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Portfolio Management

Customer Value Hierarchy

Portfolio, Programs and Projects

Business Outcomes

Differentiators

Depth

MANAGE
PORTFOLIO

CLOSE

Portfolio Management refers to
the system that selects and
manages the portfolio of
business value opportunities
for the enterprise.

Portfolio

Discover value creation
opportunities within a
business unit

PLAN

Program

Program

Program

Develop business cases for all
provider investments and
approve those that add value

Formally analyze the results
of all provider investments

Program Management is excercised
across a defined set of related
projects having common goals and
supporting common business
outcomes. The programs and
specific projects within a program
should be defined in terms of a topdown strategy.

EXECUTE
Project Management focuses on the
completion of a specific and precise
scope of work, often defined within
the context of a broader program
objective.

From: Leveraging New Infrastructure, Weill & Broadbent

Projects

The Portfolio should be managed at a
Program Level through Business Outcomes

Information
Flow

Project

Project

Program
MGMT

Reporting
& Data Collection

Project

Project

Governance ensures that stakeholders needs, conditions
and options are evaluated to determine balanced, agreed-on
enterprise objectives to be achieved; setting direction through
prioritization and decision making; and monitoring performance
and compliance against agreed-on direction and objectives.

Project

Project MGMT

The Boston Square
Classification Scheme

INFORMATIONAL

Gaining
Advantage

STRATEGIC

TRANSACTIONAL
INFRASTRUCTURE
Provide the base
foundation of shared IT
services

Reduce cost of doing business,
usually by automating the
transactions of the firm and
substituting capital for labor

"Leveraging the New Infrastructure: How
Market Leaders Capitalize on IT" by Peter Weill
and Marianne Broadbent. Copyright © 1998
Harvard Business Publishing

Management Style
Developer

Management Style
Innovator

STRATEGIC

HIGH POTENTIAL

Critical to sustain
future
business strategy

May be important
in achieving
future success

Currently depended
on for success

Useful but not
critical to future
or current success

FACTORY

SUPPORT

Management Style
Controller

Management Style
Caretaker

- High Risk
- High Benefit

Gain competitive advantage through
positioning the firm in the
marketplace, usually with the aim of
gaining sales
Primary Purpose

Provide better information to
manage, control, account,
communicate, analyze and make
decisions

Got-to-Have

- Known Risk
- Known Benefit

g
in
n
io

Value Diagnosis

Refine
Ideas

Value Delivery

Suboptimal
Measurement,
Accountability &
Organizational
Capability

Suboptimal
Deployment &
Operation

Suboptimal
Design

Realized
Value

Relationship Strategy on a Page

Approve
Business
Case

Business
Case

Shared Vision

Stage 5
Monitor
Value and
Adjust

Relationship
Characteristics

Communicate
Value

Performance
Measures

Business IQ, Strategic Partnership
and Value Management

What is the common set of goals and objectives to which both
partners are commited?
What characteristics & capabilities do we need in the relationship
to achieve the shared vision?
How will we know that we are succeeding in developing these
characteristics?

Key
Initiatives

What focused and collaborative initiatives must we undertake to
reach these goals?

Operating
Principles

What changes are necessary in how we do business?

Linking Business Drivers with Technology
DRIVER

INITIATIVES

ENABLERS

TECHNOLOGY

(Business “What”)

(Business “How”)

(Provider “What”)

(Provider “How”)

√ What are the 2 or 3 critical
business outcomes from
their strategy plan that the
business partner needs to
achieve?

Identify
Business
Strategies

√ How does the business
partner intend to go about
achieving these outcomes?

√ What capabilities or
enablers are needed to
implement the initiatives?

√ How do our services and
solutions deliver these
capabilities & enablers?

