Presentation by the Portfolio SIG on portfolio management knowledge development

1. Portfolio management
knowledge development
November 2014
Steve Leary
David Dunning
Euan Dean (IDBS)

2. Keeping portfolio management fresh -
discovering what works
• 6:00pm Registration, networking and refreshments
• 6:30pm Portfolio Mgt SIG research and findings
• 7:15pm Presentation - Portfolio mgt & product delivery
• 7:45pm Discussion on exploiting PfM research
• 8:30pm Close
2

3. Portfolio management
knowledge development
November 2014
• What was being sought
• How the process worked
• What was discovered
• How results might be used in future

4. Context
SIG strategic themes
Current
SIG
Future
SIG
Develop new knowledge
Disseminate knowledge
Closer working with other SIGs
Engaging CxO community
SIG members more involved

5. Part 1
5
•People
•Process
•Organisation
•Technology
Complete and validate

6. 6
Part 2
Primary/secondary
P S P
Apm BoK MoP
Validate

7. Findings – key process questions - 1
7
Problem Summary
Proactive &
visible senior
management
commitment
Alignment of
the portfolio
with strategic
objectives
Consistent &
effective
governance
alignment
Shared change
culture &
associated
behaviours
Coordination
through a
portfolio office
Annual budgeting cycles mean finance is often allocated before
real need is understood. P
Business change mechanisms and structures not in place to
support benefit measurement. No continuity within the business
as projects can get delivered by different people to those that
started them to different customers to those who requested them
S S S P
Business practice will need to change. Revolution has its place, but
so does evolution. Pick your fights - know when to compromise
short term to succeed long term.
S S S P
Delivery efficiency and effectiveness not good within an
organisation means that portfolio management is not a priority S P
Due process bypassed for 'good reasons' S S P S S
Habits may have formed which rely on strong leaders rather than
effective collaboration. Portfolio process may be seen as un-
necessary bureaucracy rather than due diligence
P S S S
Ineffective right sizing of approach for emergent projects and
programmes S S P
No ownership means poor process and patchy adoption. Business
system struggles to work effectively and efficiently as a result S S S P

8. Findings – key process questions - 2
8
Problem Summary
Proactive &
visible senior
management
commitment
Alignment of
the portfolio
with strategic
objectives
Consistent &
effective
governance
alignment
Shared change
culture &
associated
behaviours
Coordination
through a
portfolio office
Organisations know there is a problem, but can't express it, and
don't have contemporary knowledge to deduce an answer P S S
Perhaps the wrong approach to design is being taken (ever
engineering phase 1?), or the case for doing it more fully is not
being made effectively enough? Do something simple, get proof
points, develop v2?
P S S
Poor prioritisation and related resource allocation process means
definition is not effective at directing and delivery is not focused
correctly. Sub optimal portfolio outcomes ensue
S S P S
Poor stakeholder engagement in the portfolio ecosystem design
S S P S
Portfolio management 'intrudes' into senior management
domains. Stakeholders may be content with the status quo, not
recognise problems or the answers provided, and this resent
interference. Proof points / persuasion needed?
P S S
Problems on projects are seen as sticks to beat people with rather
than opportunities to improve. No formal method to capture
lessons. No mechanism to get review. No mechanism to share
experience. No mechanism to adapt practice to benefit all.
P S S
The meetings for benefit / portfolio management probably
happen, but are non optimal. Change rather than revolutionise? P S

