Innotas Webinar: Why You Need a 30,000’ View into Your Portfolio

Executive Webinar

Why You Need a 30,000’ View into Your

Portfolio—Insights from Air Traffic Control

featuring Mark Mullaly of ProjectManagement.com

© Innotas 2013 | Confidential

Page 2 © Innotas 2013 | Confidential

Guest Presenter

Mark Mullaly, PhD, PMP

-President & Chief Organizational Therapist Interthink Consulting Incorporated


Today’s Moderator

Caleb Entrekin - Cofounder & VP of Sales, Innotas

- Over 12 years experience in PPM,

APM, and IT Governance space


About Mark Mullaly

President & Chief Organizational Therapist at Interthink Consulting Inc

Over 25 years of experience in wide range of industries

Regular columnist on projectmanagement.com

Was co-lead investigator of the research project ‘Understanding the Value of Project Management”

Lead instructor and program developer of the PM certificate programs offered by Executive Education at the University of Alberta School of Business


What Are Portfolios…?

Framework For Overseeing Collections Of Projects & Programs

Focussed On Answering Three Questions: o Are we doing the right projects?

o Are we doing those projects well?

o Are we using the results being delivered by the projects?

Not Just 'Project Management On A Big Scale' o Means of integrating the projects an organization does with its overall strategic

objectives

o Supporting alignment across multiple views

– Strategy

– Resources

– Applications


The Origins Of Portfolio Management

Roots Of Portfolio Management Are In Product Development o Means of supporting investment choices

Focussed On Two Key Dimensions o Ensuring strategic alignment

o Managing capacity of resources

Birth-Place Of The Concept Of 'Gating' Processes


The Evolution Of Portfolio Management

In Recent Years Expanded To Include All Projects o Still interested in strategic alignment

o Often a response to constrained resources and unrestricted appetites for projects


Challenges Of Portfolio Management

Problems Identified In Research Regarding Portfolio Management In Product Development Include: o Portfolio results not aligning to strategy

o Poor quality portfolios resulting from decision processes

o Decision processes being seen as ineffective

o Insufficient resources across too many projects

Source: Cooper, Edgett, & Kleinschmidt, 1997a & b


Challenges Of Portfolio Management

Later Research Into Broader Implementation Suggests On-going Problems: o Continued issues with not aligning to strategy

o Difficulties making appropriate judgements about the future

o Inappropriate categorization of projects in establishing their portfolios

o Uncertain and ambiguous strategies

o Complex relationships between portfolios and strategies

o Failure to appropriately evaluate alternatives

o Inappropriate decision making, including politics overriding rational judgement

Source: Williams & Samset, 2010

Source: Crawford, Hobbs, & Turner, 2006

Source: Pedersen & Nielsen, 2011


Summarizing The Challenges

Issues Come Down To Key Themes: o Alignment

o Process

o Decisions

o Resources

o Politics

Apart From That, Everything Seems To Be Working Well...


Dealing With Alignment

Fundamental To Portfolio Management o The issue is how to do it

Gets To A Fundamental Issue o Where does strategy stop?

o Where do portfolios start?

o What portfolios are relevant for how the organization thinks about its work?

o How do they work together effectively?

Need To Be Clear About Role And Purpose Of Each o Strategy sets direction for the organization – goals, alternatives and choices

o Portfolios determine specific choices within a subset of the goals

o Portfolio management isn't a substitute for strategy management

o In the absence of strategy, portfolio management will deliver mediocre results at best (and more likely, will not work)


Dealing With Process

Process Is A Significant Challenge o The process is inadequate

o People don't follow it

The Results Of Bad Process (Or No Process) Are Pretty Predictable

Solutions Are Understood, Just Not Followed o Process needs to be (and be seen as) relevant to the environment

o Change management strategies need to be adopted

o Incentives are required for using the process

o There need to be consequences for failure to comply


Dealing With Decisions

Decisions Are Difficult o We make them with imperfect information

o We can't see into the future with reliability

o We get distracted

Making Better Decisions o Need rational supports for decision making

o Criteria need to be objectively aligned to strategy

o Results using decision criteria need to be challenged in constructive discussions

o There needs to be recognition that politics will not be eliminated and needs to be accommodated – to an extent


