Voices on Project Management

By Wanda Curlee

Marisa Silva, “the Lucky PM,” recently published a five-part series on portfolio management, “Thinking Outside the Triangle: Project Portfolio Foresight.” What intrigued me in the series were her thoughts about the future. She aptly points out that the project management discipline is about helping to understand the future. But the future, of course, is anything but predictable.

Project, program and portfolio managers take different views of the future. The project manager is at a tactical level and focuses on moving one project to its successful conclusion, or the future. Throughout the project, the project manager attempts to keep it on track. However, Marisa stresses that the project manager needs to think beyond the golden triangle of scope, timeline and budget by assessing the external environment and how it affects the project.

For example, imagine you’re a project manager leading a large, complex project. The project is key to the organization updating its antiquated systems. The vendor is about to announce a revolutionary change to the product that the project is implementing. What do you do? This affects your future and the company’s.

At the next level, the program manager is orchestrating a group of projects to deliver a complex environment and a single benefit or a set of interim benefits. Again, the program manager is gazing into the future to deliver these projects and benefits. He or she is constantly re-evaluating how to maximize the benefit for the company via the set of projects.

Finally, the portfolio manager takes a disparate set of projects/programs, maps them to strategy and then works magic to move the company from an “as-is” strategy state to the “to-be” strategy state envisioned by the leader of the organization.

Simple, right? Absolutely not. The portfolio manager is consistently looking at how to optimize the portfolio to keep within risk tolerance. He or she also optimizes resources to drive the best value for the company. Talk about looking into a crystal ball!

But according to Marisa, even this is thinking inside the triangle. The astute portfolio manager needs to have foresight. He or she should be thinking about various visions of the future and be adaptable enough to change. In other words, portfolio managers must have situational awareness of the current world and how it can change dramatically (sometimes in an instant). They must be ready to adapt to that change.

To describe the enormously complex world we now reside in, two acronyms have been coined: VUCA (vulnerable, uncertain, complex and ambiguous) and DANCE (dynamic, ambiguous, nonlinear, complex and emergent). As the project, program or portfolio manager, you help your organization prepare for and adapt to an uncertain future.

By Wanda Curlee

Compared to project or program management, “portfolio management” is in its infancy. I suspect many still think of investment or financial portfolio managers when they hear the phrase.

Portfolio management—I don’t usually put “project” before these words—will certainly change significantly during the next decade. Think how much project management has changed in the last 10 years.

But instead of looking into a crystal ball to imagine the state of portfolio management in 2026, let’s just think about 2016. I’m keeping my eyes peeled for three things this year.

1) C-Suite recognition.

I expect many more people in the C-Suite to recognize that implementing strategy is doing the hard work. Someone needs to be the push between executives and senior management on one hand, and program and project managers on the other.

Some would say that this is the PMO manager’s position, but that misses the point. The portfolio manager sits above the PMO and does the hard work for the C-Suite. He or she has the ear of the C-Suite and makes tough recommendations to the governance team. This is primarily done by looking at the strategic objectives, aligning the projects and programs to them, and ensuring that the appropriate resources are available for execution.

2) New tools.

What else will we see? Tools! To date, there is no one tool that truly meets the need of the portfolio manager. Yes, some come close. But there is nothing that appears to have the input of a seasoned portfolio manager.

I hope some enterprising software company will retain an experienced portfolio manager to help design a brilliant tool. Because when the end user is asked to help design the software, a much better product happens.

3) Virtual abilities.

Along with the right tools, a portfolio manager needs to be able to work in a virtual environment. With clients, project managers, vendors and leaders in different parts of the world, many companies are now operating in a virtual environment. That means it’s increasingly important that portfolio managers have the ability to deal with time zone and cultural differences.

It’s hard to say exactly how working in a cloud-based environment could impact the world of portfolio management. It could conceivably provide greater transparency to an organization’s leaders, for example.

What do you expect to see as portfolio management matures in 2016 and beyond?

