Tag Archives: project portfolio management

Project Portfolio Management (PPM) is a game-changer

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A goal without a plan is just a wish – Larry Elder

The chaotic, turbulent, and rapidly changing business environment that has become the new normal, needs Project Portfolio Management (PPM) to drive value. Organizations struggle to prioritize the right initiatives and manifest them at the right time. They are falling behind on their peers and over time put their existence in the market place at risk.

Volatility, uncertainty, complexity and ambiguity (VUCA) are forces that have an immediate impact on an organization’s ability to perform. PPM is the answer to VUCA. It provides a level of structure and concerted, orchestrated organizational behavior that is needed to drive ideas to results.

It is time for a new PPM vision.

PPM is not just implementing a tool and you are done. It is much more than that. PPM is a mindset. It is an organization-wide solution that impacts people, process and technology. Its purpose is to unlock and extend organization’s potential and innovative power, which is then translated in meaningful projects that successfully get delivered.

PPM is a business function at a strategic level of the organization. Ideally, PPM has a direct reporting relationship to the CEO. With that, it gets the right order of magnitude and can operate in an independent and effective manner. If you move PPM under a dominant function, for example technology or finance, it can less optimally operate as facilitator of organization-wide initiatives.

PPM is a business process and permeates through the body of the organization. PPM operates as a facilitator of 4 main process steps: prioritize demand, manage portfolio, execute project or program, sustain and improve. The end-to-end PPM process drives consistency and enforces all key stakeholders to actively participate. It allows people to work collaboratively towards manifesting a shared set of goals and initiatives. The recognition of PPM as a business function and process, sets the organization up for success in responding to change.

PPM requires a robust solution architecture. What that means is that PPM is an integration of 4 building blocks: process, application, analytics and governance. It is important to keep the PPM design simple. The value is coming from how well you deploy the solution, not by adding secondary conditions and increased levels of complexity.

There are organizations who believe that PPM is a stopgap measure for failed projects. It is not. PPM will provide a robust platform for planning, execution and control. It will increase the number of successful projects, but it is not a magic wand. That’s because the root cause of project failures our outside PPM’s control. Projects fail because of wrong people behavior that may have been identified but has not been properly addressed. PPM requires a horizontal, cross-functional focus of the entire organization, instead of a vertical, silo-ed focus of a team or department.

PPM is a game-changer. It can drive value and provide sustainable competitive advantage. If you do it right, it attracts top talent. They want to work for organizations who are successful, because success helps manifest their dreams. To build a world-class PPM solution, an organization has to go through 4 stages. The first one is where it “grounds” PPM, by building a cross-functional coalition of key stakeholders. The second stage is where the coalition “visualizes” the future end-state and documents the PPM vision. In the third stage of “align and commit”, the focus shifts towards broadly communicating the vision and getting buy-in. In the fourth and last stage, it is all about “making it happen”. This is where the PPM solution has been successfully deployed, and the organization is consistently performing and delivering high priority initiatives.

If you do it right and implement this PPM vision, the changing environment with its VUCA forces, become less of a problem and can actually work in favor of the organization. PPM can get you ahead of your industry peers. It allows you to have a real-time view of your demand (ideas), your supply (resources) and in-flight initiatives (portfolio) supported by analytics (transparency) and effective governance structures.

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3 steps to make project portfolio management a business process

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If you can’t describe what you are doing as a process, you don’t know what you are doing – W.E. Deming

Organizations have a hard time to plan and execute the right initiatives, because project portfolio management (PPM) is not deployed as a business process.

With an increasing need and desire to innovate and change the ways we are doing things, one would expect that organizations are keen on project portfolio management. In an ideal state, PPM is managed as a business process, equivalent to the more traditional process like finance, marketing and sales, procurement and human resources management. Yet we are not doing that, or at best we are trying, but agree that there is room for improvement.

The PPM process should be cross-functional of nature and serve internal customers from all business areas. To make that happen it should reside in a business function that by default is set up as such. A Project Management Office or Information Technology Department are then quickly becoming the logical candidates.

What are the steps to deploy PPM a business process?

Align Leadership

Ideas, become successful when we all buy into it, make it happen, and live up to it once it is in operation. Implementing PPM as a business process is a game changer and requires adequate change leadership. Part of that is executive alignment. A key element of the alignment process is visualization. Senior leaders must be able to envision what the future-state looks and how that improves their business area and the organization as a whole. An introduction to the high level process design, a demonstration of the PPM application, and a walkthrough of a few use cases, are instruments to get them all on the same page. Once the alignment is there, a change leadership committee should be established, tasked with delivering the PPM solution.

Implement and Deploy

PPM is an enterprise application, which means that the implementation and deployment must be managed as such. The project team is a balanced representation of the organization with functional and technical resources. If these two principles are violated, the probability that the end-users do not adopt the PPM solution as intended, is high. The focus of the implementation must be on business process, analytics, application and governance. These four components make up the integrated PPM solution, and all need to come into play at the same time. Examples of PPM applications are: Innotas, Workfront, Clarizen, ChangePoint, and others

PPM projects tend to fail when the focus is primarily on the application. Organizations rush through the software product capabilities, make design decisions on-the-go and forget the importance of the business process, governance and analytical requirements. Mobilize a team with internal and external resources. It is imperative that the vendor can provide the expertise in all the four areas of the PPM solution, and can assist the change leadership committee with manifesting the future-state

Execute, learn and adjust

When the PPM solution goes live, it’s the start of a new beginning. The primary focus of the project team and business must be on user adoption and tying the experience back to the original business case. It is a good idea to have super user representation in all of the business areas. The super user is a functional expert in the PPM solution and an evangelist pur sang. It is the first line of support for all the end-users. The PPM business process has a natural cadence where at set times and gates, certain activities must be completed. It is not uncommon that this is a one year cycle. As a consequence, the learn and adjust cycle is at least equal to that period. The organization must go through all the hoops and loops, complete lessons-learned sessions and optimization steps, before the project can be declared a success and closed.

Project portfolio management (PPM) must be perceived as a business critical process for organizations who have the intention to grow, accelerate and improve. Those organizations who want to be an outlier and exception in their marketplace, out serious effort in implementing and deploying a robust PPM solution. It is part of innovation and getting better than your competition.

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