An introduction to portfolio management - the theory and in practice webinar Tuesday 19 May 2020 presented by Petula Allison and Adam Skinner The link to the write up page and resources of this webinar: https://www.apm.org.uk/news/an-introduction-to-portfolio-management-the-theory-and-in-practice-webinar/

1. Webinar
19th May 2020
‘An Introduction to Portfolio Management’
Adam Skinner – APM PFM SIG - Co-Chair & P2 Consulting
Petula Allison – APM PFM SIG – Co-Chair & Yorkshire Building Society
© 2020 APM Portfolio Management SIG
1
portfolioSIG@apm.org.uk

2. © 2019 APM Portfolio Management SIG Page 2
Contents
1. An introduction to Portfolio Management - The why, the what and the how
2. The APM and the APM Portfolio Management SIG

3. Page 3
A bit about me
me
Dualpassport
Yorkshire
WALKING
running
Diverseroles
financial services
CivilService
£1.9 billion
Australia
ProgrammeManager
PMO MANAGER
Relationship
Manager
Business
Engagement
PFM SIG Co-Chair
PRINCE
Benefits
cats
holidays
BakeOff
Formula1
HACKATHON
Open University
change
APM

4. Page 4
YBS – Our Background
• Currently 3rd in the Top 10 Building Societies
• Head Office locations in Bradford, Leeds, Peterborough and Cheltenham
• Product offerings include Mortgages, BTL, Savings, Shareplans and more recently YBS
Commercial Mortgages
• Key Communication channels – Post, Phone and Digital with a big drive to move towards Digital
in 2020 and reduce paper
• 249 YBS outlets for face to face help across the UK
• Awards won in 2019 include the following:
Best Commercial Mortgage Provider
Accord Mortgages - Best Mortgage Lender
Most Efficient Complaint Handling - Gold Winner
Best Overall Mortgage Provider 2019 (moneynet)
Best Building Society Savings Provider 2019 (moneynet)
Best Offset Mortgage Provider – 5 years running (moneynet)

5. p2consulting.com
Page 5
And where have I been?
⦿ P2 Consulting’s Director of Consulting
⦿ Co-chair of the APM’s Portfolio Management Committee
⦿ Co-author of the APM’s Guide to Portfolio Management
Who am I?

6. p2consulting.com
We formed P2 to offer businesses embarking on major
transformations a real alternative to the false ‘comfort’
of the big 4
Our vision
We value our people
We understand the importance of workplace
engagement and value all our people – that’s
why we continue to invest in their development.
We’re global We speak your language
Our delivery experts talk the same language and
use the same tools. They make decisions with
you and take all the responsibility to achieve.
“P2 Consulting have put in place a
highly effective programme
management environment which
means that the senior team always
have full visibility and control”
We deliver
We quickly land and fit into your surroundings
and methodologies to provide immediate
impact
We’re qualified We’re growing
We are the fastest
growing privately
owned consultancy in
the UK.
We’re here for our partners when...
They need a
world-class PMO
or Portfolio Office
They need a tried
and tested
Programme
Delivery team
They need cutting-
edge analytics and
insights
They need a testing
and
quality assurance
capability
They need a
transformation partner
We put your success first, and look to quickly
enhance your position
We manage your delivery on time, and to
budget
We coach, mentor and improve so that
change can be successfully delivered and
embraced
Head of Merchandising Strategy
John Lewis
Who we are
Page 6

7. Portfolio Management
The why, the what and the how
© 2019 APM Portfolio Management SIG
Page 7
portfolioSIG@apm.org.uk

8. Why Portfolio Management?
Page 8

9. 2018
Portfolio management
Portfolio management is the selection,
prioritisation and control of an
organisation's projects and programmes
in line with its strategic objectives and
capacity to deliver. The goal is to balance
change initiatives and business-as-usual
while optimising return on investment.
This is a continuous process to achieve
the evolving strategy of the organisation.
Programme management
Programme management is the action
of coordinating, organizing, directing
and implementing the temporary,
flexible organization that consists of a
dossier of projects and transformational
activities to achieve outcomes and
realise benefits of strategic importance
to the business.
What is Portfolio Management?
Source: APM Body of Knowledge 7th edition
Source: MSP
Coordinate & Control
Projects
Strategic Objectives
Similar
• Co-ordination & control
• Projects alignment
• Strategic objectives & focus
Page 9

