1. Ron Sklaver, MBA, PMP, ABC, XYZ UMT Consulting Group Session #TRN30
Is Your Organization Ready for Portfolio Management A Model for Understanding Organizational Capabilities
Ron Sklaver, MBA, PMP, ABC, XYZ
UMT Consulting Group
Session #TRN30

2. Special Thanks Wish I could take credit for the IP, but…
Tom Malfi, Partners, UMT
Beth Britt, Senior Vice President, UMT *

3. Setting Some Context High organizational level Strategic in nature
Company, SBU, Operating Group, Division
Not Department or Team
Strategic in nature
Big questions like who we are and what we do
Think big

4. A Warm PMI Welcome To…
Winky-Dink, Inc. *

5. Introducing Winky-Dink, Inc.
Portfolio Management:
What Is Needed to Kick Your Decline IN Kinz-Kash *

6. You’ve been called into a meeting with senior management
The Set-up
You’ve been called into a meeting with senior management

7. You’re Charged With…
Figuring out whether Winky-Dink, Inc has what it takes to “do portfolio management”

8. Let’s Start With… A framework
(Every consultant’s favorite word – right up there with “reach out” or “engage”)
A way to organize thinking about portfolio management *

9. Operationalizing strategy
A Portfolio Management Framework
Governance
Develop
Strategies
Operationalize Strategies
Review
Performance
Operationalizing strategy
Moving from current state to future state
Bridging the gap between lofty strategic goals and achieving them 9

10. A Portfolio Management Framework
Governance
Develop
Strategies
Operationalize Strategies
Review
Performance
Portfolio Management
Create
Select
Plan
Manage
Govern demand intake…
Create business cases
Align proposals to business drivers (high level)
Build financial models (ROI, NPV, etc.)
Analyze costs/benefits
Articulate the “what”
Govern portfolio selection…
Prioritize business drivers
Align proposals to business drivers (specific degree of alignment)
Analyze impact of constraints, play what-if scenarios
Optimize portfolio
Quantify the “why these”
Govern portfolio schedule…
Plan capacity
Balance supply and demand
Optimize the schedule
Make sourcing decisions
Communicate organizationally (delivery)
Figure out the “how”
Execute projects
Report progress - management reporting, project reporting, ad-hoc reporting
Control lifecycles, track plan vs. actual
Track and realize benefits 10

11. So How Do I Apply This Framework?

12. Through Capabilities Technology Organizational Process Tools/templates
PPM tracking
Organizational
Managerial
Operational
Portfolio Management
Organization
Technology
Process
Portfolio Management
Organization
Technology
Process
Process
Methodology
Compliance Mgt

13. Sample Organizational Capabilities (Create)
Able to…
Articulate strategic goals
Define meaningful initiatives to undertake
Initiatives are projects; projects are investments
Define meaningful groupings of projects/work
Forecast benefits and build business cases

14. Sample Organizational Capabilities (Select)
Able to…
Prioritize and weight strategic goals
Generalize degree of “fit”
Make decisions with incomplete data

15. Sample Organizational Capabilities (Select)
Able to…
Compare options through…
Business case analysis
Playing “what-if” with resources, required projects, budget constraints, etc.
Analyzing efficient frontier

16. Sample Organizational Capabilities (Plan)
Able to…
Coordinate portfolio decisions with the business planning cycle
Plan capacity, balance resource needs
Evaluate cross-project dependencies

17. Sample Organizational Capabilities (Manage)
Able to…
Use and absorb performance data
Does ongoing work support business drivers
How efficiently are resources allocated
Are benefits being realized
Is alignment getting you where you want to be

18. Sample Organizational Capabilities (Manage)
Ability to…
Adapt to performance data
Shift resources creatively from initiative to initiative…
…BUT leave in place long enough to gain the value/complete the projects *

19. Sample Organizational Capabilities (Governance)
Able to…
Follow structured portfolio governance
Provide clearly defined roles, responsibilities and activities in managing business processes
Define and maintain investment accountability
Through regular portfolio reporting and analysis for decision-makers * *

20. What About Other Lifecycles?
Portfolio Management is wholly dependent upon other lifecycles
Ergo…operationalizing strategy is also dependent upon others lifecycles *

21. Capabilities Across Organizational Layers
Governance
Executive Scorecards
Develop
Strategies
Operationalize Strategies
Review
Performance
Portfolio Management
Portfolio Review & Tracking
Supply & Demand Assessment
Create
Select
Plan
Manage
Program / Product Management
Resource Management Capability
Performance Management Capability
Program Value Reporting
Program Resource Alignment
Define
Components
Ensure
Strategic Alignment
Track
Benefits
Review
Benefits
Project Management
Project Status Reporting
Project Resource Planning
Initiate
Plan
Execute/
Control
Close
Team Management
Progress / Time Tracking
Work Assignment
Capacity Mgt &
Availability Analysis
Skill Assessment
Work Assignment
Progress Tracking 21

22. So We Know…
Capabilities differ between portfolio management, program management and project management
The work done at each layer differs from and complements the others
We need all the layers
***

23. Is This Really How It Works?

24. Yes, This Really is How it Works
Simple at a high level
Strategize, plan, execute and measure
Purpose, role and goals of each layer clearly defined
Lots of moving parts
Cross layer integration
Nested lifecycles
People and capacity to be managed
Operational oversight at each layer *

25. Making It Real z z
How do I approach this in my own company?

26. By Evaluating Your Capabilities
Questions to…
Ask yourself…
Facilitate among leadership…
…to determine where you need to grow capabilities *

27. “Create” Questions
What is the process by which project ideas are submitted and approved?
Have we gathered the info we need about each idea?
Degree of alignment, expected return, resource needs, schedule relative to other initiatives *

28. “Create” Questions Have we captured all our active projects?
What is on hold or in queue?

29. “Select” Questions In the current portfolio…
Do components align to strategic objectives?
Can we say to what degree?
Are we on target to receive expected benefits?
How do expectations for new initiatives compare to those for active projects? *

30. “Select” Questions Can we specify organizational constraints such as:
Regulatory requirements?
Overall budget?

31. “Plan” Questions
Are the resources sufficient to deliver the selected projects?
With what level of confidence will the projects be delivered on time and within budget?
Do we understand the impact of cross-project dependencies **

32. “Plan” Questions
What is the impact of the collective projects on the organization’s risk?
Not the risk of a single project…
…Rather, the risk of, say, three large projects at once for the finance function *

33. “Manage” Questions
To what degree are projects staying within constraints (ie: on time and budget)?
How long are projects taking from inception to benefits realization?
Are they delivering the forecasted benefits? *

34. So How Mature Are We? Can these questions be answered…
With consistency and ease?
With real data?
Who holds the answers?
Does everyone who needs to know, actually know the answers?

35. So How Mature Are We?
If you answered yes to even some of these…YOU CAN DO IT!

36. But First Things First!
A pleasant reward…
…for a job well done!

37. Contact Information
Name: Ron Sklaver
Phone:
Session #: TRN30