Capability Roadmapping

Business Unit
Geography
Enterprise
External

Roadmap
Business
Capabilities

Strategic vs
Tactical

• Strategic Partnering
• Business IQ
• Portfolio Management

Roadmap
Enabling
Capabilities

Prioritize
Capabilities
& Projects

BRM Competencies

- Low Risk
- Low Benefit

Middle Management

Middle management
receives resistance from
first line managers and staff

First Line Management

First line management
receives resistance
from staff

© 2003 Omega Point Consulting, L.L.C. – reprinted with permission

Framing Your Message

Influence Process
Powerful Communications

Key Roles
• Stakeholders
• Initiating
Change Leader
• Sustaining
Change Leader
• Change Agents
• Advocates

Staff

Actions

ANTICIPATED

Beliefs

PROBLEM

OPPORTUNITY

Conclusions

Immediate
discomfort

Loss of a gain
that is within
our grasp

Assumptions

Enrollment

Truth about
Today

Impending
Discomfort

Loss of a gain
that looks
possible to
achieve

Our Shared Goals or
Concerns

Constraints
and
Limitations

My Point of View

Rhetorical Proofs

Emotional Intelligence
What I See

What I Do

Personal
Competence

SelfAwareness

SelfManagement

Social
Competence

Social
Awareness

Relationship
Management

ETHICAL PROOFS
The credibility that the
speaker or author
establishes

EMOTIONAL PROOFS
Form of persuasion
based on emotions of
the audience

Ethos

Pathos

Interpreted Reality
Selected Reality
Reality and Facts
“Theory in Practice: Increasing Professional Effectiveness” by Chris Argyris and Donald Schon.

®

Dialog

Ladder of Inference

Pain/Opportunity Grid

CURRENT

Your Point of View
Framing

Competencies

Capacity for Change

Middle management
pressured from senior
management to make
changes happen

Value-Based Discussions start with the business partner’s most pressing
business problems and move from left to right in this chart, eventually making a
direct and often compelling value connection with a specific service or solution.
These discussions may be more appropriate when extending into new services
or developing innovative solutions.

Start Here
(optimal)

Identify
Technologies
& Skills

Start Here
(sub-optimal)

• Provider Domain
• Powerful Communications
• Business Transition Management

Business Transition Management

Senior Management

Solution-Based Discussions start with what we provide and seek to establish a
connection with a pressing business partner problem. They tend to be focused
more on the service or solution that the partner’s critical business problem, and
may be appropriate in supporting an existing solution.

Assess
Enterprise
Opportunities

Connector
Orchestrator
Navigator

Business
Relationship
Management
Professional

Missed
Opportunities

Value Harvest

Stage 4

Value
Creation
Plan

Clarity of the BRM
Role in the context of the provider
Strategy and Operating Model

Clarifying the Path to Change

proven experience • proven tactics • proven success

Develop
Business
Case

Stage 2

Te
ch

Business Relationship
Management Role

- Very High Risk
- Uncertain Benefit

© 2003 Omega Point Consulting, L.L.C. – reprinted with permission

Experience
& Learnings

Capability Roadmapping

Avoiding
Disadvantage

Leading Change: A Cliff Analogy

Experience
& Learnings

es
qu
ni

Enterprise
Architecture

Value
Creation
Ideas

Value Harvesting

Execution
information
flow

Integrated
Programs

Implemented
Solutions

Generate
Results

Value Creation

Servicing

Assets
& Services

Delivered
Solutions

Effort/Cost

Exploring

Portfolio
MGMT

Experience
& Learnings

∆V
∆E

Recognized
Opportunities

Misaligned Value
System

Table Stakes

Stage 1

Demand Shaping

Strategic
Opportunities

Execution

∆E

A Service is a means of delivering value to customers by
facilitating outcomes customers want to achieve without
the ownership of specific costs and risks.

Monitor
Value Realized

Potential
Value

Requirements
& Education

Develop
Capabilities
& Execution
Practices

Identify &
Examine
Options

Develop
Outcomes

∆V

∆E

Stage 3

Ser
vic
eP
ro
vi
s

Business
Planning

Requirements
& Education

Want-to-Have

∆V

Corporate
Strategy

Investment
Planning

Planning
information
flow

Service
Value
=
Utility
(fit for
purpose)
+
Warranty
(fit for
use)

Value Leakage

Satisfiers
Requirements
& Education

Customer Value

Breadth

STRATEGIZE
Use lessons learned and
apply to business unit
strategies and goals

WOW!

