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Presentation KCPMI 2016 PDD Days Portfolio Balance

Apr 13, 2017

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Ron Montgomery
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Page 1: Presentation   KCPMI 2016 PDD Days Portfolio Balance
Page 2: Presentation   KCPMI 2016 PDD Days Portfolio Balance
Page 3: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Strategic PlanningProject Portfolio Management

Project Execution

Page 4: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Strategic PlanningProject Portfolio Management

Project Execution

* Kotter International. Forbes, July 9, 2013. “When CEOs Talk Strategy, 70% of the Company Doesn’t Get it.”

What strategy?71%

Got it29%

Page 5: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Successful16%

Challenged53%

Failed31%

Strategic PlanningProject Portfolio Management

Project Execution

Page 6: Presentation   KCPMI 2016 PDD Days Portfolio Balance

“The four biggest universal problems in project portfolios are:1. Too many active projects2. Wrong projects 3. Projects not linked to strategic goals4. Unbalanced portfolio” *

* Kendall, Rollins. Advanced Project Portfolio Management and the PMO (p. 207)

Strategic PlanningProject Portfolio Management

Project Execution

Page 7: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Kendall, Rollins on Balance, cont. *• “Too much on the supply side, not enough on market side• Too much development, not enough research• Too much short term, not enough long term• Not reflective of the organization’s most important assets…”

* Kendall, Rollins. Advanced Project Portfolio Management and the PMO (p. 207)

BenefitRisk

Page 8: Presentation   KCPMI 2016 PDD Days Portfolio Balance

• Benefits are speculative & not audited• Risks are difficult to envision & compare• Portfolios change over time and no one notices• “The PPM Zone”

BenefitRisk

Page 9: Presentation   KCPMI 2016 PDD Days Portfolio Balance

1 –Establish rules for profiling projects

2 –Monitor projects to reflect changes

3 –Governance to optimize balance

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Page 11: Presentation   KCPMI 2016 PDD Days Portfolio Balance

StrategySpeed time to market Increase efficiency Products for millennials

Goals / ObjectivesGrow revenue 10% Reduce policy admin costs 5% Launch 4 new products

Mission / VisionFinancial security Be “top of mind” among customers

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• 1 = Expand the quantity of new products• 2 = Increase penetration of millennial market• 3 = BothExternal Focus

• 1 = Reduce admin costs / increase efficiency• 2 = Reduce time to market for new products• 3 = BothInternal Focus• 1 = ROI less than 5%• 2 = ROI between 5% and 15%• 3 = ROI greater than 15%

Financial Return

Page 13: Presentation   KCPMI 2016 PDD Days Portfolio Balance

• 1 = We do this all the time• 2 = We have done something similar• 3 = We don’t know what we don’t know

Solution Experience• 1 = A small work group• 2 = More than one business leader involved• 3 = Enterprise-wide

Scope of Business Impact• 1 = No need for external vendor support• 2 = Vendor support for key deliverables• 3 = Vendor support for ALL deliverables

Vendor Dependency• 1 – Minimal need for choke point resources• 2 – Some need for choke point resources• 3 – Choke point resources essential

Choke Point Resources

Page 14: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Project Requests

“Top down”or “bottom up”Request form:• Value Profile• Risk Profile• Project Attributes

Governance TeamProject Request Process

Project Database& Dashboards

Initial Decisions:• Reject• Return – Not in Good Order• Accept

Monitor Projects

Page 15: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Exercise – Project Profiles in Your World• What are 2-3 key strategies in your organization? What Benefit profile attributes are needed to align projects with these strategies?

List the Benefit profile attributes on a 3x5 card• Think of some projects that “went south” – what risk profile attributes would have predicted their failure?List the Risk profile attributes on a 3x5 card

Page 16: Presentation   KCPMI 2016 PDD Days Portfolio Balance
Page 17: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Project Status Reporting

Focus on changes to:• Benefit profile• Risk profile

PMO Reporting & Dashboard Preparation• Validate reports• Reflect external environment• Coordinate governance meetings

Project Reports Dashboards

Page 18: Presentation   KCPMI 2016 PDD Days Portfolio Balance
Page 19: Presentation   KCPMI 2016 PDD Days Portfolio Balance

New sponsor questions predecessor’s decisions

A “choke point” resource, takes a new jobUnproven vendor with niche skills

Page 20: Presentation   KCPMI 2016 PDD Days Portfolio Balance

New branding = project less valuable

Scope change = many new stakeholders

New software platformNewfocus on career agents

Page 21: Presentation   KCPMI 2016 PDD Days Portfolio Balance
Page 22: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Project / Risk Category Solution Experience Scope of Business Impact Vendor Dependency Choke Point ResourcesProject 1Project 2Project 3Project 4Project 5

Low RiskMed. RiskHigh Risk

Risk concentration -experience & choke point resources

Page 23: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Admin Costs46%

Product Pipeline23%

Millenial Mkt15%

Time to Mkt8%Multiple

8% Too much effort on reducing admin costs

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Exercise – Plot 2-3 Projects (3x5 card)

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Page 26: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Mark Price Perry, Business Driven Project Portfolio Management

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VP Operations CIO

VP Marketing VP FinanceEPMO

Sponsor – C.O.O.

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Decision Making:• Start• Continue• Delay• Stop

Portfolio Governance MeetingsProject Dashboards

Stakeholder Communication Process

Guiding Principle:Stop Starting – Start Finishing!

Page 29: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Benefit Risk

Projects 3 & 5 - lack of solution experience

Projects 3 & 5 rely on choke point resources

Too much effort on admin

Need more effort on new products

Benefit Risk

Page 30: Presentation   KCPMI 2016 PDD Days Portfolio Balance

Project Name Project Type Risk Score Value Score StartDate EndDate Status Decision (Start, Continue, Delay, Stop)Project 3 Admin –Incremental 9 4 8/16 12/16 Develop Delay (review next meeting)Project 5 Compliance 10 4 7/16 10/16 Testing Continue (risk mitigation plan)Project 6 Admin –Incremental 4 4 9/16 12/16 Planning Delay (review next meeting)Project 9 Admin –Incremental 12 3 8/16 11/16 Develop StopProject 11 New product 7 8 ASAP ASAP Pending Start

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Review your 3x5 cards and identify your action plan to:• Provide a clearer picture of your portfolio• Connect projects with strategy • Establish governance processes that support effective project decisions decisions• Replace “Really Bad Idea” projects with “Improve the Business” projects

Page 32: Presentation   KCPMI 2016 PDD Days Portfolio Balance