1. From the Balanced Scorecard to
a Project Portfolio
Roberto Toledo, MBA, PMP
Alpha PM Consulting, Inc.
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2010 Permission is granted to PMI for PMI® Marketplace use only

2. Agenda
 Background: Project Portfolio Management in an
Organizational Context
 PMI’s Standard for Portfolio Management
 Strategic Planning
 The Balanced Scorecard
 Alignment Processes
 Prioritization Processes
 The Strategic Questionnaire
 An Investment Map
 Conclusions
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2011 Permission is granted to PMI for PMI® Marketplace use only

3. Tools you can take with you from
this presentation…
 Project Portfolio Management
 The Balanced Scorecard
 The Strategic Questionnaire
 An Investment Map
 A Project Portfolio System
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2011 Permission is granted to PMI for PMI® Marketplace use only

4. The Big Picture
Strategic Plan
Initiatives
Financial New Products
Customer Learning
Internal
SELECT
STRATEGY
PRIORITIZE
Cancelled Initiatives
Postponed Initiatives
Resources and Budget
Project Portfolio
Authorized Projects
(Project Charter)
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©2011 Permission is granted to PMI for PMI® Marketplace use only

5. Organizational Context
Goals and
Objectives
Vision
Definition
Rule every Mission
organizational Organizational Strategy
effort and Objectives Processes to
High-Level Project
establish
Operations Portfolio proper actions
Planning and Management
Management PPM to accomplish
Compo- goals and
nents that Management of On- Management of objectives
guarantee Going Operations Authorized Programs and
an (recurring activities) Projects (projectized
activities)
efficient
and
effective Organizational Resources
execution
©2008 Project Management Institute
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2011 Permission is granted to PMI for PMI® Marketplace use only
©2009 Project Management Institute

6. What is a Project Portfolio?
 A collection of projects and/or
programs -and other related work-
, grouped to facilitate effective
management of that work to meet
strategic business objectives.
 The “portfolio components” (projects
and programs) may not necessarily
be interdependent or directly related
PMI’s Portfolio Management Standard.
©2008 Project Management Institute
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2011 Permission is granted to PMI for PMI® Marketplace use only
©2009 Project Management Institute

7. PMI® Standard for PPM
Strategic Aligning Controlling Components
Identify Prioritize Monitor &
Strategic Components Components Control Component
Plan: Risks Execution and
Reporting
•Goals Categorize Develop Risk
•KPI’s Components Responses Review
•Capacity Portfolio
Performance
Evaluate Balance
Components Portfolio
Monitor Bus.
Strategy
Select Communicate Changes
Components Portfolio Adj.
No
Risk ID & Authorize Significant
Analysis Change
Components
©2008 Project Management Institute
Yes
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©2011 Permission is granted to PMI for PMI® Marketplace use only

8. Strategic Planning: The Basics
 Mission
• What we do. Our guiding objectives as an organization.
 Vision
• Our desired position and Strategic Intent.
 Values
• Guiding principles that will help members from the organization
in their decision-making process
 SWOT Analysis
• Internal: Strengths and Weaknesses (+,-).
• External: Opportunities and Threats (+,-).
 Resources
• Budget linked to the strategy defined
 People
• Incentives linked to the strategy defined
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©2011 Permission is granted to PMI for PMI® Marketplace use only

9. Balanced Scorecard (BSC).- A helpful
tool
 A strategic management and planning system to align
business activities to the vision and mission of the
organization
 Helps to improve internal and external
communications, and monitor organizational performance
against strategic goals
 Used extensively in business and government
organizations worldwide
The Balanced Scorecard Institute
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
 ©2011 Permission is granted to PMI for PMI® Marketplace use only

10. In a few words…
 The BSC gives structure to the strategic plan
 A structure you can use to plan and manage the evolution
of your company or organization
 A tool to improve Communication
 A tool that helps with Strategic Planning, but most
importantly with Strategic Implementation
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©2011 Permission is granted to PMI for PMI® Marketplace use only

