2016 Get the most from your project portfolio

26
GET THE MOST FROM YOUR PROJECT PORTFOLIO Philippe Husser

Transcript of 2016 Get the most from your project portfolio

Page 1: 2016 Get the most from your project portfolio

GET THE MOST FROM YOUR PROJECT PORTFOLIO

Philippe Husser

Page 2: 2016 Get the most from your project portfolio

Executive Summary

• There is a correlation between a organization’s performance and its ability to successfully implement progress initiatives.

• However most large complex organization’s struggle to manage a high-impact portfolio of progress initiatives.

• Increase your organization’s performance by managing effectively a Progress Initiative Portfolio with the Progress Initiative Management System PIMS.

• PIMS success is based on a Community of Progress Portfolio Managers, on a Dual Operating System linked to the legacy planning system, and on a Web-Application.

• PIMS is affordable, user-friendly, 24X7, secured, with up to 15 000 actions and as many users, linked to the legacy planning system, delivering a single version of truth on progress and impact to Corporate and Decentralized organizations worldwide.

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Page 3: 2016 Get the most from your project portfolio

There is a correlation between a organization’s performance and its ability to successfully implement progress initiatives

3

62 56 51 38

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Well aboveaverage

Somewhatabove

average

Average Somewhatbelow

average

Well belowaverage

% Strategic Initiative Successfully Implemented

Source : Economist Intelligence Unit’s March 2013 global survey and BCG Strategic Initiative Management: The PMO Imperative, November 11, 2013

ILLUSTRATION

Organization’s financial performance compared with peers

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However most large complex organization’s struggle to manage a high-impact portfolio of progress initiatives

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Source : Economist Intelligence Unit’s March 2013 global survey and BCG Strategic Initiative Management: The PMO Imperative, November 11, 2013

Single most important factor for initiative lack of success ?

31

21

15

12

5

Lack of clearly defined milestones andobjectives

Lack of commitment by seniormanagement

Poor communication

Employee resistance

Insufficient funding

%

ILLUSTRATION

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A Portfolio of Progress Initiatives Creates the Link Between the Organization’s Ambitions and a Set of Vital Few Initiatives

• A solution is offered by a Progress Initiative Management System (PIMS) managing as a group a collection of sub-portfolios, programs, projects, or operations to achieve the strategic objectives of an organization

• PIMS aligns with organizational strategies by selecting the right initiatives or projects required by the strategy, prioritizing the work and providing the needed resources

• Success is measured in terms of the aggregate investment performance and benefits realization of the portfolio

• Portfolio managers monitor strategic changes and aggregate resource allocation, performance, results, and risk of the portfolio

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PIMS

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PIMS Increases your Organization’s Performance by Managing Effectively its Progress Initiative Portfolio

• Collaborative Web-application with a « Single Version of Truth » Accessible Anywhere Anytime thru Single Data Entry

• Multiple Immediate Visibility on Data Entered to Authorized Users

• Encrypted Data Secured Guarantying High Confidentiality Level

• Multi-year Rolling Planning and Monitoring of Initiatives

• Smart, Simple, by Exception Management (Milestones, Impacts, Issues)

• Functional Performance (horizontal) and Business Entity Performance (Vertical) Coherence and Alignment

• Culture of Change Encouraged thru Organization-wide Community of PMOs Supporting the Progress Initiative Portfolio Management

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KEY BENEFITS

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The Portfolios can be Managed by Organization thanks to the Web-application Vertical Structure Based on 4 Levels

Organization

Initiative Initiative

Project Project

Delivrable Delivrable Delivrable

Organization

Level 1 - Initiative

Level 2 - Project

Level 3 - Deliverables Start date

End date

Impact KPI*s

Consolidation of KPI*s

and dates

Consolidation of KPI*s

and dates

* KPI : Key Performance Indicator 7

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The Portfolios can also be Managed by Function thanks to the Web-application Horizontal Structure Capability

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Corporate 1

Initiative A Initiative B

Project

B2

Project

B1

Department 2

Initiative E Initiative F

Project

F2

Project

F1

Location 3

Initiative H

Project

H1

Functional or Transversal Portfolios of Initiatives and Projects

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PIMS is a Rolling Dual Operating System Synchronized with the Legacy Organization’s Steering System

Executive Committee

Strategic Teams

Tactical Teams

Progress Priority Portfolio Updates

Executive Team Priorities

1 Strategic Phase 2 Tactical Phase 3

4

Portfolio Performance (Benefit Realization, Progress, What’s Important Now)

