1、Achieving Execution Excellence Through Portfolio ManagementDr.Te Wu 巫德宇愽士Management Consulting with A Social ConscienceAgenda Portfolio Management Overview Connecting Strategy with Executing Using Portfolio Management Portfolio Management Considerations for“One Belt One Road”(一带一路)PMI Portfolio Mana

2、gement CertificationAgenda Portfolio Management Overview Connecting Strategy with Executing Using Portfolio Management Portfolio Management Considerations for“One Belt One Road”(一带一路)PMI Portfolio Management CertificationIntroductionPortfolio Management is a differentiator and competitive advantage

3、Successful organizations differentiate Portfolio management is a proven way to make key investment decisions Proprietary And Confidential5The Dismal State of Executionof survey respondents believes business execution is extremely important or the most important to their organization47%9%of well-form

4、ulated strategies fail due to poor execution90%Source:Robert Kaplan and David Norton,The Strategy-Focused Organization,Harvard Business School Press,2001Source:“Strategic Business Execution Survey”,In Progress,PMO Advisory LLC.or USD$122 million wasted of every USD$1 billion spent on projects12%Sour

5、ce:PMI Pulse of the Profession,The High Cost of Low Performance,May 2016of respondents is“very satisfied”with their organizations ability to achieve resultsWhat is Portfolio Management(PfM)?Portfolio management is the bridge between strategic planning and implementation,and the primary focus is to d

6、etermine the right projects which by definition are investments for the organization Program and project managements primary focus is doing those projects in the right wayPortfolio management can and should exist at multiple levels of organizations,from the enterprise to department and sometimes to

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

8、ion Changing looks ahead at the future and the next bend in the road-Portfolio management primarily exists to support changeProprietary And Confidential8Major Organizational ActivitiesWhat do organizations do?ChangingPlanningOperatingActivity Map of an Organization Changing(PPP)PlanningOperatingCorp

9、orate StrategyCorporate StructureCorporate IntegrationMission,Vision&CultureBusiness StrategyBusiness ObjectivesFinancial PlanBudgetingFunctional Strategies:MarketingSalesProductITPortfolio(Risk&Reward)Program(Benefits)Project(Deliverables)Strategic AlignmentOrganization StrategyPortfolio StrategyGo

10、vernance:Prioritize&BalanceAuthorize&Adjust CommunicateRisk ManagementInitiate ProgramPlan Program:Benefits ManagementStakeholderGovernanceScopeScheduleFinanceIntegrationExecute ProgramMonitor&ControlClosing ProgramInitiate ProjectPlan Project:ScopeScheduleCostQualityHuman ResourcesCommunicationRisk

11、ProcurementIntegrationExecute ProjectMonitor&ControlClosing ProjectOperation Plan:Facility PlanProduction PlanContingency PlanningDisaster&RecoveryService PlanMaterial PlanResource PlanTraining PlanQuality ManagementCustomer Relationship.Operational Metrics&ReportingManage OperationsContinuous Impro

12、vementService CatalogMulti-Disciplinary Organization Change Management Organization Development Leadership Incentives Business Process Change/Re-engineering Functional Leadership(e.g.IT,Finance,Marketing)Communication ControlCommunicationPerformanceResource ManagementHierarchy of Organizational Acti

13、vitiesProprietary And Confidential11LevelPillarsName10PlanningCorporate or Enterprise Strategy9Organizational Strategy8Business Unit StrategyChanging7OperatingFunctional Strategy6Portfolio 5Program4Project3Operational Initiatives2Tracks1Specific Tasks and ActivitiesSource 1:Wu,2015,A Sensible Guide

14、to Passing the PfMP Exam,Table 11,Page 45Purpose of Portfolio ManagementPortfolio management enables successful strategy execution because it:1.Aligns with Strategy2.Guides Project Investment Decisions 3.Guides Resource Allocation4.Strengthens Organizational Legitimacy5.Focuses on Portfolio Performa

15、nce6.Informs Risk ManagementProprietary And Confidential12Why Portfolio Management?There is empirical evidence supporting the value of Portfolio Management.Two studies:1.Project Management Institute in-depth survey of Portfolio Management in 20122.PMO Advisory study of Strategic Business Execution,w

16、ith Portfolio Management listed as a disciplineProprietary And Confidential13PMIs Study on Portfolio ManagementProprietary And Confidential1477%68%64%62%18%36%19%29%Highly Effective Portfolio Mgt%IncreaseCriteriaMinimally Effective Portfolio Mgt65%50%54%48%Completion on TimeExceed/Meet Forecasted RO

17、ICompletion on BudgetMeet Original Business GoalsPMIs 2012 Pulse of the Profession In-Depth Report on Portfolio ManagementPMO Advisorys Study on Portfolio ManagementPMO Advisory pioneered the“Execution Index”(scale of 1 to 100 where 100 is perfect execution)that reveals how well organizations execut

18、e their business strategyWe received 460 responses to the question“On a scale of 1 to 5,how well does your organization perform portfolio management”Proprietary And Confidential15Source PMO Advisorys 2013 Strategic Business Execution StudyAgenda Portfolio Management Overview Connecting Strategy with

19、 Executing Using Portfolio Management Portfolio Management Considerations for“One Belt 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 Strategic Objectives5.Mature Project Management OfficeProprietary And Confidential17Source 2:PMIs 2012 Pulse of the Profession In-Depth Report on Portfolio ManagementBuilding Portfolio ManagementProprietary And Confidential18I.DefineII.AlignIII.Monitor,Control&Optimize Rev

21、iewed business and organizational strategies Conducted interviews with executives Created inventory of work(100 projects)Developed governance model and prioritization framework Created Portfolio Governance Team,composed of 7 executives including the CEO who is the chair Trained executives(and most o

