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CPO or no CPO?

John van Rouwendaal • Oct 20, 2022

Chief Portfolio Officer of no Chief Portfolio Officer?

In 2013 CIO Magazine published the article by John van Rouwendaal on the ‘Chief Portfolio Officer’. Nine years later this topic is still current and John has added a small paragraph related to healthcare. The occasion for this (re)publication is the ‘Harvard Business Review Live Webinar: The Rise of the Chief Project Officer’ on October 26-th 2022.


It is practically not smart and theoretically incorrect when a CIO also takes on the role of the Chief Portfolio Officer (CPO). Nevertheless, this is daily practice within many organizations and this creates problems. Why is it that very few organizations recognize the CPO as a separate role?


A striking example of where the overlap of CIO and CPO roles cause problems can be found within the Dutch central government. It was a good idea to appoint a CIO for each department, but it was not sensible to also make the departmental CIOs responsible for project portfolio management (PPM). For the one who is responsible for IT it is simply impossible to take on the responsibility for the ins and outs of all programs and projects. Programs and project always entail far more than just IT. Therefore, the project portfolio requires attention from a broader perspective and at the highest organizational level.


Practical plea for a CPO

For years, experienced experts advocate the role of a CPO. For example, in 2003 PM Solutions writes that “Ideally, organizations should strive to have a CPO sit at the director or vice-president level with other senior executives in the organization. This position provides project oversight in virtually all areas of the organization, managing corporate level projects and overseeing corporate-wide resource distribution and allocation on all projects.”[1]


In 2004 out of the corner of the International Project Management Association (IPMA) came the recommendation: "Organizations which over a longer period of time spend twenty percent or more of their total budget on projects benefit from the introduction of the CPO model. This is to ensure that the capital is invested usefully, necessarily and efficiently, pays off and – from the perspective of the increased risk – is adequately managed and, last but not least, that the entire project community of the organization is managed and developed with specific attention, in a balanced way and professionally. In short, the purpose is to ensure strategic consistency, cost savings, increase of turnover and teambuilding.”[2]


In 2009 Gregory Balestrero, president and CEO of the Project Management Institute (PMI) spoke out in favor of a CPO in the context of the American government: “There must be significant scrutiny to ensure that these projects [hundreds of initiatives that are critical to our nation's safety and security] will get done according to plan and, more importantly, yield the outcomes that are intended. (..)There must be significant scrutiny to ensure that these projects will get done according to plan and, more importantly, yield the outcomes that are intended. (…) The president [Obama] needs what every CEO would need in this situation: a chief portfolio officer.”[3]


Awareness all around but still for example Wim van Ravenhorst notes in 2009 that "There are very few organizations [are] in which the importance of projects is recognized in such a way that the design and implementation of projects is secured as a strategic value at the highest level, for example, in the position of Chief Project Officer.”[4]


As recent as 2011 Peter Parks of the Association for Project Management (APM) notes the same: “Although many organizations now have a CEO, CIO, CTO and COO, and some even a chief engineer, few to my knowledge have a CPO, as in a chief projects officer, with responsibility for oversight of their investment portfolio. This task of ‘doing the right projects’ often falls to a CAPEX (capital expenditure) committee, usually reviewing projects as they arise rather than looking across the portfolio.”[5]


In broad outlines there is some agreement on what the CPO should have as tasks and responsibilities. Remarkably, there is no agreement on where the abbreviation ‘C.P.O.’ stands for. However, in the project management discipline everyone does agree that is does not stand for Chief Procurement Officer, Chief Performance Officer, Chief Personnel Officer, Chief Process Officer et cetera. But there is no agreement on whether CPO stands for Chief Project Officer, Chief Program Officer or Chief Portfolio Officer. Probably, this can be explained by the fact that thinking about portfolios is more recent than thinking about programs which, in its turn, was preceded by thinking about projects. When we look at it in this way, nowadays the abbreviation CPO stands for Chief Portfolio Officer. I consider it a missed opportunity that the makers of PRINCE2 (Cabinet Office, formerly OGC) didn’t end the discussion about the abbreviation with the publication of their best practice approach to PPM (Management of Portfolios). So now it is up to us: Let’s agree that from now on CPO stands for Chief Portfolio Officer.


