1. Impactful Portfolio Management

2. Objective & Agenda Objective Agenda
Give you a vision of how portfolio management drives a higher return on project investments
Agenda
Definition & Value of Portfolio Management
Trends in Portfolio Planning
Lessons Learned From Companies Deploying Portfolio Management Processes and Tools
Example of Portfolio Planning Automation - Demonstration

3. The New Normal Expectations are Higher, Budget is Not
Then: Early 2000s
Now
For all the increased technology expectations, IT budget is not increasing. IT has always struggled to keep up with business demand, but for many CIOs the problem is getting significantly worse. A bad economy has limited IT spending, but it doesn’t stop the business from demanding more from IT.
The ‘agility imperative’ has emerged in enterprises to close this gap.
Leading companies understand that the people making decisions on business and technology for the organization are the same people. They speak both languages, which means that they have an understanding of the business mission and a grasp of the technologies that enable it.
Part of this requires Business & IT speak the same language …
And this is a big idea—with profound implications for the CIO. In a company where business and technology have converged, the CIO is no mere “manager of the data center.” He or she is a strategic leader, focused on bringing IT capabilities to bear on critical business challenges.
What does it take to transform IT to this new world? What will separate the winners from the losers?
Yes, it’s about leveraging cloud services and building clouds (industrializing data centers for agility and efficiency) and that requires that we invest in performance, automation/ virtualization, and also about security … But it’s more than that:
A real business transformation is afoot:
There is a fundamental change needed in how IT collaborates with business owners on technology investment planning, with many IT organizations adopting shared services models and, in essence becoming internal services providers. Successful transformation strategies will require a strong governance framework and a CIO capable of informing the decision-making in the role of portfolio strategist. This requires them to communicate IT services, costs and value in a way that helps stakeholders make informed decisions about the use of IT across multiple technology portfolios including the service, applications, project and asset portfolios.
CIOs risks becoming irrelevant if they can’t manage this service supply chain and advise the business on the optimal way to plan, design and deliver services.
CIOs must be able to respond to questions being asked by the business owners:
What value am I getting from this service?
Are you meeting the service levels I need to run my business successfully?
How much does that service cost me?
Can you deliver this project on time and in budget?
What should I move to the cloud?
How are you accelerating the cycle time from idea to delivery
This is about managing innovation effectively—from idea to transformation.

4. What is Portfolio Management?
A collection of Projects and/or Programs and other work grouped together to facilitate effective management of that work to meet strategic business objectives (PMBOK).
Process focused on doing the right work, increasing transparency, and delivering the highest business value (EPM).

5. What is Portfolio Management?
More than grouping projects and potential projects for viewing status.
It is…
Making tradeoffs and decisions about how to best utilize your resources.
Deciding which projects to start, continue, discontinue, or postpone
Continuous planning, not annual planning – always re-evaluating

6. What Functions Does Portfolio Serve ?
There are 4 basic functions that portfolio provides
Monitoring
Decision Analysis
Constraint Analysis
“What – IF” Scenarios

7. Monitoring
Monitoring
Decision Analysis
Constraint Analysis
“What – IF” Scenarios
Portfolio’s can be used to monitor how projects are progressing
List all projects in a consolidated view within the portfolio and see information such as:
Total spend and actuals
Health
Project manager and basic project information
Variance and Effort against baselines

8. Decision Analysis
Monitoring
Decision Analysis
Constraint Analysis
“What – IF” Scenarios
Decision analysis is based on the same information that you would use for monitoring
The views within portfolio can help decision making on what projects should be included in the portfolio based on the high level parameters
Charts within portfolio can show total cost and benefit or benefits by year

9. Constraint Analysis
Monitoring
Decision Analysis
Constraint Analysis
“What – IF” Scenarios
Constraint Analysis takes the same investments and allows you to lay a set of criteria boundaries on top
Some constraints that can be applied include:
Financial constraints
Effort constraints at the role level
Constraint analysis can show that too many projects are approved and if they are exceeding budget or resource availability at the role level

10. What If Scenarios
Monitoring
Decision Analysis
Constraint Analysis
“What – IF” Scenarios
What If Scenarios allows you to create a scenario that can have varying constraints.
An example might include budget based scenarios where you can create two different views of the portfolio based on total number of dollars that are within the available budget

11. Business Value of Portfolio Management
4/21/2017
Business Value of Portfolio Management
Danielle

12. Trends in Portfolio Management
4/21/2017
Trends in Portfolio Management
With Lean’s strategy deployment, portfolio management is driven by alignment with business objectives and value delivery takes a holistic view of the company’s projects, attempting to balance priorities and available resources with strategic objectives. (Lean IT, Stephen C. Bell, Michael A. Orzen)
The mix of investments in the enterprise portfolio will continue to shift toward fast-paced, small-scale projects. (CEB, A PMO Survival Kit, 5 Strategies to Navigate Extreme Change)
Patty
Bullet 1 - Lean – “See the Whole” - - advocates a holistic view of projects – and allocating resources based on priorities to achieve strategic objectives
Bullet 2 - CEB research indicates more organizations report Shifting Investment Priorities – which prompts small-scale projects focused on “Deliver Early and Often” - -and a “Fail Fast – Fail Forward” mentality.
Bullet 3 – An April 2013 poll of CEB members, since 2010, a 66% increase in the portfolio $$’s being managed as part of a program.
Members reported the top benefits to this approach being:
Greater Alignment to Strategy, Better Project Interdependency Management, Increased Project Sponsor Satisfaction
Do these sounds familiar? – Top challenges reported are: Defining a Program Governance Approach, defining a Standard Program Mgmt methodology, and Identifying Project interdependencies.
Bullet 4 – Even 5 years ago, most projects were clustered in only a few categories, today there is a proliferating mix of IT project types – trends toward more BI/Analytics, Mobile Applications, Integration Projects, Software as a Service, Social Media - - while we still have the large ERP efforts, New Product Development, and Major Transaction Processing systems
Bullet 5 -

