Through repetition, successes, and errors, as well as guidance from the Project Management Institute (PMI), my hypothesis was proven accurate. At the time, I was checking the boxes and reaping the rewards. Yet, not every Project Manager saw the same success. Was I that much better at managing projects than my peers? Or was something in the system hindering them from realizing success?

The Ecosystem of Project and Portfolio Management

Not until I moved into consulting (and began holistically working with organizations of all shapes and sizes) did I conclude that the approach of managing projects was not as singularly focused as I once thought. Rather, there is a much more complex “ecosystem” in which project managers operate.

In 2026, this ecosystem is the key to truly effective project management, and truly effective project management is a key input to the ecosystem. Although many organizations understand this concept, they often struggle to materialize its value in an increasingly automated and data-driven landscape.

PPM Defined

Project and Portfolio Management (PPM) is the foundation of the project management ecosystem. According to the PMI Community, “Project Portfolio Management is the centralized management of one or more portfolios, and involves identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives.”

PPM is not a new concept, but it has blossomed alongside the rise of shared service centers like the Program Management Office (PMO) and the ongoing shift of transforming IT organizations from cost centers into value centers.

The PPM Hierarchy 

At TSI, I’ve helped organizations understand their current state of PPM capabilities and evolve using our PPM Maturity Hierarchy. Whether an organization currently sits at Level 1 or Level 3, the goal is to evolve toward Level 4 Optimization and beyond to stay competitive.

Level 1 – Infancy: Organizations in the Infancy stage manage projects reactively, focusing only on individual execution. Leadership often scrambles to stay on top of daily demands. Work is captured project-by-project with little transparency into synergies or risks. In 2026, this lack of visibility often leads to significant “technical debt” and wasted resources.

Level 2 – Emerging Discipline: This stage replaces isolated decision-making with the identification of the best collection of projects. Organizations at this stage successfully prioritize and align projects with their 2026 strategic initiatives.

Level 3 – Initial Integration/Value Management: At this stage, organizations introduce technology, models, and tools to quantify the value derived from projects. This allows them to identify which initiatives in the pipeline provide the most “bang for your buck.” Proactive, standardized PPM enables value-driven decision-making.

Level 4 – Optimization: Here, the focus shifts to maturing PPM capabilities through optimized processes, analytics, and quantitative metrics. In 2026, this often includes leveraging automated data flows to improve value creation in real-time.

Level 5 – Innovation: At this most advanced stage, PPM has full buy-in from executive leadership. It is a core competency that utilizes best practices. The organization is focused on continuous innovation, ensuring they are not just “doing things right,” but “doing the right things” as the market shifts.

Is your organization looking to take the next step in Project and Portfolio Management?  Do you have questions on where to get started? If you’d like to brainstorm with one of TSI’s consultants, or have any questions on how we help organizations similar to yours, feel free to reach out to me directly at dfeely@transforming.com. You can also visit our website at transforming.com for more information.

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Transforming Solutions, Inc. (TSI) was engaged by Information Technology Services at a southern flagship university to help establish a Portfolio Management Office (PMO). This office was intended to support a variety of projects from across the University system. The University engaged TSI to help establish the PMO with training, structure, management strategies, and development of critical PMO foundations through the development of a charter, mission, and vision. Extensive in-depth training was also provided on topics such as project management, Lean Principles, and Business Process Improvement. TSI provided this training and ongoing support to the PMO staff and worked collaboratively to foster a culture of innovation and improvement throughout IT Services and the campus community.

TSI’s Approach and Role

Approach

To accomplish the identified goals, TSI engaged the following approach:

PMO Development

In order to launch a new Portfolio Management Office, TSI was brought in to collaborate and provide ongoing support and development to newly appointed or hired PMO staff. Working closely with the PMO Director, a series of high level and detailed trainings were provided surrounding project management, office setup and maintenance activities, and mentoring for PMO growth and stability. Overall, TSI provided training to approximately 40 individuals including Project Managers, Business Analysts, Business Process Analysts, and administrative staff. Additionally, TSI collaboratively presented to groups throughout IT Services to foster cultural change towards improvement and level set language used across the unit. Part of the PMO development was a Business Process Improvement Training and Mentoring program which included an in-depth dive to BPI for PMO staff and a Train-the-Trainer component for Business Process Analysts.

