How information flows in a typical Enterprise environment

Any delivery system works well with a constant feedback loop. Information and feedback must be continuously shared among all components to enhance information flows. This alignment helps the delivery system stay in sync with the organization’s strategy to achieve goals.

An example of information flow within an enterprise

As you can see in the diagram above, the organization’s leadership provides strategy and direction. Portfolios need to follow this process. They then derive desired outcomes, benefits, and values to align with the leadership’s strategy. The information shared from the portfolio generates deliverables. The deliverables contain the support and information required to maintain the business.

The operations utilize this information generated from programs and projects to generate all the information, outcomes, and benefits. Operations use this data to synthesize performance analysis. Leadership receives this information

Parallaley, operations sends out information to programs and projects. They inform them about the adjustments and fixes they need to make the deliverables better. There is a feedback loop between portfolios and the program. Programs and projects ensure that they provide information about the progress and performance they have been delivering. In turn, the portfolio synthesizes all the information provided by programs and project. This generates a report about how the portfolio has been performing to the senior leadership.

Leadership gets all the information from operations and portfolios. They now have a very good understanding of how the enterprise is performing. Based on this information they can generate or provide new strategies to make the organization move forward.

Let’s be honest, in the world of business strategy, we often get bogged down in abstract concepts and diagrams. But what truly matters is how these concepts play out in real life. As someone who’s spent years navigating the intricacies of enterprise projects, from the boardroom to the trenches, I’ve seen firsthand how crucial the elements in the image are to organizational success. This blog post will go beyond the theory, integrating my personal experiences to paint a more vivid picture of how Leadership, Portfolios, Programs and Projects, and Operations must work in unison.

The image before us, the one that depicts the internal enterprise environment nestled within the external, is a good starting point. But for me, the most striking element is the interconnectedness. It’s like a carefully choreographed dance, where each player – Leadership, Portfolios, Programs, and Operations – must know their steps. It’s a concept I’ve had to live with on multiple occasions.

I recall a project I led at a large tech firm. We were tasked with launching a new cloud-based service. Looking back, the internal environment felt fragmented: various departments, from engineering to marketing to customer support, seemed to be operating in silos. The external environment was also a battlefield: high competition and rapidly changing technologies.

The diagram’s representation of each element’s role – the importance of strategy, the function of portfolio management, the task of each individual program, and the responsibilities of the operations teams – gave me a more realistic view.

The core of the diagram revolves around four key interconnected elements:

• Leadership: The driving force behind the entire enterprise. They provide the strategy and direction, setting the overarching goals and vision.
• Portfolios: These represent a collection of projects or programs strategically grouped to achieve specific business objectives. They act as the link between high-level strategy and the implementation of initiatives.
• Programs and Projects: The building blocks of execution. Programs are often collections of related projects designed to achieve a broader set of goals. Projects are individual, focused endeavors with specific deliverables.
• Operations: The ongoing activities required to run the business, ensuring that deliverables are maintained and adjusted based on feedback and performance.

The crucial aspect of this model is the interconnectedness. Each element relies on and influences the others. The flow of information, as illustrated by the arrows, is critical for ensuring alignment and delivering value.

1. The Power of Leadership: Setting the Strategic Compass (My Take from the Trenches)

I’ve seen firsthand that strong Leadership isn’t just about issuing directives; it’s about painting a compelling picture of the future. It’s about setting the direction (the “Strategy” in the diagram) and then empowering teams to achieve that vision.

Key Responsibilities of Leadership:

• Strategic Planning: At the tech firm, the initial strategy, set by senior leadership, was a vision of market dominance. This involved detailed market analysis, competitive landscape mapping, and identifying target customers. Unfortunately, the initial plan was overly ambitious. They had set multiple goals instead of focusing on one, leaving most members of the team confused.
• Goal Setting: I remember a time when the leadership team set a SMART goal of a 20% market share within two years. This provided us with a clear target to strive towards. The problem was that the project team had no idea how they were supposed to achieve this target.
• Resource Allocation: The leadership understood that to execute the plan, they would need to allocate both human and monetary resources. They allocated $10 million to develop the initial infrastructure. The problem was that it took two years before the resource could be used.
• Performance Monitoring: Monitoring the performance would prove to be crucial to the success of the project. The Leadership team understood this so they set up Key Performance Indicators (KPIs). However, there was a disconnect between the KPIs and the team.
• Communication: This is a big one. Leadership can’t just set the strategy and disappear. They need to communicate the “why” behind the “what” to every level of the organization. If that doesn’t happen, there’s no buy-in. I once witnessed a project flounder because the leadership failed to effectively communicate the changes brought about by the business’s digital transformation, and as a result, the employees became very insecure.
• Culture Building: Building the right culture is key to long-term success.
• Providing the “All the information needed to understand portfolio performance.” Sometimes the leadership team would have a hard time obtaining all the information that they need.

Personal Experience: In the tech firm I mentioned earlier, the initial project faltered because the leadership team didn’t properly communicate the why behind the project. It wasn’t just about building a new product; it was about redefining our market position. This was the why that should be communicated to the whole organization.

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2. Portfolio Management: Bridging Strategy and Execution (The Practical Hurdles)

The Portfolios in the diagram are where the rubber meets the road. They’re the collection of initiatives that connect the strategic vision of Leadership to the tangible work carried out by Programs and Projects. It’s a critical function, but also one where I’ve seen things go wrong.