Operational Phase Reviews of Portfolio

Performance

Progress Initiative Portfolio Updates

Progress Initiative Portfolio Updates (Scorecard and Deliverables)

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ILLUSTRATION

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The Portfolio Operating System is a four-step process

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Define Strategic Objectives and

KPIs

Strategic Process

Identify Strategic Initiatives and build Portfolio

Portfolio Process

Manage Initiatives and Deliver Impact

Project Process

Embed Initiative Management in

Governance

Governance Process 1 2 3 4

• Sponsorship • Strategic Themes • Strategy Map • Balanced Scorecard • Performance Drivers • Objectives • KPIs • Targets • Capacity planning • Budget

• Identification • Categorization • Evaluation • Prioritization • Balancing • Selection • Authorization

• Chartes projets • Ressources et budget • Roadmaps et livrables • Benefit Realization

Plan • Jalons et Gains • Risques • Clôture des projets et

validation des gains

• Calendrier des revues de portefeuille

• Revue de la performance du portefeuille

• Evolutions du portefeuille

• Résolution des problèmes

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The Portfolio Management relies on 16 Processes

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Knowledge Areas

Process Groups

Defining Process Group Aligning Process Group Authorizing and Controlling

Process Group

Portfolio Strategic Management

4.1 Develop Portfolio Strategic Plan 4.2 Develop Portfolio Charter 4.3 Define Portfolio Roadmap

4.4 Manage Strategic Change

Portfolio Governance Management

5.1 Develop Portfolio Management Plan 5.2 Define Portfolio

5.3 Optimize Portfolio 5.4 Authorize Portfolio 5.5 Provide Portfolio Oversight

Portfolio Performance Management

6.1 Develop Portfolio Performance Management Plan

6.2 Manage Supply and Demand 6.3 Manage Portfolio Value

Portfolio Communication Management

7.1 Develop Portfolio Communication Management Plan

7.2 Manage Portfolio Information

Portfolio Risk Management

8.1 Develop Portfolio Risk Management Plan

8.2 Manage Portfolio Risks

Source : PMI – Portfolio Management

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Each Management Level Takes Decisions Based on a Single Screen View of Their Portfolio Progress, KPIs*, WIN**

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* KPI : Key Performance Indicator **WIN : What’s Important Now to Do to Achieve Milestones and Targets Source : Roland Berger RBPoint powered web-application

ILLUSTRATION

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The Portfolio Management System Must be Run by Corporate and Decentralized Initiative Portfolio Managers

• A Portfolio, Program, or Project Management Office (PMO) is an organizational structure that may be used to standardize the Portfolio, Program, or Project-related governance processes and facilitate the sharing of resources, methodologies, tools and techniques.

• Some organizations find that having an organization-wide PMO, sometimes called a Center of Excellence, is an effective integrating function because it has visibility of and influence on all related Portfolio, Program, or Project Management activities.

• These PMO are value oriented more than process oriented. They manage the inputs and outputs of their Portfolio. They monitor and alert management by exception on milestones and impact realization. They focus on the top 10 most important items. They are forward looking more than backward looking. They force decisions.

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These Portfolio Management Officers and Initiative Managers Belong to a Professionalized Organization-wide Community

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Corporate 1

Initiative A Initiative B

Project

B2

Project

B1

Department 2

Initiative E Initiative F

Project

F2

Project

F1

Location 3

Initiative H

Project

H1

ILLUSTRATION

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Corporate and Decentralized Initiative Portfolio Managers Have Defined Roles and Responsibilities

Corporate PMO

• Establishing and maintaining a framework and a methodology

• Establishing and maintaining relevant initiative portfolio management processes

• Establishing and maintaining the appropriate Web-platform supporting the process

• Meeting legal and regulatory requirements

• Establishing and coaching the appropriate community of local progress initiative portfolios

• Guiding the selection, prioritization, balancing, and termination of Group initiatives

• Providing key stakeholders with timely assessment of initiatives milestones, impact and issues

Decentralized PMO

• Deploying and running management processes in the local entity

• Establishing and coaching the appropriate community of local entity initiative and Project Managers

• Guiding the selection, prioritization, balancing, and termination of entity initiatives and projects

• Providing local entity Management Team with timely assessment of initiative portfolio progress, impact and issues

