Portfolio Management

Customer Value Hierarchy

Portfolio, Programs and Projects

Business Outcomes

Differentiators

Depth

MANAGE
PORTFOLIO

CLOSE

Portfolio Management refers to

the system that selects and
manages the portfolio of
business value opportunities
for the enterprise.

Portfolio

Discover value creation

opportunities within a
business unit

PLAN

Program

Program

Program

Develop business cases for all

provider investments and
approve those that add value

Formally analyze the results

of all provider investments

Program Management is excercised

across a defined set of related
projects having common goals and
supporting common business
outcomes. The programs and
specific projects within a program
should be defined in terms of a topdown strategy.

EXECUTE
Project Management focuses on the
completion of a specific and precise
scope of work, often defined within
the context of a broader program
objective.

From: Leveraging New Infrastructure, Weill & Broadbent

Projects

The Portfolio should be managed at a

Program Level through Business Outcomes

Information
Flow

Project

Project

Program
MGMT

Reporting
& Data Collection

Project

Project

Governance ensures that stakeholders needs, conditions

and options are evaluated to determine balanced, agreed-on
enterprise objectives to be achieved; setting direction through
prioritization and decision making; and monitoring performance
and compliance against agreed-on direction and objectives.

Project

Project MGMT

The Boston Square

Classification Scheme

INFORMATIONAL

Gaining
Advantage

STRATEGIC

TRANSACTIONAL
INFRASTRUCTURE
Provide the base
foundation of shared IT
services

Reduce cost of doing business,

usually by automating the
transactions of the firm and
substituting capital for labor

"Leveraging the New Infrastructure: How

Market Leaders Capitalize on IT" by Peter Weill
and Marianne Broadbent. Copyright 1998
Harvard Business Publishing

Management Style
Developer

Management Style
Innovator

STRATEGIC

HIGH POTENTIAL

Critical to sustain
future
business strategy

May be important
in achieving
future success

Currently depended
on for success

Useful but not

critical to future
or current success

FACTORY

SUPPORT

Management Style
Controller

Management Style
Caretaker

- High Risk
- High Benefit

Gain competitive advantage through

positioning the firm in the
marketplace, usually with the aim of
gaining sales
Primary Purpose

Provide better information to

manage, control, account,
communicate, analyze and make
decisions

Got-to-Have

- Known Risk
- Known Benefit

g
in
n
io

Value Diagnosis

Refine
Ideas

Value Delivery

Suboptimal
Measurement,
Accountability &
Organizational
Capability

Suboptimal
Deployment &
Operation

Suboptimal
Design

Realized
Value

Relationship Strategy on a Page

Approve
Business
Case

Business
Case

Shared Vision

Stage 5
Monitor
Value and
Adjust

Relationship
Characteristics

Communicate
Value

Performance
Measures

Business IQ, Strategic Partnership

and Value Management

What is the common set of goals and objectives to which both

partners are commited?
What characteristics & capabilities do we need in the relationship
to achieve the shared vision?
How will we know that we are succeeding in developing these
characteristics?

Key
Initiatives

What focused and collaborative initiatives must we undertake to

reach these goals?

Operating
Principles

What changes are necessary in how we do business?

Linking Business Drivers with Technology

DRIVER

INITIATIVES

ENABLERS

TECHNOLOGY

(Business What)

(Business How)

(Provider What)

(Provider How)

What are the 2 or 3 critical

business outcomes from
their strategy plan that the
business partner needs to
achieve?

Identify
Business
Strategies

How does the business

partner intend to go about
achieving these outcomes?

What capabilities or
enablers are needed to
implement the initiatives?

How do our services and

solutions deliver these
capabilities & enablers?

