Outcomes management prelude to a portfolio oct 20,2010 ottawa

Outcomes Management:
Prelude to a Portfolio

PMI OVOC PMO LIG Chapter
October 20, 2010
Larry Cooper, B.Sc., M.A. (Public Administration)
PMP, ITIL Expert, CSM, ISO 20000 Consultant, CPM, Project+
Hosted by: Coradix Technology Consulting

May 2010 BSS Nexus Global © 2010

Disclaimer
• The content of this presentation is the commercial confidential property of BSS Nexus Global Inc used
under license from the following companies where applicable: Geo-Spatial Project Learning Institute and
AltNexus Corporation
• The approach presented was customized based on the project environment, organizational context, and
evolving circumstances and may or may not work exactly as presented for another project context
• What is presented is only a portion of the overall approach used in the project as it relates specifically to
how outcomes management was done using one of the adapted methods. An understanding of the overall
approach (all adapted method’s) is needed for individual portfolio success

• No single method is a “Silver Bullet” – EVER

BSS Nexus Global © 2010

The Professional Me
• 30+ years in IT in public/private sector in Canada and USA
• B.Sc. Computer Science, M.A. (Public Administration)
• PMP, CSM, ITIL V3 Expert, ISO 20000 Consultant, CPM, Project+
• Background in:
 Software Development, Systems Integration, IT Operations, Business Process Design, Methodology Development and
Adaptation
 Science-based, HR, Learning Management, Financial and Supply Management business areas
• Author of industry articles, white papers, and in books
• Top ITIL whitepaper download on www.Forbes.com in 2007 (written for Global Knowledge –
“Implementing ITIL using the PMBOK in Four Repeatable Steps”)
• Created the Capability Release Strategy for the worlds largest web-enabled Supply Chain
system
• Instructor since 2006 in ITIL/ITSM, Project Management and Soft Skills
• Roles:
 Programmer, Programmer Analyst, Manager IT Operations, Director, PM, Test Manager, Instructor, Author, Business
Process Designer, Courseware Developer, Strategic Advisor, Business Analyst, Capacity Manager, Configuration
Manager, invited speaker

Main trait: I LOVE VARIETY AND CHANGE!
New Motto: “I never met a method that I could not adapt”


Agenda
• Portfolio Premise-Challenges
• Outcomes Management
• The Project Context
• The Approach
• The Results
• What’s next


Project Selection

Typical Project “selection process”
1. Identification
2. Categorization
3. Evaluation
4. Selection
5. Prioritization
6. Portfolio Balancing
7. Authorization


Project Selection

Typical Project “selection process” Issues?
1. Identification • Do you see any reference to
2. Categorization strategic goals?
3. Evaluation • Do you see any reference to
4. Selection desirable outcomes?
5. Prioritization • Projects are not purpose-defined
to satisfy strategic goals or
6. Portfolio Balancing desirable outcomes – that is the
7. Authorization “Business-IT alignment” exercise
this implies
• “Skyward looking” – what is up
there that I can “align” to?


When Business Strategy is not driving project definition

Situation Leads to.. Results in..
Budget overruns
Reluctance to say no to Project delays
projects Too many projects Business needs not
met
Lack of Strategic Focus
Benefits not
Can’t kill projects Quality of execution received
Projects are “sold” on suffers Increased
emotional basis -- not Complexity
selected
Sub-optimal use of
Underestimation of resources
No strong review process risks and costs Finger pointing

Overemphasis on Projects not
Financial ROI
integrated into Lack of confidence
No clear strategic
criteria for Business Strategy (in IT)
initiation or
selection
Source:
Fujitsu


On-Strategy?
• Following traditional Project Management practices does not guarantee that what
you are delivering is “on-strategy” – only that it can be delivered well – even when
it is the wrong thing!
• Being “on-strategy” requires that the project be defined and delivered from the
perspective of the strategy itself and not as an after the fact alignment exercise


Business-IT Alignment?
• Following traditional Project Management practices does not guarantee that what
you are delivering is “on-strategy” – only that it can be delivered well – even when
it is the wrong thing!
• Being “on-strategy” requires that the project be defined and delivered from the
perspective of the strategy itself and not as an after the fact alignment exercise
• The notion of “Business-IT Alignment” is not achievable and in fact it never really
was!


