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Strategic Leadership and Project Portfolio Management

Rick Clare PMP®, CBAP®, CSM, MSPM

634 Alpha Drive • Pittsburgh, PA 15238 • (888) 762-3683 • Fax (412) 963-8618

®

November 11-15, 2013

Consulting and Training (Virtual, Public and Private Training)

ü  Project Management Training & Consulting ü  Business Analysis Training & Consulting ü  PM and BA Solution Consulting

IT Staffing and Placement ü  IT Staffing ü  Project Management Consulting ü  Business Analysis Consulting

Company Background

©PMCentersUSA - November 11-15, 2013 3

•  Explain the characteristics of strategic leadership

•  Describe a high-value PMO and how project personnel fit into this kind of organization

•  Explain how Project Portfolio Management is accomplished at the highest level

•  Describe the characteristics of a senior executive

•  Know how to prepare oneself for a role in a high-value PMO

Presentation Objectives


1.  Strategic Leadership

2.  The Business Perspective

3.  The PMO (room for us all)

4.  Project Selection and Portfolio Management

5.  The Senior Executive

6.  Preparing Yourself for Leadership

Presentation Topics


•  Leadership

•  Management

•  Tactical vs Strategic

•  Strategic Planning

1. Strategic Leadership


•  A process where someone influences a group of individuals to achieve a common goal

•  Steps taken to produce change and movement •  A set of personality traits •  A pattern of behavior •  An observed outcome •  …….

Leadership

Leadership is very hard to define, but we all know it when we see it!


•  The use of a process to bring desired tasks to completion

•  The application of skills to support order and consistency

•  Planning, organizing, staffing and controlling

•  Bringing order out of chaos!

Management


•  Most scholars believe the two are very different

•  Quite often management comes off as a poor cousin to leadership - done by those not capable of “being a real leader”

Leadership versus Management

Our position is that both are needed for project success


•  Leadership without Management – uncontrolled change and chaos

•  Management without Leadership – resistance to change and an inability to see beyond the now

•  Management and Leadership – Guided vision, brought into existence under control so as to maximize effectiveness

Leadership & Management: Together

Leaders do the right things

Managers do things right


•  Leadership brought to bear to get a specific set of tasks done

•  Leadership performed on a daily basis to achieve goals

•  Not another name for Management – this is leadership, just done at a more detailed, usually lower, level

Tactical Leadership


•  Leadership at higher levels •  The focus is on identifying needed change and

bringing that into existence •  Strategic leadership is about changing

the organization – these leaders make policy

•  Strategic Leaders: §  Give a sense of direction to the organization §  Are communicators of vision

Strategic Leadership


•  Eloquence, Vision and Consistency

•  Commitment

•  Well Informed

•  Willingness to Delegate

•  Astute Use of Power

•  Emotional Intelligence

Successful Strategic Leadership

Hill and Jones, Essentials of Strategic Management, 3rd Ed., Cengage, 2012


• Develop corporate mission, vision, strategy and major goals

• Analyze competitive environment to identify threats and opportunities

• Analyze internal corporate environment to identify strengths and weaknesses

• Select strategies that address the SWOT and that are in accordance with the mission and goals

•  Implement the strategies

Strategic Planning in a Nutshell


•  Business and Competitive Advantage

•  Leadership in Business

•  Business Strategies

2. The Business Perspective


•  Leadership in Business

•  The Macro Environment

•  Business Strategies

•  Strategies for Growing a Business

Business & Competitive Advantage

These things must become part of your world!


•  Strategic leadership exists and is needed in many places: politics, military, humanitarian

•  Our focus here is on Business:

§  This presentation is targeted at BA’s and PM’s, and we work inside a business

§  Your involvement in Strategic leadership will follow your career, in all likelihood

§  An understanding of business, not just this business or department, is needed!

Leadership in Business


•  Businesses exist and function inside a larger environment that brings certain pressures to bear

• Called the Macro Environment or Porter’s Five Forces

The Macro Environment

New Entrants

Suppliers Substitutes

Buyers

Rivals

Company

The Economy

Social Values Technology


Positioning

• Customer Needs and Product Differentiation

• Customer Groups and Market Segmentation

• Distinctive Competencies

Business Strategies

Strategy

• Cost Leadership

• Differentiation

•  Focus Strategy


•  Internal Ventures – fund their own expansion using profits from existing departments

•  Acquisitions – purchase an organization with existing competencies or desired assets

•  Strategic Alliances – partner with an organization with existing competencies

•  Franchising – offer your branding for compensation

How Does a Company Grow?


•  Why are we talking about PMO?

•  Different PMO Structures

•  The High-Value PMO (Room for us all)

3. The PMO


•  PMO means Project Management Office – we are Business Analysts!

•  We have our own organization called a BA COE – what do I care about a PMO for??

Why Are We Talking About PMO?