10. 2018
Portfolio management
Portfolio management is the selection,
prioritisation and control of an
organisation's projects and programmes in
line with its strategic objectives and
capacity to deliver. The goal is to balance
change initiatives and business-as-usual
while optimising return on investment.
This is a continuous process to achieve the
evolving strategy of the organisation.
Programme management
Programme management is the action
of coordinating, organizing, directing
and implementing the temporary,
flexible organization that consists of a
dossier of projects and transformational
activities to achieve outcomes and
realise benefits of strategic importance
to the business.
What is Portfolio Management?
Source: APM Body of Knowledge 7th editionSource: MSP
Similar
• Co-ordination & control
• Projects alignment
• Strategic objectives & focus
Different?
• Selection and prioritisation
• Balance and optimisation
• Permanent vs temporary Page 10

11. What is Portfolio Management: Prioritisation
& Optimisation
The portfolio mgt office continually prioritises the initiatives – stopping &
starting projects & reallocating resource to meet the goals & optimise value
The programme mgt office manages the costs & risks to deliver the
desired programme outcomes and vision.
Cost
Risk
Achievability
Achieve the strategic goals
Optimise value
Maximise Benefits
Cost
Risk
Achievability
Achieve the programme outcomes
Deliver Benefits
Page 11

12. PORTFOLIO ROADMAP
CHANGE MATURITY
What is Portfolio Management: Portfolio Delivery
Assurance
Activity that reduces the
delivery risk of the Portfolio
DEPENDENCY ALIGNMENT CAPACITY & CAPABILITY
Managing Portfolio-Level Risk
Page 12

13. How do you ‘Portfolio Manage’: The MoP way,
Principle based
Management of Portfolios (Axelos, 2011) Jenner.S, Kilford.C, Page 13

14. © 2019 APM Portfolio Management SIG
How do you ‘Portfolio Manage’: The APM cycle
– Process based
Portfolio Management – A Practical Guide, 2019, APM Page 14

15. How do you Portfolio Manage: Service based
The value adding Portfolio Office:
1. Provides leadership to all
stakeholders impacted by business
transformation through
2. Enabling Portfolio Optimisation
and/or
3. Reducing the Portfolio’s delivery risk
profile through
4. The delivery of efficient and effective
services that add-value to one of
their customers activities.
P2 Consulting: Portfolio Office Model
Page 15

16. 16 16
A
B
C
D
F
E
G
H
I
J
L
K
Implement an approach to understanding
and measuring the strategic goals of the
organisation and aligning project business
cases to this.
Process and standards to balance the cost,
benefit and risk of each project, aligned to risk
appetite of the organisation and therefore
create an optimised portfolio.
The processes and standards to manage the
delivery capability/ capacity of the
organisation and align it to the resource
profile of the portfolio.
The processes and standards to
create, maintain and utilise a
portfolio-level plan and/or
roadmap
The processes and standards to own the
Business Implementation timeline and
support the portfolio and business to
derisk implementation
The process and standards to
manage a value-adding stage-gate
and quality review cycle from
business case to benefits realisation
STRATEGIC
ALIGNMENT
BENEFITS
DELIVERY &
TRACKING
PORTFOLIO
OPTIMISATION
DEMAND
MANAGEMENT
PORTFOLIO
PLANNING
BUSINESS
IMPLEMENTATION
PLANNING
DELIVERY
STANDARDS
STAGE-GATE AND
QUALITY REVIEW
DELIVERY
REPORTING &
GOVERNANCE
Portfolio
Delivery
The processes and standards to own
the Benefits Realisation Plan at
portfolio level and manage tracking of
benefits realisation.
PORTFOLIO
OPTIMISATION
REPORTING &
GOVERNANCE
The reporting tools, process and standards,
aligned to the governance structure of the
portfolio, to drive effective decision making
around the optimisation of the portfolio
PORTFOLIO RISK
& ISSUE
MANAGMENT
The processes and standards to
understand Portfolio-level Risk and
Issues and use that to support
optimisation and assurance
The reporting tools, process and standards,
aligned to the governance structure of the
portfolio, to drive effective decision making
around the delivery of the portfolio
The ownership, maintenance and coaching
of the standards and training for good P3M
delivery within the organisation
PORTFOLIO
DEPENDENCY
MANAGEMENT
The processes and standards to
create, maintain and utilise a
portfolio-level dependency map.
P2 Consulting: Portfolio Office Model ™
Portfolio
Optimisation
How do you Portfolio Manage: Service based
Page 16