BRMP Course Overview

“Emotional Intelligence 2.0” by Travis Bradberry and Jean Greaves. Copyright © 2009 TalentSmart

LOGICAL PROOFS
Logic or reasoning
shared by the speaker/
audience or author/
reader

Logos

Source: Aristotle (384 - 322 B.C.)

For more information:
Call: Toll Free 1 866 616 4195
Email: Info@ServiceManagementArt.com

1. Shared risks & rewards • Mutual understanding and appreciation of capabilities and needs. Trusted Advisor BRM & Service MGMT Excellence Establish Demand MGMT Discipline LEVEL 1 AD HOC I’m too busy to think about anything other than being too busy 3. • Lack of Service Management discipline. • Business partner engaged in Service Management. the result costs too much.RACI Model Accountable Responsible Consulted Informed Operating Model Cultural & Political essential truths and qualities Values declarative laws and rights Principles codes. • No clear sense of Provider service cost or value. achievement or major objective Intents Implications Outcomes enabling components decision rights Governance Service Mgt. • Provider engages early and often in Business Partner decision cycle. Manage Infrastructure and Services Manage Resource Supply Manage Provider Organization • Orchestrates Program and Project Management resources to manage initiatives • Communicate Program/Project Exceptions • Ensure business partner engagement • Represents the “voice of the business partner” Business Relationship Management Professional® and BRMP® are registered trade marks of Business Relationship Management Institute. but value is often inconsistent and subjective. Business-Provider Alignment Contextual Barrier: What drives our behaviours Shared goals for maximizing value. first-out. All rights reserved. but inconsistent results with major projects. works with them. Service Provider STRATEGIC INTENT CORE COMPETENCY CURRENT STRATEGY BUSINESS GOVERNANCE Drives Specification Barrier: What IT must do Impacts Inf orm En ation ab les DELIVER IT SERVICES Business Relationship Management Organizational Capability Impacts IT Portfolio Aligns INFORMATIONAL ARCHITECTURE STRATEGIC Implementation Barrier: What we get done Identifying Strategic Possibilities Setting Strategy and Agenda Identifying Execution Gaps Defining Problems and Solution Needs Identifying Solution Options Selecting Solutions What strategic options does IT create for us? What fundamental strategic changes must we make? What must we do to address our performance issues? What are we looking for in a solution? What are our options? Which of the solutions do we choose? Identifying the Possibilities Shape the Agenda Pinpoint performance gaps and opportunities Uncover problems and clarify needs Suggest new or improved solutions Show how the solution fits the defined problem TRANSACTIONAL INFRASTRUCTURE Ad Hoc "Leveraging the New Infrastructure: How Market Leaders Capitalize on IT" by Peter Weill and Marianne Broadbent. • Beginnings of investment mindset. • Consistent services. surfaces and shapes business demand • Orchestrates resources to create and deploy solutions and services • Ensures appropriate business partner engagement and ownership Manage Initiative and Service Portfolio Manage Risk and Compliance • Represents partner interests • Escalated when necessary proven experience • proven tactics • proven success Manage Architecture Conceive Value Solutions Create and Deploy Solutions and Services For more information: Call: Toll Free 1 866 616 4195 Email: Info@ServiceManagementArt. Strategic Partner We work together with our business partners to survive and prosper Embrace Continuous Improvement LEVEL 3 SERVICE PROVIDER My Provider prevents me from making big mistakes but I’m not always sure of the direction we’re heading Embrace BRM Role & Service MGMT I engage my Provider when I need something so they stay out of my way when I don’t need them The routine is routine. • Increasing sense of value from investments in Provider services and capabilities. • Risks and rewards are shared.4 NOT FOR RESALE Manage Initiatives All Images and Text Copyright © 2014 by Business Relationship Management Institute. Inc.com Operate and Sustain Solutions and Services Version 1. • Modified LIFO—Loudest-in. but we are always behind 4. statutes. • Antagonistic “We/They” relationships. • Quality data to support value analyses are regularly gathered. roles and committees Services Metrics leading and lagging indicators BRM Maturity Level 