1. The Strategic Execution Ecosystem Putting It All Together Brian Grafsgaard, CSM, PMP, PgMP, PfMP Consulting Practice Director Q Consulting 600 Highway 169 South, Suite 730, Minneapolis, Minnesota, U.S.A. 55426 952.204.9337 BGrafsgaard@QConsulting.com May 16, 2016

2. PMI Dinner 20160516 Strategic Execution Overview Introduction The goal of this session is to provide a baseline understanding of the integrated strategic execution “ecosystem” and where project management and other disciplines fit within that ecosystem. Understanding “the big picture” and how these disciplines relate and interact will help you become a more effective program or project manager.

3. PMI Dinner 20160516 Strategic Execution Overview Agenda Research Summary –PMI Pulse of the Profession / PwC Global Survey Strategic Execution Ecosystem –Talent Management –Change Management –Portfolio Management –Program / Project Management –Benefits Realization Put It All Together 2 We’ll focus on the WHAT, not the HOW, based on standards developed by the Project Management Institute (PMI)®

4. PMI Dinner 20160516 Strategic Execution Overview PMI Pulse of the Profession Global Survey PwC Global Survey The Research

5. PMI Dinner 20160516 Strategic Execution Overview The Research Key Findings from 2014 Pulse of the Profession 4

6. PMI Dinner 20160516 Strategic Execution Overview The Research Key Findings from 2014 Pulse of the Profession 5 We’ll explore each of these and how they relate to each other.

7. PMI Dinner 20160516 Strategic Execution Overview The Research Why Are Some Organizations More Successful? 6 “It is not necessarily what organisations do but how they do it that makes them successful…the No. 1 differentiator is strategic initiative management. You can’t produce better results without better execution.“ –Foreword, Mark Langley, PMI CEO 4 th Global Portfolio and Programme Management Survey. PwC (2014) “It is not necessarily what organisations do but how they do it that makes them successful…the No. 1 differentiator is strategic initiative management. You can’t produce better results without better execution.“ –Foreword, Mark Langley, PMI CEO

8. PMI Dinner 20160516 Strategic Execution Overview “It is not necessarily what organisations do but how they do it that makes them successful…the No. 1 differentiator is strategic initiative management. You can’t produce better results without better execution.“ –Foreword, Mark Langley, PMI CEO The Research Why Are Some Organizations More Successful? 7 4 th Global Portfolio and Programme Management Survey. PwC (2014) Now, let’s begin…

9. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Talent Management –What does Talent Management mean to you? Attract, develop, and retain the right talent for your organization? –How do you know what the right talent is? Does your organization’s strategic objectives drive the mix of “talent” required to achieve them? –Does your organization consider capacity and capability? Programs and projects are done by people—organizations need the right people with the right skills in the right quantity to execute on strategy (as well as the necessary financial resources) 8

10. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Talent Management –Familiar with PMI Talent Management Triangle? Addresses three primary categories of skills and competencies: 1.Technical skills (not just Project Management) 2.Leadership skills 3.Strategic and Business Management skills Think about your career and how these skills have (typically) developed from tactical to strategic Organizations need all three skills to execute successfully 9 Building High-Performance Project Talent: A White Paper. PMI (2013)

11. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Talent Management –What does Talent Management mean to you? Attract, develop, and retain the right talent for your organization? –How do you know what the right talent is? Does your organization’s strategic objectives drive the mix of “talent” required to achieve them? –Does your organization consider capacity and capability? Programs and projects are done by people—organizations need the right people with the right skills in the right quantity to execute on strategy (as well as the necessary financial resources) 10 Key Point: Talent Management is about having the right “talent” (people) to execute on organization’s strategic objectives. Any questions? Let’s move on to Change Management

12. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Change Management –What does Change Management mean to you? Do you proactively facilitate change in your organization? –Is change management considered during projects? Do you include change management activities in your program or projects? –Does your organization have Change Management “function”? Some organizations have change management specialists; others consider it to be part of program / project responsibilities….and others ignore it 11