Theoretical plea for a CPO

The need to secure the organization’s project portfolio management (PPM) at the highest level is not only endorsed by practitioners, but also by those who study and analyze this matter from a more scientific or theoretical perspective.


In 2000 PPM guru Harvey A. Levine already states that “(...) [W]e must add to the cadre of “chiefs” to which we entrust the success of enterprise. We must add a Chief Project Officer (CPO) (…) to lead the organization in meeting its project portfolio objectives.”[6]


Professor Paul Chapman of the Saïd Business School of the University of Oxford writes in 2009 that “the recognition of the CPO [Chief Programme Officer] position is akin to the emergence in the 1960s/70s of the Chief Operating Officer, COO, a role which has subsequently been seen as a critical position that is broadly positioned along with the CFO as first lieutenant to the CEO on the executive team. In the case of organizations that are organized around programs the CPO seems like a likely substitute for the COO.”[7] Chapman has designed a complete educational curriculum for the CPO.


Finally, we present Professor Pieter Steyn van de Cranefield College of Project and Program Management. He founds his plea for a Chief Portfolio Officer on “A recent IBM survey [that] found consensus amongst CEOs that organizations are bombarded by change and that many are struggling to cope with the transformation.”[8] Steyn proposes that the CPO “should come from the ranks of the program structures where a cross-functional mindset is cultured and will significantly support the CEO, CFO and COO with strategic appraisals and reviews at the executive leadership level.”[9]


CPO versus CxO

Several different designs are conceivable for the positioning of the CPO in relation to other ‘chiefs’. One approach is that of Marco Mud[10] (see figure 1). In his model, the CEO-CFO-tandem plays its existing role and is supported by the COO and the CPO. The idea is that knowledge regarding challenges on automation, procurement and legal affairs is dealt with in a problem-oriented way.


Figure 1


However, the method proposed by Mud does not do justice to (among other things) the role of the CIO. Information technology plays a crucial role in contemporary organizations. Both ‘business as usual’ programs and projects are full of IT, making it evident that IT knowledge should not only be dealt with in a problem-oriented way.


In an alternative model (see figure 2), the CPO is also positioned at board level as a counterpart of the COO. Where the COO is in charge of operations, the CPO leads the projects and changes. A notable difference with the first model is that the CFO is positioned differently. The CFO role is treated more as an integral role. The idea is that, like the CIO and other CxO, the CFO has a more 'horizontal' role to play in the matrix as opposed to the 'vertical' role the CFO now often claims. I can imagine what CFOs might think of this different positioning, but I believe it does more justice to their, in principal, simply (but no less complex or respected) facilitating role.



Figure 2


In 2020

At this moment [2013] the question is: Why a CPO? In 2020 the question will be: Why no CPO? The more organizations use programs and projects, the more CPOs will be appointed. 


But beware: The CPO model knows a number of snags, for example:

  • The other CxOs no longer feel responsible for programs and projects. However, the CPO has this in his own hands. He / she will continuously have to emphasize to his CxO colleagues that projects should not be seen as taking place 'on the other side of the fence, but as if happing ‘on other side of the playing field'.
  • For a CPO to be able to take his responsibilities and exert influence it is crucial that (at least partly) a central budget for projects and programs is established. After all, who pays decides.
  • A ‘new kid on the block’ will cause conflict. The current rulers within organizations will (and should not) give up their influence without a fight. But this fight should be fair and the outcome should serve the organizations interests. Guard against things getting personal or too political. And when things escalate and rationality no longer prevails, call for reinforcements as soon as possible. Or even better: Avoid misery from the outset by taking into account that ‘games’ will be played.
  • A frequently heard problem is that the business and IT do not work well together. They do not understand each other, they throw unfinished affairs over the fence, et cetera. Introducing a CPO can cause similar problems to arise on an organizational level between operations and the project domain. The COO and CPO should therefore be best (professional) friends. They have to work together closely and constantly be careful not to grow apart. Moreover: "Good fences make for good neighbors" (Robert Frost). In other words: To be able to work well together it is necessary that it is clear where the boundaries lie. Roles, duties and responsibilities should be clearly defined.