5. reviewed. Our business partners understand our capabilities. . Copyright © 1998 Harvard Business Publishing Order-Taker Service Partner Trusted Advisor Strategic Partner Business-Provider Maturity Model Value Improve Business Effectiveness Level 2 Support Business Efficiency Level 1 Level 2 IT Focus • Establish common IT infrastructure • Build IT credibility • Improve solution delivery • Establish Enterprise Architecture • Respond to ‘consumerization of IT’ Level 2 Business Needs • Business network/process redesign • Enable business and partnerships • Management information • Process orientation Level 1 Business Needs • Foundation systems • Cost savings • Operation information • Functional orientation “Strategic” BRM Level 3 IT Focus • Continuous strategy and planning • Converge business and IT • Expand and extend infrastructure • Enable flexibility and agility • Embrace ‘consumerization of IT’ Supply Level 1 IT Focus • Provide basic systems and services • Stabilize operations and support • Improve service delivery • IT management fundamentals Time Focus is Demand Management 3 Level 3 Business Needs • Business growth and innovation • Rapid reconfiguration capability • Market information • Business integration orientation “Tactical” BRM Level Demand 2. Little use of Program Management. • No quality data to support cost or value analyses. Rights Operate Packaging/ Segmentation Internal Measures Responsibilities Individual Measures Organization businessoriented and priced External Measures Processes Roles management. reason for being Vision aspiration. • Mutual accountability for achieving value from investments in Provider services and capabilities. rules and standards Policies operating requirements and behaviors Mission purpose. • Costs are transparent. Order Taker Frequent misperceptions builds distrust & reactive course-changes • Demand prioritized based upon weak or subjective data. • Innovation process in place to leverage on emerging technologies. first-out • Unmanaged demand. • Provider service portfolio appropriate to business needs. and Cooperation based on helps improve them mutual respect and understanding Engage Provider Portfolio & Transition in Strategic Thinking MGMT Excellence Operating Model Deliver Alignment Effectiveness Enablement LEVEL 4 TRUSTED ADVISOR My Provider is helpful and reliable measurable future achievements Program Management Initiatives Shared goals for maximizing value. and takes too long Our business partners help set priorities. Role of BRM in Capability Model Focus is Supply Management Innovate Business Transformation The routine is routine. We are asked to be predictable but there is no way to forecast demand so we know we disappoint our business partners more often than not Loudest-in. innovation is a challenge Moving upstream in the decision process increases strategic engagement and value yield Opportunities: Technology Threats: Substitutes Constraints: Regulations IT Strategy ROLES OF IT Business Partner’s Decision Cycle Environment Decision Step Products Market Investment Customers Business Partners Questions Strategic Context IT Objective Expression Barrier: What we want to do Cooperation based on mutual respect and understanding • Clear process for engagement—at least for steady state services. • Unclear rules of engagement. • Frequent misperception builds distrust. first-out Characteristics • Common goals with a focus on business value realization. shared risks & rewards Embrace Business Value Realization Portfolio Management Business Transition Management LEVEL 5 STRATEGIC PARTNER My Provider is integral to business success and growth and helps me succeed Strategy Align Explicit & Tangible Business Relationship Maturity Model • Primary focus for a given domain • Helps define services and initiatives Manage Relationships • Works with partner to incorporate risks and compliance needs • Help partner understand their role in managing risk and ensuring compliance • Engages Architects at appropriate points in the lifecycle • Stimulates. • Provider capabilities converged with business capabilities. innovation is a challenge LEVEL 2 ORDER TAKER Frequent misperceptions build distrust & reactive coursechanges Embrace the Reality of Existing Capabilities If I’m lucky enough to get my Provider’s attention. and used to support decision making. Ad Hoc Loudest-in. delivers too little. • Provider is reactive and does not challenge business requests.