13. PMI Dinner 20160516 Strategic Execution Overview Change Management –When you think programs and projects, think change! –All programs and projects result in some kind of change (to individuals and the organization) –In fact, effective change management is required to realize the expected benefits (we’ll discuss that later) Strategic Execution Ecosystem 12 Image Source: http://www.awrcorp.com/sites/default/files/stock- photo-31307336-changes-ahead-in-word-cloud-NI-2.jpghttp://www.awrcorp.com/sites/default/files/stock- photo-31307336-changes-ahead-in-word-cloud-NI-2.jpg

14. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Change Management (organizational & individual) –Key Concepts Delivery brings (the right) ideas to fruition Adoption helps realize intended benefit –Incremental to Transformational Change Management effort must be recognized at portfolio level (how much change organization can absorb) and program & project levels (focused on adoption) Change Management has its own life cycle and set of activities (like program or project management) 13 Managing Change in Organizations: A Practice Guide. PMI (2013).

15. PMI Dinner 20160516 Strategic Execution Overview Change Management Life Cycle (PMI) 1.Formulate change Define scope of change & assess readiness 2.Plan change Define change approach and plan for transition 3.Implement change Prepare organization for change and deliver project results 4.Manage change transition Transition results into business operations and foster adoption 5.Sustain change Measure and improve benefits realization Strategic Execution Ecosystem 14 Managing Change in Organizations: A Practice Guide. PMI (2013).

16. PMI Dinner 20160516 Strategic Execution Overview Change Management Life Cycle (PMI) 1.Formulate change Define scope of change & assess readiness 2.Plan change Define change approach and plan for transition 3.Implement change Prepare organization for change and deliver project results 4.Manage change transition Transition results into business operations and foster adoption 5.Sustain change Measure and improve benefits realization Strategic Execution Ecosystem 15 Key Point: Change Management has its own life cycle to facilitate adoption that runs parallel with program / project life cycle. Any questions? Let’s move on to Portfolio Management

17. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Portfolio Management –Does your organization practice Portfolio Management? How does your organization investing its limited resources (including talent) in the right stuff? –How does your organization know what the right stuff is? Do you have program & project selection criteria to consistently evaluate proposals (business cases) and project performance? –Does resource capability & capacity play a role? Does approval process consider whether organization has necessary resource capacity (including talent) and capability? 16

18. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Portfolio Management 17 Portfolio Management helps organizations do the right work by managing strategic alignment and investment of resources. Balances investment of organization’s (limited) financial resources and talent on the right initiatives and continuously maintains alignment of initiatives with strategy

19. PMI Dinner 20160516 Strategic Execution Overview Success Begins with Portfolio Management The portfolio investment mix is the true measure of organization’s intent, direction, and progress. Pulse of the Profession In-depth Report: Portfolio Management, Project Management Institute, 2014 Strategic Execution Ecosystem

20. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Portfolio Management Process Groups / Activities 1.Alignment—Translate organizational strategy into portfolio of operational & strategic initiatives Strategic intent is achieved through proper selection of initiatives (intent & direction) 2.Monitor—Ensure that initiatives are realized through investment of resources Priorities are identified, investment decisions are made, and resources are allocated at portfolio level (progress) 19 Portfolio Management is dependent on quality and consistency of process & information to provide “apples to apples” comparisons

21. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Portfolio Management Summary –Aligns investment with strategic objectives –Balances initiatives based on strategic alignment, value, & risk –Optimizes investment across portfolio (e.g., innovation, growth, business-as- usual, compliance) –Provides visibility to proactively manage risk across portfolio components (both threats and opportunities) 20

22. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Portfolio Management 21 “…comprises continuous, repeatable, and sustainable processes designed to map business requirements and objectives to projects and programs.” Definition emphasizes link between portfolio management and programs/projects that deliver results. Source: The Standard for Program Management –Second Edition. PMI (2008)

23. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Portfolio Management 22 “…comprises continuous, repeatable, and sustainable processes designed to map business requirements and objectives to projects and programs.” Emphasizes link between portfolio management and programs/projects that deliver results. Key Point: Portfolio Management balances and monitors investment across programs and projects aligned with strategic objectives Any questions? Let’s move on to Program Management

24. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Program & Project Management 23 Program and Project Management both help organizations do the work right by managing and optimizing execution while Program Mgmt focuses on delivering the right result. Provides foundation to effectively manage execution and delivery of initiatives and realize intended benefits.

25. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Program Management –Does your organization practice Program Management? Do you manage multiple related projects that contribute to and achieve the same objectives and benefits as a program? –Do you make distinction between programs and projects? Do you manage programs or manage multiple related projects simultaneously (in a silo)? –Are programs recognized up front or after related projects have started? Sometimes programs “emerge” and aren’t recognized right up front 24

26. PMI Dinner 20160516 Strategic Execution Overview Program Management –Coordinated management & pacing of component projects (Program Roadmap) –Bridges gap between strategy & outcomes by reinforcing and maintaining alignment –Reinforces focus on benefits realization and ongoing sustainment –Provides integrated risk management approach –Programs must continuously adapt to change Strategic Execution Ecosystem

27. PMI Dinner 20160516 Strategic Execution Overview Core Program Management Principles 1.Focus on definition, delivery, transition, and sustainment of expected benefits and value, aligned with organization’s strategic goals and objectives. 2.Focus on project interdependencies and optimal approach to realize benefits 3.Align strategic direction that effects program and component project goals and objectives 4.Provide integrated governance framework to resolve issues and changes to scope, cost, schedule, & quality Strategic Execution Ecosystem

28. PMI Dinner 20160516 Strategic Execution Overview Core Program Management Principles 5.Optimize and resolve resource constraints and/or conflicts affecting (or between) component projects 6.Enables integrated risk management approach that address risks across or escalated from component projects Strategic Execution Ecosystem

29. PMI Dinner 20160516 Strategic Execution Overview Program Management –Coordinated management & pacing of component projects (Program Roadmap) –Bridges gap between strategy & outcomes by reinforcing and maintaining alignment –Reinforces focus on benefits realization and ongoing sustainment –Provides integrated risk management approach –Programs must continuously adapt to change Strategic Execution Ecosystem Key Point: Program Management provides oversight of component projects and ensures that expected benefits are delivered Any questions? Let’s move on to Project Management

30. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Project Management 29 Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. The Project Management Body of Knowledge (PMBOK Guide)® –Fifth Edition. PMI (2013) In context of portfolios & programs, project results are building blocks of benefits realization.

31. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Project Management –Delivers new product, service, or capability that meets project requirements within constraints of time, cost, scope, & quality Project Managers are measured on delivering a project within the five constraints (previously triple constraint) Project Managers must control change – can’t be expected to make decisions that jeopardize project (like shifting resources) Program Managers are measured on maintaining alignment and delivering results according to benefits realization plan Program Managers must embrace change – must understand trade-offs and make decisions based on demands across all projects (including shifting resources or canceling a project) 30

32. PMI Dinner 20160516 Strategic Execution Overview Program Management Domains Project Management in Context of Benefits Projects do not produce benefits; projects are temporary in nature and end long before benefits can be realized. Realization of benefits is a critical distinction between project and program management. Projects produce outputs which become benefits.

33. PMI Dinner 20160516 Strategic Execution Overview Outputs, Outcomes, and Benefits –Output—Product, service, or capability delivered by the project (like a new ecommerce system or application) –Outcome—Result of changes required to utilize the product, service, or capability (like ability to process online orders) –Benefit—Measureable improvement resulting from the outcome (like 10% increase in revenue & 15% increase in order volume) Program Management Domains Image Source: http://pmcrumbs.blogspot.com/2013/07/output-outcome-and-benefit-managing.htmlhttp://pmcrumbs.blogspot.com/2013/07/output-outcome-and-benefit-managing.html

34. PMI Dinner 20160516 Strategic Execution Overview Outputs, Outcomes, and Benefits –Managing Successful Programmes–Third Edition (UK OGC, 2007) best illustrates relationship –Recognizes importance of change management—and principles of incremental and end benefits—to achieve objectives Program Management Domains Source: Managing Successful Programmes–Third Edition (UK OGC, 2007) Figure 7.3