Capability Roadmapping

Business Unit
Geography
Enterprise
External

Roadmap
Business
Capabilities

Strategic vs
Tactical

Strategic Partnering
Business IQ
Portfolio Management

Roadmap
Enabling
Capabilities

Prioritize
Capabilities
& Projects

BRM Competencies

- Low Risk
- Low Benefit

Middle Management

Middle management
receives resistance from
first line managers and staff

First Line Management

First line management

receives resistance
from staff

2003 Omega Point Consulting, L.L.C. reprinted with permission

Framing Your Message

Influence Process
Powerful Communications

Key Roles
Stakeholders
Initiating
Change Leader
Sustaining
Change Leader
Change Agents
Advocates

Staff

Actions

ANTICIPATED

Beliefs

PROBLEM

OPPORTUNITY

Conclusions

Immediate
discomfort

Loss of a gain
that is within
our grasp

Assumptions

Enrollment

Truth about
Today

Impending
Discomfort

Loss of a gain
that looks
possible to
achieve

Our Shared Goals or

Concerns

Constraints
and
Limitations

My Point of View

Rhetorical Proofs

Emotional Intelligence
What I See

What I Do

Personal
Competence

SelfAwareness

SelfManagement

Social
Competence

Social
Awareness

Relationship
Management

ETHICAL PROOFS
The credibility that the
speaker or author
establishes

EMOTIONAL PROOFS
Form of persuasion
based on emotions of
the audience

Ethos

Pathos

Interpreted Reality
Selected Reality
Reality and Facts
Theory in Practice: Increasing Professional Effectiveness by Chris Argyris and Donald Schon.

Dialog

Ladder of Inference

Pain/Opportunity Grid

CURRENT

Your Point of View

Framing

Competencies

Capacity for Change

Middle management
pressured from senior
management to make
changes happen

Value-Based Discussions start with the business partners most pressing

business problems and move from left to right in this chart, eventually making a
direct and often compelling value connection with a specific service or solution.
These discussions may be more appropriate when extending into new services
or developing innovative solutions.

Start Here
(optimal)

Identify
Technologies
& Skills

Start Here
(sub-optimal)

Provider Domain
Powerful Communications
Business Transition Management

Business Transition Management

Senior Management

Solution-Based Discussions start with what we provide and seek to establish a

connection with a pressing business partner problem. They tend to be focused
more on the service or solution that the partners critical business problem, and
may be appropriate in supporting an existing solution.

Assess
Enterprise
Opportunities

Connector
Orchestrator
Navigator

Business
Relationship
Management
Professional

Missed
Opportunities

Value Harvest

Stage 4

Value
Creation
Plan

Clarity of the BRM

Role in the context of the provider
Strategy and Operating Model

Clarifying the Path to Change

proven experience proven tactics proven success

Develop
Business
Case

Stage 2

Te
ch

Business Relationship
Management Role

- Very High Risk

- Uncertain Benefit

2003 Omega Point Consulting, L.L.C. reprinted with permission

Experience
& Learnings

Capability Roadmapping

Avoiding
Disadvantage

Leading Change: A Cliff Analogy

Experience
& Learnings

es
qu
ni

Enterprise
Architecture

Value
Creation
Ideas

Value Harvesting

Execution
information
flow

Integrated
Programs

Implemented
Solutions

Generate
Results

Value Creation

Servicing

Assets
& Services

Delivered
Solutions

Effort/Cost

Exploring

Portfolio
MGMT

Experience
& Learnings

V
E

Recognized
Opportunities

Misaligned Value
System

Table Stakes

Stage 1

Demand Shaping

Strategic
Opportunities

Execution

A Service is a means of delivering value to customers by

facilitating outcomes customers want to achieve without
the ownership of specific costs and risks.

Monitor
Value Realized

Potential
Value

Requirements
& Education

Develop
Capabilities
& Execution
Practices

Identify &
Examine
Options

Develop
Outcomes

Stage 3

Ser
vic
eP
ro
vi
s

Business
Planning

Requirements
& Education

Want-to-Have

Corporate
Strategy

Investment
Planning

Planning
information
flow

Service
Value
=
Utility
(fit for
purpose)
+
Warranty
(fit for
use)

Value Leakage

Satisfiers
Requirements
& Education

Customer Value

Breadth

STRATEGIZE
Use lessons learned and
apply to business unit
strategies and goals

WOW!

BRMP Course Overview

Emotional Intelligence 2.0 by Travis Bradberry and Jean Greaves. Copyright 2009 TalentSmart

LOGICAL PROOFS
Logic or reasoning
shared by the speaker/
audience or author/
reader

Logos

Source: Aristotle (384 - 322 B.C.)

