1. November 8 th, 2014 1 Andy Jordan President, Roffensian Consulting Inc., Management Consulting firm specializing in PMOs and portfolio management. Author, facilitator and in demand speaker featured on ProjectManagement.com & Projects@Work.com

2.  Portfolio Management What it is (and what it isn’t)? The portfolio lifecycle Strategic execution  Portfolios and the PMO A business focused PMO An independent, objective partner Up and out, not just down and in  Starting the journey Gaining permission Delivering success 2

3. PPM leaders must prepare for extreme transformation of must prepare new résumés Gartner Predicts, 2014. December 5 th, 2013  PPM has ‘defaulted’ to PMOs up until now  That will change (and is changing) if PMOs fail to deliver  PMOs must evolve or become marginalised 3

4. Portfolio Program A Project 1 Project 2 Program B Project 3 Project 4 Project 5 Program C Project 6 Project 7 Consolidated Information

5.  Vehicle for delivering strategic priorities  Aligned with goals and objectives  May be multiple portfolios Departmental Business function Regional Etc. A portfolio is the management framework for effective project execution

6. Slide 6 Idea Business Case Selection Execution Benefits Realization  Portfolio begins with the seeds of an idea and lives through the harvesting of the benefits  Successful portfolios need nurturing at all stages of development The implication is that the PMO spans all portfolio elements and all portfolio departments

7. Before the project Viewed as a departmental responsibility Ideas compartmentalized Business cases inconsistent Proposals champion departmental priorities over organizational Politics plays a major role in selection After the project Returns to operational silo Little to no benefits tracking No accountability Does that maximize the ability to achieve the organizational goals?

8.  Put yourself in their shoes – what is the likely reaction of these roles to what you have heard so far? Executive Department head PMO manager Project or program manager 8

9. Slide 9  If portfolio management doesn’t provide a strategic portfolio framework then projects will make deliverable focused decisions that ignore the organizational goals  Projects cannot be managed as self contained entities – they are part of the organizational ecosystem  Effective project management means understanding how the project fits within that ecosystem

10.  Deliverables are only relevant to the extent that they deliver business results  A project can only be successful if it delivers its planned benefits  Change decisions are often driven by the project’s alignment rather than anything internal to the project  Project management is a sub-discipline of portfolio management  Priorities and expectations are dynamic and must be managed as such

11.  A logical alignment for portfolio delivery, but…… PMOs must be business functions, not project functions PMOs must be viewed as trusted, independent advisors PMOs must be given clear mandates supported by organizational commitment  If PMOs fail to embrace portfolio management they will become increasingly irrelevant 11

12.  A PMO is a department – it persists beyond any individual project  As such it is no different from other departments – sales, HR, IT, etc.  So why do so few PMOs have: Annual goals / objectives? A business plan? A regular review of performance against KPIs?  Or even…… A clearly defined role within the organization? 12

13. 13 PMO Purpose Goals Structure PMO must be supported by a clear organisational mandate, otherwise it cannot succeed If the organisation cannot (or will not) provide the mandate then perhaps the PMO is not required

14. 14 Central Planning Support Screening Business Case Development Facilitator Portfolio Modeling Capability & Capacity Constraints Analysis Advisor Variance Tracking Strategic Execution Benefits Realisation Manager

15. Which three of the following would you choose as your year one priorities – and why? To Do List Organization wide idea capture Collaborative idea enhancement Preliminary idea screening Standardized business case formats Portfolio modeling Capacity and capability planning Strategic project execution Centralized benefits tracking Benefits accountability

16. 16  Broader scope than traditional PMOs Managing out to the organization, not in to project execution Connecting projects with objectives  Project execution support focuses on context How projects can be better executed to support the business Development of business focused PMs  Existing support functions may still exist Provide a foundation, not a differentiator Not enough to justify existence

17.  Change only comes from a recognition of need If your organization doesn’t feel execution pain then they won’t recognise the value  Commitment must be meaningful or it won’t last Executives and department heads must ‘live’ the commitment  You need a champion to sponsor the concept  Approval will always be conditional You will need to demonstrate success to maintain support 17

18.  What is your leverage for making this change?  Why should the executives buy in? What’s the benefit for them?  What does success look like? In year 1? As a roadmap?  What has to happen to deliver the change?  What’s the plan? Costs Milestones Stakeholders 18

19. 19 Pain points Goals PlanActions Metrics It’s not rocket science! Consistency between approaches taken elsewhere help gain buy in. Early results show value and drive commitment. Focus on needs demonstrate alignment with stakeholders.

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21. 21 E-mail – andy.jordan@roffensian.comandy.jordan@roffensian.com Twitter - @RoffensianPM www.roffensian.com