35. PMI Dinner 20160516 Strategic Execution Overview Outputs, Outcomes, and Benefits –Managing Successful Programmes–Third Edition (UK OGC, 2007) best illustrates relationship –Recognizes importance of change management—and principles of incremental and end benefits—to achieve objectives Program Management Domains Source: Managing Successful Programmes–Third Edition (UK OGC, 2007) Figure 7.3 There’s that change thing again… And there’s that benefits thing…

36. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Project Management –Delivers new product, service, or capability that meets project requirements within constraints of time, cost, scope, & quality Project Managers are measured on delivering a project within the five constraints (previously triple constraint) Project Managers must control change – can’t be expected to make decisions that jeopardize project (like shifting resources) Program Managers are measured on maintaining alignment and delivering results according to benefits realization plan Program Managers must embrace change – must understand trade-offs and make decisions based on demands across all projects (including shifting resources or canceling a project) 35 Key Point: Project Management provides oversight of component projects that produce outputs that contribute to benefits realization Any questions? Let’s move on to Benefits Realization

37. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Benefits Realization –What comes to mind (now) when you hear the term benefits realization? Did relationship of output to outcome to benefits help? –Do you define benefits for programs and projects? Are decisions made based on expected realization of benefits? –How do you know if your projects will result in sustainable benefits? Do you measure delivery of benefits across program and project life cycles? 36

38. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Benefits Realization –Purpose is to effectively establish, measure, monitor, and communicate program & project benefits and value –Core focus of program (and now, project) management 37

39. PMI Dinner 20160516 Strategic Execution Overview Benefits Realization –Integrated with Program Life Cycle but focused on realization of expected benefits –Iterative and adaptive to change as corrective action has to be taken to realize benefits and maintain alignment –Monitors interdependencies between component project outputs and contribution to program benefits NOTE: Incremental benefits must be supported throughout program life cycle, which may impact resources and talent –Analyzes potential impact of changes on expected benefits –Assigns responsibility for realization and on-going sustainment of expected benefits Strategic Execution Ecosystem

40. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Program Benefits Management Life Cycle 1.Benefits Identification Identifying and quantifying business benefits 2.Benefits Analysis and Planning Establish benefits management plan to guide delivery of benefits 3.Benefits Delivery Monitor benefits realization and maintain alignment of results 4.Benefits Transition Transition program outputs and benefits to operational state 5.Benefits Sustainment Sustain program outputs and benefits for long-term Source: The Standard for Program Management–Third Edition

41. PMI Dinner 20160516 Strategic Execution Overview Strategic Execution Ecosystem Program Benefits Management Life Cycle 1.Benefits Identification Identifying and quantifying business benefits 2.Benefits Analysis and Planning Establish benefits management plan to guide delivery of benefits 3.Benefits Delivery Monitor benefits realization and maintain alignment of results 4.Benefits Transition Transition program outputs and benefits to operational state 5.Benefits Sustainment Sustain program outputs and benefits for long-term Source: The Standard for Program Management–Third Edition Key Point: Benefits Realization focuses programs and projects on delivery, transition, and sustainment of benefits Any questions? Let’s summarize and wrap up

42. PMI Dinner 20160516 Strategic Execution Overview 41 PMI & PwC Survey Results –Identified five core capabilities that drive success 1.Talent Management 2.Organizational Agility / Change Management 3.Portfolio Management 4.Program / Project Management 5.Benefits Realization Summary

43. PMI Dinner 20160516 Strategic Execution Overview Each “Discipline” Is Distinct but Integrated –Talent Management Develop capacity & capabilities to execute on strategic objectives –Change Management / Organizational Agility Adapt quickly / foster adoption of changes introduced by programs and projects –Portfolio Management Optimize and align mix of programs / projects with objectives –Program / Project Management Execute initiatives to deliver intended benefits –Benefits Realization Manage delivery of benefits across entire program / projects Summary

44. PMI Dinner 20160516 Strategic Execution Overview Questions? Brian Grafsgaard, CSM, PMP, PgMP, PfMP Consulting Practice Director Q Consulting 600 Highway 169 South, Suite 730, Minneapolis, Minnesota, U.S.A. 55426 952.204.9337 BGrafsgaard@QConsulting.com Contact Info