1. Portfolio Management SIG AGM

2.  SIG established Sept 2010  Business Plan in place – many thanks to Steve Jenner  Joint 1 day session with Assurance SIG  Survey  Active blogging – and debate  Had committee Strategy workshop – themes for year ahead  Knowledge Share next week  PfM & BM session in planning  Moving forwards – all that contribute, benefit

3. Proposed committee  Chairman – Matt Rawson  Committee members - Achilleas Mavrellis, Adrian Pyne, Nigel Bell, Martin Samphire, Paul Hirst, Peter Parkes, David Dunning, Stephen Parrett, Christine Rigby, Chris Beach

4. Presented by David Dunning, Professional Services Director, CPS Enterprise Project Management Organisation – joining strategy to delivery and back again. What have I got to do?” Where does strategy come from? How might we envision the connection of strategy through to delivery of change / business as usual items, to the confirmation that strategy is being fulfilled. Assuming we have planted a seed, how might we make this grow?” Following on from the successful event entitled “Enterprise project management organisation - What does it look like?” in January that looked at the release of MoP® and the P3O® Best Practice guidance, and the necessity in a recovering economy to focus on the right projects and programmes for scarce business resources, we turn our attention to the maturing of the enterprise project management organisation from specific components of support offices, processes and solutions, to a ‘vision’ of how we see the connection of strategy through to delivery of change and business as usual, to the confirmation that strategy is being fulfilled. This presentation answers the question of how do I connect this all up so that we can manage changes thrown at us by our environment and- ensure the outcomes and benefits of change are reaching our vision / mission?

5. Corporate Project Solutions Established 1995 Fifteen years Enterprise Solutions Implementation Experience Experts in Portfolio, Portfolio, Programme, & Project Management Over 700 Clients People Recruitment Permanent Interim positions Training Maturity/Capability Assessment Planning / Process based Microsoft Project EPM Administration Process P3O® Services Change Management P3M Consulting Technology Microsoft Platforms Project Server (EPM) Project Portfolio Server MOSS / SharePoint CPS Solutions P3O® is a Registered Trade Mark of the Office of Government Commerce.

6. Introduction: If we are to introduce change for the good – we have to attract CxO attention and priority

7. What is the Cx level interested in? Assuming I know my strategy… What is does my strategy mean in terms of Change? Can we actually do it? How much will Change cost (resource, money, risk)? What is the value of the Change? (Benefit, revenue, saving) What happens if something changes? How am I assured my business system works? How can I check that Changes are happening? Am I realising the value of those changes?

8. Agenda Strategy Strategy – what do I mean by that? Portfolio Management I know what our vision is – what next? Change Plan to Delivery Ideally - Who is going to make this happen? Delivery to Strategy Answers to Key Questions Gaps What is missing from my organisation to do this? How Top down and / or bottom up? Enterprise Project Management Organisation – joining strategy to delivery and back again. What have I got to do?”

9. Strategy – Where does it fit in? Vision (Values, picture of future state) Current State Mission Strategy BAU - Work Programmes and Projects Business Drivers Pipeline Outcomes / Benefits Strategy

10. How do I connect this all up so that we can: - manage changes thrown at us by our environment and - ensure the outcomes and benefits of change are reaching our vision / mission?

11. Portfolio Management “A portfolio is the investment in the changes required to meet strategic objectives “ – P3O ® Portfolio Management - Coordinated strategic processes and decisions to balance organisational change and business as usual “It is shocking that some organisations continue to waste effort and resources by delivering the wrong projects and programmes” Portfolio Management

12. To find out more & stay in touch… http://www.apm.org.uk/group/portfolio-management-sig

13. Business Drivers Pipeline Work Vision Current State Programmes and Projects Strategy Mission Outcomes / Benefits Consensus? Problem areas?

14. Strategy into Business Drivers Clear articulation of the enterprise strategy; – Fosters executive consensus on strategic priorities – Focuses idea generation Reduce Expense Base Improve Employee Satisfaction Improve Product Quality Standardise and Streamline Processes Increase Market Share in Existing Markets Improve Customer Satisfaction Expand into New Market Segments Change Plan to Delivery

15. Business Drivers Pipeline Work Vision Current State Programmes and Projects Strategy Mission Outcomes / Benefits Not what expected Problem areas?

