1. CONFIDENTIAL AND PROPRIETARY This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Building the Digital Future Requires Continuous Collaboration Donna Fitzgerald Research Vice President PPM Twitter: @nimblepm

2. 1© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Succeeding in the Digital Future Takes Teamwork and Decision Making

3. 2© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. How can current portfolio processes be made more flexible? 2. How can projects and programs be delivered faster and cheaper with a better customer experience? 3. How can government organizations increase agility without losing control?

4. 3© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. How can current portfolio processes be made more flexible? 2. How can projects and programs be delivered faster and cheaper with a better customer experience? 3. How can government organizations increase agility without losing control?

5. 4© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Adaptive Portfolio Management is Simple: It Just Takes Training and Practice making the right portfolio investment decisions by delivering the business outcome Cross the finish line… Get out of the starting blocks by… &

6. 5© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.  Vision – North Star  Value – What's it worth?  Decision – Permission and power  People – Self-organizing  Results – Measurable and real Five Principles of Adaptive Project Portfolio Management Vision Value People ResultsDecision

7. 6© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Value-Oriented Adaptive Portfolio Management still obeys the law of the funnel Business Case Value Evaluation Collaborative Business Case Development Idea Evaluation High level Project Plan Additions To the Investment Portfolio Portfolio Evaluation and Selection Idea Generation

8. 7© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. The Three Sources of Investment Proposals Top DownMiddle OutEmergent StrategicOperationalInnovative

9. 8© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Use Collaborative Business Cases to Determine Value, Initial Scope and Critical Interlocks  Break the Silos – involve multiple individuals with divergent interests and perspectives  Focus on enterprise value  Challenge all assumptions  Actively listen  Be objective about “facts”  Avoid silver bullet thinking – this may not be the solution

10. 9© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. To Create a Well-Formed Value Statement, Ask These Five Questions  What is our desired business outcome?  How do we want to accomplish this outcome?  Who is the primary customer/stakeholder?  What "lever" do we intend to move?  What measurable benefit will this proposal produce? ?

11. 10© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Example Answers & Statement  What: Develop a self-service training registration system  Who: For students of our courses  Lever: Decrease the call volume to the training call center  Outcome: Training customer service agents will have 50% more time to make outbound calls selling training courses.  Ultimate Benefit: Increase in course revenue “Develop a self-service registration app that will decrease the number of calls into the training call center, freeing up time for call center employees to pursue sales leads”

12. 11© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Use a Results Chain to Validate That the Right Levers Have Been Identified in the Business Case Initiative Outcome Self-service training registration app contribution Easy for students to register Call center employees are taking fewer registration calls Assumptions Call center employees call on more leads contribution Outcome If the call center employees had more time they could sell more Training revenue increases

13. 12© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Avoid the Cost Estimation Trap by Using Value Instead  Proposed solutions should all have a not-to-exceed cost  During the business case review this can be checked against an analogous estimate of cost, based on previous size and scope  Remember: a well-run project will probably run over by 20%, but a bad project will probably overrun by 200%  Prepare in advance for the 200% overrun by learning to say NO!  Hint: Overruns generally mean the timing of a project is poor and the politics were too complex

14. 13© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.  Strategy  Timing  Complexity  Risk  Resource Capacity  Core Competencies  Level of Innovation  Stakeholder Alignment  Market Factors  Pace Layer Crank the Project through the Portfolio Heuristics of Your Choice

15. 14© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Make Informed Decisions that Optimize Value at the Portfolio Governance Level  Understand what data is available  Get someone else to do the staff work  Put the right issues on the table  Check for biases and cognitive traps  Accept that certainty and zero risk is impossible  Make the decision!!  If it’s wrong, fail fast

16. 15© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. How can current portfolio processes be made more flexible? 2. How can projects and programs be delivered faster and cheaper with a better customer experience? 3. How can government organizations increase agility without losing control?

17. 16© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.  Agility requires two things: – The right people on the team – Getting out of their way so they can get on with it  How to encourage business agility – Decentralize decision making with bidirectional communication – Keep levels of formalization low — focus on the principles, not the rules – Encourage permeability between organizational boundaries – Establish collaborative partnerships that cross functional and organizational lines People Create Organizational Agility

18. 17© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Use MoSCoW to Limit the Requirements in Waterfall Projects MMUSTDescribes a requirement that must be satisfied in the final solution for the solution to be considered a success. SSHOULDRepresents a high-priority item that should be included in the solution if it is possible. This is often a critical requirement but one that can be satisfied in other ways if strictly necessary. CCOULDDescribes a requirement that is considered desirable but not necessary. This will be included if time and resources permit. WWON'TRepresents a requirement that stakeholders have agreed will not be implemented in a given release, but may be considered for the future. Only "M" features may be committed to customers. "M" features must fit in a p90 confidence schedule

19. 18© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Use an Agile Frame to Determine Scheduling for all Projects Value Time C B A Contract Minimum scope for the release at the latest date that it can be released. Plan Planned scope for the release at the optimal time that it can be released. Target Best possible scenario if everything went perfectly.

20. 19© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Key Issues 1. How can current portfolio processes be made more flexible? 2. How can projects and programs be delivered faster and cheaper with a better customer experience? 3. How can government organizations increase agility without losing control?

21. 20© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Keeping the Program on Track Takes Everyone Doing Their Job Pipeline Execute Gate  Align dependencies  2nd order Resourcing  2nd order Prioritization  Milestone Reviews Evaluate Gate  Satisfaction  Value  Evolutionary Drivers Customer Requests EnvisionEvaluate Order Develop MonitorAssess Approval Gate Data Density Iterations DeployLearnOrderEnvision 1.0 2.0 5.0 3.0 Monitor  Scan  Model Closeout Gate  Performance Metrics  Continued scanning 4.0  Fit  Alignment Value  Mind the Gaps 6.0

22. 21© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Monthly Project Steering Committee Review  What do we now know about what we’ll be delivering?  Does that product/result still achieve our business objective?  Is there anything that stands between us and the result?  What is the status of the cross-project dependencies?  What is the current reported status?  What do we wish to communicate to the portfolio review committee? 21

23. 22© 2016 Gartner, Inc. and/or its affiliates. All rights reserved.  Attendance – Portfolio Governance Group – Project Sponsor – Project Manager – Customer proxy  What is reviewed – Progress – Risks – Issue – Change Requests Portfolio Governance Project Milestone Review Milestones

24. 23© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Adding New Work to the Pipeline  Generally new projects can only start now if something else has finished or if something is killed  Projects can only start if they are “fully” resourced. They can not be squeezed in somewhere without decreasing the value of every project in the portfolio  Adopting a program approach rather than a big project approach makes it easier to deliver value  Never be afraid to kill projects. Avoid the sunk-cost bias

25. 24© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Shifting to More Programs is the Final Piece of Adaptive Portfolio Management

26. 25© 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Treat the business case as the plan of record Stop playing Russian Roulette with project staff. “No staff – no project” must be the rule Active governance is a necessity and it's measured by decisions made – not meetings attended. Ensure every project provides a continuous stream of results, even if they are small. Build a deadline-driven culture. It’s your only choice if you want fast and valuable. Recommendations

27. CONFIDENTIAL AND PROPRIETARY This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Building the Digital Future Requires Continuous Collaboration Donna Fitzgerald Research Vice President PPM Twitter: @nimblepm