Achieving Execution Excellence Through Portfolio Management.pptx

1、Achieving Execution ExcellenceThrough Portfolio ManagementManagement Consulting with A Social ConscienceAgenda Portfolio Management Overview Connecting Strategy with Executing UsingPortfolio Management Portfolio Management Considerations for “OneBelt One Road” (一带一路) PMI Portfolio Management Certifi

2、cationAgenda Portfolio Management Overview Connecting Strategy with Executing UsingPortfolio Management Portfolio Management Considerations for “OneBelt One Road” (一带一路) PMI Portfolio Management CertificationIntroductionPortfolio Management is a differentiator andcompetitive advantage Successful org

3、anizations differentiate Portfolio management is a proven way to makekey investment decisionsProprietary And Confidential5The Dismal State of Execution90%of well-formulated strategies fail due to poor executionSource: Robert Kaplan and David Norton, The Strategy-Focused Organization, Harvard Busines

4、s School Press, 200112% oonr UpSroDj e$c1t2s2 million wasted of every USD $1 billion spentSource: PMI Pulse of the Profession, The High Cost of Low Performance, May 2016of survey respondents believes business execution is47%9%extremely important or the most important to theirorganizationof responden

5、ts is “very satisfied” with their organizationsability to achieve resultsSource: “Strategic Business Execution Survey”, In Progress, PMO Advisory LLC.What is Portfolio Management (PfM)? Portfolio management is the bridge between strategic planningand implementation, and the primary focus is to deter

6、mine theright projects which by definition are investments for theorganization Program and project managements primary focus is doing thoseprojects in the right way Portfolio management can and should exist at multiple levels oforganizations, from the enterprise to department andsometimes to product

7、-levelProprietary And Confidential7Where is PfM Most Prevalent? All organizations perform these three pillars ofactivities: planning, operating, and changing Planning addresses the essential question of mission, visionand objectives Operating concentrates on running the business of theorganization C

8、hanging looks ahead at the future and the next bend in theroad -Portfolio management primarily exists to supportchangeProprietary And Confidential8Major Organizational ActivitiesOperatingWhat doorganizationsdo?PlanningChangingActivity Map of an OrganizationOperatingPlanningChanging (PPP)Corporate St

9、rategyCorporate StructureCorporate IntegrationMission, Vision & CultureBusiness StrategyBusiness ObjectivesFinancial PlanPortfolio(Risk & Reward)Program(Benefits)Project(Deliverables)Operation Plan:Facility PlanProduction PlanContingency PlanningDisaster & RecoveryService PlanInitiate ProgramInitiat

10、e ProjectStrategic AlignmentOrganization StrategyPortfolio StrategyPlan Project:ScopeScheduleCostQualityHuman ResourcesCommunicationRiskProcurementIntegrationPlan Program:Benefits ManagementStakeholderGovernanceScopeMaterial PlanResource PlanTraining PlanGovernance:Prioritize & BalanceAuthorize & Ad

11、justCommunicateQuality ManagementCustomer Relationship.ScheduleFinanceIntegrationBudgetingService CatalogResource ManagementPerformanceFunctional Strategies:Manage OperationsExecute ProgramMonitor & ControlClosing ProgramExecute ProjectMonitor & ControlClosing ProjectMarketingSalesProductITOperation

12、al Metrics & ReportingContinuous ImprovementCommunicationRisk ManagementMulti-Disciplinary Organization Change Management Organization Development Leadership Incentives Communication Control Business Process Change / Re-engineering Functional Leadership (e.g. IT, Finance, Marketing)Hierarchy of Orga

13、nizational ActivitiesLevel10PillarsNameCorporate or Enterprise Strategy98Organizational StrategyBusiness Unit Strategy76Functional StrategyPortfolioProgram54Project32Operational InitiativesTracks1Specific Tasks and ActivitiesSource 1: Wu, 2015, A Sensible Guide to Passing the PfMP Exam, Table 11, Pa

14、ge 45Proprietary And Confidential11Purpose of Portfolio ManagementPortfolio management enables successful strategyexecution because it:1. Aligns with Strategy2. Guides Project Investment Decisions3. Guides Resource Allocation4. Strengthens Organizational Legitimacy5. Focuses on Portfolio Performance