Key Functions of Portfolio Management:

• Portfolio Selection: One critical decision is determining what initiatives will move forward. I once saw a project that was poorly chosen. The business development team thought that it would be successful because of the lack of competition. Unfortunately, the business had no prior experience in that field.
• Prioritization: Resource allocation. A lot of initiatives may be important but not enough resources are present. It’s a common occurrence and one I frequently see. The trick is to make difficult choices to allocate the available resources.
• Resource Allocation: This is key. Allocating sufficient resources (budget, personnel, equipment) to the selected projects and programs. However, this allocation should not be made until they are on track to deliver the expected benefits.
• Performance Monitoring: This is essential to project management. I once saw a project that was not running smoothly. The team did not report it, and the leadership team had no idea. Monitoring the process is key.
• Risk Management: Identifying and mitigating risks is key to portfolio success. One time, I saw a project where the project team was using a newly created technology with no prior test. They were unable to fix it.
• Benefits Realization: This is where we can measure the success of the projects and the benefits they provide. It is vital to understand how the project delivered its benefits. I remember how one of my clients wanted to know if the value of their project would be delivered.

Personal Experience: At the tech firm, the Portfolio Management team struggled to balance the various demands from Leadership. We were trying to execute too many projects at once, spreading resources thin. This caused delays and reduced the overall value delivered. Focusing on prioritizing and the critical projects can make all the difference.

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3. Programs and Projects: The Engine of Value Delivery (The On-the-Ground Reality)

This is where things get real. Programs and Projects are the hands-on efforts that move strategy into reality. It’s where the team members feel the pressure, the excitement, and the frustrations of trying to make something new.

Key Considerations for Programs and Projects:

• Project Management Methodology: Using methods such as Agile, Scrum, and Waterfall to manage projects effectively. The business will use them if the project calls for it.
• Stakeholder Management: This is where relationship management and effective communication are key.
• Risk Management: This is a key part of project and program management. This involves identifying, assessing, and mitigating risks associated with each project.
• Change Management: The project team must work with and plan for any change.
• Quality Management: Ensuring that deliverables meet the required quality standards.
• Progress and Performance information to Portfolios. This is the information that can be used to adjust and improve any project.

Personal Experience: I once worked on a project that used the agile method. The team was working on a tight deadline with no support, and they were working long hours, which could have lead to a very stressful work environment. Eventually, the team delivered the product and were able to see a great change in the business.

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4. Operations: Sustaining the Business and Enabling Continuous Improvement (The Often Overlooked Champion)

Operations is the backbone. They ensure the project’s deliverables will be maintained and supported. They will also take information from the outside world to make updates and adjustments. This also involves providing the information and support necessary to keep a business functioning.

Key Responsibilities of Operations:

• Production and Delivery: Operations team needs to see that products and services are delivered to the customer.
• Process Management: Business owners should be optimising the current processes to improve efficiency.
• Customer Service: Customer service is a key component of any business. Operations teams need to maintain it.
• Quality Control: Maintaining standards will involve making sure that the products and services meet the necessary standards.
• Maintenance and Support: Maintaining and supporting the infrastructure and systems will give the company a great advantage.
• Feedback and Continuous Improvement: This is the feedback that will be taken from programs and projects to continuously improve how the business operates.

Personal Experience: When rolling out the cloud service, the Operations team was absolutely crucial. Their support and feedback helped refine the product and ensured it met user needs. Without Operations, the tech firm would never have achieved the success it did.

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The Flow of Information: The Lifeblood of Strategic Alignment (A Clear Example)

The diagram highlights the need for a seamless flow of information. I have seen this flow implemented in real life.

Here’s how the information flows:

1. Leadership to Portfolios: Provides the “Strategy”, defining the overarching goals and direction.
2. Portfolios to Programs and Projects: Defines the “Desired outcomes, benefits and value” that the programs and projects should deliver.
3. Programs and Projects to Operations: Delivers the “Deliverables with support and information needed to maintain it” so that the operations can perform its work.
4. Operations to Programs and Projects: Provide “Information for updates fixes and adjustments” so that the Programs and Projects can adapt to changes.
5. Programs and Projects to Portfolios: Provide “Progress and performance information” that helps with decisions and strategies.
6. Portfolios to Leadership: Provides “All the information needed to understand portfolio performance” and also “Information about outcomes, benefits, value performance analysis” so that the leaders can check the strategic implementation.

Personal Experience: We implemented a system where project teams provided real-time updates to the Portfolio Management team. This team, in turn, would brief the Leadership on project progress.

This continuous flow of information allows for:

• Strategic Alignment: The alignment between the leadership team and the project team
• Performance Monitoring: Performance is easily checked
• Feedback and Iteration: The feedback will give the teams the ability to change and move forward
• Value Creation: The value and the customer’s needs are now being met.

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Key Takeaways and Actionable Insights (The Lessons I Learned)

• Prioritize Strategy First: Make sure the company has a solid strategy and the goals align with it.
• Leadership as a Guide: Leadership has to set a clear direction and the team must follow it.
• Use Portfolio Management: Use all the different programs, projects, and teams and make sure they are working together.
• Utilize Agile Project: Encourage the team to make quick changes and adapt as needed.
• Streamline your Operations: Improve and make sure that the business runs smoothly.
• Communication: Teams need to work together and there should be consistent communications.
• Keep an eye on the KPIs: Check the metrics to make sure the team is moving forward.
• Always Improve: The more the team analyzes the project, the better the outcome.
• Value Performance Analysis: The team needs to see if they are adding value to the business.

By focusing on these areas, organizations can build a strong foundation for sustainable success in today’s competitive business environment. This framework highlights the importance of a holistic approach to enterprise management, where all the pieces work together to deliver exceptional results. By understanding the interconnectedness of Leadership, Portfolios, Programs and Projects, and Operations, organizations can navigate the complexities of the modern marketplace and achieve their strategic objectives.As shown in the above example for any value-driven Delivery system, constant information and a feedback loop help to enhance the delivery of value. It is important to maintain this flow of information across the organization and all its internal departments.