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June 2009 - Posts

“Amp up the ‘folio”: Reasons for Tuning a Project Portfolio

Published: June 25 2009, 01:54 PM | no comments
by Pradeep Bhanot

 

Creating a perfect portfolio may be a dream, but striving for one should not be. Lean thinking encourages incremental measures that focus on the customer, improve processes, amplifying good projects and eliminating waste by switching off or deferring non-strategic ones.

What makes one portfolio better than another? One popular view would be of a portfolio that manages to balance risk with return is perfect. A conservative company in a highly regulated market with minimal competition may be happy with a high percentage of its projects focused on customer retention and maintenance of existing services.  This approach would protect top line revenue while trimming the bottom line by increasing efficiencies.

For an aggressive business that is in a growth market with a high tolerance for risk may consider an optimal portfolio to be one that supports a handful of ambitious "game changing" initiatives while mitigating essential regulatory exposures. A secondary focus on maintenance and customer retention may be tolerated if there is high demand from an emerging market. This might be the case for a vendor of GPS devices where the vast majority of the revenue from new customers.    

Another definition of an optimum portfolio is one that is well aligned to the company's strategy and business climate. The current economic reality is favoring measures that cut or contain costs, a scale back on large cost intensive projects and a focus on projects that offer fast payback to sustain the company through the recession.  

In the absence of facts and metrics around business alignment, cost, value and risk factors, balancing a real portfolio becomes an art. PPM solutions provide some clarity by providing a decision making framework for making informed portfolio decisions, which makes the process less subjective and more of a science.  When facing a cost cutting requirement from executive management, being able to quickly identify candidate projects based on cost, value or strategic fit can be pretty handy.

A project portfolio can be a pretty dynamic thing. Tuning the portfolio is an exercise that needs to be done at on ongoing manner to keep pace with changes in the market and business climate.

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By: Pradeep Bhanot
Pradeep Bhanot markets CA Clarity PPM in Europe. Prior to CA, Pradeep worked at BT, the UK Department of Energy, ECGD, Watson Wyatt, Oracle, and Serena Software. He is ITIL v3 Foundation certified, a PMI member and holds a Computer Science Degree from Greenwich University.
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Gartner MQ for IT PPM Published

Published: June 16 2009, 06:02 PM | no comments
by Pradeep Bhanot

In the latest Magic Quadrant for IT Project and Portfolio Management report, Gartner has raised the bar for the PPM market by Increasing the emphasis on the integrations to support broader use cases such as IT Planning and Control, Application Portfolio Management and use with ERP systems. CA was placed in the Leaders Quadrant. The full report is available at http://mediaproducts.gartner.com/reprints/ca/article3/article3.html This report has encouraged CA to further evolve its capabilities for enabling true service portfolio management through improved interoperability of PPM and IT Service Management. About the Magic Quadrant The Magic Quadrant is copyrighted 2 June 2009 by Gartner, Inc. and is reused with permission.

The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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By: Pradeep Bhanot
Pradeep Bhanot markets CA Clarity PPM in Europe. Prior to CA, Pradeep worked at BT, the UK Department of Energy, ECGD, Watson Wyatt, Oracle, and Serena Software. He is ITIL v3 Foundation certified, a PMI member and holds a Computer Science Degree from Greenwich University.
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Setting up a Business Driven PMO

Published: June 15 2009, 10:06 AM | no comments
by Pradeep Bhanot

Dave Garrett, CEO of gantthead.com gives a strong endorsement to Mark Price Perry's recently published book Business Driven PMO Setup. It is packed with practial advice on setting up a PMO, with examples of the use of the Organizational Project Management Maturity Model (OPM3)®  developed by the PMI. Steve Romero, whose webcast series I covered earlier in this blog, was a contributor to the chapter on building high performance teams. 

I would be interesting to hear about how useful this advice is to your existing PMO.  

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By: Pradeep Bhanot
Pradeep Bhanot markets CA Clarity PPM in Europe. Prior to CA, Pradeep worked at BT, the UK Department of Energy, ECGD, Watson Wyatt, Oracle, and Serena Software. He is ITIL v3 Foundation certified, a PMI member and holds a Computer Science Degree from Greenwich University.
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Change as a Positive Force in PPM

Published: June 12 2009, 03:09 PM | no comments
by Pradeep Bhanot

 

Jay Rollins wrote a really fascinating article on ZDNet Asia. The article discusses change friendly cultures he has developed as a CIO in several companies to mitigate the fear of change in project management.   The article got me thinking about the concept of change management. My work in change management has taught me that change is enviable and should be embraced, not feared. Project management needs the formality of traditional methods to satisfy the need for rigor, auditability and control. Project management practices encourage project reviews, after the project is live, to gather learning's that the PMO can use to refine and institutionalise practices employed in future projects. However, changes within a project that impact scope, schedule and cost are usually treated as exceptions.

Project management can take a leaf out of the software development world, which parallels PPM by implementing a formal Software Development Life Cycle (SDLC) process to ensure quality and accountability, but has been far more open to make change management the norm and channel it into a constructive force.  Decades ago, when I first started programming, I would first create a shell using a boilerplate for the main program and exception handling. I would then outline all the required functions that would need to be called. This parallels the outline of a project plan. Next, I would add all the comments describing the main body and functions, which would ease maintenance, QA and provide the basis for demonstrating adherence to the requirements document (if any). Changes to requirements would also be documented in the comments.  Today, these would also be captured in an external system or document that QA, project management and documentation writers would use.      

The interesting part was coding the functions taking a stepwise-refinement approach (similar to the Kaizen or continuous refinement element in Lean approaches that encourages change for good). This is similar to today's iterative methods, such as Agile approaches that enable the work to be scaled to development teams and harness the energy of many eyes and brains to build a quality deliverable in a short space of time.  

Humorous interlude: It amuses me to think back to the regressive step I took, when my career shifted from building applications to mainframe systems programming, where the task was usually to get two or more different products working together. Then we used a less formal methodology we called the 4-T's, which stood for (Try-This-Try-That).    

The cultural change project management is going through now is making change management a norm, rather than an exception, and adopting agile approaches to improve planning for the fast execution of sub-projects, while maintain quality. This recognises that requirements change and foster closer collaboration between the build team and the customer as they refine requirements and the shape the deliverables together. The result is rapid delivery of projects that meet the sponsor's requirements, increasing success rates.           It would be great to hear your views on the cultural change in project management and in particular the effect this has on change management - comment below or through the contact form. 

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By: Pradeep Bhanot
Pradeep Bhanot markets CA Clarity PPM in Europe. Prior to CA, Pradeep worked at BT, the UK Department of Energy, ECGD, Watson Wyatt, Oracle, and Serena Software. He is ITIL v3 Foundation certified, a PMI member and holds a Computer Science Degree from Greenwich University.
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