By Wanda Curlee

Why do organizations implement portfolio management? There is no right or wrong answer. However, there is a right and wrong way to implement it. Sometimes organizations become so excited by the possibilities of portfolio management, they take the big bang approach. In other words, they implement everything at one time. This is definitely the wrong approach for almost all organizations.

A more desirable approach is what I like to call baby steps. With baby steps, there’s less to lose if something needs to be abandoned or tweaked to better meet the demands of the company. The first step of this approach is to develop the portfolio management methodology the company wants to eventually adopt. This helps leadership see the full value and builds buy-in.

For some, determining what to adopt first is very painful. My suggestion for deciding what aspects of portfolio management to implement first has to do with resources. Today, organizations usually lack all the resources needed to deliver everything desired. So start with your most in-demand resource—the type that gives you the most trouble—whether it’s human, capital, hardware or something else. Then take all your projects and programs and decide the order in which you’d like to deliver them. This is your portfolio roadmap. Are the in-demand resources in collision? In other words, would a scarcity of resources cause bottlenecks in project or program execution? Most likely the answer is yes.

Next, you might want to roughly determine the cost of each component (e.g., a project or program), the highest two risks on each one, and the perceived value of delivery. Cost is normally quantitative, but perceived value and risks may be qualitative. That’s okay. Just try to have four or five factors for each and assign a numeric value for low, medium and high. This makes it easier to come to consensus.

For each component, have concentric circles with value at the center, cost surrounding the value and finally a red circle to describe risk. For example:

The first set of circles has a relatively small value, but large cost and risk. For the amount of benefit received from this component, it might make sense to cancel.

The second set of circles shows a large value, a smaller cost and a large risk. Since the value is so large compared to the cost, it might be worthwhile to see if the risks can be reduced.

Finally, the last set of circles has a moderate value, a large cost and a fairly low risk. This may be a good one to keep, especially if the costs can be negotiated down.

Once each component has three circles, then the portfolio roadmap can be looked at again with each of these concentric circles. Does it match what you had before? Probably not. Based on the circles, you will probably make changes to the portfolio roadmap. Some portfolio components may be canceled and others will change priorities.

Yes, the resource that causes bottlenecks or collisions still needs to be evaluated, because most likely there are still some issues. However, you may have more resources because some components were canceled or delayed. With a better handle on what components can and should be executed when, you’re on your way to a successful rollout of portfolio management at your organization.

Have you ever done this kind of resource audit and prioritizing at your organization? If so, has it helped?

By Wanda Curlee

I’m a big fan of PMI’s annual PMO symposiums. I presented at last year’s symposium in Miami, Florida, USA and I’ll be presenting in Phoenix, Arizona, USA next week at this year’s event.

Why do I make the trip each year? There are many reasons. Each symposium acts as a crossroads of sorts between general management and project management. Each gives me a chance to speak with senior leaders in a one-on-one environment. And copies of PMI’s latest installment of the Thought Leadership Series, which features in-depth original research and analysis, are given out to attendees.

This year’s series is on “The Power of Project Portfolio Management.” As a certified portfolio manager, I want to leverage that research to increase my ability to provide powerful portfolios for my current company and future clients.

Last year, the symposium focused on talent management, and PMI’s talent triangle was a focal point. That, coupled with the introduction of the portfolio management certification (PfMP), made for an exciting and fruitful experience.

Senior leaders from many organizations discussed the value of the talent triangle and how portfolios, programs and projects help drive the talent in their respective organizations. Hearing executives discuss and present the practical side of what the project management discipline has done for their organizations was invaluable.

But the bit that I found most fascinating had to do with corporate citizenship. When running a portfolio, trust should be established so that program and project managers are willing to give back funds in excess of actual projects and programs.

It’s an odd concept, but when followed on a quarterly basis, it builds the understanding that more projects and programs can be funded and—most important—there are funds on hand if you find your project or program is in trouble. There’s no concept of shoot the messenger.

