Stop the Insanity: A Treatment Plan for Portfolio Management Anxiety

Featured Presenter:Terry Melnik

VP of Client StrategyPowerSteering Software

Welcome! Thank you for joining us. A few things to note before we start:

All attendee phone lines will be muted during the presentation.

You  can access audio via teleconference or your PC.  There is no hold music.

You may submit questions using the Q&A panel in the bottom right. Questions will be addressed at the end of the session.

We will email the slides and recording to all attendees within a few days.

STOP THE INSANITYA Treatment Plan forPortfolio Management Anxiety

2

Presented byTerry MelnikVP of Client Strategy

IT GovernanceNew ProductDevelopment

PerformanceImprovement

Business PMOProfessional Services 

Automation

Business‐Driven PPM Clients

Agenda

4

Too Much Demand – Dealing with A Key Stressor

Conflicting Priorities – Taking Control

Resource Optimization – It’s going to be OK

Financial Anxiety – Delivering Tangible ROI

Planning for the Future – Where do you see your portfolio in 5 yrs?

Reaching Portfolio Nirvana

“Imagine you’re sitting in a wide open field, all alone, and able to collect your thoughts…”

A Clean Slate 

5

“Imagine you’re sitting in a wide open field, all alone, and able to collect your thoughts…”

No Active Projects

All Resources Available

All Budgets Open

All Projects Prioritized Clearly

A Clean Slate 

6

TOO MANY DEMANDS

7

Dealing with a Key Stressor

The PPM Challenge

Organizational Structures

Functional ViewO

ther Stakeholders

Business Segments

Business Units

Geographic Markets

Innovation / R&D

Sales

Operations

Strategic Planning

Finance

Risk

Product Lines

Marketing Dem

and

Resources ?Results

Pulled in Different Directions

9

Weak mechanisms for reviewing and triaging demand

Not enough timeBudget process too rigid to be

agile

Reports Already Out-of-Date

Too many projects, initiatives, objectives

Never enough budget to do it allNot enough people

Too few release cycles

Poorly defined goals

The Foundation

10

• Do I have a definitive list of all projects and their details underway?

• Is this list up to date?• Do I know which project is most important?  How do I even 

define which project is most important?• Do I know how much effort each will take to complete?• Which resource type or role is most limited?

Scarcity is the fundamental economic problem of having seemingly unlimited human needs and wants, in a world of limited resources.

What is the best combination of resources and actions we can use to maximize output and delivery?

Why Selection is Important 

11

12

Being Pulled in Different Directions ‐ Priority, Budget, Resources, Time

CONFLICTING PRIORITIESTaking Control

What We Hear

14

I need my project done now!

We’re running behind!

I can’t wait for the next release! I need more

people!

This is the most important project!

15

Understanding Different Prioritization Methods is Key

16

Articulating Priority

Talking their language:

Rank:  Each opportunity sorted against each other

Shareholder Value:  How supportive is the sponsor behind this initiative?

Scorecard Value:  Score using a common comparison

Financial Value:  ROI, NPV, Net Benefits

Resource Needs:  How many people, FTEs, specific roles do we need to do this project?

Strategic Value:  How well does this project align with our goals?

RESOURCE OPTIMIZATIONIt’s Going To Be OK

Resource Management Options

18

At the Project Level

At the Phase Level

At the Task Level

Less granularLess complexLess overhead

More granularMore complex

More governance

19

What is the current and upcoming demand on each key resource type?

Get Ahead of the Curve

The Problem With Resource Leveling

20

By the way…you should never do this…

Commitment

Loyalty

Personal Investment

Team Momentum

Team Synergy

We’re Only Human

21

FINANCIAL ANXIETYDelivering Tangible ROI

Financial andOperational Elements

Financials

Actual Spend

Actual Benefits

ROI

TCO

Value

CustomerSatisfaction

Goal Attainment

KPIs(Customer Satisfaction,

Market Share, Compliance)

Are we realizing the expected value and benefit?

Successful Benefits Realization

Show Me The Money!

PLANNING FOR THE FUTUREWhere Do You See Your Portfolio in Five Years?

26

The Five Year Plan Myth

27

Hoshin Kanri(Compass Control)

(Direction, Execution)

Crystal ballin’(stick your thumb in the air)

VS.

The Five Year Plan

28

Successful Execution

29

REACHING PORTFOLIO NIRVANA

Organizational Structures

Functional ViewO

ther Stakeholders

Business Segments

Business Units

Geographic Markets

Innovation / R&D

Sales

Operations

Strategic Planning

Finance

Risk

Product Lines

Marketing Dem

and Analyze

OptimizedDelivery $

DocumentedImprovedResults

An efficient governance process will create an optimized funnel of delivered services, often resulting in 5% - 30% improvements in cost, benefits, productivity, and service levels…*

IT Governance

* Documented by Gartner, McKinsey, Forrester, Customer Testimonials, and others

IT Services

Fine Oiled Machine

Pulled in Different Directions

32

Weak mechanisms for reviewing and triaging demand

Not enough timeBudget process too rigid to be

agile

Reports Already Out-of-Date

Too many projects, initiatives, objectives

Never enough budget to do it allNot enough people

Too few release cycles

Poorly defined goals

Pulled in Different Directions

33

Weak mechanisms for reviewing and triaging demand

Not enough timeBudget process too rigid to be

agile

Reports Already Out-of-Date

Too many projects, initiatives, objectives

Never enough budget to do it allNot enough people

Too few release cycles

Poorly defined goals

1. Implement a system for understanding stakeholders’ objectives.  Use it to prioritize projects

2. Conduct a study to gather all resource’s skill sets:  abilities, levels, interests

3. Keep looking far forward;  Identify resource bottlenecks early

4. Consider financials as both cost investment and benefits yielded when reporting on financials

5. Don’t forget, you’re only human…

Homework:  5 Action Items

34

Closing Recommendation

35

QUESTIONS?

Please submit your questions via the Q&A panel.

We will email the recording & slides to all participants within a few business days.

To contact today’s speaker directly, email tmelnik@psteering.com.

36