Principles of Execution

Making The Most of Your

Constrained Resources

Optimizing Resource Allocation Using Project Portfolio

Management

Two Sides of the Same Coin

Deliberate and Emergent Resource Allocation Strategy

Sure, I can do that as well!

Implementation of Current Strategy

Emergent

Strategy

Funded Projects

Allocated Resources

Product

Processes

New Services

New Opportunities, innovation or

demands

Deliberate

Strategy

Gerald’s Background

Gerald Leonard is currently

the President & CEO of Principles

of Execution, a Strategic Project

Portfolio Management and IT

Governance consulting firm based

in the Metro Washington, DC area.

19 years as an IT Project

Management consultant and

earned the PMP, MCSE, MCTS,

CQIA, ITILv3 and COBIT 4.1

Certifications

Acquired certifications in PM and

BI from the University of California,

Berkeley, as well as an Executive

Leadership Certification from

Cornell University.

Where can you learn more?

What is Portfolio Management?

Portfolio Management is a capability

that enables organizations to

analyze, select and manage a

collection of project investments that

are aligned with your company’s

goals and objectives within a data

driven decision making framework.

Portfolio Management also

coordinates the acceptance,

approval, postponement, rejection

or cancelation of a project which will

not realize the proposed benefits or

the corporation’s strategic

outcomes.

The Corpus Callosum of the Organization

Resource Management Value

Model TM

Resource Inventory

Resource Fit

Prioritize Resource Allocation

Resource Optimization

• Roles

• Skills

• Capability

• Competence

• Constraints

• Capacity

• Balance

• Recalibration

Pull Resource Planning

Systematic Capacity Process

Decision Framework

Practical Application

Pull Resource Strategy in Action

Optimization of Resource

“Finding an alternative with the most cost effective or

highest achievable performance under the

given constraints, by maximizing desired factors and

minimizing undesired ones. In

comparison, maximization means trying to attain the

highest or maximum result or outcome without regard to

cost or expense. Practice of optimization is restricted by

the lack of full information, and the lack of time to evaluate

what information is available.”http://www.businessdictionary.com/definition/optimization.html

“Resource-constrained environment [are] fancy

Pentagon words that mean there isn't enough money

(resources) to go around.”

Gen. John W Vessey

Resource Capacity Sourcing Plan

Developed over a defined

planning horizon.

Internal and external head

count is projected.

Details how project staff will be

obtained.

Establishes required roles,

skills and timing of workforce

change

Provides cost for executing the

sourcing plan.

Based on the demands and

aligned with the organization’s

strategic objectives.

Pull Resource Strategy Process

Inventory

Fit

Prioritize Allocation

Optimization

• Roles

• Skills

• Capability

• Competence

• Constraints

• Capacity

• Balance

• Recalibration

Pull Resource Planning

Systematic Capacity Process

Decision Framework

Practical Application

Systematic Capacity Process

Ambidexterity

Absorptive

Forecasting and Solution

DiscoveryPresencing

Multidimensional Leadership

ICF International: Building Capacity for

Systemic Change (White Paper)

Systematic Capacity Process in Action

Addressing the

challenge of

managing project

and operational

resource allocation

constraints.

Capacity Development Framework

APPLYING A CAPACITY-RESULTS FRAMEWORK

http://siteresources.worldbank.org/INTCDRC/Resource

s/CapacityBriefNo14.pdf

Pull Resource Planning

Systematic Capacity Process

Decision Framework

Practical Application

Allocate Funding and Resources by

Project CategoriesHow many

projects in

each category

do we have the

capacity to

execute?

The system

must limit the

number of

projects based

on capacity to

execute.

Only Reallocate Resources with

Similar Categories

Implementation of Current Strategy

Emergent

Strategy

Funded Projects

Allocated Resources

Product

Processes

New Services

New Opportunities, innovation or

demands

Deliberate

Strategy

Transform 10% Grow 30% Run 60%

Enforce a discipline decision making process

Pull Resource Planning

Systematic Capacity Process

Decision Framework

Practical Application

Practical Resource Allocation and

Optimization

Requires that:

There is a shared vision for the organization’s strategy,

goals and objectives

Multi-tasking will be reduced and resources operate on

a limited number of projects that will deliver the greatest

value.

Constrained resources are identified and elevated.

Buffers are provided to account for variability in the

environment.

Using Systems to gain visibility

Identifying Resource Allocation Issues

Optimizing Resources on High Priority

Projects

Where Should You Start?

Resource Inventory

Resource Fit

Prioritize Resource Allocation

Resource Optimization

• Roles

• Skills

• Capability

• Competence

• Constraints

• Capacity

• Balance

• Recalibration

How do you get there?

Pull Resource Planning

Systematic Capacity Process

Decision Framework

Practical Application

Summary

Q&A

Portfolio Management Training

Click here to learn more.

Principles of Execution, LLC

Gerald J. LeonardPMP, MCTS, CQIA, ITIL, COBIT

President/CEOGerald@Principlesofexecution.com

http://www.principlesofexecution.com

Building the foundation for effective execution to increase your organization’s productivity!