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How Project Portfolio Management Ties Leadership, Strategic IQ, and Organizational Health Together

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Given at the 2012 Boeing Project Management Conference in Mulkiteo, Washington. This presentation focuses on how project portfolio management is a critical piece for tying leadership, strategic IQ, and organizational health together.

This presentation was originally given at the Boeing Project Management conference in Mulkiteo, Washington in October of 2012.

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How Project Portfolio Management Ties Leadership, Strategic IQ, and Organizational Health Together

  1. 1. Leadership, Strategic IQ, and Organizational Health Leadership, Strategic IQ, andOrganizational Health: How Portfolio Management Ties It All Together Tim Washington Boeing PM Conference October 3rd, 2012
  2. 2. Leadership, Strategic IQ, and Organizational Health Agenda • PPM Overview • Strategic Leadership • Strategic IQ • Organizational Health • How PPM Ties It All Together
  3. 3. Leadership, Strategic IQ, and Organizational Health Leadership Strategic PPM Organizational IQ HealthPortfolio Management is a critical piece for bridging strategic leadership, strategic IQ, and organizational health
  4. 4. Leadership, Strategic IQ, and Organizational Health What is“Project Portfolio Management”?
  5. 5. Leadership, Strategic IQ, and Organizational HealthProject portfolio management is a combination of variousmanagement disciplines: Business management General management Project and program management %Management Disciplines
  6. 6. Leadership, Strategic IQ, and Organizational HealthProject portfolio management (PPM) is amanagement discipline that drivesstrategic execution and maximizesorganizational value through theselection, optimization, and oversight ofproject investments which align to businessgoals and strategies. Paradigm Shift #1: Projects are an important vehicle for executing strategy PMI Quote
  7. 7. Leadership, Strategic IQ, and Organizational Health“Portfolio management is the strategy-based, prioritized setof all projects and programs in an organization reconciledto the resources available to accomplish them.” Paradigm Shift #2: The single project view to a total portfolio view. Stanford Quote
  8. 8. Leadership, Strategic IQ, and Organizational Health“Managing [the] composite groups of projectswith the same rigor, balance, executiveleadership, and decision-making involvementas the company’s financialportfolio. Portfolio Management is anongoing process that includes decision-making, prioritization, review, realignment,and reprioritization.” Paradigm Shift #3: Projects are investments! Financial Portfolio Quote
  9. 9. Leadership, Strategic IQ, and Organizational HealthThe Purpose of Portfolio Management • Execute Strategy • Deliver Maximum Value • Enhance Decision Making • Manage Organizational Change
  10. 10. Leadership, Strategic IQ, and Organizational Health Portfolio Management Benefits:• Higher return on project investments• Lower organizational risk• Greater confidence of meeting customer commitments• Balanced project portfolio workload• Healthier organizations• Increased project throughput PPM Goals
  11. 11. Leadership, Strategic IQ, and Organizational Health At the highest level, Project Portfolio Management has four basic components: Select the Right Projects Selected projects must align with the business strategy and meet other important criteria Improve Optimize Portfolio Value Portfolio Value The Goal: Ensure value is delivered by Maximize Value to the All the steps necessary to comparing expected benefits Organization construct an optimal portfoliowith actual benefits; drive PPM given current limitations and maturity constraints Protect Portfolio Value Project benefits must be protected in order to deliver maximum portfolio value
  12. 12. Leadership, Strategic IQ, and Organizational HealthA good governance structure is central to making PPM work. PORTFOLIO GOVERNANCE (Strategic Planning) Select the Right Projects “Portfolio management Improve without governance is an Optimize Portfolio Value empty concept.” Portfolio Value Protect Portfolio Value
  13. 13. Leadership, Strategic IQ, and Organizational HealthStrategic leadership Includes:1) Business acumen2) Active engagement3) Proactive view4) Balancing long-term and short-term needs5) Communicating a consistent message