Outcomes Management
• Enables organizations to define and use specific indicators to continually
measure how well services or programs are leading to the desired results
• Used extensively in health care and not-for-profit sectors
• Basis for TBS’ Results-based Management Accountability Framework
• First articulated in the “The Information Paradox” by John Thorpe of DMR
in 1998
• Embedded into the ValIT Framework from the IT Governance Institute,
John Thorpe, Lead Author


Outcomes Management answers the 4 “Are’s”
The Strategic question. Is the
investment:
For Business and IT The Value question. Do we have:
• In line with our vision • A clear and shared understanding of
• Consistent with our businesses the expected benefits
principles • Clear accountability for realizing the
• Contributing to our strategic benefits
objectives
• Relevant metrics
• Providing optimal Value, at
affordable cost, at an acceptable • An effective benefits realization
level of Risk process

The Architecture question. Is the
investment: The Delivery question. Do we have:
• In line with our architecture • Effective and disciplined management,
• Consistent with our architectural delivery and change management
principles processes
• Contributing to the population • Competent and available technical and
of our architecture
business resources to deliver:
• In line with other initiatives
– The required capabilities
– The organizational changes required
to leverage the capabilities

From ValIT, ITGI

BSS Nexus Global © 2010 12

Types of Outcomes
• Good and intended
 Ones that we planned for and intended to happen
• Good but unintended
 Ones that we did not plan for, but that have a positive effect on the
organization or its Customers/Clients
• Bad and unintended
 Ones that we did not plan for and that have a negative effect on the
 AKA “the law of unintended consequences” – Blackberry and iPhone


Types of Outcomes
• Good and intended The only ones we get
without Outcomes
 Ones that we planned for and intended to happen Management
• Good but unintended
 Ones that we did not plan for, but that have a positive effect on the
• Bad and unintended
 Ones that we did not plan for and that have a negative effect on the
 AKA “the law of unintended consequences” – Blackberry and iPhone

Without Outcomes Management, it’s a little bit like getting “a box of
chocolates” – you never really know which ones you are going to get!


Measurement of Outcomes
• Individual Performance
 How well the individual performs their role within a business unit of the
organization against defined and desirable business unit outcomes
• Team (or Business Unit) Performance
 How well the Team performs against defined and desirable organizational
outcomes
• Organizational Performance
 How well the organization performs against its defined and desirable
outcomes


Designed-in Performance
• Performance against those outcomes that are both defined and desirable
is cumulative up through the layers
• BUT…the collective capability that is required to do so is defined in the
context of and delivered to ensure that such performance can actually
occur
• That means the desired performance must actually be “designed in”
through a network of linked outcomes – Immediate, Intermediate, and
Ultimate
Note: This means that you need to create a Measurement and Analytics Framework


Levels of Outcomes
• Immediate Outcomes
 Accrue on delivery of the new or updated product or Service
• Intermediate Outcomes
 Are necessary for some other product, Service or Initiative to start (i.e. they
are used by or are a prerequisite to)
• Ultimate Outcomes
 Highest level of Outcome that can be reasonably attributed to the Initiative in
a causal manner, and is the consequence of one or more intermediate
Outcomes having been realized
 These are in essence the raison d'être for the Initiative and are required in
order to achieve the Strategic Outcomes of the organization


Outside-in Thinking?
• “Here’s the solution, what’s the problem?”
• “I know exactly what you need”
• “I saw this really cool tool at the conference, we need to get it”
• “But the Customer is willing to pay for it…”


Outside-in Thinking
• “Here’s the solution, what’s the problem?”
• “I know exactly what you need”
• “I saw this really cool tool at the conference, we need to get it”
• “But the Customer is willing to pay for it…”

• Thinking in terms of Outcomes means we also need to think of what the
eventual Customer/Client needs, rather than just about ourselves
• And sometimes we need to protect our customer/client from themselves!


Focus on Desired Outcomes First
• Outcomes must be focused on the delivery of defined business strategies,
this means that the projects to deliver them are not “just” IT Projects (and
they never really were)
• While technology is often a key enabler to outcomes realization, simply
getting the technology installed is not what the business desires
• Organizations don’t want a “tool”, they want what a tool enables

“People don’t want quarter inch drills. They want quarter inch holes.”
Theodore Levitt, Harvard Business Professor


Achieving Desired Outcomes means that ‘Change’
must happen
• An Outcomes focus highlights the fact that all projects are hinged on changing
something – we want to change from a current state that is not desirable to a
more desirable new future state
• You cannot lose sight of the changes that will be needed, their nature, and how
they will be achieved:
 Do we have a clearly articulated vision of what our desired future state will look like?
 Will this desired future state require a ‘group re-think’ in terms of what we do and how we do it?
 Do we have clearly defined governance?
 Do we have clearly defined roles and processes?
 Are we approaching our project investments (the enablers) as change catalysts?
 Do we truly understand all of the project investments we will need to undertake and the sequence in
which we need to do them?
• Most outcomes are not achieved simply by completing the project – outcomes
“stickiness” is achieved long after the project “lights” are turned off
 Knowing whether the future state was achieved requires measurement of the effects of the changes
that were made well after the projects are over, which means the changes to be made had to have
been understood, planned, implemented, and measured


