Making Informed Choices That Move Us Beyond Our Default Future

Making Informed Choices – that move us beyond our default future

David Trafford

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Our choices

define our future

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Past choices define today

A recent Gartner survey concluded that most CEO’s felt that their CIOs are

“not cut out for the board”

The estimated cost of project

failure across the European Union is in excess of € 142

billion

Doing things right

-

Doing the right things

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Some choices will be

strategic

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Ideas drive choice

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Choices are complicated

by our legacy of

past choices

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and ...

… realisation that we live in a non-linear world

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What do we: start stop retire reshape reschedule

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We’re likely to make better

choices if we are

informed

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Making informed

choices requires: facts analysis context judgement

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... on: assets usage architecture initiatives people risks strategy

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WHAT IF

Analysis of impact on:

architecture change

portfolio compliance customer strategy

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Context defines how we see the

world – the lens that creates our criteria for

choice

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Is your context a portfolio of options? ...

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... or a roadmap to

an ‘improved’

future?

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“Good judgement comes from experience, and often experience comes from

bad judgement”

Will Rogers 1879 – 1935

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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

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Organisational capabilities are: Part of the organisation’s DNA Embedded into the way things are done Not lost when people leave

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An organisational capability has shared: mental models frameworks language processes tools beliefs

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Many have failed to develop portfolio management as an organisational capability. Why?

Each initiative is judged in isolation

Too focused on process

Lack of clarity on strategic imperatives and target improved future

Key aspects of governance not

addressed

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Capability develops through levels of maturity

Inconsistent

Reduce variability and increase effectiveness

Mat

uri

ty/P

erf

orm

ance

Ad Hoc

Repeatable

Designed

Managed

Optimising

Time/Effort

Focus on continual improvement

Focus on quantitative

measures

Focus shifts to end-to-end process design

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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

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Portfolio management – as a mature organisational capability – enables the business and IT to ...

... by making informed choices

Reduce complexity

Reshape/reschedule initiatives to reflect

changing circumstances

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Manage risk

Have one version of the truth

Get everyone on the same page

Who is the best person to develop

this organisational

capability?

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"We are what we repeatedly do. Excellence, therefore, is not an act

but a habit." Aristotle, 384 BC – 322 BC

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David Trafford david.trafford@formicio.com

+44 (0)20 7917 2993 www.Formicio.com