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One of the roles of the PMOs is to identify and counter the various biases endangering the Portfolio Performance

Page 16 Source: The Case for Behavioral Strategy, McKinsey 2010

bias

Stability

Action

Social

Interest

Model

Create a tendency toward inertia in the presence of

uncertainty

Lead us to recognize patterns even when there

are none

Drive us to take action less thoughtfully than we should

Arise in the presence of conflicting incentives, including nonmonetary

and even purely emotional ones

Arise from the preference for harmony over conflict

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Prendre conscience des biais cognitifs

• Les biais orientés « action » – Optimisme excessif, confiance trop grande, sous-estimation des propres évolutions des concurrents – Nous surestimons ce que nous savons, nous sous-estimons ce que nous ne savons pas – L’inattendu a presque toujours une seule conséquence : l’augmentation du coût et du délai de réalisation d’un projet

• Les biais orientés « intérêt » – Manque d’alignement des actes de reconnaissance, attaches émotionnelles, mauvaise compréhension des objectifs

stratégiques

• Les biais orientés « modèles » – Attache à des leaders d’avant, à des expériences passées, à un champion, à des croyances – Erreur de narration, ou comment nous nous leurrons avec des histoires et des anecdotes – Erreur de confirmation ou propension à ne pas considérer la partie vierge de notre bibliothèque – Problème de Diagoras

• Les biais orientés « stabilité » – Ancrage sur des valeurs d’avant, attention insuffisante aux coûts cachés, préférence pour le statu quo, refus des pertes

supérieure à la recherche des gains – Nous attribuons nos réussites à nos compétences, et nos échecs aux événements extérieurs que nous ne contrôlons

pas

• Les biais orientés « social » – Pensée de groupe, suivi privilégié des idées des leaders en place

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A Portfolio Maturity Model helps the PMO and the Portfolio Eco-system work on what will improve its performance

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Système de pilotage initiatives Impacts

La maturité des acteurs clés en matière de pilotage de projets, programmes et

portefeuilles est évaluée et un plan d’action d’amélioration est établi

Focalisées sur les priorités définies par l’organisation

Clairement définis, quantifiés, et suivis à l’aide d’indicateurs éclairant le futur

Un processus de pilotage du portefeuille synchronisé avec les grandes points de rencontre du système de pilotage de

l’organisation est établi, il est respecté et des actions d’amélioration sont en

place

Définies avec un lotissement structuré logique et des livrables et jalons à

échéances courtes

Avec un plan de réalisation des impacts cohérent avec le plan de réalisation des

jalons clés

Des actions sont clairement identifiées dont l’objectif est de réduire les risques, respecter les plannings et atteindre les

niveaux d’impacts recherchés

Avec des responsabilités clairement identifiées sur chaque composant en

portefeuille

Pilotés en cible, réalisé et reprévu et validés par la fonction finance de

l’entité concernée

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A Portfolio Maturity Model helps the PMO and the Portfolio Eco-system work on what will improve its performance

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Système de pilotage initiatives Impacts

La maturité des acteurs clés en matière de pilotage de projets, programmes et

portefeuilles est évaluée et un plan d’action d’amélioration est établi

Focalisées sur les priorités définies par l’organisation

Clairement définis, quantifiés, et suivis à l’aide d’indicateurs éclairant le futur

Un processus de pilotage du portefeuille synchronisé avec les grandes points de rencontre du système de pilotage de

l’organisation est établi, il est respecté et des actions d’amélioration sont en

place

Définies avec un lotissement structuré logique et des livrables et jalons à

échéances courtes

Avec un plan de réalisation des impacts cohérent avec le plan de réalisation des

jalons clés

Des actions sont clairement identifiées dont l’objectif est de réduire les risques, respecter les plannings et atteindre les

niveaux d’impacts recherchés

Avec des responsabilités clairement identifiées sur chaque composant en

portefeuille

Pilotés en cible, réalisé et reprévu et validés par la fonction finance de

l’entité concernée

Cartographie des PMOs

Calendrier

PIMS

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Portfolio Manager (porté par le DQ, le BPC…) et PfMO sont en

place. Mais leur maturité est variable

Rôle au niveau attendu

GERANT

DGDI DGOP DGCD DGPZ DGAQ DGMR DGP DGF

DGD DGAD

DGRD

ERM

TCI

DGSI

DGA

ZONES ZONES Zones Géo

Progrès

LPTC

DLPS

LPMAT

TCO

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PS Prod. System

MV Mktg & Ventes

SC Service au Client

LPPL

MBS

EUO AIM E2A ADS

ZG

TC

PL

EUR CHN NA

Detailed ZG / UOT PIMS network

PS

AV AG GC 2R

Rôle seulement partiellement pris en charge

Rôle non pris en charge actuellement

Niveau de maturité du réseau PIMS actuel : Rôles en cible :

