Strategic Leadership and Project Portfolio Management
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1 Strategic Leadership and Project Portfolio Management Rick Clare PMP, CBAP, CSM, MSPM November 11-15, Alpha Drive Pittsburgh, PA (888) Fax (412)
2 Company Background Consulting and Training (Virtual, Public and Private Training) ü Project Management Training & Consulting ü Business Analysis Training & Consulting ü PM and BA Solution Consulting IT Staffing and Placement ü IT Staffing ü Project Management Consulting ü Business Analysis Consulting
3 Presentation Objectives Explain the characteristics of strategic leadership Describe a high-value PMO and how project personnel fit into this kind of organization Explain how Project Portfolio Management is accomplished at the highest level Describe the characteristics of a senior executive Know how to prepare oneself for a role in a high-value PMO 3
4 Presentation Topics 1. Strategic Leadership 2. The Business Perspective 3. The PMO (room for us all) 4. Project Selection and Portfolio Management 5. The Senior Executive 6. Preparing Yourself for Leadership 4
5 1. Strategic Leadership Leadership Management Tactical vs Strategic Strategic Planning 5
6 Leadership A process where someone influences a group of individuals to achieve a common goal Steps taken to produce change and movement A set of personality traits A pattern of behavior An observed outcome. Leadership is very hard to define, but we all know it when we see it! 6
7 Management The use of a process to bring desired tasks to completion The application of skills to support order and consistency Planning, organizing, staffing and controlling Bringing order out of chaos! 7
8 Leadership versus Management Most scholars believe the two are very different Quite often management comes off as a poor cousin to leadership - done by those not capable of being a real leader Our position is that both are needed for project success 8
9 Leadership & Management: Together Leadership without Management uncontrolled change and chaos Management without Leadership resistance to change and an inability to see beyond the now Management and Leadership Guided vision, brought into existence under control so as to maximize effectiveness Leaders do the right things Managers do things right 9
10 Tactical Leadership Leadership brought to bear to get a specific set of tasks done Leadership performed on a daily basis to achieve goals Not another name for Management this is leadership, just done at a more detailed, usually lower, level 10
11 Strategic Leadership Leadership at higher levels The focus is on identifying needed change and bringing that into existence Strategic leadership is about changing the organization these leaders make policy Strategic Leaders: Give a sense of direction to the organization Are communicators of vision 11
12 Successful Strategic Leadership Eloquence, Vision and Consistency Commitment Well Informed Willingness to Delegate Astute Use of Power Emotional Intelligence Hill and Jones, Essentials of Strategic Management, 3rd Ed., Cengage,
13 Strategic Planning in a Nutshell Develop corporate mission, vision, strategy and major goals Analyze competitive environment to identify threats and opportunities Analyze internal corporate environment to identify strengths and weaknesses Select strategies that address the SWOT and that are in accordance with the mission and goals Implement the strategies 13
14 2. The Business Perspective Business and Competitive Advantage Leadership in Business Business Strategies 14
15 Business & Competitive Advantage Leadership in Business The Macro Environment Business Strategies Strategies for Growing a Business These things must become part of your world! 15
16 Leadership in Business Strategic leadership exists and is needed in many places: politics, military, humanitarian Our focus here is on Business: This presentation is targeted at BA s and PM s, and we work inside a business Your involvement in Strategic leadership will follow your career, in all likelihood An understanding of business, not just this business or department, is needed! 16
17 The Macro Environment Businesses exist and function inside a larger environment that brings certain pressures to bear Called the Macro Environment or Porter s Five Forces Socia gy o l o n h Tec l Valu es Substitutes Suppliers Buyers Company Rivals New Entrants The Economy 17
18 Business Strategies Positioning Customer Needs and Product Differentiation Customer Groups and Market Segmentation Distinctive Competencies Strategy Cost Leadership Differentiation Focus Strategy 18
19 How Does a Company Grow? Internal Ventures fund their own expansion using profits from existing departments Acquisitions purchase an organization with existing competencies or desired assets Strategic Alliances partner with an organization with existing competencies Franchising offer your branding for compensation 19
20 3. The PMO Why are we talking about PMO? Different PMO Structures The High-Value PMO (Room for us all) 20
21 Why Are We Talking About PMO? PMO means Project Management Office we are Business Analysts! We have our own organization called a BA COE what do I care about a PMO for?? Because at the highest level, the largest form of a PMO controls everything about projects the BA is a major player in such an organization 21
22 Different PMO Structures Single-person office providing advice Small group owners/enforcers of the PM processes Department that all PM s report to Larger organization that owns all PM s and BA s Highest level - all project selection, decisions, management and execution is controlled here: The High-Value PMO 22
23 The High-Value PMO Room for us all Represents for companies what Air Traffic Control does for pilots safety, value, speed and efficiency Drives higher return on investment for the organization Helps the company achieve its strategic goals an arm of senior management Supports executives and the project staff Provides centralized control for all project-related matters 23