16. Answer – P3M3 Assessment. Independent, standard, structured, informative Using an objective standard with a consistent set of questionnaires and scoring to determine a maturity level Understanding desired maturity level and what that means Gaining a better understanding of strengths and weaknesses to focus and prioritise improvements Independent verification (and certification) Justifying investment in portfolio, programme and project management improvements

17. Business Drivers Pipeline Work Vision Current State Programmes and Projects Strategy Mission Outcomes / Benefits Priorities not agreed? Problem areas?

18. Example Strategic Alignment Process

19. Align Investment to Strategy priorities Unaligned Optimised

20. Business Drivers Pipeline Work Vision Current State Programmes and Projects Strategy Mission Outcomes / Benefits Poor control processes Problem Areas?

21. http://www.mop-officialsite.com/home/AboutMoP/About_MoP.aspx In one single diagram? Organisational WILL Portfolio Processes Strategy Understand Categorise Plan Balance Prioritise Trigger Verify Delivery Processes Management Control Benefits Management Financial Management Risk Management Stakeholder Management Governance / Compliance Resource Management Benefits

22. Business Drivers Pipeline Work Vision Current State Programmes and Projects Strategy Mission Outcomes / Benefits Bad Resource Management Problem Areas?

23. Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010]http://www.slideshare.net/mubeena/org-design Organisational Challenge – not a local issue

24. EPM Solutions

25. Re-definitions Resource Planning – creating a model of resource demand, maintaining it, reporting off it. Resource Management – using the model of resource demand in the context of emerging requirements, priority, progress and capability in order to carry out planned work. Resource Planning Initiated Resource Management Consolidated Resource Management Initiated Strategy

26. Focus on Resource Workstreams Skill Pool creation, clean up Availability creation, clean up Prioritisation Model Clean up existing plans Plan structure guidelines Update Process I Resource Planning Initiated

27. Focus on Resource Workstreams Pipeline Process Resource Allocation guidelines Resource Management Initiated Skill Pool maintenance Availability maintenance

28. Focus on Resource Workstreams Organisation Structure Review Update Process II Extend new / existing plans Resource Management Consolidated Revised Processes / Plan Structure Allocation guidelines Skill Pool maintenance Availability maintenance Portfolio Review Process

29. Focus on Resource Workstreams Skill Pool creation, clean up Availability creation, clean up Organisation Structure Review Prioritisation Model Pipeline Process Clean up existing plans Plan structure guidelines Resource Allocation guidelines Update Process I Update Process II Extend new / existing plans Resource Planning Initiated Resource Management Consolidated Resource Management Initiated Revised Processes / Plan Structure Allocation guidelines Skill Pool maintenance Availability maintenance Portfolio Review Process

30. Business Drivers Pipeline Work Vision Current State Programmes and Projects Strategy Mission Outcomes / Benefits Not what expected Problem Areas?

31. Delivery to Strategy Project Outputs Business Change Side effects Dis-benefits Desired Outcomes Intermediate / End BENEFITS Strategic Objectives Realise Further Enable Also cause Result in Create Measured in Towards one or more Extrapolated from Managing Successful Programmes®, from the OGC Delivery to Strategy MSP® is a Registered Trade Mark of the Office of Government Commerce.

32. OutputChangeOutcomeBenefitObjective Example from P3O®

33. Defence Logistics Planning Improvement Programme Connecting Up the Programme

34. Joint Support Chain EPM Structure

35. What do I need to have in place for this? Gaps

36. Organisation The Answers

37. Organisation Components CEO CFOCIO LOB Executive A LOB Executive B Strategy Group Px Organisation Strategy Office –Do we have “bright buttons” who can assist thought leaders with detail and analysis? –Can we put a high level agreeable strategy in place to work around, then develop further? –How do we publicise this? –How do we change this? Portfolio, Programme, Project Office –If there is no strategy, can we get down a set of assumptions to be going on with? –Can we supply visibility, scrutiny and oversight? –Can we assist delivery and support? –Can we provide experts to define how to run things?

38. PxOrganisation – Now? Center of Excellence Delivery Support Is this one central function? Process, Standards, Tools, PM Knowledge Owner, Learning Facilitator, Best practice owner Local support offices run from a Central ‘support’ office ? Project Start up? Planning help? Reporting? Gates? Closure?