For more information:

Call: Toll Free 1 866 616 4195
Email: Info@ServiceManagementArt.com

RACI Model
Accountable
Responsible
Consulted
Informed

Operating Model
Cultural & Political
essential truths
and qualities

Values

declarative
laws and rights

Principles

codes, statutes,
rules and
standards

Policies

operating
requirements
and behaviors

Mission

purpose;
reason for being

Vision

aspiration,
achievement or
major objective

Intents

Implications

Outcomes

enabling
components

decision
rights

Governance

Service Mgt.
Rights

Operate

Packaging/
Segmentation

Internal
Measures

Responsibilities
Individual
Measures

Organization

businessoriented
and priced

External
Measures

Processes

Roles
management,
roles and
committees

Services

Metrics

leading
and lagging
indicators

BRM Maturity Level

5. Strategic Partner

We work together
with our business
partners to survive
and prosper
Embrace Continuous
Improvement

LEVEL 3
SERVICE
PROVIDER

My Provider prevents me
from making big mistakes but
Im not always sure of the
direction were heading
Embrace BRM Role &
Service MGMT
I engage my Provider when
I need something so they
stay out of my way when I
dont need them

The routine is
routine; innovation
is a challenge

LEVEL 2
ORDER TAKER

Frequent
misperceptions
build distrust &
reactive coursechanges
Embrace the Reality of
Existing Capabilities

If Im lucky enough to get my

Providers attention, the
result costs too much,
delivers too little, and
takes too long

Our business partners help

set priorities, but we are
always behind

4. Trusted Advisor

BRM & Service

MGMT Excellence

Establish Demand
MGMT Discipline

LEVEL 1
AD HOC

Im too busy to think about

anything other than
being too busy

3. Service Provider

STRATEGIC
INTENT

CORE
COMPETENCY

CURRENT
STRATEGY

BUSINESS
GOVERNANCE

Drives

Specification
Barrier:
What IT
must do

Impacts

Inf

orm
En ation
ab
les

DELIVER IT
SERVICES

Business
Relationship
Management
Organizational
Capability

Impacts

IT Portfolio
Aligns

INFORMATIONAL

ARCHITECTURE

STRATEGIC

Implementation
Barrier:
What we get
done

Identifying
Strategic
Possibilities

Setting
Strategy
and Agenda

Identifying
Execution
Gaps

Defining
Problems and
Solution Needs

Identifying
Solution
Options

Selecting
Solutions

What strategic
options does IT
create for us?

What fundamental
strategic changes
must we make?

What must we
do to address our
performance
issues?

What are we
looking for in a
solution?

What are our

options?

Which of the
solutions do we
choose?

Identifying the
Possibilities

Shape the
Agenda

Pinpoint
performance
gaps and
opportunities

Uncover
problems and
clarify needs

Suggest new or
improved
solutions

Show how
the solution fits
the defined
problem

TRANSACTIONAL
INFRASTRUCTURE

Ad Hoc
"Leveraging the New Infrastructure: How Market Leaders Capitalize on IT" by Peter Weill and Marianne Broadbent. Copyright 1998 Harvard Business Publishing

Order-Taker
Service Partner
Trusted Advisor
Strategic Partner

Business-Provider Maturity Model

Value

Improve

Business
Effectiveness

Level

Support

Business
Efficiency

Level

Level 2 IT Focus
Establish common IT infrastructure
Build IT credibility
Improve solution delivery
Establish Enterprise Architecture
Respond to consumerization of IT

Level 2 Business Needs

Business network/process redesign
Enable business and partnerships
Management information
Process orientation
Level 1 Business Needs
Foundation systems
Cost savings
Operation information
Functional orientation

Strategic BRM

Level 3 IT Focus
Continuous strategy and planning
Converge business and IT
Expand and extend infrastructure
Enable flexibility and agility
Embrace consumerization of IT

Supply
Level 1 IT Focus
Provide basic systems and services
Stabilize operations and support
Improve service delivery
IT management fundamentals
Time

Focus is Demand Management

Level 3 Business Needs

Business growth and innovation
Rapid reconfiguration capability
Market information
Business integration orientation

Tactical BRM

Level

Demand

2. Order Taker

Frequent misperceptions builds distrust & reactive course-changes

Demand prioritized based upon weak or subjective data.
Antagonistic We/They relationships.
Frequent misperception builds distrust.
Provider is reactive and does not challenge business requests.
No quality data to support cost or value analyses.