Anno 2022

Nine years ago I hoped we would be further along in 2020. But the role of Chief Portfolio Officer is still only ‘emerging’. Hopeful is that almost a decennia later the role has not disappeared to the background. On the contrary, because even Harvard pays time and attention to it.


In healthcare I have not yet discovered a Chief Portfolio Officer (CPO) as described in this article. The executive that regards projects and project portfolio management as his responsibility and acts accordingly may, in may opinion, justifiably carry the CPO title. A CPO can also be a valuable addition to the ranks of the upcoming roles of CNIO (Chief Nursing Information Officer) and CMIO (Chief Medical Information Officer). Maybe we should then (also) be talking about a CNPO (Chief Nursing Portfolio Officer) and a CMPO (Chief Medical Portfolio Officer). The CNIO and the CMIO can focus on ‘running the business’ and the CNPO and CMPO on ‘changing the business’. On short term I don’t expect this to take off. Healthcare organisations (justly?) seem to be cautious and lagging when it comes to adopting new organisational developments. But maybe in 2030 we will be somewhere we cannot even imagine now. The importance of projects, good project management and excellent project portfolio management increases with the increasing speed of (needed) changes in healthcare. It might just be the case that in another decennia CPOs, CNPOs and CMPOs are quite normal. I would expect it, but personally I am not so sure of it as I was in 2013. I am hopeful though and I hope to write again on this topic in 2032.



References

[1] Bigelow, D., Does Your Organization Have a Chief Project Officer?, PM Network, 9-2003

[2] Mud, M., Chief Project Officer, IPMA Projectie Magazine, 06-2004

[3] Balestrero, G., Calling For A Chief Portfolio Officer, Forbes.com, 04-09-09

[4] Ravenhorst, W., Sturen vanuit het vakprojectmanagement, IPMA Projectie Magazine, 05-2010

[5] Parkes, P., Portfolio leadership and the chief projects officer, Apm.org.uk, 15-7-2011

[6] Levine, H.A., Need a CPO, The Project Knowledge Group, 2000

[7] Chapman, P., Educating major programme managers, 2009

[8] Steyn, P., The Need for a Chief Portfolio Officer (CPO) in Organisations, PM World Today – July 2010

[9] Steyn, P., The Need for a Chief Portfolio Officer (CPO) in Organisations, PM World Today – July 2010

[10] Mud, M., Chief Project Officer, Projectie, 2004

What does AI think of project management in healthcare?

By John van Rouwendaal • 16 Mar, 2023
What does AI think of project management in healthcare?

Project Management for Healthcare

By John van Rouwendaal • 21 Jan, 2023
Book Review

Why Healthcare Project Management

25 Aug, 2022
Industries outside of healthcare might wonder about the role of project management in the industry. Project management is well known for its contributions in construction, engineering, and information technology, but what about healthcare?

