Embed Size (px)
DESCRIPTION
Citation preview
Powerful Product Planning &
Portfolio Management
Projektverktygsdagen 27/5 2010
Torbjörn Grahn, Condesign AB
Agenda
• Condesign & Planisware, who we are…
• Vattenfall and PPM
• Why PPM ?
• The seven deadly sins of PPM
• An implementation process
• Summary & Thoughts
Information Knowledge since 1984
• Founded in Göteborg 1984
• 200 employees
• Offices at 9 different sites
• Business Areas:
- Engineering
- Communication
- IT/Operations Support
KARLSKOGA
GÖTEBORG
LJUNGBY
JÖNKÖPING
VÄSTERÅS
LINKÖPING
STOCKHOLMKARLSTAD
MALMÖ
Condesign is a partner
Planisware is a global leadning supplier of PPM (Project Portfolio Management) systems since
1996
Planisware 5 is a system for PPM (Project Portfolio Management) that supports the organizations
complete project scope: from the operational level to the strategic level.
Focus on NPDI (New Product Development and Innovation)
Stage-Gate-certified – Best Practice for NPDI is integrated in the tool
Planisware’s PPM-system is used by more than 200 organizations worldwide with +200 000 users
in market segments such as: Pharma, Energy, IT, Aerospace & Defence, Automotive
A few examples:
The Powerful perspective ...
Vattenfall is Europe's fifth largest electricity
producer and the largest heat producer.
Vattenfall acts in all parts of the electricity
value chain: generation, transmission,
distribution and sales. Vattenfall also
generates, distributes and sells heat.
Operations are conducted in Sweden,
Denmark, Finland, Germany, Poland,
Great Britain, Netherlands and Belgium.
Vattenfall has more than 40 000
employees.
Vattenfall - Geographics
Portfolio Management
Which projects do we run ?
NOT
From the Project Tunnel …
… to the Project Funnel !
Strategic project planning
The vision with PPM – key benefits
• Shorter Time to Market
• High project efficiency – low failure rates
• Many Successful projects
• Supporting the Business Strategy
The seven deadly sins
of PPM
Sin I – Narrowly defining the portfolio
Sin II – Investments decisions are like
New Year’s resolutions
Sin III – Decibel-driven versus
data-driven decision making
”Acoustic prioritization”
Sin IV – Too many metrics, not enough time
Sin V – One-Size-Fits-All Portfolio Management
Sin VI – ”If we install this software, then we will be
able to optimize our corporate portfolio.”
”A fool with a tool
is still a fool”
Sin VII – Driving without rear mirrors
Close the loop !
A suggested implementation
process
A four step approach
Analyze
Galvanize
Standardize
Optimize
Analyze
• How are we doing with regards to PPM?
Process and discipline
Organizational behavior
Attitude and readiness
• Which are our challenges (weaknesses)?
• Which are our strengths?
Unconsciuosly Competent
Consciously Competent
Consciously Incompetent
Unconsciously Incompetent
Galvanize
• Build a business case for the PPM effort
• Educate and get organizational buy-in
Leverage Your champion
Build a coalition
Do not confront sceptics
Win small, win early, win often
• Get senior sponsorship and commitment
• Change organizational behaviour on
an ongoing basis
Standardize
Standardize financial, strategic and risk evaluation methods
What is an investment/project/portfolio/... ?
Which metrics are important? – and which are not !?
Modelling of investment projections?
Investments that do not generate returns?
How is the data collected?
How often should the data be collected?
How to evaluate qualitative factors such
as risk and strategic benefit?
Optimize – setting up the first Portfolio Review
• Understand the current portfolio
• Define the short-term goals
• Get approval for the goals by the sponsor
• Educate the stakeholders in the review process
• Develop a hypothesis – what if scenario?
• Refine and resolve
• Implement recommendations and decisions
• Do a review on the Portfolio Review itself
Summary & Thoughts
The main realms for Governance
Business Guiding Principles
IT integration
Business processes definition
Strategy alignment
Aggregation level of data
Systems requirements
Systems integration
Systems security
The level of Governance
Key cluster specific models**
The challenge is to find the right balance between what needs to be managed in a common
structure and what needs to be managed according to unique local requirements
Transparent portfolio management,
however, limited possibility to
adapt to local business
requirements
Too centralized setup
Local adaptations
Right balance
Company level
Top level aggregation model*
Local specific info Cluster specific info Top level specific info
Too decentralized setup
Locally adapted portfolio
management, however, limited
holistic portfolio management
Some final thoughts ...
• Think big – start small
• Engage the decision makers (sponsors)
• Know your organisation – the culture and behaviours
• Encourage the ambassadors
• Define the nomenclature and the metrics
• Find a good ambition level for governance and aggregation
• Find and build a success story
• Think change management
• Iterate and improve continuously
References
• Portfolio Management for New Products
Robert G Cooper
Scott J Edgett
Elko J Kleinschmidt
• Product Leadership
Robert G Cooper
• Project Portfolio Management
Harvey A Levine
• Advanced Project Portfolio Management and the PMO
Gerald I Kendall
Steven C Rollins
• Optimizing Corporate Portfolio Management
Anand Sanwal