9. Process references
9
Pillar Problems Answers ID Pillar Category Problem Summary
Proactive and
visible senior
management
commitment
Alignment of
the portfolio
with strategic
objectives
Consistent and
effective
governance
alignment
Shared change
culture and
associated
behaviours
Coordination
through a
portfolio
office
Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating
Process
Constantly review / progress benefit estimation and
realisation. More accurate/realistic initial benefit
analysis and valuation. Is the benefit being realised, the
best that could be achieved in which case the original
estimating process is at fault, If benefit is not being
realised and should be then the BCM and SRO should be
held to account for delivery and an improvement plan
put in place.
Constantly review / progress benefit estimation and
realisation
7
Change Creation /
Sustainment
Projects may start off with a business case, but are the benefits
estimated (as part of that) progressed, especially when delivery
gets more difficult. Do organisations support projects estimating
benefits, and require they keep those up to date to enable re-
prioritisation?
s s p s s
http://www.projectmanagement.c
om/blog/The-Money-Files/2731/
Simple benefit management
guidance, with a discussion
about the realism of taking a
project / programme approach
to benefit realisation.
Identifies the realism which
faces organisations that don’t
do projects regularly, hence do
not get that projects and
programmes can be used to
deliver benefits.
3
Mayer, W. G.,
2014. The
Effect of
Optimism Bias
on the
Decision to
Terminate
Failing
Projects.
Project
Management
Journal, 45(4),
pp. 7-20.
This research is related in that
the literature review looks at
Project, Psychological, Social
and Organisational factors that
affect peoples decisions to
continue with failing projects
which is related to why
people/organisations may not
maintain business cases when
projects become difficult.
Specifically it researches tests
for inherent managerial
optimism when making
decisions to continue troubled
projects. It finds that decision
makers will often escalate
commitment to failing projects
because of over-optimism that
actual benefits outweigh
forecast benefits (in the
business case) and having
sufficient influence to affect
the outcome. Therefore
managers have unrealistic
positive views of failing
projects and failing projects
will deliver better than
expected business benefits.
2
Young, R. et al.,
2012. Is
strategy being
implemented
through
projects?
Contrary
evidence from
a leader in
New Public
Management.
International
Journal of
Project
Management,
30(8), p.887-
900.
This paper reports on the
effectiveness of the project
management and investment
frameworks in the State of
Victoria. It finds project
management and investment
practices comparable to best
practice but also finds 100
billion dollars invested in
projects over the past decade
without any evidence of
improvement in strategic goals.
It concludes that there may be
systemic deficiencies in our
project management and
investment frameworks. It
suggests that deficiencies in
the way projects are currently
selected and managed limit the
capability to realise strategic
goals. Future research to
develop programme
management, portfolio
management and project
governance is recommended to
increase the likelihood that
strategy will be implemented.
?? 2012 Elsevier Ltd. APM and
1
OGC, 2002.
Successful
Delivery
Pocketbook:
Preparation
Getting Ready
for
Programme/Pr
oject
initiation..
Norwich:
Crown
Copyright.
Covers the techniques needed
to understand and maintain
project benefits.
E.g.
- Benefits Cascade between
vision, objectives and
proposed solutions.
- Outcome mapping.
- Benefits management
Strategy.
- Strategic Context
- Achievability / Worth Doing
Matrix
- Options appraisal
- Goal Question Metric (GQM)
- Stakeholder mapping
1
Managing
Benefits
APMG International Guide on
Managing Benefits - a very
comprehensive guide.
1
http://www.fr
edcomm.com/
articles/detail/
stop_guesstim
ating_start_est
imating/
Reasonable overview on how
to achieve better estimates
rather than guesstimates.
2
Process
Align delivery, benefit measurement, and financial
governance cycles. Add benefit reporting to PMO
responsibility
Align delivery, benefit measurement, and financial
governance cycles. Add benefit reporting to PMO
responsibility
8 Conflict with Organisation
Annual budgeting cycles mean finance is often allocated before real
need is understood.
p
http://www.projectmanagement.c
om/discussion-topic/3720/IT-
Budgeting-Versus-Project-or-
Portfolio-Planning
Interesting illustration of how
budgeting cycles do not
support effective selection and
execution of projects /
programmes, and how they are
abused to support headcount
defence rather than benefit
case.
3
Management
of Portfolios
OGC guidance on how to
manage portfolios - in
particular principles that
describe alignment with
current budgeting cycles.
1
Project and
Programme
Accounting
John Chapman,
2006
ISBN-
10:1900391147
Covers designing a financial
approach that works in your
organisation
Process
One place for project information, prioritisation and
approval of projects. Use standards and provide
independent assurance. Single approval authority
based on agreed cost/benefit ratio and alignment to
strategic objectives as criteria for approval.
One place for project information, prioritisation and
approval of projects. Use standards and provide
independent assurance
9 Doing things wrong Due process bypassed for 'good reasons' s s p s s
http://www.projectmanagement.c
om/articles/275994/When-
Strategy-Met-Projects
Why do projects have nothing
to do with strategy
2 MSP/MoP/P2
OGC guidance on how to
manage P3.
1
https://www.g
ov.uk/governm
ent/uploads/sy
stem/uploads/
attachment_da
ta/file/220541/
green_book_co
mplete.pdf
Treasury Green Book 1
http://en.wiki
pedia.org/wiki
/Cost%E2%80%
93benefit_anal
ysis
Cost benefits analysis 2
Process
Change management and timescales processes to be
simple. Create, publicise and enforce use of a common
P3M glossary. Use Champion Challenger model to draw
out differences in terminology.
Change management and timescales processes to be
simple
42
Change Creation /
Sustainment
s p
http://www.projectmanagement.c
om/articles/282203/Do-You-Speak-
Stakeholder-
Examples of when using
practitioner language does not
work with business
stakeholders
3 MSP/MoP/P2
OGC guidance on how to
manage P3M.
1
Managing
Change: Robert
Heller, 1998
ISBN-10:0-7513-
0633-9
Essential Managers guide
covering all aspects of
implementing change
Process Use lead indicators. 43 No Proof of the pudding
Business change mechanisms and structures not in place to support
benefit measurement. No continuity within the business as
projects can get delivered by different people to those that started
them to different customers to those who requested them
s s s p
http://www.pmi.org/Knowledge-
Center/Academic-
Research/~/media/PDF/Surveys/C
arlosSerra-BenefitsRealization-
Summary-EngUS.ashx
Discussion of benefits
realisation tactics and how they
support 'success' in benefits
realisation
2
https://www.g
ov.uk/governm
ent/uploads/sy
stem/uploads/
attachment_da
ta/file/220541/
green_book_co
mplete.pdf
Treasury Green Book 1
http://en.wiki
pedia.org/wiki
/Cost%E2%80%
93benefit_anal
ysis
Cost benefits analysis 2
Process
Gap analysis. I.e. measure current maturity, ideal
maturity target and develop improvement plan to close
the gap.
Gap analysis 48 Starting change
Organisations know there is a problem, but can't express it, and
don't have contemporary knowledge to deduce an answer
p s s
http://www.resultspositive.com/u
ploads/news/files/four-starting-
points.pdf
This is a preamble to a software
solution, but this is an
interesting perspective on
getting PPM off the ground
3
http://onlineli
brary.wiley.co
m/doi/10.1002
/pmj.21307/ful
l
The findings enable managers
to address stakeholders more
effectively through an
increased understanding of
stakeholder behaviour and its
consequences.
Kotter, J. P.,
2007. Leading
Change: Why
Transformation
Efforts Fail.
Harvard
Business
Review,
January.
Most major change
initiatives—whether intended
to boost quality, improve
culture, or
reverse a corporate death
spiral—generate
only lukewarm results. Many
fail miserably.
Why? Kotter maintains that too
many
managers don’t realize
transformation is a
process,
not an event. It advances
through
stages that build on each other.
And it
takes years. Pressured to
accelerate the
process, managers skip stages.
But shortcuts
never work.
Equally troubling, even highly
capable
managers make critical
mistakes—such as
declaring victory too soon.
Result? Loss of
1
Kotter, J. P. &
Cohen, D. S.,
2002. The Heart
of Change:
REAL-LIFE
STORIES OF
HOW PEOPLE
CHANGE THEIR
ORGANIZATIO
NS. Boston,
MA: Harvard
Business
School Press.
By interviewing 400 individuals
from 130 distinct businesses to
get their change sagas,
authors John P. Kotter and Dan
S. Cohen further develop the
approach to organizational
change presented in Kotter’s
Leading Change (1996). Their
central insight is that
organizations change when
their people change. And
people change for emotional
reasons.
The authors warn against trying
to promote transformation in
your organization by relying
purely on spreadsheets or
reports, and provide
background information on
why it is
important also to address
employees’ emotions. They
explain that the best way to
engage
the emotions is not to “tell”
but to “show” – via videos,
displays or even office design.
The visual sense, they point
1
Beer, M. &
Nohria, N.,
2001. Cracking
the Code of
Change.
Harvard
Business
Review,
May–June.
To effect successful change,
first
grasp the
two basic theories of change:
1)Theory E change emphasizes
economic value—as measured
only by shareholder returns.
This “hard” approach boosts
returns through economic
incentives, drastic layoffs, and
restructuring. “Chainsaw Al”
Dunlop’s
firing 11,000 Scott Paper
employees
and selling several
businesses—tripling
shareholder value to $9
billion—is a stunning
example.
2) Theory O change—a “softer”
approach— focuses on
developing corporate culture
and human capability, patiently
building trust and emotional
commitment
to the company through
1
Beer, M.,
Eisenstat, R. A.
& Spector, B.,
1990. Why
Change
Programme
Don't Produce
Change.
Harvard
Business
Review,
November-
December.
Two years after launching a
change program
to counter competitive threats,
a
bank CEO realized his effort
had produced...
no change. Surprising, since he
and
his top executives had
reviewed the company’s
purpose and culture, published
a
mission statement, and
launched programs
(e.g., pay-for-performance
compensation)
designed to push change
throughout the
organization.
But revitalization doesn’t come
from the
top. It starts at an
organization’s periphery,
led by unit managers creating
ad hoc arrangements
to solve concrete problems.
Through
task alignment
1
Manage
ment of
Portfolio
s
OGC
guidance
on how
to
manage
portfolio
s - in
particular
principle
s that
describe
alignmen
t with
current
budgetin
g cycles.
1
Process
Join APM. Establish reason for low maturity via P3M3
assessment, develop improvement plan and implement
plan to improve maturity.
