How Project Portfolio Management Ties Leadership, Strategic IQ, and Organizational Health Together
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The document discusses the importance of project portfolio management (PPM) as a vital component that connects strategic leadership and organizational health by optimizing project investments to align with business goals. It outlines key principles of PPM, including the need for good governance, strategic leadership qualities, and effective communication for enhancing organizational effectiveness. Additionally, the document emphasizes that cohesive leadership and accountability lead to better decision-making and greater project execution.
![Leadership, Strategic IQ, and Organizational Health
“Managing [the] composite groups of projects
with the same rigor, balance, executive
leadership, and decision-making involvement
as the company’s financial
portfolio. Portfolio Management is an
ongoing process that includes decision-
making, prioritization, review, realignment,
and reprioritization.”
Paradigm Shift #3: Projects are investments!
Financial Portfolio Quote](https://image.slidesharecdn.com/boeing2012pmconferencepdfversion-13511182326369-phpapp01-121024173938-phpapp01/85/How-Project-Portfolio-Management-Ties-Leadership-Strategic-IQ-and-Organizational-Health-Together-8-320.jpg)
How Project Portfolio Management Ties Leadership, Strategic IQ, and Organizational Health Together
- 1. Leadership, Strategic IQ, and Organizational Health Leadership, Strategic IQ, and Organizational Health: How Portfolio Management Ties It All Together Tim Washington Boeing PM Conference October 3rd, 2012
- 2. Leadership, Strategic IQ, and Organizational Health Agenda • PPM Overview • Strategic Leadership • Strategic IQ • Organizational Health • How PPM Ties It All Together
- 3. Leadership, Strategic IQ, and Organizational Health Leadership Strategic PPM Organizational IQ Health Portfolio Management is a critical piece for bridging strategic leadership, strategic IQ, and organizational health
- 4. Leadership, Strategic IQ, and Organizational Health What is “Project Portfolio Management”?
- 5. Leadership, Strategic IQ, and Organizational Health Project portfolio management is a combination of various management disciplines: Business management General management Project and program management %Management Disciplines
- 6. Leadership, Strategic IQ, and Organizational Health Project portfolio management (PPM) is a management discipline that drives strategic execution and maximizes organizational value through the selection, optimization, and oversight of project investments which align to business goals and strategies. Paradigm Shift #1: Projects are an important vehicle for executing strategy PMI Quote
- 7. Leadership, Strategic IQ, and Organizational Health “Portfolio management is the strategy-based, prioritized set of all projects and programs in an organization reconciled to the resources available to accomplish them.” Paradigm Shift #2: The single project view to a total portfolio view. Stanford Quote
- 8. Leadership, Strategic IQ, and Organizational Health “Managing [the] composite groups of projects with the same rigor, balance, executive leadership, and decision-making involvement as the company’s financial portfolio. Portfolio Management is an ongoing process that includes decision- making, prioritization, review, realignment, and reprioritization.” Paradigm Shift #3: Projects are investments! Financial Portfolio Quote
- 9. Leadership, Strategic IQ, and Organizational Health The Purpose of Portfolio Management • Execute Strategy • Deliver Maximum Value • Enhance Decision Making • Manage Organizational Change
- 10. Leadership, Strategic IQ, and Organizational Health Portfolio Management Benefits: • Higher return on project investments • Lower organizational risk • Greater confidence of meeting customer commitments • Balanced project portfolio workload • Healthier organizations • Increased project throughput PPM Goals
- 11. Leadership, Strategic IQ, and Organizational Health At the highest level, Project Portfolio Management has four basic components: Select the Right Projects Selected projects must align with the business strategy and meet other important criteria Improve Optimize Portfolio Value Portfolio Value The Goal: Ensure value is delivered by Maximize Value to the All the steps necessary to comparing expected benefits Organization construct an optimal portfolio with actual benefits; drive PPM given current limitations and maturity constraints Protect Portfolio Value Project benefits must be protected in order to deliver maximum portfolio value