BPI Training and Mentoring

To support PMO growth and development, the University asked TSI to provide in-depth training in TSI’s BPI methodology. With varied experience levels of PMO staff, TSI chose to implement its’ I DO, WE DO, YOU DO approach to training and mentoring. This approach provides a deep dive exploration of the 6 steps of the methodology followed by hands-on implementation of the concepts learned. It also allowed each individual in training to progress at their own pace. With the I DO phase, the TSI facilitation team led the facilitation and documentation of the current state, analysis of current state, and future state sessions and developed the deliverables for each session. The facilitators-in-training observed the methodology in action during the I DO sessions and reviewed the process of creating and finalizing the deliverables. 

In the WE DO phase, facilitators-in-training were actively part of the facilitation team for current state, analysis of current state, and future state sessions as well as for the development of deliverables for each process area. Collaborating with the TSI facilitation team, the facilitators-in-training took the lead with mentoring, guidance, and feedback as needed. Once a desired level of competencies were achieved and communicated, the individual continued to the YOU DO phase. In the YOU DO phase, each mentee took the lead for the facilitation team for all stages of the process improvement and developed the deliverables independently with review and feedback from the TSI team. For each session, pre-session planning and post-session debriefing meetings were held to share best practices for preparing for process improvement and gathering feedback about implementation of the methodology and engagement with stakeholders. This training was intended to empower PMO staff to be able to implement BPI across the University as needed for its projects.

Train-the-Trainer

Once each PMO staff member evidenced mastery of each competency for the various training components (BPI, Project Management), they were engaged to serve in a collaborative role with other mentees, observing, co-facilitating, and providing constructive feedback. Additionally, they were engaged to facilitate the training presentations for different topics to staff within the PMO, IT Services, or other stakeholders across the University. To modify and evolve the training content, PMO staff collaborated with TSI to add relevant examples, develop case study content, and track delivery. Each mentee received feedback, suggestions, and coaching throughout their trainer development.

Role

TSI worked closely with the PMO Director to develop training curriculum, materials, and tools that would result in sustainable PMO Operations. TSI serves as a project manager in collaboration with the PMO Director and other Business Analysts to reinforce training and project management best practices. TSI served as a facilitator, lead trainer, mentor, and evaluator.

Results

Throughout the engagement both the University and TSI gathered data to support progress toward goals, effective implementation of methods, measure outcomes, and evidence a return on investment. Some of this data included:

• 40 individuals received general project management training for the PMO development
• 20 individuals received deep dive training and mentoring in TSI’s Business Process Improvement methodology
• 20 Portfolio Management Office staff completed team training in Lean principles, Project Management, and Organizational Change Management
• 6 individuals completed all competencies for the train-the-trainer developmental coaching and now serve in the training role for the PMO
• Detailed feedback and coaching was provided and tracked for 20 PMO BPI mentees and train-the-trainers to ensure visibility and transparency of competency development
• Metric tracking was established to monitor project timelines, progress, success, and other defined measures
• Methods for tracking business processes and desired metrics were developed for the PMO which continue to be used for PMO internal work 

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Lo and behold, through repetition, successes and errors, as well as my good friends at the Project Management Institute (PMI), my hypothesis was proven to be accurate.  At the time, I was checking the boxes and reaping the reward as a Project Manager.  Yet, not every Project Manager saw the same success.  Was I that much better at managing projects than my peers?  Or was something in the system hindering them from realizing success?