Join APM 49 Organisational ignorance
Delivery efficiency and effectiveness not good within an
organisation means that portfolio management is not a priority
s p
Reyck, B. D. et al., 2005. The impact
of project portfolio management
on information technology
projects. International Journal of
Project Management, Volume 23,
p. 524–537.
The ever-increasing
penetration of projects as a
way to organise work in many
organisations necessitates
effective management of
multiple projects. This has
resulted in a greater interest in
the processes of project
portfolio management (PPM),
with more and
more software tools being
developed to assist and
automate the process. Much of
the early work on PPM
concentrated on the
management
of IT projects, largely from the
perspective of the
management of resources and
risk. Many of the recent articles
have been
by vendors of the software,
promoting the value of the
PPM process. However, the
claims made in those articles
are typically only
supported by anecdotal
evidence. In this paper, we
1 AXELOS.COM
P2, MSP and P3M3 on the
AXELOS.Com site
1
Process
Educate top management - Join APM. Undertake
upskilling via APMP/APMPQ, PRINCE2 and MSP training
as appropriate
Educate top management - Join APM 50 Organisational ignorance
Organisations know there is a problem, but can't express it, and
don't have contemporary knowledge to deduce an answer
p s s
http://www.apmg-
international.com/en/qualificatio
ns/change-management
APMG International Guide on
Making Sense of Change.
Guidance addressing
behavioural aspects is
supposed to be particularly
good.
1
B4BHow
technology and
big data are
reinventing
the customer-
supplier
relationship, JB
Wood, Todd
Hewlin &
Thomas Lah,
2013
ISBN:978-0-
9860462-0-9
A technology and big data book
reviewing B4B model and
customer-supplier
relationships. Chapter 6
discusses capabilities-led
transformation
Process
use KPIs to measure benefits – use organisations pre-
existing measures.
Conduct robust benefit valuation exercise, conduct
independent analysis, capture in Benefits Management
Realisation Plan. Make owner of benefit accountable
for delivery, by signing up to benefits profile delivery.
use KPIs to measure benefits – use organisations pre-
existing measures
51
Change Creation /
Sustainment
Business change mechanisms and structures not in place to support
benefit measurement. No continuity within the business as
projects can get delivered by different people to those that started
them to different customers to those who requested them
s s s p Managing Benefits
APMG International Guide on
Managing Benefits - a very
comprehensive guide.
1
Process
Post event/activity workshops couple with culture
change. Mandate process for lessons identification and
learning before new project/programme is launched.
Behavioural change in seniors required to show that
they value the lessons learned process and problems
being identified early rather than waiting until its too
late.
Post event/activity workshops couple with culture
change
52 Doing things wrong
Problems on projects are seen as sticks to beat people with rather
than opportunities to improve. No formal method to capture
lessons. No mechanism to get review. No mechanism to share
experience. No mechanism to adapt practice to benefit all.
p s s
http://www.tlainc.com/articl82.ht
m
Discussion of a lessons learned
approach as part of a general
knowledge management
approach. Can project LL be
effective if the organisation
does not have an underlying
KM culture?
2
http://www.ar
raspeople.co.u
k/camel-
blog/projectm
anagement/do-
we-really-
learn-from-
lessons-learnt/
Short piece on the subject of
do we really learn from lessons
learnt
2
http://www.pr
ojectsmart.co.
uk/avoid-the-
same-old-
mistakes-by-
focussing-on-
lessons-
learned.php
Good short article on some
practical advice on lessons
learnt and how to make the
process more effective.
2
http://www.ap
m.org.uk/cont
ent/lessons-
learned
APM Blog on Lessons Learnt.
Note interesting comment
from Paul Raynor re "Cranfield
University School of
Management has been doing
some research into what helps
projects to succeed or
contributes to failure. They
have found that the biggest
differentiating factor between
organisations that generally
succeed with their projects and
those that don't is "the
willingness to publish and
distribute lessons learnt"."
1
Process
Quick wins build momentum and give an incentive for
the laggards to join the early adopters. Mandate
process.
Quick wins build momentum and give an incentive for
the laggards to join the early adopters
59 Conflict with Organisation
Portfolio management 'intrudes' into senior management domains.
Stakeholders may be content with the status quo, not recognise
problems or the answers provided, and this resent interference.
Proof points / persuasion needed?
p s s
http://www.sciencedirect.com/sci
ence/article/pii/S026378631200162
7
This sounds just the ticket - but
you have to buy it!!
Alleman, G. et
al., 2003.
Strategies for
Effective
Portfolio
Management,
Arlington, MA:
The Cutter
Consortium.
2
Hirschhorn, L.,
2002.
Campaigning
for Change.
Harvard
Business
Review, July.
Many executives try to change
organizations. Few succeed.
And as most executives who
have lived through change
initiatives will admit, fewer
still want to try again. Who can
blame them for their
reluctance? The process is
terribly painful, the logistics
are enormously complex, the
organization wants deeply not
to change—and the success
rate is abysmal. Yet most
organizations must change, and
change profoundly, if they’re
to stay alive. It’s the oldest
cliché in the book, and it’s also
true. Successful change agents
I’ve observed employ three
distinct but linked campaigns in
their initiatives. A political
campaign creates a coalition
strong enough to support and
guide the initiative. A
marketing campaign taps into
employees’ thoughts and
feelings and also effectively
communicates messages about
2
Jonas, D., 2010.
Empowering
project
portfolio
managers: How
management
involvement
impacts project
portfolio
management
performance.
International
Journal of
Project
Management,
28(8),
pp.818–831.
Available at:
http://linkingh
ub.elsevier.co
m/retrieve/pii
/S02637863100
00980
[Accessed
December 12,
2013].
Along with the increasing
diffusion of project portfolio
management a new managerial
role evolves: the project
portfolio manager. This new
role is supposed to be pivotal
in planning and controlling
complex project landscapes
more effectively and more
efficiently, in implementing
project portfolio management
practices as a management
innovation, and in coping with
traditional conflicts between
line and project managers in
matrix organizations. However,
by empowering project
portfolio managers and giving
their role more clarity and
significance, the complex
power
balance between senior
managers, line managers, and
project managers also has to
change. These changes are
assumed to lead to new
tensions
between traditional key
1
http://www.ap
mg-
international.c
om/en/qualific
ations/change-
management
APMG International Guide on
Making Sense of Change.
Guidance addressing
behavioural aspects is
supposed to be particularly
good.
1
Process
Use existing meetings for BM and PfM, rather than
creating new meetings
Use existing meetings for BM and PfM, rather than
creating new meetings
60 Conflict with Organisation
The meetings for benefit / portfolio management probably happen,
but are non optimal. Change rather than revolutionise?
p s
Project Governance, Ralf Muller,
2009
ISBN:978-0-566-08866-7
Chapter 4 covers governance of
programs and portfolios
including governance shared
with projects and fitting
governance to structure and to
contract type.
Process
use common sense to apply more rules to higher risk/
higher impact projects, and apply lighter touch to lower
risk/ lower cost projects
use common sense to apply more rules to higher risk/
higher impact projects, and apply lighter touch to lower
risk/ lower cost projects
61 Conflict with Organisation
Business practice will need to change. Revolution has its place, but
so does evolution. Pick your fights - know when to compromise
short term to succeed long term.
s s s p MoP
Tailorability of the
methodology.
1
http://www.ap
mg-
international.c
om/en/qualific
ations/change-
management
APMG International Guide on
Making Sense of Change.
Guidance addressing
behavioural aspects is
supposed to be particularly
good.
1
Process
Informed leaders will see the value of good Portfolio
Management and will support/champion its
implementation. However, we do need some good
examples of effective implementation.
79 Conflict with Organisation
Habits may have formed which rely on strong leaders rather than
effective collaboration. Portfolio process may be seen as un-
necessary bureaucracy rather than due diligence
p s s s MoP
Tailorability of the
methodology.
1
http://www.ap
mg-
international.c
om/en/qualific
ations/change-
management
APMG International Guide on
Making Sense of Change.
Guidance addressing
behavioural aspects is
supposed to be particularly
good.
1
Process
Must allow for judgement calls and balancing the
objective & subjective. Introduction of Portfolio
Management should be seen as a change programme
and the benefits that it will deliver should be the
accountability of the SRO. Making someone accountable
for the delivery and benefits to be delivered will enable
a more effective implementation. This statement is
typically made by low P3M maturity organisations. Once
you are at Level 4 you will be able to prove the benefits
of the changes you are making as you will have the
measurement systems in place to do this. London
Underground a great example of this in practice.
Must allow for judgement calls and balancing the
objective & subjective
80 Organisational ignorance
Habits may have formed which rely on strong leaders rather than
effective collaboration. Portfolio process may be seen as un-
necessary bureaucracy rather than due diligence
p s s s
http://www.apmg-
international.com/en/qualificatio
ns/change-management
APMG International Guide on
Making Sense of Change.
Guidance addressing
behavioural aspects is
supposed to be particularly
good.
1
All Change The
project leaders
secret
handbook,
Eddie Obeng,
1996
ISBN: 0-273-
62221-8
Aimed at PMs but learning
apply across PfM. Extensive
chapter on stakeholder
management practicalities
Process
Needs effective leadership and governance to drive the
changes necessary. Effective governance with process
accountability is required to drive effective process
implementation and compliance.
81 Missing Infrastructure
No ownership means poor process and patchy adoption. Business
system struggles to work effectively and efficiently as a result
s s s p P2, MSP and MoP.
These methodologies are all
about making sure the
governance and accountability
system is in place.
1
Project
Governance,
Ralf Muller,
2009
ISBN:978-0-566-
08866-7
Chapter 4 covers governance of
programs and portfolios
including governance shared
with projects and fitting
governance to structure and to
contract type.
Process
Develop & implement improved resource management
& project prioritisation using P3M3 perspectives as a
framework for improvement for resource management
and MoP table 6.7 keys to success to improve
