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Presentation KCPMI 2016 PDD Days Portfolio Balance
- 4. Strategic Planning Project Portfolio Management Project Execution * Kotter International. Forbes, July 9, 2013. “When CEOsTalk Strategy, 70% of the Company Doesn’t Get it.” What strategy? 71% Got it 29%
- 6. “The four biggest universal problems in project portfolios are: 1. Too many active projects 2. Wrong projects 3. Projects not linked to strategic goals 4. Unbalanced portfolio” * * Kendall, Rollins. Advanced Project Portfolio Management and the PMO (p. 207) Strategic Planning Project Portfolio Management Project Execution
- 7. Kendall, Rollins on Balance, cont. * • “Too much on the supply side, not enough on market side • Too much development, not enough research • Too much short term, not enough long term • Not reflective of the organization’s most important assets…” * Kendall, Rollins. Advanced Project Portfolio Management and the PMO (p. 207) Benefit Risk
- 8. • Benefits are speculative & not audited • Risks are difficult to envision & compare • Portfolios change over time and no one notices • “The PPM Zone” Benefit Risk
- 9. 1 – Establish rules for profiling projects 2 – Monitor projects to reflect changes 3 – Governance to optimize balance
- 11. Strategy Speed time to market Increase efficiency Products for millennials Goals / Objectives Grow revenue 10% Reduce policy admin costs 5% Launch 4 new products Mission /Vision Financial security Be “top of mind” among customers
- 12. • 1 = Expand the quantity of new products • 2 = Increase penetration of millennial market • 3 = Both External Focus • 1 = Reduce admin costs / increase efficiency • 2 = Reduce time to market for new products • 3 = Both Internal Focus • 1 = ROI less than 5% • 2 = ROI between 5% and 15% • 3 = ROI greater than 15% Financial Return
- 13. • 1 = We do this all the time • 2 = We have done something similar • 3 = We don’t know what we don’t know Solution Experience • 1 = A small work group • 2 = More than one business leader involved • 3 = Enterprise-wide Scope of Business Impact • 1 = No need for external vendor support • 2 =Vendor support for key deliverables • 3 =Vendor support for ALL deliverables Vendor Dependency • 1 – Minimal need for choke point resources • 2 – Some need for choke point resources • 3 – Choke point resources essential Choke Point Resources
- 14. Project Requests “Top down” or “bottom up” Request form: • Value Profile • Risk Profile • Project Attributes Governance Team Project Request Process Project Database & Dashboards Initial Decisions: • Reject • Return – Not in Good Order • Accept Monitor Projects
- 15. Exercise – Project Profiles inYourWorld • What are 2-3 key strategies in your organization? What Benefit profile attributes are needed to align projects with these strategies? List the Benefit profile attributes on a 3x5 card • Think of some projects that “went south” – what risk profile attributes would have predicted their failure? List the Risk profile attributes on a 3x5 card
- 17. Project Status Reporting Focus on changes to: • Benefit profile • Risk profile PMO Reporting & Dashboard Preparation • Validate reports • Reflect external environment • Coordinate governance meetings Project Reports Dashboards
- 19. New sponsor questions predecessor’s decisions A “choke point” resource, takes a new job Unproven vendor with niche skills
- 20. New branding = project less valuable Scope change = many new stakeholders New software platform New focus on career agents
- 22. Project / Risk Category Solution Experience Scope of Business Impact Vendor Dependency Choke Point Resources Project 1 Project 2 Project 3 Project 4 Project 5 Low Risk Med. Risk High Risk Risk concentration - experience & choke point resources
- 23. Admin Costs 46% Product Pipeline 23% Millenial Mkt 15% Time to Mkt 8% Multiple 8% Too much effort on reducing admin costs
- 24. Exercise – Plot 2-3 Projects (3x5 card)
- 26. Mark Price Perry, Business Driven Project Portfolio Management
- 28. Decision Making: • Start • Continue • Delay • Stop Portfolio Governance Meetings Project Dashboards Stakeholder Communication Process Guiding Principle: Stop Starting – Start Finishing!
- 29. Benefit Risk Projects 3 & 5 - lack of solution experience Projects 3 & 5 rely on choke point resources Too much effort on admin Need more effort on new products Benefit Risk
- 30. Project Name ProjectType Risk Score Value Score Start Date End Date Status Decision (Start, Continue, Delay, Stop) Project 3 Admin – Incremental 9 4 8/16 12/16 Develop Delay (review next meeting) Project 5 Compliance 10 4 7/16 10/16 Testing Continue (risk mitigation plan) Project 6 Admin – Incremental 4 4 9/16 12/16 Planning Delay (review next meeting) Project 9 Admin – Incremental 12 3 8/16 11/16 Develop Stop Project 11 New product 7 8 ASAP ASAP Pending Start
- 31. Review your 3x5 cards and identify your action plan to: • Provide a clearer picture of your portfolio • Connect projects with strategy • Establish governance processes that support effective project decisions decisions • Replace “Really Bad Idea” projects with “Improve the Business” projects