17. © 2019 APM Portfolio Management SIG
How do you Portfolio Manage?
The Lean Portfolio – SAFe V5.0
Connect the portfolio to the Enterprise strategy
Maintain a Portfolio Vision and Roadmap
Establish Lean Budgets and Guardrails
Enterprise
Executives
Business
Owners
Enterprise
Architect
Enterprise
Executives
Enterprise
Architect
Business
Owners Establish portfolio flow
The Lean Portfolio Management competency aligns strategy and
execution by applying Lean and systems thinking approaches to
strategy and investment funding, Agile portfolio operations, and
governance.
© Scaled Agile, Inc.
Page 17

18. © 2019 APM Portfolio Management SIG
How do you Portfolio Manage? Ignoring the
Bau/Transformation dichotomy
Zone to Win: Geoffrey Moore (2019)
Zone to Win Model – ignores the
BaU/transformation dichotomy and treats
the organisations activity as four
separate portfolio’s with different metrics,
governance and goals.
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19. © 2019 APM Portfolio Management SIG
Recommended Focus Areas (Top Tips!)
Our top three:
1) Demonstrate the value of portfolio management by, for example, showing improvements in
strategic alignment and overall ROI, using a range of well-chosen metrics.
2) Be, and be seen to be, consistent and fair across the portfolio, irrespective of an individual
programme or project sponsor’s influence.
3) Prioritise strategic goals clearly, and build into unambiguous portfolio rules:
• These should be the basis for decisions affecting the portfolio. If most or all goals are assessed as ‘high priority’, decisions will
tend be taken arbitrarily within the organisation or from the perception of local management.
• Ideally, there needs to be a reasonable balance between ‘high’, ‘medium’ and ‘low’, or equivalent.
• At times, be prepared to give precedence to critical activity on ‘low’ priority projects over less important activity on higher
priority projects.
Page 19

20. Portfolio Management
APM Portfolio Management SIG
© 2019 APM Portfolio Management SIG
Page 20
portfolioSIG@apm.org.uk

21. © 2019 APM Portfolio Management SIG
SIG activities
PMO Conference & Portfolio Director’s Dinners
Publications
Joint SIG workshops and support at SIG conferences:
• Joint Programme Management London event;
• Difference between Portfolio and Programme Management Offices - PMO conference;
• Governance SIG events;
• Benefits, PMO and Governance SIG workshops at our conference.
Presentations and discussions at various APM Branches:
• Yorkshire & North Lincolnshire;
• Thames Valley;
• Bristol (September 2019).
Quarterly newsletters
BLOGS & LinkedIn
• Career to becoming a portfolio manager;
• Aligning strategy with delivery;
• When Agile development meets strategy: a practical example.
• New SIG guide to portfolio management
Established an APM Portfolio Management LinkedIn group to encourage topical discussions etc.
Page 21

22. © 2019 APM Portfolio Management SIG
SIG Publications – APM Guide to
Portfolio Management
▪ Based on a wealth of practical experiences and includes real-life scenarios
▪ Designed for and relevant to:
− senior management and executives wanting a summary of portfolio management;
− experienced practitioners keen to understand good practice;
− people in their early stages of portfolio management or portfolio related roles;
− anyone wanting a non-technical overview of portfolio management.
▪ Developed by SIG members and the portfolio management community
▪ Capitalising on the SIG’s maturity over 7 years & 5 annual conferences
▪ Contributes to the knowledge and understanding of good practice in portfolio management
▪ Aligned with the APM Body of Knowledge 7th edition
▪ Increases the profile of the APM in this increasingly important area
▪ To buy the book: http://ebiz.turpin-distribution.com/products/400591-portfolio-management-a-practical-guide.aspx
Page 22

23. © 2019 APM Portfolio Management SIG
Portfolio Management SIG – committee 2019-20
Contact us via the APM website, portfolio mgt SIG, or:
portfolioSIG@apm.org.uk
Nancy Olson Stephen Parrett Lynne Ratcliffe
(Secretary)
Neil Pattinson Adam Skinner
(Co-chair)
Petula Allison
(Co-chair)
Gemma Parker Tony Whitmore
Steve LearyOsian Evans Judd Norton Dwain MorganRichard Moor Tanya DurlenMike Florence Peter Glynne
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24. © 2019 APM Portfolio Management SIG
How to get involved
• Join the SIG on the APM Site
• Join the SIG Linkedin Page
• Have a committee member come and present to your change
community?
• Come visit us at our conference – 2020 ???
• Join the committee?
Page 24

25. APM Portfolio Management Specific Interest Group
Thank you
© 2019 APM Portfolio Management SIG25 portfolioSIG@apm.org.uk Page 25