prioritisation system.
Develop & implement improved resource management
& project prioritisation
82 Missing Infrastructure
Poor prioritisation and related resource allocation process means
definition is not effective at directing and delivery is not focused
correctly. Sub optimal portfolio outcomes ensue
s s p s
Sharpe, P. & Keelin, T., 1998. How
Smith Kline Beecham Makes Better
Resource-Allocation Decisions.
Harvard Business Review, March-
April, pp. 45-57.
Major resource-allocation
decisions are never easy. For a
pharmaceuticals company like
SmithKline Beecham, the
problem is this: How do you
make good decisions in a high-
risk, technically complex
business when the information
you need to make those
decisions comes largely from
the project champions who are
competing against one another
for resources? In 1993, the
company experimented with
ways of depoliticizing the
process and improving the
quality of decision making. In
most resource-allocation
processes, project advocates
develop a single plan of action
and present it as the only
viable approach. In SB's new
process, the company found an
effective way to get around the
all-or-nothing thinking that
only reinforces the project-
champion culture. Project
teams were required--and
1
Saaty, T. L.,
1980. The
analytic
hierarchy
process :
planning,
priority
setting,
resource
allocation.
New York:
McGraw Hill
Covers how organisations can
analytically define and
evaluate relative importance of
their strategic drivers into
numerical weighting through
pairwise comparison of each
driver by surveying senior
management/multiple
stakeholders.
1 P3M3
Use P3M3 to determine where
the issues are that need to be
fixed in your organisation.
1
Process
A robust investment appraisal/cost benefits analysis will
underpin the case for change.
110 Starting change
Portfolio management 'intrudes' into senior management domains.
Stakeholders may be content with the status quo, not recognise
problems or the answers provided, and this resent interference.
Proof points / persuasion needed? Funding may not therefore be
forthcoming.
p s s
https://www.gov.uk/government/
uploads/system/uploads/attachm
ent_data/file/220541/green_book
_complete.pdf
Treasury Green Book 1
Project and
Programme
Accounting
John Chapman,
2006
ISBN-
10:1900391147
Practical guide to for
professional services
organisations and IT including
implementing benefits analysis
and issues that maybe
encountered
Process
Effective implementation of change (introduction of
Portfolio Management) requires effective business
change managers in the business to understand what
changes are required for the respective areas of the
business to right size the changes required for their
particular part of the organisation.
111 Conflict with Organisation
Ineffective right sizing of approach for emergent projects and
programmes
s s p
Ernst & Young, 2012. Strategy
deployment through portfolio
management: A risk-based
approach. [Online]
Available at:
http://www.ey.com/Publication/v
wLUAssets/Strategy-deployment-
through-portfolio-
management/$FILE/Insights_on_G
RC_Strategy_deployment_through
_Portfolio_Management_AU1275.p
df
Covers many of the challenges
and risks facing portfolio
management from a strategy,
governance, management and
data perspectives. Then
suggests a risk based approach
to overcome ppm challenges.
2
http://www.ap
mg-
international.c
om/en/qualific
ations/change-
management
APMG International Guide on
Making Sense of Change.
Guidance addressing
behavioural aspects is
supposed to be particularly
good.
1
Process
MoP is designed to be tailorable to the size of the
organisation. The principles of MoP in the two cycles
can be readily tailored to any organisation regardless of
its size. Read the MoP pocket guide in an evening and
implement the following day on an element of the
business at first to pilot an approach and prove its
worth!
112 Conflict with Organisation
Ineffective right sizing of approach for emergent projects and
programmes
s s p
http://flightmap.wordpress.com/2
013/09/09/the-rhythm-of-portfolio-
management/
Article on the rhythm of
portfolio management in terms
of use of a software tol called
Flightmap
3
Process
Effective implementation of change (introduction of
Portfolio Management) requires effective business
change managers to understand how the required
changes can be best integrated into the current system.
113 Conflict with Organisation Poor stakeholder engagement in the portfolio ecosystem design s s p s
PWC, 2012. Strategic portfolio
management : How governance
and financial discipline can
improve portfolio performance.
[Online]
Available at:
http://www.pwc.com/en_US/us/i
ncreasing-it-
effectiveness/assets/pwc-
strategic-portfolio-management-
governance-financial-
discipline.pdf
Covers the reasons for why
PPM governance is essential.
Specifically issue escalation,
culture of accountability,
communications, cross
functional coordination,
calendar alignment, process
automation, financial
discipline and benefits
realisation.
2
Beringer, C.,
Jonas, D. &
Gemünden, H.
G., 2012.
Establishing
Project
Portfolio
Management:
An Exploratory
Analysis of the
Influence of
Internal
Stakeholders’
Interactions.
Project
Management
Journal.
Project portfolio management
(PPM) is viewed as a
management innovation that
must be further established
and professionalized in many
firms. Stakeholder
behaviour and stakeholder
management are key success
factors for project portfolios.
Furthermore, stakeholder
management must not only
focus on single stakeholders
but also account for
stakeholders influencing one
another in fairly complex
interactions of multiple and
potentially interdependent
stakeholders.
Our quantitative study of
internal key stakeholders’
engagement in the PPM
process is based on a survey
using 223 project portfolios
from medium to large
firms in Austria, Germany, and
Switzerland. We investigate
the intensity of stakeholders’
engagement in
1
http://www.ap
mg-
international.c
om/en/qualific
ations/change-
management
APMG International Guide on
Making Sense of Change.
Guidance addressing
behavioural aspects is
supposed to be particularly
good.
1
Process
Effective change management is required here, to prove
that the cost of change will result in benefits that will
for example reduce running costs of the operations or
increase revenue etc. An investment appraisal/cost
benefit analysis is required.
114 Starting change
Perhaps the wrong approach to design is being taken (ever
engineering phase 1?), or the case for doing it more fully is not
being made effectively enough? Do something simple, get proof
points, develop v2?
p s s
ESI International, 2009.. View from
the Ground: The Project Manager
Perspective on Project Portfolio
Management Effectiveness.
[Online]
Available at: http://www.esi-
intl.co.uk/resource_centre/white_
papers/progman/The%20Project%
20Manager%20Perspective%20on
%20Project%20Portfolio%20Manag
ement%20Effectiveness.pdf
Covers a survey of the issues
facing the introduction of PPM
from project managers
perspective.
2
http://www.cp
s.co.uk/Succes
s-
Stories/Pages/
CaseStudies.as
px
Some good examples of where
CPS have developed solutions
to the issues of resourcing
concurrent projects.
1
APM 2006/7
Yearbook
Improving
business
through
people and
process - Bob
Oweb &
Professor Lauri
Koskela
Covers system development
using agile and shiws impact on
organisational skills,
productivity and business
satisfaction.
Process
Training workshops and forums. Effective
implementation of a portfolio management system
requires effective business change managers to
determine the benefit of operating the new system.
Determine the octs of the change. Develop a business
case for the change.
Training workshops and forums 139 Starting change Poor stakeholder engagement in the portfolio ecosystem design s s p s
Managing Change: Robert Heller,
1998
ISBN-10:0-7513-0633-9
Essential Managers guide
covering all aspects of
implementing change
http://www.ap
mg-
international.c
om/en/qualific
ations/change-
management
APMG International Guide on
Making Sense of Change.
Guidance addressing
behavioural aspects is
supposed to be particularly
good.
1
How to
Manage
Organisational
Change, DE
Hussey, 200
ISBN: 0-7494-
3251-9
Part of the Sunday Times range
that covers various strategies
for implementing change.
Process
A business needs to start somewhere. If it hasn't got
accurate benchmarks, then the business needs to learn
through low risk implementation to start to improve
capability in this respect. Once low risk changes are
enacted, then higher risk changes can be made to build
confidence.
140 Doing things wrong
Programmes are uncertain - is the organisation taking the right
approach to risk tolerance? Projects may start off with a business
case, but are the benefits estimated (as part of that) progressed,
especially when delivery gets more difficult. Do organisations
support projects estimating benefits, and require they keep those
up to date to enable re-prioritisation?
s s p s s
Cantor, M., 2011. Calculating and
Improving ROI in Software and
System Programs.
Communications of the ACM ,
54(9), pp. 121-130.
The investment value of
innovation follows from a
technology’s uncertain net
present value and derived ROI
calculations. Constrained by
limited budgets, most
enterprises find it essential to
apply unprecedented business
discipline to the business
function of software and
system delivery (SSD) across
entire software and system life
cycles. For this reason, the CIO,
CTO,
or VP of software or systems
development may be under
increased scrutiny from the
corporate chief finance office
(CFO). When conversing with
the CFO, money talks, so only
one of two sorts of
conversations can take place:
software and systems as cost
centre or software and systems
as value-creation centre and
System Programs
1
http://www.fr
edcomm.com/
articles/detail/
stop_guesstim
ating_start_est
imating/
Reasonable overview on how
to achieve better estimates
rather than guesstimates.
Approach could be widened to
address this issue.
2
The Good
Manager's
Guide, Trevor
Boutall,1997
ISBN: 1-897587-
80-5
A guide which is a series of
check lists. Chapter 4 covers
managing information and
establishing the information
management and
communications systems
Process
Organisation needs to have a feedback loop to prove the
impact of lack of rigour in business cases, and improve
capability in areas of business case development and
benefits delivery.
141 Doing things wrong Due process bypassed for 'good reasons' s s p s s
PWC, 2012. Strategic portfolio
management : How governance
and financial discipline can
improve portfolio performance.
[Online]
Available at:
http://www.pwc.com/en_US/us/i
ncreasing-it-
effectiveness/assets/pwc-
strategic-portfolio-management-
governance-financial-
discipline.pdf
covers the reasons for why
PPM governance is essential.
Specifically issue escalation,
culture of accountability,
communications, cross
functional coordination,
calendar alignment, process
automation, financial
discipline and benefits
realisation.
2
https://www.g
ov.uk/governm
ent/uploads/sy
stem/uploads/
attachment_da
ta/file/220541/
green_book_co
mplete.pdf
Treasury Green Book 1
Around 50 examples of articles
related to the listed problems