13. Trends in Portfolio Management
4/21/2017
Trends in Portfolio Management
The percentage of projects in the portfolio managed as a Program will increase, driven by business objectives, value delivery, and responding to strategy changes more effectively. (CEB, Peer Perspectives in Program Management)
Project complexity remains while ability to manage project diversity in the portfolio is “the real game changer”. (CEB, Making Your PMO Adaptive)
Traditional “on time, on budget” metrics won’t work, increasing focus on defining and measuring value. (Overview for Program and Portfolio Management, 2013 Gartner)
Patty
Bullet 1 - Lean – “See the Whole” - - advocates a holistic view of projects – and allocating resources based on priorities to achieve strategic objectives
Bullet 2 - CEB research indicates more organizations report Shifting Investment Priorities – which prompts small-scale projects focused on “Deliver Early and Often” - -and a “Fail Fast – Fail Forward” mentality.
Bullet 3 – An April 2013 poll of CEB members, since 2010, a 66% increase in the portfolio $$’s being managed as part of a program.
Members reported the top benefits to this approach being:
Greater Alignment to Strategy, Better Project Interdependency Management, Increased Project Sponsor Satisfaction
Do these sounds familiar? – Top challenges reported are: Defining a Program Governance Approach, defining a Standard Program Mgmt methodology, and Identifying Project interdependencies.
Bullet 4 – Even 5 years ago, most projects were clustered in only a few categories, today there is a proliferating mix of IT project types – trends toward more BI/Analytics, Mobile Applications, Integration Projects, Software as a Service, Social Media - - while we still have the large ERP efforts, New Product Development, and Major Transaction Processing systems
Bullet 5 -

14. Lessons Learned From Customers
Consistency, Consistency, Consistency
Must Capture ALL Future Demand (Resource and Financial Projections)
Organize Portfolios Based on How Decisions are Made (Organization, Goals, etc)
Must Report on Current Project Health and Status
Use a Combination of Rule Based and Manual Prioritization
Organizations should have a solid foundation of Demand, Project, Resource and Financial Management prior to implementing Portfolio Management.
Consistency across those modules is key to successful Portfolio Management.
You need consistency for Portfolio Management to work!

15. CA Clarity – The Leading PPM Tool (Gartner & Forrester Analysis)
From 2003 to 2004 market grew at 12%. Clarity grew at 5X and our growth hasn’t slow since
Note: of the top 5 market share leaders according to Gartner/Dataquest – the next closest vendor to Niku’s exceptional 63% yoy growth was Microsoft, with growth of only 9%.
Other Top 5 vendors:
Microsoft – 9%
Primavera – 5.5%
Peoplesoft – 3%
Planview – 6%
I inherited the notes above, so I have left them in there. I have never used them. I explain the quadrant and Clarity’s position as a leader. I spend the most time highlighting our awards and the fact that they come from users/customers and not analysts or vendors.
I also note that this is the only product-pitch slide in the presentation as I firmly believe the effectiveness of the message is based on being product agnostic.

16. Project Portfolio Summary - Detail
This is page two of the report.
The Variance % Yellow and Variance % Red Threshold parameters allow you to control when the background color changes to yellow and red, respectively, for the % Variance column in the report. The background color changes for both positive and negative variances. If the % Variance in the report is less than the Variance % Yellow Threshold, then there is no background color. If the % Variance is greater than or equal to the Variance % Yellow Threshold, then it will be yellow until it reaches the Variance % Red Threshold entered as a parameter. Amounts that are greater than or equal to the Variance % Red Threshold will be red. In the above screen capture, the Variance % Yellow Threshold parameter entered when running the report is 10% and the Variance % Red Threshold is 15%. Entering these parameter values means that the % Variance will turn yellow when it is greater than or equal a positive or negative 10% variance. It will turn red when it is greater than or equal to a positive or negative 15% variance.

17. Portfolio Dashboard: Cost & Health

18. Portfolio Dashboard: Goal Analysis

19. Portfolio Management - Investment Decisions (What is the Impact – Financial and Resource)

20. Demo
Organizations should have a solid foundation of Demand, Project, Resource and Financial Management prior to implementing Portfolio Management.
Consistency across those modules is key to successful Portfolio Management.
You need consistency for Portfolio Management to work!

21. 2014 CA Clarity Implementations
Rego is a premier partner of CA Technologies, which means customers can have absolute confidence that Rego’s implementation services conform to CA best practices.
2014 CA Clarity
Implementations
And More . . .
regoProcess assists organizations in optimizing project portfolio management operations for more predictable results.

22. Rego Consulting | Clarity Expertise On Demand
Questions
Contact US
Contact
Web Site
Thank you for attending the webinar. We’d love to help you achieve your company’s project portfolio management (PPM) goals. Please contact us if you have any questions at all.
Rego Consulting | Clarity Expertise On Demand