The Ecosystem of Project and Portfolio Management

Not until I moved into consulting (and began holistically working with organizations of all shapes and sizes), did I conclude the approach of managing projects was not as singularly focused as I once thought.  Rather, there is a much more complex “ecosystem” in which project managers operate.  This ecosystem is the key to truly effective project management, and truly effective project management is a key input to the ecosystem. Although many organizations are beginning to understand this concept, those same organizations are struggling to materialize its value.

PPM Defined

Project and Portfolio Management (PPM) is the foundation of the project management ecosystem.  According to the PMI Community, “Project Portfolio Management is the centralized management of one or more portfolios, and involves identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives.”  Conceptually, PPM is no new concept.  It has been around for years, but has especially blossomed alongside shared service centers like the Program Management Office and the recent trends of transforming IT organizations from cost centers to value centers.

The PPM Hierarchy 

At TSI, I’ve helped organizations understand its current state of PPM capabilities and
evolve using our PPM Maturity Hierarchy.  Beginning at the Level 1 “Infancy” stage (or whichever stage an organization currently sits), the objectives is to evolve the organization’s PPM capabilities to a Level 4 Optimization stage and beyond.

Level 1 – Infancy:  Organizations within the Infancy stage tend to manage projects in a reactive manner, singularly focusing on the execution of individual projects.  The organization often scrambles to stay on top of daily demands.  Work is captured on a project by project basis with little to no transparency of synergies and risks between projects. Project financials and risk is not monitored closely.

Level 2 – Emerging Discipline:  The Emerging Discipline stage replaces project by project decision making with identification of the best collection of projects. Organizations at this stage are successfully prioritize and align projects with strategic initiatives.

Level 3 – Initial Integration/Value Management:  Within the Initial Integration/Value Management stage, organizations are introducing technology, models and tools to quantify the value derived from projects.   This allows organizations to identify projects within the pipeline that provide the most “bang for your buck”.  Proactive, standardized PPM enables value driven decision making.

Level 4 – Optimization:  Once the Optimization stage is reached, the focus of an organization moves to maturing the PPM capabilities.  This involves a focus on optimizing process, analytics, quantitative metrics and improving value creation.

Level 5 – Innovation:  At the most advanced stage of PPM maturity, Innovation, PPM has full buy-in from executive leadership.  It is now a core competency of the organization that utilizes best practices and processes. The organization is now focusing its attention innovation and continuous improvement.

Is your organization looking to take the next step in Project and Portfolio Management?  Do you have questions on where to get started? If you’d like to brainstorm with one of TSI’s consultants, or have any questions on how we help organizations similar to yours, feel free to reach out to me directly at dfeely@transforming.com. You can also visit our website at transforming.com for more information.

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“Strive not to be a success, but rather to be of value”

As a global practice, project delivery is rife with methods, practices, templates, and training courses.  At Transforming Solutions, we also have a framework for effectively delivering on projects. However, we understand that in the end, it is not about the framework, the certification, or the method of delivery. It is all about providing value.

Several years ago I was privileged to contribute to Dr. Harold Kerzner’s Project Management Best Practices book. Kerzner, professor, and Senior Executive Director at International Institute for Learning (IIL), developed some key thoughts on delivering value. Kerzner has written, spoken, and blogged on numerous topics, including delivering value. I found these seven to be revealing.

I’ve adapted the list from Dr. Kerzner:

1. It does not matter how well or how poorly a project is executed if you are working on the wrong project

Seems like common sense, right? Yet, we see many organizations work on the wrong project or work on a project that their organization is not yet ready for. In an effort to help combat this, we offer approaches for project prioritization and selection. In addition, we can help your organization understand if it is ready for change.

2. Being on time and on budget does not necessarily equate to success

Imagine, you’ve completed your project. You came in on time AND on budget. That is the definition of a successful project, right? Not necessarily. Successful projects should be measured on the value they provide to your organization. Have you aligned to all your stakeholders’ needs? Were all the appropriate requirements delivered? Is the organization set up and prepared for ongoing management of the post-initiative delivery (i.e., are supporting organizations ready to stand up and deliver once the project team goes away)? These, and a host of other questions, should be considered before claiming success.

