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PPVC provides Training Services in a variety of disciplines including Project, Portfolio, Resource and Risk Management and delivers Customized Services in a focused spectrum of areas including Enterprise Resource & Portfolio Management and Strategic & Business Planning.
“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”
Company DEF, a key player in some of the major segments within Medical Devices & Diagnostics, has an informal decision-making process during which projects are approved, and continued or discontinued. Further, the company has a somewhat sheltered annual portfolio review process in which major internal and external investment decisions are made. The company has made a commitment to institutionalizing a formal Stage Gate Review (SGR) process but is unsure as to how this will ably support the portfolio review process.
Decision Frame
Given its commitment to institutionalize a formal Stage Gate Review process, how can this be built in such a way that it not only facilitates transparent decision-making regarding project entry/continuation/discontinuation, but also lends itself relatively seamlessly to the annual portfolio review process?
Decision Options
'Build Separate Monthly SGR And Annual Portfolio Review Processes' to ensure the appropriate levels of decision-making take place at both fora.
'Build Connected Monthly SGR And Annual Portfolio Review Processes' to ensure that decision-making from the SGR process seamlessly feed decision-making at the portfolio review.
'Build An Integrated Monthly SGR And Ongoing Portfolio Update Process' to ensure that decision-making from the SGR process is taken in the context of ongoing portfolio decision-making and that the annual review process is no more than a consolidation exercise.
Methodological Approach
Utilizing the principles of Process Excellence, a phase-specific SGR process with data collection templates was created. These templates included a Business Case, Decision Tree, Decision Criteria, and Project Plan. PPVC then created a portfolio consolidation workbook, complete with Multiple Objective Decision Analysis (MODA) prioritization model and portfolio optimization model to enable the portfolio impact of all SGR decisions to be evaluated before any project-specific decisions were finalized.
This required an extensive educational and training process in which several functional areas participated. Although this integrated process appeared burdensome at the beginning, the many stakeholders within the company quickly recognized that it was able to lend tremendous clarity and transparency to its portfolio level decision-making. Lastly, the impact of project advocacy and heuristics was minimized significantly.
Recommended Solution
'Build An Integrated Monthly SGR And Ongoing Portfolio Update Process' to ensure that decision-making from the SGR process is taken in the context of ongoing portfolio decision-making and that the annual review process is no more than a consolidation exercise.
Postscript
Under the guidance of PPVC, Company DEF has created a Learning Management System in which SGR templates and deliverables are clearly described.