Storytelling

By Daniël Jolink • 03 Sep, 2021
The theme of the Project Management in Healthcare conference on May 18, 2021 was "Rock hard soft skills". Project management in healthcare requires hard-developed soft skills. In the run-up to the conference, we therefore considered soft skills from the perspective of project management in healthcare in a series of blogs. In this blog we cover: Storytelling. Storytelling is often associated with leadership, because leaders need to be able to sketch the dot on the horizon with a story. To lay out a future picture that the employees believe in, and want to actively participate in in order to achieve that vision of the future. Nowadays storytelling is also mentioned as part of agile working, in which 'user stories' must make clear what the wishes and needs of the users are, in such a way that the developers understand the essence of what needs to be developed, and they can start quickly. But storytelling should also be in the project manager's toolbox, albeit in a slightly different way. In order to be able to manage a project team while developing an innovative (IT) solution, the project manager must first have a clear picture of where it should go. How the requirements, wishes and expectations of the users can be translated into an application or IT system that meets those expectations. Often at the beginning it is still unclear where it will end, especially when working with agile/Scrum in sprints. It is fine to divide the workload into bite-sized chunks, in sprints or in subprojects, but the final picture must be clear at all times, at least for the project manager. This means that the project manager must have "a good story"; he/she must be able to outline what the final product will look like. And whether that happens in a charcoal sketch, in an animation, or in a PowerPoint presentation, that doesn't matter, but the story has to be good. Clear, credible and consistent, but also feasible and achievable. This story arises, of course, in consultation with the client and the end users. The story arises during the preliminary phase, when a picture of the intended goal is sketched while brainstorming. That image, that must be embraced and communicated by the project manager. But as in any story, there are heros. And that is the second function of storytelling for project managers: in order to motivate and enthuse the team, the project manager must paint a picture of the involvement of various team members in the creation of the final picture. What's everyone's role? How will we work together? What can we achieve only with each other? Storytelling therefore paints a picture of what is not yet there, but is intended on the one hand, but also of the team that will ensure the realization of that final picture. The question can now be asked " Is storytelling a skill of particular interest to project managers?" My answer to this is "yes, especially in the context of agile/Scrum working, in which a product gradually arises, even if that is still vague at the beginning. Thanks to storytelling, a joint image is created by the project manager, to which the team members can hold on to. The path that leads to the dot on the horizon becomes clear to the project team members. Next, the question arises : "Is storytelling a skill of particular importance for project managers in healthcare?" My answer to this is 'yes', because in order to convince the staff in a hospital that the (IT) project, which is actually a change process, in which working methods need to be adapted and protocols changed, it is very important that a picture is sketched that is credible, that is realistic and feasible, and that does justice to the provision of good care, as the department is used to doing. Storytelling allows the project manager, supported by the head of the department, to paint a picture of "care of the future in the hospital of the future". And to achieve this, the project manager in healthcare must have excellent (storytelling) skills, combined with knowledge of the healthcare processes and affinity with healthcare." To reinforce that image of storytelling a little more, I conclude with the quote by Antoine de Saint-Exupéry (1900-1944): "If you want to build a ship, you should not instruct workers to collect wood, you should not divide the work and give orders. Instead, teach people to yearn for the endless sea first." If that isn’t storytelling! © 2021, Daniël Jolink , Manager Portfolio, Projects and Processes at Erasmus MC. He writes his contributions to the Project Management Foundation in Healthcare in a personal capacity.