3. Completing a project within the triple constraint does not guarantee business value.

Related to number two above, what is the end-state the initiative was designed to create? You may have managed well inside the lines of the triple constraint, putting in a new student registration system. However, if students are challenged using the new system and administrative staff cannot get the information they need out of the tool, you are not ready to celebrate yet. The end-state after all was not to “put in a new system,” but more closely aligned with to “enable student registration to be more complete, seamless, and accurate”.

4. Having mature PM practices does not assure business value will be there at the end of the project

Unfortunately, I have worked for too many organizations that invested in very heavy project management processes; however, they are still unable to deliver. One IT organization created a checklist of 140 required project management deliverables. This heavy-handed control culture did not add value to delivery. In fact, quite the opposite. Project managers were so consumed with completing administrative tasks that they had little time to focus on the outcome of the product deliverables.

5. “Price is what you pay. Value is what you get” – Warren Buffet

To paraphrase Mr. Buffet, the project cost is simply the price that you end up paying. The value, on the other hand, is what your organization ends up getting from the successful completion of the project. Do you have a measure for the value of your projects, beyond the cost you paid or the savings you realize?

6. Value is what your customer perceives is worth paying for.

The value of expense is often calculated by doing a cost-benefit analysis. Sometimes value is left out of the equation when one seeks to find the cheapest solution. Before starting an initiative, work to make sure you understand what your constituents are willing to pay and why. A project manager should remember that value is a perception of one’s stakeholders, not how well they think we are doing.

7. Success is when value is achieved

Wrapping it up, one is not done until a value is realized. And, that value is recognized by the stakeholders (not the implementation team). If one attains the nirvana state of delivering value, then it is time to take a moment, celebrate your team, and get ready for your next trial. Since you’ve demonstrated success, folks are bound to come and ask you to replicate it.

At TSI we are always focused on delivering something of value. Remember Einstein’s words above and strive to be valuable. TSI wants to enable and support your success and we are ready to partner with you to deliver the value you need.

Contact us to learn more about getting value from your delivery initiatives.

The post Seven Things to Consider When Delivering Value appeared first on Transforming Solutions Inc..

Track, Understand and Manage Project Risks Before the Squeak Begins

This is proactive project management. One does not need a week-long course in project risk management to identify and plan mitigation for project risks. Grab the threats by the horns, determine if you can avoid them, plan for mitigation/remediation if you cannot. If you wait for a squeaky wheel your risk has already become an issue. Use a Risk Log to keep yourself organized.

Provide Regular Status Updates, Conduct Peer Reviews, and Engage in Milestone Checkpoints

It is key that you – and your key project constituents – understand the health of your initiative. Tracking status that is forward-looking is an excellent proactive practice that helps you and your stakeholders. Peer reviews ensure that your blinders come off and you are made aware of alternatives, issues lurking around the corner, or areas outside your expertise. Engaging sponsors in milestone checkpoints ensures that they are up to date on where you are at and are aligned on what it will take to move forward.

Assess a Holistic Portfolio of Business Initiatives and Prioritize the List Across User Groups

If you examine your portfolio in segments or as projects come in one by one, you may be setting yourself up for unnecessary project stops and starts. And, if leaders try to commit to delivering all initiatives that are labeled urgent, the organization may sub-optimize the assignment of scarce resources. Leverage a whole-portfolio assessment method that can objectively provide your decision leaders with appropriate information to prioritize.

Flexibly Adhere to an Established Governance Model That Ensures Phase Deliverables are Complete

Project life cycles vary and depend on the type of project. Establish a framework and leverage it accordingly for the type of project you are doing. Do not abandon your framework and miss key hand-offs, decision points, or phase gates. Flexibly applying your rigorous model will proactively enable you to meet the needs of each project.

