSM Director Review Review Management and Team and Team and Team and Team Review Review Management Management RTSM PGR RTSM PGR RTSM PGR Members Members Group Members Members Group Group Ops Ops Ops Operations Monthly Review Monthly Review Monthly Review Monthly Review Production Monthly Review Monthly Review Monthly Review Monthly Review Production Production 0 0 - - 3 Month 3 Month 1 Year 1 Year 0 0 - - 3 Month 3 Month 1 Year 1 Year Planning Horizon Planning Horizon Planning Horizon Planning Horizon Planning Horizon Planning Horizon Planning Horizon Planning Horizon Divisions Ops Client Ops Client Ops Client V Services Services Services Project Project Prioritization Prioritisation Project Project Approved Approved Active Active IBC BRJ Mandate Method & Selection & Selection Planning Planning Portfolio Portfolio Projects Projects Project Project Ops R & D Execution Delivery Ops Ops Technical Technical Technical Initial Ballpark Services Services Services Estimate Estimate Portfolio Portfolio Project Project Portfolio Portfolio Project Project Re Re - - Reporting Reporting Report Report Controls Controls assessment evaluation RTSM RTSM RTSM Solutions Solutions Solutions Programme 3 Project Register (Product) Project Inventory Views across Project Inventory (Product) Gate1 Gate 2 Gate3 Gate 4 High Level Portfolio Process Programme 1 Programme 1 Programme 2 IT
26. High Level Portfolio Process - SmartCore Solution 1 2 3 4 5 Manage Projects Portfolio Define Initiatives Evaluate Initiatives Prioritise & Balance Match Resources Recording initiatives Align with strategy Establish outline costs & benefits Rank strategic objectives Rank initiatives Establish budget constraints Evaluate scenarios Prioritise initiatives & existing projects Business value chart Resource management Skills matching Assess resource availability Assign resources Portfolio plan Project governance Status reporting
27. Project Managers Project Managers On On - - going going RTSM Portfolio Portfolio Steering Group Project Managers Project Managers On On - - going going RTSM Portfolio RTSM Portfolio RTSM Director PMO RTSM Director RTSM Director Review Review Management and Team and Team and Team and Team Review Review Management Management RTSM PGR RTSM PGR RTSM PGR Members Members Group Members Members Group Group Ops Ops Ops Operations Monthly Review Monthly Review Monthly Review Monthly Review Production Monthly Review Monthly Review Monthly Review Monthly Review Production Production 0 0 - - 3 Month 3 Month 1 Year 1 Year 0 0 - - 3 Month 3 Month 1 Year 1 Year Planning Horizon Planning Horizon Planning Horizon Planning Horizon Planning Horizon Planning Horizon Planning Horizon Planning Horizon Divisions Ops Client Ops Client Ops Client V Services Services Services Project Project Prioritization Prioritisation Project Project Approved Approved Active Active IBC BRJ Method Mandate & Selection & Selection Planning Planning Portfolio Portfolio Projects Projects Project Project Ops R & D Execution Delivery Ops Ops Technical Technical Technical Ballpark Initial Services Services Services Estimate Estimate Portfolio Portfolio Project Project Portfolio Portfolio Project Project Re Re - - Reporting Reporting Report Report Controls Controls evaluation assessment RTSM RTSM RTSM Solutions Solutions Solutions Programme 3 Project Register (Product) Project Inventory Views across Project Inventory (Product) Gate1 Gate 2 Gate3 Gate 4 High Level Portfolio Process Programme 1 Manage Projects Portfolio Programme 1 Define Initiatives Evaluate Initiatives Prioritise & Balance Match Resources Programme 2 IT
28. Pitfalls Underestimating time to implement a fully functional PPM system – allow 2 years Off the shelf tools tend to assume mature project & portfolio processes exist Developing your own best practice accelerators takes time Forcing all organisation units to adopt same process project methods Lack of automated workflows
29. Pitfalls Management information needs to be appropriate for the audience – aggregated with drill down is best Underestimate internal effort and budget required (2.5 x software cost) Avoid reliance on imaginary precision of the tool Too many projects “on hold” – agree kill criteria Keep portfolio comparison charts/diagrams simple and maximum of 4 types
30. ANY QUESTIONS? Thank you
31. SEE US ON STAND 134 SmartCore 0207 403 4433 partners@ninthwave.co.uk www.ninthwave.co.uk 0207 403 4433 andy.robinson@ninthwave.co.uk www.ninthwave.co.uk Best of Both Worlds: Information Management Solutions