15、6. Informs Risk ManagementProprietary And Confidential12Why Portfolio Management?There is empirical evidence supporting the value ofPortfolio Management. Two studies:1. Project Management Institute in-depth survey of PortfolioManagement in 20122. PMO Advisory study of Strategic Business Execution, w

16、ithPortfolio Management listed as a disciplineProprietary And Confidential13PMIs Study on Portfolio ManagementHighly EffectivePortfolio MgtMinimally EffectiveCriteria% Increase36%29%19%18%Portfolio Mgt68%62%64%77%50%Completion on TimeExceed/Meet ForecastedROI48%54%65%Completion on BudgetMeet Origina

17、l BusinessGoalsPMIs 2012 Pulse of the Profession In-Depth Report on Portfolio ManagementProprietary And Confidential14PMO Advisorys Study on Portfolio Management PMO Advisory pioneered the “Execution Index” (scale of 1 to 100where 100 is perfect execution) that reveals how wellorganizations execute

18、their business strategy We received 460responses to thequestion “On ascale of 1 to 5,how well doesyour organizationperform portfoliomanagement ”Source PMO Advisorys 2013 Strategic Business Execution StudyProprietary And Confidential15Agenda Portfolio Management Overview Connecting Strategy with Exec

19、uting UsingPortfolio Management Portfolio Management Considerations for “OneBelt One Road” (一带一路) PMI Portfolio Management CertificationThe 5 Drivers of Effective Portfolio Management1. Senior Management Receptivity2. Competent Portfolio Governance3. Standardized Metrics and Criteria4. Consistency a

20、nd Logic of Organizational StrategicObjectives5. Mature Project Management OfficeSource 2: PMIs 2012 Pulse of the Profession In-Depth Report on Portfolio ManagementProprietary And Confidential17Building Portfolio ManagementI. DefineII. AlignIII. Monitor, Control & Optimize Reviewed business and Crea

21、ted Portfolio GovernanceTeam, composed of 7 executivesincluding the CEO who is the chair Trained executives (and most oftheir direct reports) on portfoliomanagement methodology Worked closely with the projectteams on the approved projects onmethodology and resourcesorganizational strategies Conducte

22、d interviews withexecutives Monitored progress and providedrapid escalation Created inventory of work ( 100projects) Conducted regular GovernanceMeetings to minimize surprisesand manage performance Piloted the portfolio management Developed governance model andprocess for six monthsprioritization fr

23、ameworkRefined organizational strategy,inventory existing work, anddevelop new ideasAchieved legitimacy ofgovernance; also agreed toimplement the vital few “Big 6”First to market with a newproduct; achieved nearly $300million in loans before the nextcompetitor stepped inProprietary And Confidential1

24、8Case Study: Financial Services Firm Background: Company X was one of the fastest growing financial services firms in the United States. Itsgrowing portfolio of loans has been growing 30%-50% for the past 3 years. But the CEO knew the firm is in trouble. A large internal project was mired in delays,

25、 withlittle hope of completion. Smaller projects were rampant and largely uncontrolled and insome cases unknown. Solution: Created “Enterprise Project Services” to oversee large projects Developed and implemented an enterprise portfolio management process to guideinvestment decisions and resource al

26、location Focused resources on the vital few - “Big 6” Disproportionately awarded success performance on Big 6 projects to attract the bestresources across the organizationBusiness ResultsBusiness Value Significantly improved time to marketBecame the first company to release a new loan product (after

27、 U.S. government changed the rules).Achieved $300 million in loans in 10 days, before the next competitor moved in. Significantly improved project successBy focusing its resources on the “vital few” projects, the company was able to dedicate the resources andattention to the most important endeavors

28、.Customer Service Clients are much more satisfied because the firm is responding to their demands. This isespecially the case when there is now a portfolio of Service Delivery initiatives.Employee Satisfaction Previously, every major IT project was a “death march”. After the roll out of portfolioman

29、agement, crunches continued to happen, but not on the same scale. Plus, with more dedicated resources, employees had more time to learn and apply their newskills.Proprietary And Confidential20Sample Deliverables Six Sub-PortfoliosPortfolioDefinitionNew Product /Service. New revenue-producing, volume