22、f their direct reports)on portfolio management methodology Piloted the portfolio management process for six months Worked closely with the project teams on the approved projects on methodology and resources Monitored progress and provided rapid escalation Conducted regular Governance Meetings to min

23、imize surprises and manage performancePhaseTasksResultsRefined organizational strategy,inventory existing work,and develop new ideasAchieved legitimacy of governance;also agreed to implement the vital few “Big 6”First to market with a new product;achieved nearly$300 million in loans before the next

24、competitor stepped inCase Study:Financial Services FirmBackground:Company X was one of the fastest growing financial services firms in the United States.Its growing 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 mi

25、red in delays,with little hope of completion.Smaller projects were rampant and largely uncontrolled and in some cases unknown.Solution:Created“Enterprise Project Services”to oversee large projectsDeveloped and implemented an enterprise portfolio management process to guide investment decisions and r

26、esource allocationFocused resources on the vital few-“Big 6”Disproportionately awarded success performance on Big 6 projects to attract the best resources across the organizationBusiness ResultsBusiness ValueSignificantly improved time to marketBecame the first company to release a new loan product(

27、after 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 and attention to the most important endeavors.

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

29、nt,crunches continued to happen,but not on the same scale.Plus,with more dedicated resources,employees had more time to learn and apply their new skills.Proprietary And Confidential20Sample Deliverables Six Sub-PortfoliosProprietary And Confidential21PortfolioDefinitionNew Product/ServiceNew revenue

30、-producing,volume-producing,mission-supporting,and/or market-facing goods or offerings.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.EnhancementChang

31、es to existing tangible or intangible goods,ranging from small refinements to a complete makeover,done with the intention of improving the existing product set or service.Service DeliveryChanges to existing methods of delivery(channels)of existing products or services to customers.PortfolioDefinitio

32、nCompliance/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 considered as costs of doing business.InternalEfficiencyInitiatives that are designed to better the produ

33、ctivity of the firm and/or the quality of work.This type of initiative typically involves backend workflow upgrades and is not apparent to the customer,but provides some intrinsic value to the firms level of productivity and efficiency.Infrastructure Initiatives undertaken to improve the foundation

34、that supports the normal operations of the firm.This usually refers to IT platform changes but can be other infrastructure projects such as new office buildings.Client /Market FacingInternal FocusSample Deliverables Scoring Proprietary And Confidential22Concept ScreeningStrategic ImpactProduct Advan

35、tageMarket AttractivenessOperationalFeasibilityRisk vs.ReturnRelative Weight4010202010Product Development CommitteeStrategic ImpactProduct AdvantageMarket AttractivenessOperationalImpact&FeasibilityRisk vs.ReturnPerson 187599Person 277688Person 366797Person 496579Person 5783108Average7.46.85.28.68.2

36、Score(Scale of 1-10)3.00.71.01.70.8Overall Score7.2Impact&Sample Scoring Results for Concept Screening StageNote:Different weights are used at each stage of the product development process.Since the threshold at this stage is 6.0,this product initiative proceeds to the next stage.Sample Deliverables

37、 Anticipated“Pull-Thru”Proprietary And Confidential23Phase Pull-Thru RateExample1.Idea Generation50%Of 100 ideas,50 progress to the next phase.2.Concept Screening50%Of the remaining 50 ideas,25 progress to the next phase.3.Product Definition50%Of the remaining 25 ideas,about 13 progress to the next

38、phase.4.Concept Testing75%Of the remaining 13 ideas,about 10 progress to the next phase.5.Business Case Development75%Of the remaining 10 ideas,about 8 progress to the final gate.6.Approval&Ready for Implementation75%-90%Approximately 6 to 7 ideas are approved for implementation.86-7Agend

39、a Portfolio Management Overview Connecting Strategy with Executing Using Portfolio Management Portfolio Management Considerations for“One Belt One Road”(一带一路)PMI Portfolio Management CertificationConsiderations for One Belt One Road(B&R 一带一路)Opportunities abound Resource intensive Benefits may be co

40、ntroversial Investment resources limited Highly Political Complex(e.g.integration)Source:1.Left:McKinsey.http:/ of Portfolio Management Strategic alignment Making sure specific initiatives are aligned with the strategic and tactical objectives Governance Ensuring the decision making processes are tr

41、ansparent Performance Evaluating and measuring values Risk management Tackling unknowns Capability and Capacity Establishing realistic targets,within limited resourcesAgenda Portfolio Management Overview Connecting Strategy with Executing Using Portfolio Management Portfolio Management Consideration

42、s for“One Belt One Road”(一带一路)PMI Portfolio Management CertificationProject Management InstituteProprietary And Confidential28724,77331,85512,4759193461,5211,6803,693774,40633,88016,2831,4794501,7101,9674,158PMI Today,August 2017PfMP Certification QualificationsProprietary And Confidential29MUSTMini

43、mum of 8 years(or 96 months)of professional business experience focusing on strategic investment considerations(The 8 years or 96 months of experience does not need to be contiguous nor is there a time limit such as within the last 20 years)A secondary degree(High school diploma,associate degree,or

44、equivalent)A four year degree(Bachelor degree or equivalent)Minimum of 7 years(10,500 hours)of portfolio management experience within the past 15 consecutive yearsMinimum of 4 years(6,000 hours)of portfolio management experience within the past 15 consecutive yearsGeneral Professional ExperienceEducationPortfolio ExperienceProprietary And Confidential30Questions 你有任何问题吗?Contact Information Dr.Te Wu 巫德宇愽士 CEO of PMO Advisory Professor Email: LinkedIn: Web:Proprietary And Confidential31Management Consulting with A Social Conscience