10. Findings – key organisation questions
10
Problem Summary
Proactive &
visible senior
management
commitment
Alignment of
the portfolio
with strategic
objectives
Consistent &
effective
governance
alignment
Shared change
culture &
associated
behaviours
Coordination
through a
portfolio
office
How can PfM help the organisation develop
and manage its strategy?
S P P S
How can PfM ensure all the organisation’s
projects and programmes align with the
strategy?
P P P S
How can PfM demonstrate that projects and
programmes are delivering benefits (in line
with the strategy)?
S P S S
What organisational management
capabilities are needed to enable effective
PfM?
S P S S

11. Findings – key people questions
11
Problem Summary
Proactive &
visible senior
management
commitment
Alignment of
the portfolio
with strategic
objectives
Consistent &
effective
governance
alignment
Shared change
culture &
associated
behaviours
Coordination
through a
portfolio
office
Aligned with strategy?
Lack of understanding – what is Portfolio
Management? Why do it? What are the
benefits?
Adequate knowledge & skills?
Degree of resistance to change?
Common/consistent language &
communications?
Building on existing processes &
continuous improvement?

12. Findings – key technology questions
12
Problem Summary
Proactive &
visible senior
management
commitment
Alignment of
the portfolio
with strategic
objectives
Consistent &
effective
governance
alignment
Shared change
culture &
associated
behaviours
Coordination
through a
portfolio
office
How do we build in the keys to success by
understanding any portfolio through
analysis of data?
S P P
How do we ensure collaborative working
between any portfolio office and key
departments for change?
P S P
Is there one (or a series of tools) that will
cover a range of generic categorisation plus
prioritisation for a portfolio?
P S P
Should we set up a specific portfolio office? P S P