11. The Road to a BSC
Strategy
• Mission, Vision, Values and Long-term business
plan
Objectives
• Develop the strategic Objectives and classify
them in the 4 perspectives
Metrics
• Develop metrics and targets that measure
progress towards the strategy
Initiatives
• Identify the projects that move the organization
towards its mission and its vision
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©2011 Permission is granted to PMI for PMI® Marketplace use only

12. The Four Perspectives
Financial Customer
Internal Learning
Processes & Growth
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13. The Strategy Map
Strategy Map
CUSTOMER FINANCIAL
Increase value of
Increase Cash
Increase Cash
flow
the company
Increase revenue
flow margin
Increase
sales
Increaseclient
Increase client
retention Increase customer
satisfaction
retention
INT. PROCESSES
Fulfill customer’s Minimize financial
Improve our customer expectations risks
contact and recognition always
Improve our
subcontractors
Improve our
Improve internal
administrative
team
subcontractors team services
Improve our
LEARNING &
Improve the
systems and Best in
GROWTH
organizational Increase the
culture class
participation of
technology
Improve our systems
and technology
team
the team in
Improve our sales improvement
sand customer infrastructure
infrastructure
projects
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13satisfaction kills ©2011 Permission is granted to PMI for PMI® Marketplace use only

14. Bridging the Strategic Gap
Mission
Vision
Strategy Strategic Strategic Strategic
Map Objectives Objectives Objectives
InitiativesInitiativesInitiativesInitiativesInitiativesInitiativesInitiatives
Project Portfolio
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©2011 Permission is granted to PMI for PMI® Marketplace use only
14

15. An Example…
Goal Métricas 2011 2012 2013
C1.1 % of yearly sales increase 30% 30% 30%
150 per 170 per 190 per
C1.2 RFPs of Projects greater than $300k year year year
Increase
C1
Sales C1.3 Projects greater than $300k 25% 30% 33%
% of contracts awarded vs. RFPs greater
C1.4 33% 33% 33%
than one million
C2.1 Clients want to work with us again 95% 100%
100%
100% of
100% of 100% of
Increase BK, 7
BK, 3 BK, 5
client C2.2 Brokers wanting to work with us times per times per
times
C2 retention per year
year each year each
(focus on each
Top 35) C2.5 Contracts awarded with Top 35 client list 60% 70% 80%
% of Returning clients on the Contract
C2.6 60% 70% 80%
Schedule
Results of the customer satisfaction
Increase C3.1 85% 90% 92.5%
C3 Client’s survey
satisfaction C3.2 Recommendation letter issued 70% 80% 90%
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©2011 Permission is granted to PMI for PMI® Marketplace use only

16. Align
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17. Identification of Projects
 Of all the initiatives identified in the BSC, we must select
those which will be included in our Project Portfolio
 At this point in the process it is important to have an
structured and documented approach
• Defined and supervised by the PMO or another specific group in
the organization
 The use of a Selection Committee is the best practice
• Diverse composition
• Usually comprised of all or part of the Senior Management team
• Could be more than one Committee, at different levels of the
organization
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©2011 Permission is granted to PMI for PMI® Marketplace use only

18. Consider 2 types of Components
Inventory of Inventory of
actual and new project
running proposals
projects
 Identifying these components is usually a discrete task that
may be performed periodically (annually, bi-
annually, quarterly)
 Or it may be a continuous task during the year
 Identifying actual projects is not a trivial task, especially in
large corporations
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©2011 Permission is granted to PMI for PMI® Marketplace use only

19. Project Inventory
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20. Prioritize
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21. A Strategic Questionnaire
 One of the easiest ways to create
alignment between the Strategic Plan and
the Project Portfolio
 Provides an objective selection
mechanism, using both objective and
subjective criteria
 Deals with subjects that are difficult to
evaluate, such as:
• Implementation complexity
• Added value
• Strategic consistency
• The four perspectives
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2011 Permission is granted to PMI for PMI® Marketplace use only