1. Ad Hoc

Loudest-in, first-out
Unmanaged demand.
Unclear rules of engagement.
Lack of Service Management discipline.
Modified LIFOLoudest-in, first-out.
No clear sense of Provider service cost or value.

Role of BRM in Capability Model

Focus is Supply Management

Innovate

Business
Transformation

The routine is routine; innovation is a challenge

Moving upstream in the decision process increases strategic engagement and value yield

Opportunities: Technology
Threats: Substitutes
Constraints: Regulations

IT Strategy
ROLES OF IT

Business Partners Decision Cycle

Environment
Decision
Step

Products
Market
Investment
Customers

Business
Partners
Questions

Strategic
Context

IT
Objective

Expression
Barrier:
What we
want to do

Cooperation based on mutual respect and understanding

Clear process for engagementat least for steady state services.

Consistent services, but inconsistent results with major projects.
Little use of Program Management.
Business partner engaged in Service Management.
Costs are transparent, but value is often inconsistent and subjective.
Beginnings of investment mindset.

Business-Provider Alignment
Contextual
Barrier:
What drives
our behaviours

Shared goals for maximizing value; Shared risks & rewards

Mutual understanding and appreciation of capabilities and needs.

Provider service portfolio appropriate to business needs.
Provider engages early and often in Business Partner decision cycle.
Increasing sense of value from investments in Provider services and
capabilities.

We are asked to be predictable

but there is no way to forecast
demand so we know we
disappoint our business partners
more often than not

Loudest-in, first-out

Characteristics
Common goals with a focus on business value realization.
Mutual accountability for achieving value from investments in
Provider services and capabilities.
Risks and rewards are shared.
Quality data to support value analyses are regularly gathered,
reviewed, and used to support decision making.
Provider capabilities converged with business capabilities.
Innovation process in place to leverage on emerging technologies.

Our business partners

understand our capabilities,
works with them, and
Cooperation based on
helps improve them
mutual respect and
understanding
Engage Provider
Portfolio & Transition
in Strategic Thinking
MGMT Excellence

Operating Model

Deliver

Alignment Effectiveness Enablement

LEVEL 4
TRUSTED
ADVISOR

My Provider is
helpful and reliable

measurable
future
achievements

Program
Management

Initiatives

Shared goals for

maximizing value,
shared risks &
rewards

Embrace Business
Value Realization

Portfolio Management
Business Transition
Management

LEVEL 5
STRATEGIC
PARTNER

My Provider is
integral to business
success and growth and
helps me succeed

Strategy

Align

Explicit & Tangible

Business Relationship Maturity Model

Primary focus for a given domain

Helps define services and
initiatives

Manage Relationships
Works with partner to incorporate
risks and compliance needs
Help partner understand their role
in managing risk and ensuring
compliance

Engages Architects at appropriate

points in the lifecycle
Stimulates, surfaces and shapes
business demand
Orchestrates resources to create and
deploy solutions and services
Ensures appropriate business partner
engagement and ownership

Manage Initiative and Service Portfolio

Manage Risk and Compliance

Represents partner
interests
Escalated when necessary

proven experience proven tactics proven success

Manage Architecture

Conceive Value
Solutions

Create and Deploy

Solutions and Services

For more information:

Call: Toll Free 1 866 616 4195
Email: Info@ServiceManagementArt.com

Operate and Sustain

Solutions and Services

Version 1.4 NOT FOR RESALE

Manage Initiatives

All Images and Text Copyright 2014 by Business Relationship

Management Institute, Inc. All rights reserved.

Manage Infrastructure and Services

Manage Resource Supply
Manage Provider Organization
Orchestrates Program and Project Management
resources to manage initiatives
Communicate Program/Project Exceptions
Ensure business partner engagement

Represents the voice

of the business
partner

Business Relationship Management Professional and BRMP

are registered trade marks of Business Relationship Management
Institute.