Project Portfolio Management is one of the key activities that an organization can perform to consistently deliver business value to its stakeholders. According to Gartner, IT spending is on pace to grow by $3.8 Trillion globally in 2015 which is a 2.4 % increase from 2014. Despite this slow growth outlook, IT organizations can utilize the core competencies of Project Portfolio Management to drive greater value creation through the process of categorization, optimization and recalibration of their IT investment assets. This presentation will discuss the challenges of creating business value through the vehicle of project portfolio management by providing insight into: A better understanding of value creation through project execution. Aligning project selection and resource optimization with businessneeds Mapping project investment to organizational priorities To learn more: http://developingaculturethatworks.com/

1. Principles of Execution
Portfolio Management Categorization,
Optimization and Recalibration

2. Sure, I can do that as well!
Implementation of
Current Strategy
Emergent
Strategy
Funded
Projects
Allocated
Resources
Product
Processes
New
Services
New
Opportunities,
innovation or
demands
Deliberate
Strategy

3. Portfolios, Programs and Projects

4. Gerald’s Background
 Gerald Leonard is currently
the President & CEO of Principles
of Execution, a Strategic Project
Portfolio Management and IT
Governance consulting firm based
in the Metro Washington, DC area.
 19 years as an IT Project
Management consultant and
earned the PMP, MCSE, MCTS,
CQIA, ITILv3 and COBIT 4.1
Certifications
 Acquired certifications in PM and
BI from the University of California,
Berkeley, as well as an Executive
Leadership Certification from
Cornell University.
 Where can you learn more?

5. What is Portfolio Management?
 Portfolio Management is a capability
that enables organizations to
analyze, select and manage a
collection of project investments that
are aligned with your company’s
goals and objectives within a data
driven decision making framework.
 Portfolio Management also
coordinates the acceptance,
approval, postponement, rejection
or cancelation of a project which will
not realize the proposed benefits or
the corporation’s strategic
outcomes.
The Corpus Callosum of the Organization

6. Mapping Project Investment To
Organizational Priorities

7. Categorization Prioritization Optimization Recalibration

8. What is Categorization?

9. An Interview with TalkTalk’s CIO
 Strong Executive Management support
 Leadership with Business and IT
knowledge
 Communication is critical!

10. Allocate Funding and Resources by
Project CategoriesHow many
projects in
each category
do we have the
capacity to
execute?
The system
must limit the
number of
projects based
on capacity to
execute.

11. Only Reallocate Resources with
Similar Categories
Implementation of Current
Strategy
Emergent
Strategy
Funded
Projects
Allocated
Resources
Product
Processes
New
Services
New
Opportunities,
innovation or
demands
Deliberate
Strategy
Transform 10% Grow 30% Run 60%
Enforce a discipline decision making process

12. Categorization Prioritization Optimization Recalibration

13. What is Prioritization?

14. Steps CIO Should Take To Gain
Control of IT
 Embrace data-driven performance
reviews
 Use tools to manage your application
portfolio, weeding out inefficiencies and
duplication
 Take a big-picture view that enables
you to make decisions on what projects
add value to the business
http://h30499.www3.hp.com/t5/Discover-Performance-Blog/3-things-federal-CIOs-can-do-to-
optimize-their-application/ba-p/5503461#.VVMml_lVikp

15. Project Prioritization
Low
Medium
High
Value
Low
May Execute Later
Than 12 Months
Medium
Need to Execute
Within 12 Month
High
Must Execute Now
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Project
Urgency

16. Categorization Prioritization Optimization Recalibration

17. What is Optimization?

18. Case Study

19. Portfolio Analysis
 Efficiency Frontier
 Strategic Alignment
 Prioritization
 Scenario
 Probability
 Cost/Benefit
 Resource Capacity
 Interdependency
 Business Value

20. Categorization Prioritization Optimization Recalibration

21. What is Recalibration?

22. Recalibration Challenges
 Leadership Engagement
 Political Project Selection
 Identifying the Great
Projects Among the Good
 Standardizing Business
Cases
 Prioritization within
Categories

23. PPM Governance Project Review
Board Process

24. Questions To Consider When
Recalibrating Projects
 What is the strategic value of this project?
 What is the project's capability to deliver
value?
 What is the capability to deliver on the
business objectives?
 What are the risks?
 Do we still have the capabilities to deliver
this project?
 Does the cost benefit projections still
warrant this project being completed?
 What is the project's importance to keeping
our strategy on point?

25. Mapping Project Investment To
Organizational Priorities

26. Where Should You Start?

27. Q&A

28. Portfolio Management Training
Click here to learn more.

29. Principles of Execution, LLC
Gerald J. Leonard
PMP, MCTS, CQIA, ITIL, COBIT
President/CEO
Gerald@Principlesofexecution.com
http://www.principlesofexecution.com
Helping Organizations Develop A Culture That Works!