Dealing With Resources

The Essential By-product Of Two Fundamental Truths o We have too many things we want to get done

o We have no where near enough capacity to do it all

This Is An Astonishingly Familiar Problem o And yet all too often we continue to accept it as the status quo, without change

Better Managing Resources o Know our capacity for work

o Realistically estimate what it will take to do new work

o Know how much our resources are already committed

o Stop adding more work when you are full

o If you still need to do something else, then concretely stop something else


Dealing With Politics

Politics Is Fundamental To Portfolio Management o Influences all aspects

o Most common cause of challenges

o Most difficult to engage with and address

Strategies For Addressing Politics o Recognize that politics needs to be engaged with constructively

o For portfolio management to work, there must be political acceptance

o All stakeholders need to commit to using the process

o All decisions need to be managed through the process

o Portfolio management needs to be seen as materially more constructive and useful in getting decisions made


What Was PPM Supposed To Do?

Primary Intention Is To Ensure Projects Deliver Business Results: o Are we doing the right projects?

o Are we doing those projects well?

o Are we realizing value by using the results being delivered by the projects?

What Do We Need To Do To Make It Stick?


Are We Doing The Right Projects?

Questions To Think About Asking: o Why was this project chosen?

o What are the business drivers? What will it enable the organization to do that it can't do now?

o What are the most important business results that this project has to deliver?

o How will we know the results are delivered?

In Essence, These Are Elaborations Of Project Success: o What does 'done' look like?

o What needs to have been produced?

o How will the success of what has been produced be judged?


Are We Doing These Projects Well?

Questions To Think About Asking: o How are we measuring progress against the plan?

o How do we know the plan is right in the first place?

o How will we know we are deviating from the plan?

o What are the most important things to keep in mind when the plan changes?

o What support do we need when the plan changes?

In Essence, These Are Elaborations Of: o Defining driving priorities (cost, schedule, scope, quality)

o Maintaining clarity on the delivery of core project results

o Truly negotiating strategies for change management


Are We Using The Project Results?

Questions To Think About Asking: o What are the real business values that the projects are supposed to create?

o What will need to change so that value can be realized?

o How will realizing the value be measured?

o How different will that future value be from what is done today?

o What needs to be done to prepare people in being able to use the results? To deliver that value?

In Essence, These Are Elaborations Of: o Truly understanding the business case drivers

o Proactively planning for change management in very real terms


What Do We Need To Do To Make It Stick?

Effective Project Portfolio Management Requires o Accountability

– People need to understand their roles

o Visibility

– Each role needs relevant information that is appropriate for their role

o Clarity

– We need a consistent way of integrating, supporting and managing

Good Software Is A Key Resource In Making PPM Stick o The process needs to be supported, and there need to be conventions for its use

o Different portfolio structures need to be supported and managed

– Strategy portfolios

– Resource portfolios

– Application portfolios

o Each role needs information presented at the level appropriate for their role

o Information needs to be available and accessible where and when people need it

Seeing the Whole Picture with Innotas Cloud Portfolio

Management

© Innotas 2013| Confidential

© Innotas Confidential - 2013

Visibility

Transparency and a

single source of truth for

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Control

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down governance and

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you take

Ease

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ANALYTICS & DASHBOARDS

EXISTING ARCHITECTURE

DEMAND MANAGEMENT PROJECT PORTFOLIO MANAGEMENT APP PORTFOLIO MANAGEMENT

CAPACITY & DEMAND PLANNING

Innotas Cloud Portfolio Management

INTEGRATION ENGINE

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Project Portfolios


Alignment


Resource Management


Decisions


Contact Us

Phone: +1 866-692-7362

For questions or a Demo, send an email to: [email protected]

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Innotas Contact Info Mark Mullaly Contact

Info • Phone: +1 416-971-3335

• [email protected]

• Follow Mark on Twitter: @markmullaly

mailto:[email protected]