1. PfM Survey 2012 Results & Analysis Update Stephen Parrett (SIG Committee Member) APM Portfolio Management SIG AGM – 14 June 2012 1

2. Contents  Survey Coverage  Shapes & Sizes of Portfolios –Approaches for performing PfM –Where PfM is managed –Views on inclusion of BAU  PfM Principles –Importance & Effectiveness  PfM Challenges –What is working and what people want to debate  What Next....................? 2

3. Coverage 3 C. 150 submissions so far Good range of roles PfM under various job titles?

4. Coverage 4 Shows a good spread Would like more even coverage Reflects levels of PfM adoption?

5. Portfolio Shapes & Sizes 5 Overall 66% = “Formal” Maturity levels rising? SIG Survey “bias”?

6. Portfolio Shapes & Sizes 6 Not Sector-specific Many at “Corp” level Most successful model?

7. Portfolio Shapes & Sizes 7 No Sector-specific trend Should there be a common measure of a Portfolio size?

8. Portfolio Shapes & Sizes 8 Sectors with most Projs/Progs >£10m are: Government, Defence, Energy & Financial Services

9. Portfolio Shapes & Sizes 9 No Sector-specific trend What is BAU? Does inclusion help/hinder?

10. Principles (*) Considered  Proactive and visible senior management commitment  Consistent and effective governance alignment  Alignment of the Portfolio with strategic objectives  Co-ordination through a Portfolio Office  Energised change culture and associated behaviours (*) Principles from: MoP™ - Office of Government Commerce, 2011 PfM Survey asked how each of these were perceived in organisations in terms of their Importance and Effectiveness 10

11. Principles (*) (Importance) (*) Principles from: MoP™ - Office of Government Commerce, 2011 11 Top 3 = Alignment Commitment Governance

12. Principles (*) (Effectiveness) 12 Room for improvement May reflect relative PfM maturity of implementing principles Not easily measured? (*) Principles from: MoP™ - Office of Government Commerce, 2011

13. PrincipleImportanceEffectiveness Alignment of the Portfolio with strategic objectives 63%37% Proactive and visible senior management commitment 57%42% Consistent and effective governance alignment43%27% Shared change culture and associated behaviours 29%18% Co-ordination through a Portfolio Office28%22% 13 Comparing “High” ratings for Importance with those for Effectiveness Work needed to close the performance gaps Can Portfolio Offices increase impact and add value? Principles (*) (Compared) (*) Principles from: MoP™ - Office of Government Commerce, 2011

14. Challenges Faced 1.Gaining Board buy-in to a single agreed view of business objectives 2.Developing an initial portfolio 3.Getting portfolio management started 4.Securing and sustaining business unit management commitment 5.Prioritising and balancing the portfolio 6.Dealing with tensions between Portfolio and BAU/Operational objectives 7.Securing and developing people with the right portfolio skills/capabilities 8.Putting in place the right tools & techniques to support PfM 9.Delivering overall portfolio benefits 10.Setting up, and gaining compliance with, portfolio management processes 11.Achieving the goals set for a portfolio management function 12.Applying lessons learnt from regular reviews of PfM performance 14

15. Are Challenges being met? ChallengeRated High Interest Developing an initial portfolio40%15 Gaining Board buy-in to a single agreed view of business objectives37%-- Getting portfolio management started36%42 Securing and sustaining business unit management commitment20%38 Prioritising and balancing the portfolio20%58 Delivering overall portfolio benefits18%58 Putting in place the right tools/techniques to support PfM18%61 Dealing with tensions between Portfolio and BAU/Operational objectives17%46 15 A long way to go in many cases But strong interest in more discussion via SIG etc Examples of where good practice works?

16. Some Questions Does performing PfM under various job titles matter? Are some sectors better at adopting PfM? Does 66% with a “Formal” approach to PfM mean high maturity levels? Many portfolios are run at “Corp” level – is this a successful model? Does the inclusion of BAU (once defined) help/hinder good PfM? How easy will it be to close the Importance/Effectiveness “gap”? How can Portfolio Offices prove their worth? What can the SIG do to help address the Challenges? 16

17. What Next.................?  Gather more Survey input – 200+  Consider what further analysis might reveal  Develop some Case Studies –51 people have offered to help –Several now being followed up  Respond to feedback on Challenges: –More APM/SIG debates –Publish discussion papers, blogs etc  Use as part of SIG input at future APM events 17