- 12. Leadership, Strategic IQ, and Organizational Health A good governance structure is central to making PPM work. PORTFOLIO GOVERNANCE (Strategic Planning) Select the Right Projects “Portfolio management Improve without governance is an Optimize Portfolio Value empty concept.” Portfolio Value Protect Portfolio Value
- 13. Leadership, Strategic IQ, and Organizational Health Strategic leadership Includes: 1) Business acumen 2) Active engagement 3) Proactive view 4) Balancing long-term and short-term needs 5) Communicating a consistent message
- 14. Leadership, Strategic IQ, and Organizational Health “The only way for teams to build real trust is for team members to come clean about who they are, warts and all” Trust
- 15. Leadership, Strategic IQ, and Organizational Health “When there is trust, conflict becomes nothing but the pursuit of the truth, an attempt to find the best possible answer” Conflict Trust
- 16. Leadership, Strategic IQ, and Organizational Health “When leadership teams wait for consensus before taking action, they usually end up with decisions that are made too late and are mildly disagreeable to everyone. This is a recipe for mediocrity and frustration” Commitment Conflict Trust
- 17. Leadership, Strategic IQ, and Organizational Health “To hold someone accountable is to care about them enough to risk having them blame you for pointing out their deficiencies” Accountability Commitment Conflict Trust
- 18. Leadership, Strategic IQ, and Organizational Health Results “No matter how good a leadership team Accountability feels about itself, and how noble its mission might be, if the organization it leads rarely achieves its goals, then, by Commitment definition, it’s simply not a good team” Conflict Trust
- 19. Leadership, Strategic IQ, and Organizational Health “I’m convinced that if the rate of change inside the institution is less than the rate of change outside, the end is in sight. The only question is the timing of the end.” --Jack Welch, former chairman of GE
- 20. Leadership, Strategic IQ, and Organizational Health • Shape environment to own advantage • Organizational agility-capacity to change High IQ: Expert • Distributed strategic Intelligence • Mind-set of change • Debating when to change Moderate IQ: • Keep pace and react to external change Competent • Clear options, criteria, and processes • Don’t realize the need to change Low IQ: Ignorant • Strategically blind • Incompetent (“let’s pretend”) Video
- 21. Leadership, Strategic IQ, and Organizational Health Two Requirements for Success SMART HEALTHY • Good Strategy • Open Communication • Creative Marketing • Clear Direction • Efficient Technology • High Morale • Quality Operations • Lots of Energy • Solidly Engaged
- 22. Leadership, Strategic IQ, and Organizational Health We Need Clarity (aka alignment) 1) Why do we exist? 2) How do we behave? 3) What do we do? 4) How will we succeed? 5) What is most important for us, right now? 6) Who must do what? These questions must be answered together, not in isolation
- 23. Leadership, Strategic IQ, and Organizational Health Leadership Needs to Over-communication Clarity Problem: leaders confuse the mere transfer of information to an audience with the audience’s ability to understand, internalize, and embrace the message that is being communicated. Great leaders see themselves as “Chief Reminding Officers”
- 24. Leadership, Strategic IQ, and Organizational Health Leadership Needs to Over-communication Clarity The point of leadership is to mobilize people around what is most important Most organizations are unhealthy precisely because they aren’t doing the basic things, which require discipline, persistence, and follow-through more than sophistication or intelligence. Employees hunger for consistent, authentic, and relevant communication
- 25. Leadership, Strategic IQ, and Organizational Health How PPM Ties It All Together
- 26. Leadership, Strategic IQ, and Organizational Health How PPM Ties It All Together Cohesive Leadership Drives accountability and (≈ Strong Governance) better decision making better strategies and Higher Strategic IQ better strategic plans Greater alignment to Organizational health strategic goals which drives greater project execution.
- 27. Leadership, Strategic IQ, and Organizational Health Some Closing Thoughts BUILD UP… Level 5 First Who, Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts Concept Discipline Accelerators DISCIPLINED PEOPLE DISCIPLINED THOUGHT DISCIPLINED ACTION GOOD TO GREAT
- 28. Leadership, Strategic IQ, and Organizational Health For more information
- 29. Leadership, Strategic IQ, and Organizational Health Contact Information Name: Tim Washington Email: twashin@costco.com Web: www.ppmexecution.com @ppmexecution http://www.linkedin.com/in/timawashington