24 Components of a High-Value PMO Project selection and pursuit of strategic goals Project process Centralized project repository Training, coaching and mentoring Full personnel reporting structure Project status reporting all the way up Centralized resource allocation Advanced Project Portfolio Management and the PMO, Kendall and Rollins
25 Reasons for PMO Failure Try to do too much at one time Insufficient buy-in from senior executives Positioned at too low a level in the organization PMO isolates itself from the PM s and BA s, and just tries to collect information for dashboards Trying to solve just one problem, like project resource allocation or process confusion, without thinking about the context of all problems Focus on supply and cost without considering marketing Seen as a threat or additional overhead 25
26 BA s in a High-Value PMO Major players on all successful projects BA training, coaching and mentoring would be covered alongside that for the PM s, as would the processes Project selection: Preparing and presenting business cases is Enterprise Analysis Think about this: Who should lead such an organization and what would be that leader s characteristics? 26
27 4. Project Selection and Portfolio Management Project Selection Objectives Portfolios and Portfolio Management Role of the Portfolio Manager/PMO Responsibilities of the Portfolio Manager/PMO Organizational Positioning of this Element 27
28 Project Selection Objectives Address organization vision & objectives Consider organizational structure and areas Create measurable goals Allocate funds to different types of initiatives Consider portfolio benefits and value expected Solidify financial analysis methodology Consider resources required Create reusable prioritization model Consider risk tolerance 28
29 Portfolios and Portfolio Management Portfolio Definition: a component collection of programs, projects, and/or operations managed as a group to achieve strategic objectives At the highest level, consists of all corporate projects Portfolio components may not necessarily be interdependent or have related objectives Portfolio components are quantifiable they can be measured, ranked and prioritized *This definition is taken from the Glossary of The Standard for Portfolio Management, Third Edition, Project Management Institute, Inc.,
30 High-level View of a Portfolio From The Standard for Portfolio Management, Third Edition, Project Management Institute, Inc., 2013 Figure 1-1, Page 3 30
31 Role of the Portfolio Manager/PMO Responsible for the execution of the management process Focus on doing the right projects while Program and Project Managers focus on doing projects right In a high-value PMO, this is happening at the highest levels of the organization, so the role becomes one of strategic leadership 31
32 Portfolio Mgr/PMO Responsibilities Establishing and maintaining: Framework and methodology Processes Appropriate infrastructure and systems Guiding the selection, prioritizaton, balancing and termination of projects, programs and portfolios Reviewing, reallocating, reprioritizing and optimizing Providing stakeholders with timely assessment of selection, prioritization and performance 32
33 Responsibilities (Continued) Measuring & monitoring value through performance metrics Achieving the information needs of stakeholders Meeting legal and regulatory requirements Supporting executive decision making Influencing active executive sponsorship Participating in program and project reviews 33
34 Organizational Context From The Standard for Portfolio Management, Third Edition, Project Management Institute, Inc., 2013 Figure 1-3, Page 8 34
35 Portfolio Roadmap Example From The Standard for Portfolio Management, Third Edition, Project Management Institute, Inc., 2013 Figure 4-9, Page 52 35
36 Where Do You Fit In? Who will the Portfolio Manager/PMO be? Who will run this element of the organization? Any reason it can t be you? What do you need to do now? 36
37 5. The Senior Executive (SE) Senior Executives Need Your Help The Dilbert vision of senior executives is not real, although it is very funny! Most were promoted for competence and most are good at their jobs If you want to move into those ranks, you have to start supporting them To support them, you have to understand them and what they need to bring about their vision 37
38 SEs: What Makes Them Tick? Vision can be very emotional, but most SE s have learned to control that they need facts They are very busy and have little time to waste summarize for them and get right to the point They are driven by monetary decisions convert everything into hard numbers and avoid intangible benefits Figure out their vision and try and support it with information or suggestions 38
39 SE s What Do They Know? Most SE s came up through the ranks in some manner, so they will have residual skills such as accounting, project management or manufacturing Their current knowledge base, however, is business-focused The will have vast domain knowledge, but only that needed to support their business decisions They rely on others to hold detailed subject matter knowledge and to produce it as required 39
40 6. Preparing Yourself for Leadership MBA or another Master s Degree Perform a self-assessment, focusing on your leadership abilities address delinquencies Move to a position with more SE contact Be visible and network Get a mentor Work on your resume! 40
41 Leadership Self Training Interpersonal skills Cost, budget and fiscal training Quality disciplines such as Lean or Six Sigma Study high-performance organizations Take on public speaking opportunities Writing training Analytical thinking training 41
42 Review and Takeaways 1. Strategic Leadership 2. The Business Perspective 3. The PMO (room for us all) 4. Project Selection and Portfolio Management 5. The Senior Executive 6. Preparing Yourself 42
43 Questions? Rick Clare CBAP, PMP, CSM, MSPM PMCentersUSA BA Practice Director Website: Address: Toll Free:
44 Contact Information Name: Rick Clare, PMP, CBAP, CSM, MSPM Phone:
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