Cultural sensitivity

By Daniël Jolink • 07 Feb, 2021
The theme of the Project Management in Healthcare conference on May 18, 2021 is "Rock hard soft skills". Project management in healthcare requires extremely hard developed soft skills. In the run-up to the conference, we will therefore consider soft skills from the perspective of project management in healthcare in this series of blogs. In this issue we will discuss: cultural sensitivity. One of the most complex "soft skills" of project managers in healthcare is cultural sensitivity. The culture of a healthcare organization is in many areas comparable to that of a large (corporate) organization, but on a number of points quite the opposite; it is rather comparable to a medium-sized city, in which the different departments are independent shops and factories, each with their own doctors, nurses & managers and sometimes even professors, researchers and students. Each with their own specialty, but all with the same common goal, which is to combat diseases, care for clients and promote health. These departments all have their own dynamics and culture, but work for (and with) the same patients & clients. In order to guarantee cooperation within a care organization and to enable the exchange of information within and between care organizations, the same data standards are used as much as possible and preferably the same EPD or ECD. Many projects are aimed at linking the EPD / ECD to the specific modalities of the departments and to improve information gathering & information exchange. To be able to share and exchange information about patients / clients between different departments. To make patient / client information visible and comparable for multidisciplinary consultations. This means that as a project manager in healthcare, you will work in many different departments, and there for you have to deal with different cultures and you have to be able to cooperate with everyone. This requires project managers in healthcare, more than project managers in other sectors, to have a well-developed cultural sensitivity. To be successful as a project manager in healthcare, you must be able to adapt to the culture of the department for which you are realizing the project. Having a feeling for the relationships, an eye for the specific characteristics, listening to the nuances of the department. Connecting with the current culture, joining the ways-of-working and thinking along with the requirements and wishes of the project owner. But in the meantime you have to keep the objective and the intended result in mind. Because the project manager has been appointed precisely to achieve the goal, with as much support and involvement as possible from the department for which the project is intended. Cultural sensitivity helps the project manager in healthcare to be successful. But cultural sensitivity does not mean “to sway in the breeze” or “to lean too far in the sympathies”. Because for departments to optimally cooperate with each other and to exchange patient / client information adequately, certain standards and clear agreements are required. And implementing these in the various departments sometimes means gaining support for unpopular choices, which may go against the ingrained working methods of healthcare professionals. They may also require different ways-of-working; maybe protocols need to be adapted. And that is also part of the project manager's responsibilities in healthcare. In conclusion, it can be said that cultural sensitivity definitely belongs in the toolbox of the project manager in healthcare. Because it is an important tool, along with all those other skills, to be successful in the complex environment that healthcare organizations are. © 2020, Daniël Jolink, Manager Portfolio, Project & Program Management at the LUMC. He writes his contributions in the context of the Project Management in Healthcare Foundation in a personal capacity.

Is a durable and practical stakeholder approach in healthcare necessary?

By Daniëlle van Uden • 07 Feb, 2021
Whether you are starting a new project or you are at the beginning of a reorganization, in any change you will have to deal with various stakeholders. Perhaps you are already actively involved with stakeholders, and perhaps you have drawn up a list of the most important stakeholders and you are informing these people about the progress of the project on a regular basis. Making a well-designed interactive stakeholder approach is often seen as complicated, it takes time and money and is often limited to drawing up a long list of stakeholders. Especially in healthcare, your stakeholder approach is something that requires continuous attention. Why is that? In the first place, healthcare entrepreneurs and organizations are social enterprises. They are active in a public playing field and contribute to our public health care interests. They therefore have a social "duty" to involve stakeholders in decision-making. Secondly, stakeholders are nowhere as diverse as in healthcare. They include clients, employees, health insurers, municipalities, IGZ, patient associations, works councils, industry associations, politicians, local residents, partners (suppliers and referrers) and housing companies. The (proposed) change can yield something for them, but also pose a threat. It is important to know who and which parties are the key stakeholders for your healthcare organization. In third place, good management and supervision are important conditions for excellent care. The Health Care Governance Code (2017) states that "the care organization creates preconditions and guarantees adequate influence of stakeholders". Internal and external stakeholders must therefore be able to influence care, services and direction of care organizations. Therefore it is important to know who your most important stakeholders are, and how you involve these stakeholders with your project, in a sustainable way. The often prevailing belief that actively involving stakeholders (listening to, integrating useful input into your project) requires far too much time and resources and is therefore a costly matter, is not surprising. If you are under the impression that there is a whole list of stakeholders that you have to manage, it can be overwhelming. The difficulty is in identifying and finding the right way to connect with your key stakeholders. So how to start a sustainable, practical and feasible stakeholder approach? First of all, you focus on the most important stakeholders, because not all stakeholders are equally relevant for every healthcare organization. The project team will initially map this out. Brainstorm with each other and ask yourself the following questions: To what extent can the stakeholder impose his will, for example on the basis of legal powers, or by exerting influence on other stakeholders. Consider, for example, IGZ which can influence and / or stop processes within an institution. What interest do stakeholders have in the project; do they benefit from or are they hindered by the change? Are there perhaps opportunities to offer new services? Stakeholder management can also offer new opportunities for your organization and contribute to innovation. What is the public opinion about your organization, your project or the intended change? Which social issues does the organization face? Now it is time to interact with your most important stakeholders; how do they view the project or change? Make sure that members of your project team are responsible for specific stakeholders, ask for feedback, know what is going on and inform. Also be specific about who does what and when, and follow up. Then map out which requirements and expectations the most important stakeholders have and how you as a healthcare organization can, want and will respond to them. An active stakeholder approach "forces" the project team to thoroughly delve into the relevant stakeholders, which contributes to a good result of the project and also provides new insights for your project but also for the rest of the organization. © 2020, Daniëlle van Uden, stakeholder specialist

