Making Informed Choices That Move Us Beyond Our Default Future
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1) The document discusses making informed choices to define our future and develop the right organizational capabilities. 2) It argues that portfolio management should be developed as a core capability to help organizations continually evaluate initiatives and make strategic choices. 3) A mature portfolio management capability allows organizations to manage risk, reduce complexity, and ensure everyone has the same understanding to make informed decisions.
Making Informed Choices That Move Us Beyond Our Default Future
- 1. Making Informed Choices – that move us beyond our default future David Trafford
- 2. Our choices define our future © Copyright Formicio Limited 2
- 3. Past choices define today The estimated cost of project failure across the European Union is in excess of € 142 billion A recent Gartner survey concluded that most CEO’s felt that their CIOs are “not cut out for the board” © Copyright Formicio Limited 3
- 4. Doing things right - Doing the right things © Copyright Formicio Limited 4
- 5. Some choices will be strategic © Copyright Formicio Limited 5
- 6. Ideas drive choice © Copyright Formicio Limited 6
- 7. Choices are complicated by our legacy of past choices and ... © Copyright Formicio Limited 7
- 8. … realisation that we live in a non-linear world © Copyright Formicio Limited 8
- 9. What do we: start stop retire reshape reschedule © Copyright Formicio Limited 9
- 10. We’re likely to make better choices if we are informed © Copyright Formicio Limited 10
- 11. Making informed choices requires: facts analysis context judgement © Copyright Formicio Limited 11
- 12. ... on: assets usage architecture initiatives people risks strategy © Copyright Formicio Limited 12
- 13. WHAT IF Analysis of impact on: architecture change portfolio compliance customer strategy © Copyright Formicio Limited 13
- 14. Context defines how we see the world – the lens that creates our criteria for choice © Copyright Formicio Limited 14
- 15. Is your context a portfolio of options? ... © Copyright Formicio Limited 15
- 16. ... or a roadmap to an ‘improved’ future? © Copyright Formicio Limited 16
- 17. “Good judgement comes from experience, and often experience comes from bad judgement” Will Rogers 1879 – 1935 © Copyright Formicio Limited 17
- 18. If deciding WHAT to do is increasingly important we need to develop an organisational capability that builds and maintains a dynamic, balanced portfolio of initiatives and assets Let’s call this organisational capability PORTFOLIO MANAGEMENT © Copyright Formicio Limited 18
- 19. Organisational capabilities are: Part of the organisation’s DNA Embedded into the way things are done Not lost when people leave © Copyright Formicio Limited 19
- 20. An organisational capability has shared: mental models frameworks language processes tools beliefs © Copyright Formicio Limited 20
- 21. Many have failed to develop portfolio management as an organisational capability. Why? Too focused Each initiative is on process judged in isolation Key aspects of governance not addressed Lack of clarity on strategic imperatives and target improved future © Copyright Formicio Limited 21
- 22. Capability develops through levels of maturity Optimising Focus on continual improvement Managed Focus on quantitative measures Maturity/Performance Designed Focus shifts to end-to-end process design Repeatable Reduce variability and increase effectiveness Ad Hoc Inconsistent Time/Effort © Copyright Formicio Limited 22
- 23. What are the conditions for successful portfolio management? 1. Clarity of the targeted improved future 2. A process with an owner 3. Objective criteria to evaluate each initiative and asset 4. Governance with clear accountabilities and decision rights 5. Maturity to hold crucial conversations 6. Enterprise as opposed to business unit focus 7. Architects that take a business perspective 8. Willingness to change as priorities change 9. Ability to make informed choices © Copyright Formicio Limited 23
- 24. Portfolio management – as a mature organisational capability – enables the business and IT to ... Reduce complexity Reshape/reschedule Manage risk initiatives to reflect changing circumstances Get everyone on Have one version the same page of the truth ... by making informed choices © Copyright Formicio Limited 24
- 25. Who is the best person to develop this organisational capability? © Copyright Formicio Limited 25
- 26. © Copyright Formicio Limited 26
- 27. "We are what we repeatedly do. Excellence, therefore, is not an act but a habit." Aristotle, 384 BC – 322 BC © Copyright Formicio Limited 27
- 28. David Trafford [email protected] +44 (0)20 7917 2993 www.Formicio.com © Copyright Formicio Limited 28