Manage Expectations Proactively

Tell your stakeholders what you are going to do. Drive for alignment. Be open to course corrections. Share news, both good and bad. Keep the appropriate people up to date. That is being proactive. 

If you keep the worrisome things in the shadows, which then turn to issues, your sponsors and key stakeholders may not appreciate your management by damage control approach.

Proactive Impact Management

Stay on top of action items and issues. Know when each was raised, by whom, and by when they should be completed or resolved. Losing track of these key data points may have you back on your heels when someone comes to seek clarification. Stay out of crisis management mode and be forthright by recognizing issues and steps that may not have been in your original plan. Manage them effectively and you can be your project’s hero.

In conclusion, this is not an exhaustive list of proactive ways to manage your projects. However, this list is a good place to start if you are feeling lost.

Want to know more ways to proactively manage your projects and programs? Let’s connect!

Schedule a meeting with Carl Manello or connect with him on LinkedIn to learn more.

The post 6 Steps to Proactively Manage Your Projects + Programs appeared first on Transforming Solutions Inc..

The use of a strong-performance brand causes participants to feel better about themselves when undertaking a task…

When companies are trying to improve their processes and do not have much experience in the areas of delivery effectiveness, they potentially face a need to spend more money on a big brand name consultancy than is needed. At TSI, we see this once in a while when a potential client may select one of the bigger national management consulting firms.

Sometimes, client organizations do not select us because the bigger consulting firms simply are the “bigger consulting firms;” they have a more widely known and established brand. Hiring a national name brand can be important to clients. However, it can often be a disadvantage to them as well. This is because the big guys often cost significantly more, may not assign a seasoned consultant to the work, or may not have a specific “fix” for a client’s need.

Brand Names & The Placebo Effect

Several years ago, Shankar Vedatam, social science correspondent on NPR, did a story relating to the research of the placebo effect on consumer purchases. The story focused on the perception that big brand name products (e.g., Nike golf clubs) provide better results.

The report hit home for me with the following quote:

The effect is strongest among people who are novices in their respective task. Experts, really receive little or no boost due to the performance brand.

The Value in a Niche Brand

Take caution and beware as you move along the maturity path for your PMO, portfolio management, or program governance capabilities. Are you convinced in your path because the best solution is being put forward? Or because you are talking with a well-known, brand-name consultancy? Analogous to the study about golfing, in many situations, there is little real advantage in leveraging a more recognizable brand. And in many situations, there is a disadvantage to pursue the illusion of a “national brand” if the project team is less experienced than what is needed.

Instead, the key is a sound solution, a clear vision and roadmap for delivery, an experienced implementation team, and a measured way forward.

If your organization is a novice, or just not yet an expert in delivery, consider your needs, possible solutions, and the value you hope to realize. Do not be swayed by the placebo effect. There is value in the niche solution providers as well. I cannot promise a hole-in-one, but I can promise to reduce your anxiety on the fairway and help you improve your game. TSI has been around for more than 25 years; our consultants are seasoned experts, and we have the specific ‘fix’ for your need across a variety of service offerings.

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Program Management Life Cycle (PMLC) processes should not be created for the sake of having more processes. Even if the processes are sometimes authored by the overly academic and may miss their mark by adding cumbersome overhead, the intent of PMLC governance should not be lost. There is an ongoing need for companies to safeguard their initiatives. Efficient and effective processes can be a foundation that ensures delivery.

The time has come when we must have some priorities with respect to the way we are allocating our steadily decreasing resources…  – Senator William Stuart Symington (United States Senator from Missouri from 1953 to 1976)

Don’t miss the ongoing review

Many companies that I have counseled have had detailed portfolio selection processes for identifying and launching projects. However, once initiated, few had anything from an oversight and control standpoint. This oversight would ensure that projects maintained their health, followed the right course, and delivered the value that was promised at inception. These mistakes crystalize in the form of projects that are over budget, past due, or not aligned to customer needs. The approach of launching a project with a blank checkbook that won’t be reconciled until post-implementation should be disagreeable to the most casual observer of project management. Ongoing reviews and reconciliations are warranted.

