1 The Power of Portfolio Management Iain Fraser, PMI Host.

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The Power of Portfolio Management

Iain Fraser, PMI Host

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PMI Thought Leadership Series

PMI 2015 Thought Leadership Series: The Power of Portfolio Management

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Key Findings

PMI 2015 Thought Leadership Series: The Power of Portfolio Management

1. Connect program execution to strategy fulfillment

2. Seek simplicity3. Create a portfolio-

minded culture4. Develop strong

capabilities

4PMI 2015 Thought Leadership Series: The Power of Portfolio Management

5PMI 2015 Thought Leadership Series: The Power of Portfolio Management

6PMI 2015 Thought Leadership Series: The Power of Portfolio Management

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* A family business * 100+ companies * * In more than 100 countries * Across six continents *

PMI 2015 Thought Leadership Series: The Power of Portfolio Management

8PMI 2015 Thought Leadership Series: The Power of Portfolio Management

9PMI 2015 Thought Leadership Series: The Power of Portfolio Management

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1. Connect program execution to strategy fulfillment

2. Seek simplicity3. Create a portfolio-

minded culture4. Develop strong

capabilities

PMI 2015 Thought Leadership Series: The Power of Portfolio Management

Key Findings

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PMI 2015 Thought Leadership Series: The Power of Portfolio Management

Presentation Title

Presented by

Christopher GaribaldiDeloitte Consulting, LLP

Jennifer BrattonThe Boston Consulting Group

2015 PMI® Thought Leadership Series:The Power of Project Portfolio Management

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Jennifer Bratton, BCG

PMI® Thought Leadership SeriesThe Practitioner’s Perspective: Winning through Project Portfolio Management

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Maturity Correlates to Organizational Success

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Three Critical Components to Project Portfolio Management

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Need a Culture That Supports the Typical Mix of Winners and Losers across the Portfolio

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Many projects can be stopped prior to first round of prioritization

Many projects can be stopped prior to first round of prioritization

Not truly a project (e.g. part of daily operations, someone's day job)

Project has already been completed

Project is duplicative with another identified project

Project was never officially approved

Project considered "rogue" or of no value

0

500

1,000

1,500

# of initiatives

Size of Initiative ($M)

Financial impact key decision criteria(e.g. 9% of initiatives is 80% of value)

Financial impact key decision criteria(e.g. 9% of initiatives is 80% of value)

% ofinitiatives

% of $ impact

77.7

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13.6

13

6.5

27

1.1

16

0.9

25

0.2

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Priority

Experience Shows Significant Number of Projects Can Be Held/Stopped Without Detrimental Effect on Impact

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PPM Checklist

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Christopher Garibaldi, Deloitte LLC

PMI® Thought Leadership SeriesDelivering on Strategy: The Power of Portfolio Management

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Research results identified Key Success Factors in Strong Project Portfolio Management

Seek Simplicity

Create the Culture

Develop Strong Capabilities

The less complicated the approach to portfolio management, the more likely an organization can sustain its success. Organizations that excel in this area include only the information they need, not everything available.

Successful organizations cultivate competencies around specific portfolio management practices and portfolio decision-making capabilities in their journey to greater maturity.

When portfolio management becomes part of the organizational culture, senior leaders devote the time, education, and resources necessary to instill the practice.

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2

3

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PPM empowers those that wield it and work within its structure

Material financial benefits (efficiency/reinvestment)

Better business partner

Career tenure – command

These Benefits Drive

The Qualitative Value of PPM

• Increased confidence in the portfolio balance and strategic focus

• Tight collaboration between portfolio owners and those delivering the work

• Focused, more productive resources

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True visibility creates opportunity, and opportunity is what drives business

While a challenged PPM implementation may exhaust an organization, the reward of a successful implementation greatly outweighs the risks

Capstone (PMO15BR30)Presenters: Christopher Garibaldi; Kevin Laughridge, Deloitte Consulting LLP

10 November, 10:00 – 11:15 a.m. Room: Grand Canyon 12

Portfolio Manager’s Perspective (PMO15BR31)Presenters: Jennifer Tankersley; Annabel Doust, The Boston Consulting Group

10 November, 11:45 – 1:00 p.m.Room: Grand Canyon 9

2015 PMI® Thought Leadership Series

Terry RuhlCH2M

Angela TaylorInfrastructure Ontario

Sarina ArcariAnthem

2015 PMI® Thought Leadership Series:The Power of Project Portfolio Management

Executive Panelists