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Leadership, Strategic IQ, and Organizational Health
Tim Washington Boeing PM Conference October 3rd, 2012
Leadership, Strategic IQ, and Organizational Health: How Portfolio
Management Ties It All Together
Leadership, Strategic IQ, and Organizational Health
Agenda
• PPM Overview • Strategic Leadership • Strategic IQ • Organizational Health • How PPM Ties It All Together
Leadership, Strategic IQ, and Organizational Health
Portfolio Management is a critical piece for bridging strategic leadership, strategic IQ, and organizational health
Strategic IQ
Leadership
Organizational Health
PPM
Leadership, Strategic IQ, and Organizational Health
What is “Project Portfolio Management”?
Leadership, Strategic IQ, and Organizational Health
Project portfolio management is a combination of various management disciplines:
%Management Disciplines
General management
Business management
Project and program management
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.
PMI Quote
Paradigm Shift #1: Projects are an important vehicle for executing strategy
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.”
Stanford Quote
Paradigm Shift #2: The single project view to a total portfolio view.
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.”
Financial Portfolio Quote Paradigm Shift #3: Projects are investments!
Leadership, Strategic IQ, and Organizational Health
The Purpose of Portfolio Management
• Execute Strategy
• Deliver Maximum Value
• Enhance Decision Making
• Manage Organizational Change
Leadership, Strategic IQ, and Organizational Health
• 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
Portfolio Management Benefits:
Leadership, Strategic IQ, and Organizational Health
At the highest level, Project Portfolio Management has four basic components:
All the steps necessary to construct an optimal portfolio given current limitations and
constraints
Ensure value is delivered by comparing expected benefits
with actual benefits; drive PPM maturity
Selected projects must align with the business strategy and meet other important criteria
Optimize
Portfolio Value
Project benefits must be protected in order to deliver
maximum portfolio value
Protect
Portfolio Value
Improve
Portfolio Value The Goal: Maximize Value to the
Organization
Select the Right
Projects
Leadership, Strategic IQ, and Organizational Health
PORTFOLIO GOVERNANCE (Strategic Planning)
A good governance structure is central to making PPM work.
Select the Right
Projects
Optimize
Portfolio Value
Improve
Portfolio Value
Protect
Portfolio Value
“Portfolio management without governance is an
empty concept.”
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
Leadership, Strategic IQ, and Organizational Health
Trust
“The only way for teams to build real trust is for team members to come clean about who they are, warts and all”
Leadership, Strategic IQ, and Organizational Health
Trust
Conflict
“When there is trust, conflict becomes nothing but the pursuit of the truth, an attempt to find the best possible answer”
Leadership, Strategic IQ, and Organizational Health
Trust
Conflict
Commitment
“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”
Leadership, Strategic IQ, and Organizational Health
Trust
Conflict
Commitment
Accountability
“To hold someone accountable is to care about them enough to risk having them blame you for pointing out their deficiencies”
Leadership, Strategic IQ, and Organizational Health
Trust
Conflict
Commitment
Accountability
Results
“No matter how good a leadership team feels about itself, and how noble its mission might be, if the organization it leads rarely achieves its goals, then, by definition, it’s simply not a good team”
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
Leadership, Strategic IQ, and Organizational Health
Moderate IQ: Competent
High IQ: Expert
Low IQ: Ignorant
• Shape environment to own advantage • Organizational agility-capacity to change • Distributed strategic Intelligence • Mind-set of change
• Debating when to change • Keep pace and react to external change • Clear options, criteria, and processes
• Don’t realize the need to change • Strategically blind • Incompetent (“let’s pretend”)
Video
Leadership, Strategic IQ, and Organizational Health
Two Requirements for Success
SMART • Good Strategy
• Creative Marketing
• Efficient Technology
• Quality Operations
HEALTHY • Open Communication
• Clear Direction
• High Morale
• Lots of Energy
• Solidly Engaged
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
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”
Leadership, Strategic IQ, and Organizational Health
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
Leadership Needs to Over-communication Clarity
Leadership, Strategic IQ, and Organizational Health
How PPM Ties It All Together
Leadership, Strategic IQ, and Organizational Health
How PPM Ties It All Together
Cohesive Leadership
(≈ Strong Governance)
Drives accountability and better decision making
better strategies and better strategic plans
Higher Strategic IQ
Organizational health Greater alignment to strategic goals which drives greater project execution.
Leadership, Strategic IQ, and Organizational Health
DISCIPLINED PEOPLE
Level 5 Leadership
First Who, Then What
DISCIPLINED THOUGHT
Hedgehog Concept
Confront the Brutal Facts
DISCIPLINED ACTION
Culture of Discipline
Technology Accelerators
BUILD UP…
GOOD TO
GREAT
Some Closing Thoughts
Leadership, Strategic IQ, and Organizational Health
For more information
Leadership, Strategic IQ, and Organizational Health
Contact Information
@ppmexecution
http://www.linkedin.com/in/timawashington
Name: Tim Washington
Email: [email protected]
Web: www.ppmexecution.com