13. Technology references
13
Pillar Problems Answers ID Category Problem Summary Proactive and
visible senior
management
commitment
Alignment of the
portfolio with strategic
objectives
Consistent and
effective governance
alignment
Shared change culture
and associated
behaviours
Coordination
through a portfolio
office
Source Synopsis Rating Source Synopsis Rating Source Synopsis Rating Source Synopsis
Technology No / poor decision data available Define delivery and decision making
data, make sure the delivery team
produces is as a consequence of
management, not special 'rekey'.
Independently validate / assure
10 Inconsistent/Inaccurate
data
How do we build in the keys to success by
understanding any portfolio through analysis of
data?
S P P Gaining an Understanding of
Your Customers
Using Portfolio Analysis
By: Ruby C. Kerr
http://www.crfonline.org/or
c/pdf/ref6.pdf
Recognises the importance of
customers but distinguishes
the planning and in particular
the analysis to sort the 'wood
from the trees' with worked
examples
1 24 Stakeholder
Management
By: Open Group.org
http://pubs.opengroup.o
rg/architecture/togaf9-
doc/arch/chap24.html
Whilst not directly linking with
the problem summary it has
appeared in the search and
relates to a key aspect being
Stakeholder Management as
although the the analsysis is
key, who and what quickly
follows
3 Project Portfolio
Management:
Metrics that Work
James C. Brown
https://www.bw.edu/ac
ademics/cpd/forums/Pr
oject_Portfolio_Manage
ment_March_2011.pdf
Only a presentation but
provides an overview
including some interesting
points
3 MANAGING
CUSTOMER
RELATIONSHIPS
RUTH N. BOLTON
AND CRINA O.
TARASI
http://www.ruthn
bolton.com/Publi
cations/01Malhotr
a-V3-Chap1.pdf
Features on customer
relationship management
(CRM) but parralels can be
drawn with portfolio areas
around the process approach
Technology No common means of planning Implement a common means of planning
from idea, though to the 'hopper' of
candidates, through to delivery and
benefits, and BAU resource plans
11 Poor access to data How do we build in the keys to success by
understanding any portfolio through analysis of
data?
Project Management:
Achieving Competitive
Advantage, Second Edition,
by Jeffrey K. Pinto.
Published by Prentice Hall.
Copyright © 2010 by Pearson
Education, Inc.
http://wps.pearsoncustom.c
om/wps/media/objects/722
5/7398617/MGT310_Ch03.pd
f
Provides a good overview and
check list models with worked
examples albeit from an
Amercian perspective
2 Portfolio Management:
Fundamental for
New Product Success
By Dr. Robert G. Cooper,
Dr. Scott J. Edgett and Dr.
Elko J. Kleinschmidt
http://www.stage-
gate.com/downloads/wp
/wp_12.pdf
Another USA based paper but
gives good examples of success
criteria
2
Technology Separation of delivery tool form reporting tool Common tool for delivery and reporting 12 Poor access to data Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
P S P https://www.gartner.com/d
oc/1763914/ppm-market-
universe-using-ppm
Gartner's magic quadrant on
PPMtools - their relevant
capability and maturity
- however need to pay unless
we have permission to use this
in the APMgroup
3 http://www.bestoutcom
e.com/how-to-select-a-
project-portfolio-
management-ppm-
solution-html.html
How to select the right PPM
tool - goes through basic
method of selecting a PPM
solution (objectives,
requirements, selection/RFP)
1 http://prioritysystem.co
m/tools.html
Summary of PPMtools and
their various capabilities
1 http://www.priori
tysystem.com/pp
mselectionaid.ht
ml
Selecting a PPMtool using
multiple criteria/requirements
- includes a handy excel
requirements catalogue for you
to rank importance in prep for
issuing an RFP
Technology High cost of assembling data Implement and support a common tool
to reduce cost
12 Too costly/poor value for
money
Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Data out of date / not believable Implement a common tool and carry out
compliance management on data quality
12 Too costly/poor value for
money
Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
.
Technology How to put IT in place that people will use and
not see as control/threat
deciding on a solution with proj.
managers. Ensuring it is fit for purpose as
a tool that adds value to their work
29 Not fit for purpose - not
"exec friendly"
Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology ? Having an enterprise information portal 30 Inflexible tools Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Fit for purpose software – appropriate Consider current and future
requirements
53 Not fit for purpose - not
"exec friendly"
Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Solution owned by business establish focal point and change
champions
54 Purpose unclear How do we ensure collaborative working between
any portfolio office and key departments for
change?
P S P
Technology Review and Refresh to assure sustainability n/a 55 Poor access to data Should we set up a specific portfolio office? P S P
Technology Any technology solution needs to be
easy and accessible
62 Poor access to data Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology The current focus on analysis tools at the
expense of getting the right info to make the
decision to the board
83 Purpose unclear Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology "We need a tool" before we can start. Is this
statement correct?
84 Purpose unclear Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology When do we start to use "sophisticated tools?" 85 Inflexible tools Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Outputs not "exec" friendly Clear and simple reporting tool back to
the business
86 Not fit for purpose - not
"exec friendly"
Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Lack of holistic "joined upness", manual
interfaces take time & erode "perceived value"
of this
Defining need first & identifying the
tools from that
87 Purpose unclear Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Is not seen as a priority for investment versus
others
88 Too costly/poor value for
money
Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology No single tool?? 89 Inflexible tools Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology The need for a system that is a one stop shop
for information to prevent any duplication of
reporting i.e. a balanced system that achieves
the required priorities
115 Poor access to data Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Data/ information capture; reporting the true
status of projects and the necessary accuracy by
selecting the right data
116 Inconsistent/Inaccurate
data
Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology The stakeholders do not like technology, they
prefer simple dashboards
117 Not fit for purpose - not
"exec friendly"
Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Tools can be too sophisticated, not understood
and thus ignored; people always hate the
introductions of new systems
118 Not fit for purpose - not
"exec friendly"
Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Sometimes information download loses sight of
true objectives - in some cases there is too
much information on the wall! A real challenge
to keep it updated.
119 Inconsistent/Inaccurate
data
Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Tools flexible enough to provide consistency
across different and diverse contexts within the
business.
Engage with leaders to agree what
information (rather than what data) is
needed to inform decisions.
142 Inflexible tools Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology How to find useful technology to turn data into
information to support decisions.
143 Inflexible tools Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Technology Tools flexible enough t provide consistency
across different and diverse contexts within the
business.
144 Inflexible tools Is there one (or a series of tools) that will cover a
range of generic categorisation plus prioritisation
for a portfolio?
Around 10 examples of articles
related to the listed problems

