20240418 Flight Levels Day 2024 Flight Levels and Project and Portfolio Management Tools

When speaking with a "C-level" (executive leadership) customer, we are often talking about flight level 3. However, in their world they are often using a PPM tool such as SoftwareAG Alfabet or PlanView PPMPro, which are often called "Strategic Portfolio Management" tools. They use words like OKRs and budgets and metrics and Agile. It would be good for the Agile community to have awareness of these tools to see where and how they might or might not fit

1. Craeg Strong, CTO Ariel Partners
FLIGHT LEVEL 3
AND PPM TOOLS
STRATEGIC PORTFOLIO
MANAGEMENT
New York, NY
18 April 2024
19:00 CET / 1:00PM ET

2. 2
Craeg Strong
Software Development since 1988
Large Commercial & Government Projects
Leadership Coaching & Training
Organizational Agility Coach
DevSecOps Architect
Certified Ethical Hacker
CTO, Ariel Partners
FLC/FLG AKC/AKT/KCP,
CSM/CSP/CSPO,
ITILv3, PMI-ACP, PMP, CLP, SPC, CEH
ICP-ACC, ICP-ATF, PSM-II, PSK
[email protected]
https://www.linkedin.com/in/cstrong
@ckstrong1
2

3. Our Baseline: FL3
What is PPM?
PPM In Action
Dashboards
Tracking Budgets
Making Funding Decisions
Traceability for Impact Analysis
Maintaining the Mappings
What-If Scenarios
Multi-Level Triage with Phase Gates
Sequencing Initiatives by Value, Time Criticality and Risk
Benefits and Drawbacks of PPM Paradigm
Summary: PPM tools versus Agile Portfolio Planning
My Dream Strategic Portfolio Management Tool
Takeaways
Agenda

4. FL3: Pharma Example
Revenue from Anti
-Cancer
Doctor Presentations
Week
Become leading
supplier of anti-
cancer drugs in
USA
Long-Term Outcomes
2025 - 2026
Wildly
Important
Goal
1 Year Outcomes
By 31 Dec 2024
< 3 Months
By 30 Sept 2024 Next
In
Progress
Measure
Success
New lymphoma
drug
to market
3 lymphoma
drugs in human
trials
5 lymphoma
drugs in animal
testing
Doctors have
40% better
awareness
Doctors prescribe
our drugs over
Competitor 20%
Doctor awareness
equals competition
QRS
Formula
β Mutation
Testing
Social
Media
Campaign
New
absorption
coating
Equipment in repair
Week Quarter

5. PLANNING
Which initiatives will be funded, and which will not?
What is our overall budget? How does it compare to last year?
What is our ROI? Will we meet our revenue and/or cost savings targets?
Which initiatives need to be delayed in order to resolve contention for scarce resources?
Are we investing in the right areas?
Are we overloading or neglecting any important sponsors?
MANAGING
Is spend tracking as per plan?
Are risks being managed appropriately?
What is the overall status? Which programs are at risk of overruns?
Are resources overallocated? Do we need to adjust the timeline?
What Is PPM?
Product Portfolio ManagementProject and Portfolio Management

6. PPM Tools

7. PPM Dashboard

8. PPM Dashboard

9. Tracking Budgets

10. Making Funding Decisions

11. Traceability for Impact Analysis

12. Traceability for Impact Analysis

13. Maintaining the Mappings

14. What-If Scenarios

15. Multi-Level Triage with Phase Gates

16. Sequencing Initiatives by Value, Time Criticality, Risk

17. Benefits and Drawbacks of Typical PPM Tools
Spreadsheet like view with sort, group, filter, sum, and average
What-if scenarios
Lots of metadata
CapEx $
OpEx $
RGT Type (Run | Grow | Transform)
Funding Source
Line of Business
Sponsor
Projected Costs
Projected Benefits
Return on Investment
Cost Variance
Risks
Current Status (Red | Yellow | Green)

Pros
Gartner developed the run-grow-transform model to support IT portfolio planning
Run operate and maintain (business as usual, keep the lights on)
Grow enhance and expand (organic growth, existing products)
Transform innovate and drive (new business capabilities)
Financial Projections are highly suspect Status values are highly suspect Risk Numbers are pure fantasy No tracking of outcomes No focus– we are trying to address every strategic objective
Extremely high maintenance– questionable value for
traceability
Cons

18. PPM Tools are built for Traditional Planning
Projects executed
in silos
Costs are tracked and
reported; outcomes and
benefits aren’t tracked or
reported.

19. Agile Portfolio Planning focuses on Outcomes
Strategic Portfolio Management

20. My Dream Strategic Portfolio Management Tool
Budgeting
Resourcing
Organizational Constraints
Sequencing Initiatives
Financial Reporting
Managing Constraints
OKRs
Outcomes
Indicators
Context
FLSA Big Picture
Linked Flight Levels
Strategic Alignment
Monte Carlo Tools
Historical Project Information
Risk Analysis
Alternatives Analysis
Forecasting
Decision Analysis
Application Portfolio
Rationalization
Technology Inventory
Asset Management
Vendor Management
Enterprise Architecture

21. My Dream Strategic Portfolio Management Tool
Budgeting
Resourcing
Organizational Constraints
Sequencing Initiatives
Financial Reporting
Managing Constraints
OKRs
Outcomes
Indicators
Contextual Stories
FLSA Big Picture
Linked Flight Levels
Strategic Alignment
FL2 / FL3 Tool
Monte Carlo Tools
Historical Project Information
Risk Analysis
Alternatives Analysis
Forecasting
Decision Analysis
Application Portfolio
Rationalization
Technology Inventory
Asset Management
Vendor Management
Enterprise Architecture
Plugins

22. 22
Summary
Traditional PPM tools suffer from numerous drawbacks
Numbers are highly suspect; only sunk costs can be relied on
No outcomes; projected benefits are never analyzed
Nevertheless, FL3 tools can learn from them
Measuring budgets and spend is a MUST. No tool will be taken seriously without this.
Don’t reinvent language if its not necessary (RGT model)
What-If scenarios: impact analysis for proposed changes
Plugin to application portfolio rationalization tools
Untapped Areas
Statistically valid methods for forecasting
Statistically valid methods for measuring multi- variate risk
Repository of historical project information to seed the Monte Carlo simulations

23. 23
Thank you!
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