Making Informed Choices That Move Us Beyond Our Default Future

Making Informed Choices
– that move us beyond our default future

David Trafford

Our
choices
define our
future

© Copyright Formicio Limited 2

Past choices define today

The estimated
cost of project
failure across the
European Union is
in excess of € 142
billion
A recent Gartner survey concluded that most CEO’s felt
that their CIOs are
“not cut out for the board”

Doing things
right

-

Doing the
right things


Some
choices
will be
strategic


Ideas drive choice


Choices are
complicated
by our
legacy of
past choices
and ...


… realisation that we live in a non-linear world


What do we:
start
stop
retire
reshape
reschedule


We’re likely
to make
better
choices if
we are
informed


Making
informed
choices requires:
facts
analysis
context
judgement


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


WHAT IF
Analysis of
impact on:
 architecture
 change
portfolio
 compliance
 customer
 strategy


Context
defines how
we see the
world –
the lens that
creates our
criteria for
choice


Is your context a portfolio of options? ...


... or a
roadmap to
an
‘improved’
future?


“Good
judgement
comes from
experience,
and often
experience
comes from
bad
judgement”
Will Rogers
1879 – 1935


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


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


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


Many have failed to develop portfolio management
as an organisational capability. Why?
Too focused
Each initiative is on process
judged in isolation

Key aspects of
governance not
addressed
Lack of clarity on strategic imperatives and
target improved future

Capability develops through levels of maturity

Optimising Focus on continual
improvement

Managed Focus on quantitative
measures
Maturity/Performance

Designed Focus shifts to end-to-end
process design

Repeatable Reduce variability and
increase effectiveness

Ad Hoc Inconsistent

Time/Effort

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

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

Reduce
complexity
Reshape/reschedule Manage risk
initiatives to reflect
changing circumstances

Get everyone on
Have one version the same page
of the truth
... by making informed choices

Who is the
best person
to develop
this
organisational
capability?


"We are what we repeatedly do.
Excellence, therefore, is not an act
but a habit."
Aristotle, 384 BC – 322 BC


David Trafford
david.trafford@formicio.com
+44 (0)20 7917 2993
www.Formicio.com


Making Informed Choices That Move Us Beyond Our Default Future

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Making Informed Choices That Move Us Beyond Our Default Future