39. PxOrganisation – Next? Delivery SupportGovernance Local support offices run from a Central ‘support’ office ? Project Start up? Planning help? Reporting? Gates? Closure? Local compliance management? Process adherence? Standards usage? Plan quality? Center of Excellence Is this one central function? Process, Standards, Tools, PM Knowledge Owner, Learning Facilitator, Best practice owner

40. PxOrganisation – to finish… Center of Excellence Governance Is this one central function? Process, Standards, Tools, PM Knowledge Owner, Learning Facilitator, Best practice owner Local support offices run from a Central ‘support’ office ? Project Start up? Planning help? Reporting? Gates? Closure? Local compliance management? Process adherence? Standards usage? Plan quality? Decision Support Does this function exist? Scrutiny / Oversight Priority Generation / Implementation Business Perspective Delivery Support Project Organisation

41. Process People Technology The Answers

42. Example Technology Enterprise Project Management Team Collaboration Resource Management Work Management Portfolio Optimization

44. What game to play? Top Down – Strategic Very fast or very slow All or nothing Dependent on the personalities involved Resources Energy and drive can be very effective Missing out on benefits while waiting until you get backing Bottom Up Get something moving More effort Less effective (shoestring) Greater penetration than top down? Better ‘stick’ Spending while waiting until you get backing How

45. What does this mean? Can we collect enough ‘pain’? Is this ‘pain’ to the right people? The change road gets pretty congested at the top! Devise a problem statement

46. Barriers CXO agenda full No perceived problem No CXO knowledge of Portfolio Management Uncertainty of cost / benefit Culture ‘wrong’ Wait, or make an assertion Gather evidence, present Pick the right way / moment, brief. Seek funding to define costs / benefits Hmmmm! Excuse?

47. What does this mean? Can we reach / does this come from the right people? Cost / Benefit? Timing? Establish ‘Organisational Will’

48. Answers to CXO Questions: What is does my strategy mean in terms of Change? Can we actually do it? Capture proposals, prioritise drivers, changes scored, selection made. How much will Change cost? Costs and Resource pinch points captured. And Risk. What is the value of the Change? Benefits captured. Options are comparable. What happens if something changes? We can see what is affected, re- prioritise, re-plan. How can I check that Changes are happening? Visible Strategy plan, connected project and programmes, assurance of processes and benefit realisation Enabling direction, leadership and control

49. What does this mean? If you can’t get someone senior to ‘front’ this, how can this possibly succeed? Appoint a Senior Responsible

50. What does this mean? Beware the chalice of doing this in your spare time. Appoint a capable Programme Manager

51. What does this mean? Increase the proportion of projects and programmes directly linked to the corporate strategy, saving time / resource from being spent on the ‘wrong’ stuff Directly save costs through standard, repeatable processes and simplified cost effective reporting More output from resources through effective prioritisation and efficient scheduling Directly support measurement of project and programme benefits, maximising what is possible and encouraging the ‘right’ projects in the first place Initiate cost effective, consistent Governance of projects and programmes to provide assurance of delivery quality making the decision making process more reliable Saving wasted resources by learning from experience and implementing changes from lessons learned. Set the capability / benefit expectations

52. What does this mean? Map out the vision for how the objectives can be met 1 2 3

53. What does this mean? How can we plot a journey if we don’t know where the start point is? P3M3 Assessment Assess the current state of strategy management and 'P3 organisation’ provision

54. What does this mean? How else to establish ‘buy in’ better than to get someone to put their hand in their pocket? Benefit plans Milestones Prepare Business Case, Programme Brief, Programme Plan

55. All together…. Establish ‘Organisational Will’ Devise a problem statement Appoint a Senior Responsible Appoint a capable Programme Manager Set the capability / benefit expectations Assess the current state of strategy management and 'P3 organisation’ provision Map out the vision for how the objectives can be met Prepare Business Case, Programme Brief, Programme Plan

56. Organisation Process People Technology The Answers Strategy

57. Thank you for listening! David.Dunning@CPS.co.uk 01628 895600 / 07767 803540 LinkedIn http://uk.linkedin.com/pub/da vid-dunning/3/bb9/ba7