Perserverance

By John van Rouwendaal • 07 Feb, 2021
The theme of the Project Management in Healthcare conference on May 18, 2021 is "Rock hard soft skills". Project management in healthcare requires extremely hard developed soft skills. In the run-up to the conference, we will therefore consider soft skills from the perspective of project management in healthcare in this series of blogs. In this issue we will discuss: perseverance. Perseverance stands for a person's ability to achieve a specific goal, despite the setbacks that arise. As total 'project management nerds' we therefore occasionally participate in obstacle races (also known as "mud runs") with the Project Management in Healthcare Foundation. They are a wonderful, living metaphor for project management. After all, you also encounter obstacles on your way to the finish. In addition, concepts such as " throwing mud " and "muddling through" are also not uncommon in the project management context. My ultimate thought is, however: when we can learn to overcome obstacles by practicing sports, then we will certainly benefit from it in our workplace. Perseverance, in the sense of persistence is rewarded, tenacity, determination, discipline, etc., is a skill for which one obviously has more aptitude than the other. Yet it most certainly can be cultivated. In the book “Dealing with adversity, practical tips for overcoming obstacles”, Paul G. Stoltz offers a questionnaire to measure your current AQ, antagonism quotient. This quotient determines to what extent you know how to persevere when you encounter setbacks. If you know what your AQ is, you can start to use it. Stoltz also provides various useful tools. More recent and scientifically substantiated is Angela Duckworth's work on the grit factor. Duckworth formulated the hypothesis that real success mainly comes from a special mix of complete surrender and the determination to work on long-term goals: grit. According to Duckworth, six core values ​​determine a person's grit factor: hope, effort, precision, passion, rituals and priorities. “Enthusiasm is common. Endurance is rare.” A Dutch specialist in perseverance is Sander Aarts. Through his book “Niet te Breken” (red. Unbreakable) you will become mentally unbeatable by taking note of the experiences and lessons of the Special Forces. This book inspires and reads like an exciting boys' book (also for tough girls!). If you're looking for a special team outing, check out his Unbreakable Academy. Incidentally, there is no shortage of (former) soldiers, who inspire in the field of perseverance. Jocko Willink and David Goggins are very popular at the moment. I also found the story of Ross Edgley very special, who was the first person to recently swim around Great Britain. Perseverance could also be a nice theme of a Hell Week, which has a somewhat military footing but above all, practically "sandblasts" your life. Is perseverance a skill of particular importance to project managers? Yes, because projects do not come about without a struggle. There is always resistance to change, even if the change is an improvement. Then you must persevere. Not against your better judgment, of course, but sometimes against all odds and by bypassing yourself. At the very end of projects it is a matter of perseverance until you’re done. The last mile is the hardest and not easily walked. That requires perseverance, if only to motivate others to also persevere. Is perseverance a skill of particular importance to healthcare project managers? No, because always and everywhere more projects will be started than continued. But in healthcare, resistance to change can take on enormous proportions, for example because of conservatism, and persistence can be particularly problematic in an environment that does not excel in holding each other accountable. © 2020, John van Rouwendaal
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