Sponsor / Leader

PMO

EMI MP PO TEC

T3

Simplify

Serve Customer

Digitize

Empower

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La mise à jour est cohérente avec les besoins du calendrier de pilotage et des actions d’amélioration sont réalisées

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8112

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Page 22: 2016 Get the most from your project portfolio

L’alignement et la focalisation sont évalués et font l’objet d’actions d’améliorations

Page 22

ENTITES

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Simplify_Efficiency RDI LPTC 1 1 1 1 4

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Simplify_MBS++ 1 2 1 4

Simplify_Mode de Fonctionnement and Irritants 2 1 2 5

Simplify_Mutualize Time Zone Europe Support + Business 2 2

Simplify_Other Projects 2 4 9 4 2 1 1 4 27

undefined 2 4 1 30 8 1 7 16 10 1 4 4 7 1 3 2 2 2 2 1 11 119

Total général 6 4 1 47 40 43 118 26 7 30 79 6 3 10 1 4 4 7 1 5 2 3 6 1 6 1 4 2 11 478

Page 23: 2016 Get the most from your project portfolio

Les impacts sont évalués et font l’objet d’actions correctives si besoin

Page 23

PA 2016 Étiquettes de colonnes

ENTITES DG

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Simplify_Efficiency RDI LPTC 1 1 1 1 4

Simplify_IS2018 3 3

Simplify_Koliber / Process Optimization 66 33 19 4 17 10 13 2 164

Simplify_Lean Customer Centric 2 2

Simplify_MBS++ 1 1 1 3

Simplify_Mode de Fonctionnement and Irritants 1 1 1 3

Simplify_Mutualize Time Zone Europe Support + Business 1 1

Simplify_Other Projects 6 2 1 3 1 1 2 1 17

undefined 1 15 5 15 1 10 10 2 4 4 4 2 2 1 2 3 2 2 1 1 1 88

Total général 67 48 24 20 19 17 16 10 10 6 5 4 4 4 4 3 3 3 3 3 2 2 2 1 1 1 1 1 1 285

ENTITES PA 2016 PA 2017 PA 2018 PA 2019 PA 2020

Simplify_Efficiency RDI LPTC 4 0 0 0 0

Simplify_IS2018 3 0 0 0 0

Simplify_Koliber / Process Optimization 164 188,5 53 14 7

Simplify_Lean Customer Centric 2 0 0 0 0

Simplify_MBS++ 3 -10 0 0 0

Simplify_Mode de Fonctionnement and Irritants 3 5 0 0 0

Simplify_Mutualize Time Zone Europe Support + Business 1 10 0 0 0

Simplify_Other Projects 17 63,5 67 11 0

undefined 88 49 8 5 0

Total général 285 306 128 30 7

Page 24: 2016 Get the most from your project portfolio

Les impacts sont mis à jour et font l’objet d’actions correctives si besoin

Page 24

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Page 25: 2016 Get the most from your project portfolio

• Elevate Portfolio Management to a Strategic Level

– Aligned with Entity Strategic Objectives – Impact Defined (KPI*, €, FTE) at Project Level – Key Milestones Defined with Start and End Dates at the Deliverable Level

• Create a Portfolio-Minded Culture

– Management Teams Trained to Manage Portfolio Performance – Entity PMO*** Identified and Trained to PIMS and Portfolio Management – Initiative / Project / Deliverable Accountables Trained to Project Management

• Implement Appropriate Tools and Practices

– Short Monthly Reviews Rather Than Longer Quarterly Reviews – Focus On Progress, Impact And WIN** and Management by Exception – Fast Decisions Taken When Needed

The Successful Implementation and Management of PIMS Relies on 3 Key Success Factors

25

**WIN : What’s Important Now to Do to Achieve Milestones and Targets *** PMO : Portfolio Management Officer

* KPI : Key Performance Indicator

Page 26: 2016 Get the most from your project portfolio

GET THE MOST FROM YOUR PROJECT PORTFOLIO

Philippe Husser - 2015