  14. 14. Leadership, Strategic IQ, and Organizational Health“The only way for teamsto build real trust is forteam members to comeclean about who theyare, warts and all” Trust
  15. 15. Leadership, Strategic IQ, and Organizational Health “When there is trust, conflict becomes nothing but the pursuit of the truth, an attempt to find the best possible answer” Conflict Trust
  16. 16. Leadership, Strategic IQ, and Organizational Health “When leadership teams wait for consensus before taking action, they usually end up with decisions that are made too late and are mildly disagreeable to everyone. This is a recipe for mediocrity and frustration” Commitment Conflict Trust
  17. 17. Leadership, Strategic IQ, and Organizational Health“To hold someoneaccountable is to careabout them enough torisk having them blameyou for pointing out theirdeficiencies” Accountability Commitment Conflict Trust
  18. 18. Leadership, Strategic IQ, and Organizational Health Results “No matter how good a leadership team Accountability feels about itself, and how noble its mission might be, if the organization it leads rarely achieves its goals, then, by Commitment definition, it’s simply not a good team” Conflict Trust
  19. 19. Leadership, Strategic IQ, and Organizational Health“I’m convinced that if the rate of changeinside the institution is less than the rate ofchange outside, the end is in sight. The onlyquestion is the timing of the end.” --Jack Welch, former chairman of GE
  20. 20. Leadership, Strategic IQ, and Organizational Health • Shape environment to own advantage • Organizational agility-capacity to change High IQ: Expert • Distributed strategic Intelligence • Mind-set of change • Debating when to change Moderate IQ: • Keep pace and react to external change Competent • Clear options, criteria, and processes • Don’t realize the need to change Low IQ: Ignorant • Strategically blind • Incompetent (“let’s pretend”) Video
  21. 21. Leadership, Strategic IQ, and Organizational Health Two Requirements for Success SMART HEALTHY• Good Strategy • Open Communication• Creative Marketing • Clear Direction• Efficient Technology • High Morale• Quality Operations • Lots of Energy • Solidly Engaged
  22. 22. Leadership, Strategic IQ, and Organizational Health We Need Clarity (aka alignment) 1) Why do we exist? 2) How do we behave? 3) What do we do? 4) How will we succeed? 5) What is most important for us, right now? 6) Who must do what?These questions must be answered together, not in isolation
  23. 23. Leadership, Strategic IQ, and Organizational Health Leadership Needs to Over-communication ClarityProblem: leaders confuse the mere transfer of information toan audience with the audience’s ability to understand,internalize, and embrace the message that is beingcommunicated. Great leaders see themselves as “Chief Reminding Officers”
  24. 24. Leadership, Strategic IQ, and Organizational HealthLeadership Needs to Over-communication ClarityThe point of leadership is to mobilize people aroundwhat is most importantMost organizations are unhealthy precisely because theyaren’t doing the basic things, which require discipline,persistence, and follow-through more than sophisticationor intelligence.Employees hunger for consistent, authentic, and relevantcommunication
  25. 25. Leadership, Strategic IQ, and Organizational Health How PPM Ties It All Together
  26. 26. Leadership, Strategic IQ, and Organizational Health How PPM Ties It All Together Cohesive Leadership Drives accountability and(≈ Strong Governance) better decision making better strategies and Higher Strategic IQ better strategic plans Greater alignment toOrganizational health strategic goals which drives greater project execution.
  27. 27. Leadership, Strategic IQ, and Organizational Health Some Closing Thoughts BUILD UP… Level 5 First Who, Confront the Hedgehog Culture of TechnologyLeadership Then What Brutal Facts Concept Discipline AcceleratorsDISCIPLINED PEOPLE DISCIPLINED THOUGHT DISCIPLINED ACTION GOOD TO GREAT
  28. 28. Leadership, Strategic IQ, and Organizational Health For more information
  29. 29. Leadership, Strategic IQ, and Organizational Health Contact Information Name: Tim Washington Email: twashin@costco.com Web: www.ppmexecution.com @ppmexecution http://www.linkedin.com/in/timawashington

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