14. Part 2 - PfM SIG collateral
14
Year Event Link to Event Organisation Presenter Subject
Link to
Presentation
Str Pty Sel Ben Rsk Est Man Ass Gov PMO Tls Oth Govt Pub Pte Oth SMC Align Gov Cult PMO
2010
PfM SIG
Discovery Day
(Sep)
http://www.apm.org.uk/news/portfo
lio-management-sig-discovery-
day#.U_9flqPgUQI
Benefits
Management
SIG
Peter Glynne
BM – A
Strategic
Business Skill
http://www.apm.org
.uk/news/portfolio-
management-sig-
discovery-
day#.U7hLDUCmVDQ
1 1
2010
PfM SIG
Discovery Day
(Sep)
http://www.apm.org.uk/news/portfo
lio-management-sig-discovery-
day#.U_9flqPgUQI
Open University
Business School
Cranfield
School of
Management
Professor
Elizabeth Daniel
Professor John
Ward and Dr
Arnoud Franken
Project
Portfolio
Management:
Balancing Risk
and
Performance in
Turbulent
Times
http://www.apm.org
.uk/sites/default/fil
es/02_John_Ward_El
izabeth_Daniels_CIM
A_PPM_Research_A
PM_210710.pdf
1 1
2010
PfM SIG
Discovery Day
(Sep)
http://www.apm.org.uk/news/portfo
lio-management-sig-discovery-
day#.U_9flqPgUQI
Cabinet Office Steve Jenner
History of the
Government
PfM SIG & the
new OGC
Management of
Portfolios
(MoP)
http://www.apm.org
.uk/sites/default/fil
es/01a__Steve_Jenn
er__APMSIG21.7.10.
pdf
1 1
2010
PfM SIG
Discovery Day
(Sep)
http://www.apm.org.uk/news/portfo
lio-management-sig-discovery-
day#.U_9flqPgUQI
Departmental
Transformation
Programme
HMRC
Paul Hirst, Head
Of Programme
and Project
Management
Making Tough
Decisions in
tough Times, or
The Case for
Portfolio
http://www.apm.org
.uk/sites/default/fil
es/01b_Paul_Hirst_A
PM_Discovery_Day_
100721.pdf
1 1
2010
Inaugural PfM
SIG Meeting
(Nov)
http://www.apm.org.uk/news/portfo
lio-management-idea-whose-time-
has-come#.U_9gXaPgUQI
Efficiency and
Reform Group,
Cabinet Office
Philip Cooper
Portfolio
Management in
Government
http://www.apm.org
.uk/sites/default/fil
es/PORTFOLIO%20M
ANAGEMENT%20IN%
20GOVERNMENT.pdf
1 1
MoP Principles:
Str = Strategy Alignment etc Pty = Prioritisation
Sel = Selection & Decision-Making Ben = Benefits Realisation (Portfolio)
Rsk = Managing Portfolio Risk Est = Establishing PfM
Man = Managing PfM Ass = Assurance
Gov = Governance PMO = Portfolio Office
Tls = Tools and Techniques Oth = General PfM
SMC = Proactive and visible senior management
commitment
Align = Alignment of the portfolio with strategic
objectives
Gov = Consistent and effective governance alignment
Cult = Shared change culture and associated
behaviours
PMO = Coordination through a portfolio office
Organisation TypeTopics Covered:
Portfolio Management SIG - Presentation Analysis (2014)
37 presentations
Analysis to be validated
Volunteers?