22. An Example…
How will the project impact the
Customer perception our customers have of 100
Perspective 18 4 us?
Positive high impact 100
Moderately high impact 60
Null Impact 5
Negative Impact 0
What impact will the project have
Financial on the company’s EBITDA? 30
Perspective 18 5 (considering a 2 year horizon)
High (more than 5%) 100
Medium (between 3% and 5%) 60
Low (between 0% and 2%) 5
Null or Negative 0
How many internal resources will
30
6 be assigned as FTEs to the project?
4 or less 100
Between 5 and 8 60
Between 9 and 12 20
13 or more 0
What is the capital investment in
this project? 40
7
Only recurring costs (NCI) 100
Low <= $500k 80
Medium between $500k and 2 MM 60
High >= 2 MM USD 20
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©2011 Permission is granted to PMI for PMI® Marketplace use only

23. Another Example: Financiera
Independencia
• Mexican Financial Institution: Microcredits of up to
$2,000 dollars
• Founded in 1995, IPO in 2007 with great success
in Mexico’s stock market
• In 2009 reaches 4 million credits
• 9,500 employees, 200 branch offices all across
Mexico
• In 2011 applies to obtain a license to to
to become a full-service chartered Bank
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©2011 Permission is granted to PMI for PMI® Marketplace use only

24. Strategic Objectives
Objectives Low Med High
Reduce dependency on outsourced
3 5 7
contracts
Differentiate our products and services
3 5 7
portfolio
Grow our client’s database 3 5 7
Increase our payment reception points 3 5 7
Attract, develop, and retain the best
3 5 7
talent in the Mexican financial system
Develop alternative sales outlets 3 5 7
Invest in brand building 3 5 7
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©2011 Permission is granted to PMI for PMI® Marketplace use only

25. Versus Operating and Change
Impact…
Impact Low Med High
Significantly changes our core processes 5 2 1
Requires new skills from our staff 5 2 1
Changes the way we approach our clients 5 2 1
Represents a move towards a new core
5 2 1
capacity different from our traditional
Generates dependency from an outside
5 2 1
company (know-how)
Impacts our customer service 5 2 1
Reduces our number of employees 5 2 1
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©2011 Permission is granted to PMI for PMI® Marketplace use only

26. Investment Map
Impacto Estratégico
Impacto Operativo
Size of bubbles represent size of Project Budget
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©2011 Permission is granted to PMI for PMI® Marketplace use only

27. Prioritized Portfolio
Priority
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28. Consider…
 The prioritized portfolio should be established at the
beginning of each period, but is by no means static
 The organization’s budget and the available resources are
the major defining constraints
 Balancing the Portfolio? Easiest way: Pareto Rule
 Risk analysis may be another factor to include in the
analysis, along with implementation complexity
 All projects should be made official by Senior
Management before execution
• Main purpose of the Project Charter
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2011 Permission is granted to PMI for PMI® Marketplace use only

29. A final thought… Portfolio Report
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2011 Permission is granted to PMI for PMI® Marketplace use only

30. Conclusions
 Strategic Planning is of paramount
importance in current environment
 Establishing simple mechanisms for
Strategic Planning and PPM
processes is much more efficient and
effective
 Organizations must know at all times
where their resources are being
invested
 PPM does not necessarily mean
having a new department, but it does
mean assigning the responsibility to
someone!
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2011 Permission is granted to PMI for PMI® Marketplace use only

31. Tools you can take with you from
this presentation…
 Project Portfolio Management
 The Balanced Scorecard
 The Strategic Questionnaire
 An Investment Map
 Project Portfolio System
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2011 Permission is granted to PMI for PMI® Marketplace use only

32. Questions???
Roberto Toledo, MBA, PMP
Alpha PM Consulting, Inc.
rtoledo@alphapmconsulting.com
www.alphapmconsulting.com
Tel. +1.956.519.4862
Twitter: @robertoledo
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2011 Permission is granted to PMI for PMI® Marketplace use only