30、-producing, mission-supporting, and/or market-facing goods orofferings. These goods or offerings created new product/service lines or extended existing ones. New products and services require significant effort to assess, plan, design, develop, implement,launch, and operate.Enhancement. Changes to e

31、xisting tangible or intangible goods, ranging from small refinements to a completemakeover, done with the intention of improving the existing product set or service.Service Delivery. Changes to existing methods of delivery (channels) of existing products or services to customers.PortfolioDefinitionC

32、ompliance /Regulatory. New business initiatives that satisfy certain regulatory or compliance requirements. The need and urgency to perform these initiatives are often less flexible and should be consideredas costs of doing business.InternalEfficiency. Initiatives that are designed to better the pro

33、ductivity of the firm and/or the quality of work. This typeof initiative typically involves backend workflow upgrades and is not apparent to the customer, butprovides some intrinsic value to the firms level of productivity and efficiency.Infrastructure. Initiatives undertaken to improve the foundati

34、on that supports the normal operations of the firm.This usually refers to IT platform changes but can be other infrastructure projects such as newoffice buildings.Proprietary And Confidential21Sample Deliverables ScoringSample Scoring Results for Concept Screening StageOperationalStrategicImpact40Pr

35、oductAdvantage10MarketAttractiveness20Impact &Feasibility20Risk vs.Return10Concept ScreeningRelative WeightOperationalImpact &FeasibilityProduct DevelopmentCommitteePerson 1Person 2Person 3Person 4Person 5StrategicImpactProductAdvantageMarketAttractivenessRisk vs.Return87697776685675398971098798Aver

36、age7.46.80.75.21.08.61.78.20.8Score (Scale of 1-10)3.0Overall Score7.2Note: Different weights are used at each stage of the product development process. Since the threshold at thisstage is 6.0, this product initiative proceeds to the next stage.Proprietary And Confidential22Sample Deliverables Antic

37、ipated “Pull-Thru”PhasePull-ThruRateExample1005025131081. Idea Generation50%Of 100 ideas, 50 progress to the nextphase.Of the remaining 50 ideas, 25 progressto the next phase.2. Concept Screening3. Product Definition4. Concept Testing50%50%75%Of the remaining 25 ideas, about 13progress to the next p

38、hase.Of the remaining 13 ideas, about 10progress to the next phase.5. Business CaseDevelopment75%Of the remaining 10 ideas, about 8progress to the final gate.6. Approval & Ready for 75% - 90% Approximately 6 to 7 ideas are6-7Implementationapproved for implementation.Proprietary And Confidential23Age

39、nda Portfolio Management Overview Connecting Strategy with Executing UsingPortfolio Management Portfolio Management Considerations for “OneBelt One Road” (一带一路) PMI Portfolio Management CertificationConsiderations for One Belt One Road(B&R 一带一路)Source:1. Left: McKinsey.http:/ Opportunities abound Re

40、source intensiveinfrastructure/our-insights/one-belt-and-one-road-connecting-china-and-the-world2. Bottom: Baidu,https:/ Benefits may be controversial Investment resources limited Highly Political Complex (e.g. integration)Benefits of Portfolio Management Strategic alignment Making sure specific ini

41、tiativesare aligned with the strategic and tactical objectives Governance Ensuring the decision making processesare transparent Performance Evaluating and measuring values Risk management Tackling unknowns Capability and Capacity Establishing realistic targets,within limited resourcesAgenda Portfoli

42、o Management Overview Connecting Strategy with Executing UsingPortfolio Management Portfolio Management Considerations for “OneBelt One Road” (一带一路) PMI Portfolio Management CertificationProject Management Institute774,40633,8801,4794501,96716,2834,158PMI Today, August 20171,71028PfMP Certification

43、QualificationsMUSTMinimum of 8 years (or 96 months) ofprofessional business experience focusing onstrategic investment considerations(The 8 years or 96 months of experience does notneed to be contiguous nor is there a time limit such as within the last 20 years)A secondary degree(High school diploma

44、, associatedegree, or equivalent)A four year degree(Bachelor degree or equivalent)Minimum of 7 years (10,500 hours) ofportfolio management experiencewithin the past 15 consecutive yearsMinimum of 4 years (6,000 hours) ofportfolio management experiencewithin the past 15 consecutive years29Questions 你有任何问题吗?30