The need for ongoing reviews came into sharper focus in the economic downturn in 2008. Companies concentrated and overcame some of their delivery challenges.  The Economy is once again in recovery mode, and many signs are seen to be pointing to economic re-opening and healing post-Covid. However, that does not mean we should loosen our belts or ignore good advice. To paraphrase Professor Vicki Smith-Daniels of Arizona State University (who was quoted in PM Network magazine regarding the 2008 recession), corporations need to measure project performance while a project is underway, not just at the end.

The academic concept is easy: regularly review the state of a program or project. If a project cannot maintain its benefits, schedule, or overall cost basis, there should be a formalized way for the governing body to intervene. The operational implementation should be a gated process that releases incremental funds throughout the project’s life. Without such controls, companies run the risk of sinking additional effort and money into initiatives that have no hope of delivering against their plans. Worse yet, without interim checkpoints, a company may not realize its error until too late.

What can you do to optimize your processes?

Is your team, department, or company using a gated program management life cycle process? Do they have the framework in place to determine how healthy their initiatives are? Are the leading indicators in place to help predict what will happen further down the line? I work with my clients to put “detective controls” in place to help guarantee the value of a project. I help clients implement “preventative controls” that help to minimize downside risk.  My past lives include IT Auditor where the language of “controls” was part of the vernacular. I make no mistake that project managers are not auditors; however, the language of controls and the value offered with project management processes can enable an organization to deliver better, more, and faster.

Senator Symington was addressing the potential destruction of the economy of the United States if there were not a prudent prioritization of resources. Without prioritization of resources, larger projects can have a big impact if they fail. But no matter the size, any failure that can be prevented is a victory! Put governance processes in place and ensure that you too are managing the scarce resources of your organization.

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As the world is changing and evolving, organizations are always looking for ways to get more value out of their strategic and tactical initiatives. This aligns with the way TSI views delivery teams: not just as cost centers, but as value centers that benefit the organization. For organizations looking to leverage the value of their delivery teams, TSI suggests the following three efforts. Let’s take a look at each element and the key things to consider in each.

1. Building Project Management Offices
2. Designing and Implementing Portfolio Management Frameworks and Processes
3. Improving Business Analysis Capabilities

Building Project Management Organizations

Project management organizations come in a variety of shapes, sizes, and different functional responsibilities. Some are internal groups that create practices, policies, and standards for managing the projects of the organization. Standards include creating project artifacts, tools, or tool kits, evaluating and prioritizing initiatives and projects, managing project resources and activities, managing project budgets, and aligning the organizational view of projects. This does not mean that all of those involved in the PMO are experts on all areas of the organization, but they are likely the best delivery experts in the organization.

A PMO can improve delivery effectiveness by managing the delivery from start to finish in a consistent manner. Projects are selected based on a defined rubric that aligns with the vision of the organization, rather than on favoritism or a first come first serve. The result is the completion of projects in a way that provides the greatest positive impact for the organization.

Designing and Implementing Portfolio Management Frameworks and Processes

As with a PMO, portfolio management helps organizations select projects objectively. While this may sound easy, I’m sure every reader has an example of an organizational initiative that was heavily influenced by personal or political feelings. Furthermore, it may be hard to decide which initiative is more important if the initiative impacts two different areas, such as HR and order fulfillment.

Portfolio management also includes elements of ongoing project evaluation and decision-making for projects that are not progressing as expected. The focus of portfolio management is on objective decision-making for difficult decisions. Portfolio management creates standards that delivery teams can use as guidelines to ensure projects remain on budget and deliver the expected objectives accurately.