15. Part 2 – initial presentation analysis
15
Question Learning from B&Q
How can PfM help the organisation develop and
manage its strategy?
(Nothing obvious from their presentation – they don’t talk about
reviewing the benefits, just the project)
How can PfM ensure all of the organisation’s
projects and programmes align with the strategy?
PMO gives a single view of all project costs and benefits; ensures
alignment between strategy, financial planning, capacity planning and
PMO (slide 17)
How can PfM demonstrate that projects and
programmes are delivering benefits (in line with
the strategy)
Key projects documented in a standard way and managed in a highly
visual manner (slide 16)
PMO communicates across the organisation (slides 10 and 11)
How can PfM support the effective delivery of
projects and programmes?
Key projects documented in a standard way and managed in a highly
visual manner (slide 16)
Sharepoint site giving guidance on documentation, which meetings to
attend (slide 15)
Governance tailored to match scale and complexity of projects and
programmes – three levels, gold, silver and bronze (slide 12)
What organisational management capabilities are
needed to enable effective PfM?
Project management capability (slide 6)

16. Continuation, next steps & volunteers
• Complete the analysis
– Questions analysis, mapping to MoP principles
• Seek further references for the defined problems
• Further categorisation of presentations
– APM BoK
– MoP principles
• Validate PfM presentations & collateral analysis
• Provide link on APM website
16

17. A portfolio management and product
delivery case example
Euan Dean
ID Business Solutions (IDBS).
17

18. Exploiting research
& collateral
November 2014

19. Exploiting research and collateral
• How the SIG should further develop PfM
resources for members
– Did this research process work?
– How could we improve it, was it effective?
• As SIG members, what do you want?
• How you can help
19

20. Continuation, next steps & volunteers
• Complete the analysis
– Questions analysis, mapping to MoP principles
• Seek further references for the defined problems
• Further categorisation & validation of presentations
• Provide link on APM website
20

21. 21
Wednesday 22nd April 2015
London
APM Portfolio Management conference
“Making Portfolio Management work for
you/your organisation”

22. Thank you
22