Because at the highest level, the largest form of a PMO controls everything about

projects – the BA is a major player in such an organization


Different PMO Structures •  Single-person office providing advice •  Small group – owners/enforcers of the PM

processes •  Department that all PM’s report to •  Larger organization that “owns” all PM’s and

BA’s •  Highest level - all project selection, decisions,

management and execution is controlled here:

The High-Value PMO


•  Represents for companies what Air Traffic Control does for pilots – safety, value, speed and efficiency

•  Drives higher return on investment for the organization

•  Helps the company achieve its strategic goals – an arm of senior management

•  Supports executives and the project staff •  Provides centralized control for all project-related

matters

The High-Value PMO Room for us all


• Project selection and pursuit of strategic goals

• Project process

• Centralized project repository

• Training, coaching and mentoring

• Full personnel reporting structure

• Project status reporting all the way up

• Centralized resource allocation

Components of a High-Value PMO

Advanced Project Portfolio Management and the PMO, Kendall and Rollins 2003


•  Try to do too much at one time •  Insufficient buy-in from senior executives •  Positioned at too low a level in the organization •  PMO isolates itself from the PM’s and BA’s, and just

tries to “collect information” for dashboards •  Trying to solve just one problem, like project resource

allocation or process confusion, without thinking about the context of all problems

•  Focus on supply and cost without considering marketing •  Seen as a threat or additional overhead

Reasons for PMO Failure


• Major players on all successful projects

• BA training, coaching and mentoring would be covered alongside that for the PM’s, as would the processes

• Project selection: Preparing and presenting business cases is Enterprise Analysis

• Think about this: Who should lead such an organization and what would be that leader’s characteristics?

BA’s in a High-Value PMO


•  Project Selection Objectives

•  Portfolios and Portfolio Management

•  Role of the Portfolio Manager/PMO

•  Responsibilities of the Portfolio Manager/PMO

•  Organizational Positioning of this Element

4. Project Selection… …and Portfolio Management


•  Address organization vision & objectives •  Consider organizational structure and areas •  Create measurable goals •  Allocate funds to different types of initiatives •  Consider portfolio benefits and value expected •  Solidify financial analysis methodology •  Consider resources required •  Create reusable prioritization model •  Consider risk tolerance

Project Selection Objectives


Portfolio Definition: a component collection of programs, projects, and/or operations managed as a group to achieve strategic objectives

§  At the highest level, consists of all corporate projects

§  Portfolio components may not necessarily be interdependent or have related objectives

§  Portfolio components are quantifiable – they can be measured, ranked and prioritized

*This definition is taken from the Glossary of The Standard for Portfolio Management, Third Edition, Project Management Institute, Inc., 2013

Portfolios and Portfolio Management


From The Standard for Portfolio Management, Third Edition, Project Management Institute, Inc., 2013 Figure 1-1, Page 3

High-level View of a Portfolio


•  Responsible for the execution of the management process

•  Focus on “doing the right projects” while Program and Project Managers focus on “doing projects right”

•  In a high-value PMO, this is happening at the highest levels of the organization, so the role becomes one of strategic leadership

Role of the Portfolio Manager/PMO


• Establishing and maintaining: §  Framework and methodology §  Processes §  Appropriate infrastructure and systems

• Guiding the selection, prioritizaton, balancing and termination of projects, programs and portfolios

• Reviewing, reallocating, reprioritizing and optimizing

• Providing stakeholders with timely assessment of selection, prioritization and performance

Portfolio Mgr/PMO Responsibilities


• Measuring & monitoring value through performance metrics

• Achieving the information needs of stakeholders

• Meeting legal and regulatory requirements

• Supporting executive decision making

•  Influencing active executive sponsorship

• Participating in program and project reviews

Responsibilities (Continued)



Organizational Context



Portfolio Roadmap Example


Who will the Portfolio Manager/PMO be?

Who will run this element of the organization?

Any reason it can’t be you?

What do you need to do now?

Where Do You Fit In?


•  The Dilbert vision of senior executives is not real, although it is very funny!

•  Most were promoted for competence and most are good at their jobs

•  If you want to move into those ranks, you have to start supporting them

•  To support them, you have to understand them and what they need to bring about their vision

5. The Senior Executive (SE) Senior Executives Need Your Help


• Vision can be very emotional, but most SE’s have learned to control that – they need facts

• They are very busy and have little time to waste – summarize for them and get right to the point

• They are driven by monetary decisions – convert everything into hard numbers and avoid “intangible benefits”

• Figure out their vision and try and support it with information or suggestions

SEs: What Makes Them Tick?


• Most SE’s came up through the ranks in some manner, so they will have residual skills such as accounting, project management or manufacturing

• Their current knowledge base, however, is business-focused

• The will have vast domain knowledge, but only that needed to support their business decisions

• They rely on others to hold detailed subject matter knowledge and to produce it as required

SE’s – What Do They Know?


• MBA or another Master’s Degree

• Perform a self-assessment, focusing on your leadership abilities – address delinquencies

• Move to a position with more SE contact

• Be visible and network

• Get a mentor

• Work on your resume!

6. Preparing Yourself for Leadership


•  Interpersonal skills

•  Cost, budget and fiscal training

•  Quality disciplines such as Lean or Six Sigma

•  Study high-performance organizations

•  Take on public speaking opportunities

•  Writing training

•  Analytical thinking training

Leadership Self Training


1.  Strategic Leadership

2.  The Business Perspective

3.  The PMO (room for us all)

4.  Project Selection and Portfolio Management

5.  The Senior Executive

6.  Preparing Yourself

Review and Takeaways

Questions?

http://www.pmcentersusa.com Website:

[email protected] Email Address:

Toll Free: 888-762-3683

Rick Clare CBAP, PMP, CSM, MSPM PMCentersUSA BA Practice Director

44 ©PMCentersUSA - November 11-15, 2013

Name: Rick Clare, PMP®, CBAP®, CSM, MSPM

Email: [email protected]

Phone: 412-303-9878

Contact Information

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Strategic Leadership and Project Portfolio · PDF fileStrategic Leadership and Project Portfolio Management ... • Select strategies that address the SWOT and that ... • Drives