Improving Business Analysis Capabilities

Business Analysis provides an element of effective delivery that may be often overlooked. Every project has a desired outcome. The outcome is driven by the collective requirements that dictate the elements of the project. The requirements may range from building footage to technology to functional requirements, all depending on the focus and type of project.

Having strong business analysis capabilities on a delivery team improves delivery effectiveness by ensuring that the desired needs are captured before beginning the project. The result of ‘getting ahead’ can be reduced iterations and limited delays during implementation or build. While subject matter experts may provide strong support for and recognition of the need for change, they are often not trained for how to elicit, gather, document, and manage the most effective requirements. A strong business analyst will be able to capture and synthesize inputs and create a set of formalized requirements that accurately represent the need and can be translated into development.

Bonus Element for Strong Delivery

There is another key part of delivery effectiveness not addressed above. At TSI we feel this element is key to all of our successful engagements and one we weave throughout our engagements. That element is organizational change management. Without it, even the most well-equipped delivery team may struggle.

Organizations may have completed an objective project evaluation, have a clear plan for managing and controlling a project, and have based their project on a strong set of requirements. However, if they have neglected to evaluate their organization’s capacity for change, their project is destined to fail. Organizational change management ensures that the organization understands the vision and the value of the project, the impact it will have, and the process that will be utilized to ensure that it is successful. If there are elements that will pose a risk to the success of the project, organizational change management helps identify those issues early so they can be resolved and overcome with ease.

Why does strong delivery matter?

Organizations engage in project management efforts every day. Some are very successful. Some struggle. The elements of strong delivery outlined above will help any organization move to the next level of delivery effectiveness. If you are interested in talking more about how TSI can partner with you to deliver projects more effectively, reach out and let’s chat!

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The general, unable to control his irritation, will launch his men to the assault like swarming ants, with the result that one-third of his men are slain, while the town still remains untaken. Such are the disastrous effects of a siege. —Sun Tzu

Executives are not generals who are irritated. Delivery teams are not swarming ants. However, Sun-Tzu’s metaphor overlays quite nicely on the concept of portfolio management. An organization that cannot manage the demand funnel and does not align its projects to strategies or enterprise goals may end up driving its leadership to irritation. If an irritated leader launches a project, which is not aligned or prioritized, the project portfolio may seem like a swarm response. As a result, these leaders will try to fulfill everyone’s request for everything all at once. To this end, the project delivery engine of the company will seize up, causing projects to fail and team members to pay the price.

The Key Practice of Portfolio Management

I’ve often written about portfolio management and its importance. As a key practice in an effective organization, portfolio practices sit at the very beginning of governance, oversight, and control. Portfolio management reaches beyond information technology projects. Therefore, the more inclusive the portfolio management process, the more robust the views of enterprise spend, resource commitment, value realization, and other operational efficiency metrics will be.

Choosing the Right Projects for Your Organization

Projects should align to organizational strategies and goals, and should be tracked for the results they deliver back to the organization. Otherwise, how would an executive team know if they were running the right projects? One of the first steps to ensure the right projects are selected is to define a standardized and objective set of criteria to assess proposed initiatives against.

While many companies select the right initiatives by listening attentively to the demands of the day, this process does not provide a comprehensive view of the future. Planning for capacity, capability, and future objectives – in an effort to meet the demand of new projects – is critical. However, a long-range and more complete view of demand provides even more choices. For example, how does one choose a HR system upgrade over implementing a new customer-facing application for fulfillment? Can we compare apples to oranges?

The first step to addressing this decision is to develop criteria to assess all projects against. This set of decision-making criteria will enable decision-makers to establish an unconstrained view of which projects rate highest and add the most value, as well as which ones rank lower.

The Three-Part Equation of Portfolio Management

But project selection is only the first step. Portfolio management is more than decision-making levers and a portfolio management tool. To create a robust portfolio management framework, a process and governance must be established (which includes a staged approval).

