What happened to

our $trategy?

WHY DO I CARE?Portfolio Management results in meaningful

projects04/15/2023 www.carolynreid.net 2

Portfolio Management supports achievement of strategy.

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The Big Picture

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What we should do to be successful

Strategic Planning

Maximized Value from Investments

Portfolio Mgt. Resource Mgt.

Project Mgt. Change Mgt.

Efficiently Achieved Strategic Objectives

Benefits Realization

OperationsStrategic Objectives

Optimized PortfolioProject Product

Strategic Realization

Portfolio Performance

Project Perfo

rmance

Benefits Realization

User Activity

Strategic Planning to Benefit Realization is a lifecycle process

04/15/2023 www.carolynreid.net 5

Imagine you are a little kid and you just found $40 and you can’t find

the rightful owner.

How do you make decisions about spending?04/15/2023 www.carolynreid.net 6

How does your business decide what to fund?04/15/2023 www.carolynreid.net 7

What is Portfolio Management?• Identify, Select, Prioritize,

govern and Monitor Projects– Objective and quantifiable

criteria for selecting investments• Based on Alignment to Strategy• With the goal of maximizing

ROI• Doing the right work

Portfolio Management aligns Strategy to what gets done.

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Why do we need Portfolio Management?

• Corporate Strategy is not being achieved• Failing Projects are not stopped • High Project Failure rate• The current Business Processes don’t keep

up with the pace of the constantly changing market

We need flexibility to keep up with constant change.04/15/2023 www.carolynreid.net 9

Business Drivers For Portfolio Management

An Organization has:• Many Ideas• Limited Resources• The need to

maximize profit• Strategy

This leads to the need to:• Compare

investments against each other

• Choose the portfolio of investments that provides maximum value

The Optimized Portfolio:• Define value for the

business• Derive Prioritization

model from this• Establish

disciplined Portfolio Mgt.

04/15/2023 www.carolynreid.net 10

You can’t do everything

We can’t do everything because we have limited resources.04/15/2023 www.carolynreid.net 11

The Solution: What do we need to do?

Strategy Project Portfolio PrioritizeCombine effortsImprove governanceImprove PM processResource Management

PPM maximizes ROI & ties projects to strategy.04/15/2023 www.carolynreid.net 12

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The Portfolio Management Process

• DoD (Dept. of Defense) Directive 8115.01 mandates management of IT investments through integrated Portfolio Management

• CPIC (Capital Planning and Investment Control) OMB (Office of Management and Budget) Exhibit 300 business case

• GAO (Government Accountability Office) Recommendations

Government and Military mandates for IT Portfolio Management04/15/2023 www.carolynreid.net 14

Where is my

going?

Visibility into budget performance & project value supports better decisions.

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“The strategic environment is constantly changing, requiring more flexibility to provide the best mix of capabilities and resources to meet Strategic Review priorities.”

Portfolio Review

Decisions

Performance

New

Strategic Goals

Review the portfolio for value, tie to strategy & performance

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Change is constant

Prioritize, Resource Management, Automate, Centralize, Synergies04/15/2023 www.carolynreid.net 17

Has been applied across merged

organizations for visibility to budget

across the organization

But is good Project Portfolio Management all we need to ensure we

meet our Strategic Goals?

Strategic Planning and Management

OperationsProject Management

With stove piped processes, we are not effective & efficient

Missing or malfunctioning Processes:• Resource Management• Organizational Change Management• Governance• Some process for selecting projects• Siloed Processes

Have you seen organizations like this?

Project Portfolio Management

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Realizing Strategy

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What we should do to be successful

Strategic Planning

Maximized Value from Investments

Portfolio Mgt. Resource Mgt.

Project Mgt. Change Mgt.

Efficiently Achieved Strategic Objectives

Benefits Realization

OperationsStrategic Objectives

Optimized PortfolioProject Product

Strategic Realization

Portfolio Performance

Project Perfo

rmance

Benefits Realization

User Activity

Strategic Planning to Benefit Realization is a lifecycle process

Research about the Agile Organization

• Strategic Planning is an evolving process

• Rigorous OCM• Robust Risk Management• Standardized processes• Strategic focus on People,

Process and Outcomes

• Portfolio Management• Agile Organization• Track Benefits realization

to verify ROI• Sponsorship• Strategic Alignment • Continuous improvement

MIT: Agile Org. Revenue growth 37% faster, 30% higher profit. 04/15/2023 www.carolynreid.net 21

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What happens when Change Management is ignored?

• UK Government (2010)– Electronic health record

initiative cancelled ($18 billion invested)

• FoxMeyer (worth $5 Billion)– 4th largest Pharma

distributor in US 1993– SAP & warehouse

automation system, $35 Million

– 1998 – filed for bankruptcy

04/15/2023 © Prosci, Inc. All rights reserved. Used with permission. www.change-management.com 23

Ignoring that people have to change can cause Project Failure.

Prosci® Research: projects with effective OCM nearly

6 times more likely to succeed.

The Change Ready Culture

OCM competency across organization

Leaders have a passion for change & communicate the benefit

Project Portfolio Management People understand the benefit of

the changes Early Employee involvement in the

solution

Executive level values PM and OCM and Executive leads PMO

Talent Management Knowledge Management Continuous Process

Improvement Project Management is a core

competency

Building the Organization that Achieves the Corporate Strategy04/15/2023 www.carolynreid.net 24

Strategic Realization

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What we should do to be successful

Strategic Planning

Maximized Value from Investments

Portfolio Mgt. Resource Mgt.

Project Mgt. Change Mgt.

Efficiently Achieved Strategic Objectives

Benefits Realization

OperationsStrategic Objectives

Optimized PortfolioProject Product

Strategic Realization

Portfolio Performance

Project Perfo

rmance

Benefits Realization

User Activity

Strategic Planning to Benefit Realization is a lifecycle process

Contact InfoThank you and I look forward to talking with you!

Email: csreid1@cox.net Cell: 602-882-5292Blog/ Website: www.carolynreid.netLink in with me on LinkedIn: http://www.linkedin.com/in/carolynreidMy consulting partner VISTX: www.vistx.comPlease join our local Arizona Change Management Group on LinkedIn

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Thank you!Achieve your Strategy!!!