The Drive to Results

Define Strategy
Execute Projects
Identify Desired
Strategic Outcomes Build Capacity
Projects Defined to
deliver “on-strategy” Build Required
Operational, Business,
and Technical Capacity


Reflection
• “It’s incredibly easy to get caught up in an activity trap in the busy-ness of
life, to work harder and harder at climbing the ladder of success only to
discover it’s leaning against the wrong wall”.
Stephen Covey

• “There is nothing worse than doing well that which should not be done at
all”.
Peter Drucker


Project Context
• Typical Project Direction was Given:
 “Buy and Implement a <tool>”
• Direction Taken:
 We brought the project team and sponsor back to Strategic Goals, Desired
Outcomes, Business Services, Processes and then the Tools


Typical Executive/Management Involvement Profile
“The Executives Paradox”

Level of Management Involvement

Resource Loading
Project Phases/Time

As project issues arise around scope, resourcing, time, costs, etc.
management involvement also increases
but by then it is usually too late to influence project outcomes


Executive/Management Ability to Influence
Outcomes

Ability to Influence Outcomes

Resource Loading
Project Phases/Time

An aid to re-profiling management engagement was the introduction of Agile practices
As we went into execution of projects, their involvement followed above profile


The Original Tool – An LMS
 Learning Management
 Foundation platform for learning framework
 Self-service learning content
 Course scheduling and registration
 Facilities and instructor management
 Competency alignment with learning content
 Individual learning history

The LMS is a key building block to the
organizations longer term goals in areas such as
Learning Management System performance management, talent management,
and succession planning and is an integral part of
advanced HR self-service and enhanced corporate
web capabilities


A few more were Needed!
Content Authoring
 Content Authoring
 eLearning content development based on
recognized industry standards (SCORM)
 Authored content is managed through Learning
Content Management and delivered via LMS

Content authoring tools are used to create content
that can be delivered via the appropriate modality or
combination of modalities (physical classrooms,
Content Authoring virtual classrooms, eLearning, collaboration spaces,
etc.)

Learning Management System


Content Management
 Content Management and Collaboration
 Learning content repository
 Course development collaboration
 Course collaboration areas (instructor, learners)
 Process collaboration areas via wiki’s (task details,
etc)
Content Management

Learning Content Management addresses the need
Authoring Tools manage both content development and content
delivery and encompasses proper content release
management to ensure that only approved and tested
Learning Management System content makes its way into the LMS production
environment


Process Automation
 Process Automation
 Foundation platform for process models
 High level process flows

Process Automation
 Metrics for process measurement and
improvement
 Links processes with learning (competencies,
Content Management learning opportunities)
 Uses Out-of-the-box (OOTB) capabilities

Authoring Tools
Process Automation ensures consistency in defined
processes and enables continuous process
Learning Management System improvements via process improvement methods
such as Lean

32

The Value Map


Projects aim to deliver desirable Outcomes through
measurable Benefits and observable Value that reflect defined
Business Strategies

Defined ‘desired’ New Business
Value
Strategy Business Management Outcomes,
Outcomes Benefits and Value

Enabling
Projects

But…
they need business and IT to work collaboratively…
throughout the Value Management lifecycle…


Value Streams
Implement Learning Management
Customer Engagement Stream
Learning Management
Contribution to Strategic Outcomes
Capabilities

O1
Quality
C1 I1
Learning
Customer Implement Customer
Management
Engagement Triage Process
and Advisory
Provided

Content Management Stream
O2
C2
I2 Learning
Learning
Implement Learning Content
Content Design
Content Design and Relevant to
and
Development Processes Client
Development
Needs

O3
C3 I3 Efficient and
Leaning Implement Learning Effective
Content Content Management Learning O9
Management Processes Content Individual
Management Performance
Aligned with
Implement Corporate Goals
and Objectuves
Learning 0

Management Learning Management and Delivery Stream O12
Quality of
Services to
Canadian
O8 Exporters
O7 O10 Increase
O4 Efficient and
I4 Learning Rewarding,
Blended Effective
Implement Learning Anytime, Flexible and
Learning Knowledge
Management System Anywhere, Progressive
Facilitated Transfer
Anypace Workplace
Facilitated

C4 O5
I5 O11
Learning Informal
Integrate LMS with Be a Learning
Delivery Learning
SharePoint Organization
Management Formalized

Support Stream

O6
I6
Effective and
C5 Conduct Training and
Efficient
Support Knowledge Transfer to
Support
Support Staff
Provided


The Outcomes Management Parts
Implement Learning Management
Customer Engagement Stream
Learning Management
Contribution to Strategic Outcomes
Capabilities

O1
Quality
C1 I1
Learning
Customer Implement Customer
Management
Engagement Triage Process
and Advisory
Provided