Through this three-part equation – levers + process + governance – an organization will realize the value of portfolio management. To keep the process of delivery from seizing up, it needs to be maintained and well oiled. Beyond this, there is a need to ensure that what goes into the machine is appropriate. The decision-making levers help organizations vet the right inputs (from the potentially vast array of initiatives in the demand pipeline). The prioritization process and governance are the grease that enables the approach to run smoothly. To paraphrase Peter Drucker, the decision levers help us choose the right things; the grease helps us do those things right. With this approach, we’ll be able to avoid a siege on the project delivery team(s), and we’ll hopefully avoid any project casualties in the process as well.

If your team needs help establishing a process and governance, in an effort to create a robust portfolio management framework, we would love to connect!

The post What You Need to Know About Successful Portfolio Management appeared first on Transforming Solutions Inc..

• What does it do?
• Is there only one definition?
• What does it look like?
• How does it operate?
• Who should be part of the team?
• What capabilities make a PMO successful?

Lots of organizations use the three little letters P-M-O, but what those letters represent can be very different:

• A Project Management Center of Excellence (i.e., authors of the PM processes)
• A Governance Office (i.e., overseers of compliance)
• A project manager resource pool
• A portfolio management facilitator
• A resource management center, charged with balancing individual contributor or team supply and demand

Regardless of the type of PMO, you have these five steps will help you advance your team and add value to your organization.

1. Understand Your Current PMO

Have you had your PMO assessed? I’m not referring to a customer satisfaction survey from your stakeholders. I mean an assessment that addresses what you are doing, what you could be doing, and how to move forward, based on a standard set of criteria. Doing an assessment like this, however, can be a challenge to self-administer.

Do you have a set of objective criteria? Do you have a standardized approach to follow (is it tried and proven)? Are you an unbiased party to the assessment?

Assessing the maturity of your practices is not about a number.  Sometimes organizations get stuck there. The Capability Maturity Model Integration framework (CMMI) has a five-level rating system. Organizations that focus on simply attaining a “Level 3” grade are missing the point. It is more important to understand your why. As Simon Sinek has famously pointed out, “A why is like a compass direction. It tells you where you are going.” What value does your PMO provide? What motivates your team? These answers will be more important than a numerical grade on a five-point scale. It is valuable to understand where you are with respect to your value.

2. Follow a PMO Roadmap

Without a map that directs your growth journey, how can you assess if you are making progress? Your PMO roadmap should have both short-term and long-term goals, deliverables, and measures of value. A roadmap lays out the desired functional state of your PMO. It outlines the steps necessary to reach the future state. Similarly, the roadmap can address the span of control of the PMO. The PMO focus may be on IT only, one operating department, or the entire organization. Your roadmap will change based on where you provide coverage currently versus where you want to go.

3. Build with Experience

Don’t try to reinvent the wheel and borrow liberally from others (other leaders, other departments, other organizations). Tailor as necessary to make processes and methods fit your culture, your industry, your team size, and your capabilities. Don’t try to have your project managers architect your PMO. It is not that they are not able; it is about capability and experience. Do you want to risk creating a new team with someone who has never created a PMO before? PMs are great at delivery. However, that does not mean they are necessarily organizational architects.

4. Define, Capture, and Showcase Value

To borrow from a famous scene in the 1996 film Jerry Maguire, for your PMO to be successful, you have to be able to show them the money.  The “money” has to be the value your stakeholders want from the PMO. Be careful: if you are the PMO leader, don’t specifically focus on building the PMO you want to run. Your stakeholders’ perceptions are your reality. Define a way to measure value and report back early and often on how well you are doing against your metrics.

5. Strive for Continuous Improvement

Follow your roadmap, but don’t let the journey end. Think about continuous improvement and get a little bit better every day. Project management offices can get stuck in a rut. They deliver on a set of functions and they eventually stop evolving. Chances are that your organization is continuously changing, so be sure you are adapting to it. Change does not always have to be a Big Hairy Audacious Goal; little changes make a difference too. Think about change as simple, incremental, and always delivering value.

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