This year’s PMO symposium, held from November 8^th to the 11^th, will once again draw senior leaders from an impressive array of organizations. The networking opportunities will be vast.

If you’ll be in Phoenix, stop by my educational session on why a portfolio manager should be the CEO’s best friend. Yes, I truly believe that portfolio management can drive better management of corporate resources and increase the bottom line for all companies. Resources are finite at every company—and portfolio managers work to allocate them efficiently.

If you don’t agree with something I say, speak up—I’m there to learn, too.

By Wanda Curlee

When we talk about project, program and portfolio management, the word “maturity” often comes up. But with respect to portfolio management, the newest of these three disciplines, what does “maturity” really mean?

For starters, it means time. Simply aquiring a portfolio management tool doesn’t align the portfolio to the strategy, as Dr. Mark Mullaly noted in a projectmanagement.com blog post earlier this year. Alignment typically doesn’t happen overnight or even in one year. Implementation of strategy normally comes with organizational change, and most humans do not like to change.

Here’s a look at a typical portfolio management developmental process.

The Early Years

Immature portfolio management practices are normally less than three years old. I think of this as the toddler stage. Getting to the next stage of maturity takes a committed C-suite that believes that a portfolio manager can balance the checkbook while delivering strategic benefits.

Remember, no company or individual has a blank check to fund all projects and programs. There must be mutual trust between the portfolio manager(s) and the C-suite. The C-suite must provide the portfolio manager with the authority and support needed to get real traction.

Traction should follow from a defined governance structure, rudimentary metrics, and programs and projects adhering to the governance structure. As Andy Jordan notes, without successful projects, portfolio management will not succeed. Project leaders need to realize that the portfolio manager drives the organization’s strategic execution.

Project managers may see this as an attack on their independence or worry that a project will be cancelled, Mr. Jordan adds. With a cancellation, a project manager and team may be placed on the bench. Organizational shifts are uncomfortable.

Throughout this state, it is imperative that portfolio managers demonstrate value to project and program managers, according to Mr. Jordan. One way to do this is to constantly communicate to these practitioners that they must see everything they do through the lens of the customers’ wants and needs.

Growing Pains

The next step is what I call the teenager stage. This phase takes between three and five years, during which—as any parent knows—rebellion can happen.

An important way to avoid rebellion is by making sure project and program managers see themselves as invaluable. They have the ability to see opportunities and risks that the portfolio manager cannot see. The portfolio manager must create this dialogue, which is part of maturing in the teenage phase.

Throughout this phase, the portfolio manager is working to overcome the remaining naysayers while tweaking the process, procedures, governance and metrics. This will take time as well, just as it takes a teenager time to mature into a young adult.

Adulthood

The final phase is, of course, full maturity. This is not a time for stagnation—if that takes hold it will be the death of the portfolio management team. Stagnation means the portfolio isn’t nimble or reactive to change—the opposite of agility.

Mature portfolio management means calibrating the portfolio as frequently as necessary to fit a changing strategy. Strategy today is not the strategy of yesteryear. Depending on the industry, the strategy may change every year. If there’s upheaval in the industry, strategy could change even quicker.

Can you fathom Apple updating its strategic goals only every three to five years? I can’t either. Reaching maturity for the portfolio manager means truly understanding the industry, becoming entrenched with the C-suite, making changes to the portfolio management process to increase delivery to the stakeholders. It means being agile enough to understand that change is needed.

During the process of portfolio maturation, the portfolio manager needs to consider portfolio rebalancing. This is a relatively new concept, and it was discussed during a breakout session at PMI’s PMO Symposium last year. 

The presenter suggested reviewing the portfolio mix at least quarterly to ensure strategic alignment. The larger point is that, as portfolio management matures, project and program managers should become more comfortable in re-estimating on a quarterly basis. By doing so, those projects and programs that are under-running may give back dollars to the portfolio.

Why is this important? First, it means that excess funds can be used for any projects and programs that are overrunning. But more importantly, these funds can be used to start new projects and programs to deliver increased benefits.