Content Management Stream
O2
C2
I2 Learning
Learning
Implement Learning Content
Content Design
Content Design and Relevant to
and
Development Processes Client
Development
Needs

C3
Leaning
I3
Value Streams
Implement Learning
O3
Efficient and
Effective
Content Content Management Learning O9
Management Processes Content Individual
Management Performance
Aligned with
Implement Corporate Goals
and Objectuves
Learning 0

Management Learning Management and Delivery Stream O12
Quality of
Services to
Canadian
O8 Exporters
O7 O10 Increase
O4 Efficient and
I4 Learning Rewarding,

Initiatives Register
Blended Effective
Implement Learning Anytime, Flexible and
Learning Knowledge
Management System Anywhere, Progressive
Facilitated Transfer
Anypace Workplace
Facilitated

C4 O5
I5 O11
Learning Informal
Integrate LMS with Be a Learning
Delivery Learning
SharePoint Organization
Management Formalized

Support Stream

O6
I6
Effective and
C5 Conduct Training and
Efficient
Support Knowledge Transfer to
Support
Support Staff
Provided

Benefits Register Outcomes Register


The Next-up Value Stream
Implement Initiative
Ouctomes Stream 1
Contribution to Strategic
Capabilities
Outcomes
Imbedded
Process
Learning learning
Employee Process collaboration Processes Linked
framework for Collaborative
Management Development Framework and to Learning and
JIT learning Environment for
and Delivery Process Defined Implemented knowledge Competencies
in-context to Knowledge
centralization
work Capture and
Centralization

Outcomes Stream 2

Centralized
Competency Prescribed Prescribed Learning
Become a Skill and Competency learning Framework Be a
Framework learning
Learning Competency Structuring (Core
Alignment to
based on based on Aligning Learning Learning
Organization Assessment Learning process Opportunities,
and Technical) assessment
requirements
Organization
Competencies and
Processes

Outcomes Stream 3

Individual Centralized Job
Job-Based Development Prescribed Structure Aligned
Job Structuring Learning Competency
Plan and learning to Learning Maps
Learning (Job and Job Alignment to Job
learning
Alignment to
based on job
Maps Families) and Job Families Jobs (i.e. Learning
assignment by profile Opportunities)
job


Project Results
• Outcomes were defined in context of Strategic Goals
• Business Services were defined to deliver Outcomes
• Processes were defined to support Business Services
• Tools identification and selection was based on Strategic Goals,
Desired Outcomes, Business Services, and Process needs
• Original Tool that was requested ended up being one of five (5) sets
of different tools that were actually needed for successful
implementation
 Original Tool, Workflow, Authoring Tools, Content Management, Measurement
and Analytics
• Originally identified tool is embedded as but one of the tools
needed to support just one of the four major process areas that are
required for the business unit to support its defined Strategic Goals


A Shift in Thought Process….
Competition for IT and Business resources

Shift the focus from
managing inputs
From…ROI Business Cases not clearly comparable
Alignment between Business and IT strategy unclear
Financial worth open to interpretation

(costs) ... Sponsored by those who „do the work‟
Unit Mangers and Project Mangers left to “sort it out”
Executive engagement ramps up when project is in trouble

To…ROV (Value)
 Clear path to understanding the logic and likelihood of business
case benefits
to managing with  Objective, business Value approach to selection
an outcomes  Sponsored by those who „seek the benefits‟

(benefits) focus  Executive decision making “sorts it out”

 Executive engagement at beginning where it matter‟s most


Larry’s 10 Postulate’s
1. Business Value is defined in terms of both desirable and measurable Outcomes that
achieve a defined Business Strategy
2. Business Strategy creation and execution requires leadership that is hands-on
3. Business Strategy focuses on the organization’s products and/or Services and is
provisioned via projects
4. Business Strategy must be considered in the contexts of systems and tools, processes,
information sources, training/education, motivation and incentives, and
resource/capability acquisitions
5. It is rare that a single project can deliver on a business strategy
6. All organizations, and all parts of an organization, deliver products and/or Services to
a Customer – whether internal or external
7. All products and/or Services have a lifecycle – they are defined, provisioned,
operated, improved and eventually retired
8. All projects constitute a change - be it new or modified processes, systems,
organizational structures, products, or Services
9. All changes require collaboration and communications across the entire stakeholder
base
10. Leadership is needed throughout the products and/or Services lifecycle


“It’s so much easier to suggest solutions,
when you don’t know much about the problem”
Malcom Forbes


For more information
Larry.Cooper@BSSNexus.com
11-300 Earl Grey Drive
Ottawa, ON K2T 1C1
1-888-316-2745
(613) 868-0982 (cell)


Outcomes management prelude to a portfolio oct 20,2010 ottawa

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