P3O - The Value Adding PMO - from Strategy to Projects
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The document discusses the role and functions of a Portfolio, Program, and Project Office (P3O). A P3O is a decision-enabling and delivery support model that bridges strategic initiatives with ongoing business operations. It supports senior management decision making, ensures alignment of projects to strategy, and optimizes resource management and project delivery. Key functions of a P3O include portfolio management, program management, project management, and acting as a center of expertise. Establishing a P3O can help organizations effectively manage all business change initiatives and realize intended benefits.
P3O - The Value Adding PMO - from Strategy to Projects
- 2. P3O The Value Adding PMO from Strategy to Projects
- 3. Strategy execution Internal Projects Revised Mission New Goals & Objectives Portfolio of Strategic Choices Strategy Implementation Project Selection External Project Management Program Management Porfolio Management Strategic Management
- 6. “ … a co-ordinated collection of strategic processes and decisions that together enable the most effective balance of organizational Change and Business As Usual.“ Portfolio Management is … • Are you doing the right things ? • Are you doing them the right way ? • Are you getting them done well ? • Are you getting the benefits ? • How will the benefits be delivered ?
- 7. Portfolio Definition Portfolio Delivery Energized Change Culture Senior Management Commitment Governance Alignment Strategy Alignment Portfolio Office Energy The Portfolio Management Model
- 8. The 2 Portfolio Management Cycles Doing the right things Doing things right Portfolio Definition Portfolio Delivery
- 9. Why Portfolio Management ? WHY ? Prioritizes Programs and Projects based on a common set of objective criteria Links Program and Project selection to strategic metrics Builds discipline in Program and Project selection Balances Risk over all Programs and Projects Justifies killing Programs and Projects that are not strategically aligned Improves communication and supports agreement on Strategic Goals Allocates resources to Programs and Projects that align with strategy Provides executive oversight of all the change initiatives
- 11. “ … a temporary, flexible organisation designed to coordinate, direct and oversee the implementation of a set of related projects and activities so as to deliver outcomes and benefits related to strategic objectives.” A Program is …
- 12. A Program is about creating Capabilities & Benefits
- 13. …a picture of a better future… A program needs a VISION…
- 14. … Leadership and Stakeholder Engagement …
- 15. PEOPLE Organisation, Roles, Leadership & Stakeholder Engagement
- 16. Program Management Consolidated Program Benefits = Organization BENEFITS Project A Project B Project C Project D Project Z Project Benefit A Project Benefit B Project Benefit C Project Benefit D Project Benefit Z Phase 1 Phase 2 Phase 3 … and Benefits Management
- 17. Why Program Management ? WHY ? Offers clear responsibilities for Business Change Has a framework that focuses on Business Change Objectives Effectively manages the Business Case to achieve the Vision Links strategies and projects Manages and controls costs Formalises the process to identify, manage, re alise and measure Benefits Coordinates and controls the complex range of activities Improves understanding of overall risk Uses scarce resources effectively
- 19. “… a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case.” A Project is …
- 20. The importance of Project Management Project Manager Time Cost Scope Communi- cation Risks OrganizationEscalation Reporting Skills Follow-up Initiate Quality Product Roles Starting up Budget Plan Business Case Project Board Responsibilities StagesChange Issues Testing Deadlines Close COMPLEX + ALL IS INTERCONNECTED
- 21. Projects : Current challenges Current Challenges Inaccurate scope definition Lack of visibility on resource demand and availability Inability to review projects against changing priorities No or irregular health checks No detailed project plans Lack of adequate project procurement and contract management Not enough buy-in from key-players Poor or no documentation nor record management Low or no Risk Management and Quality Assurance Inability to deliver on time, on budget and at quality
- 22. How many projects do you have ?
- 23. Project Management and Program Management are rather stand-alone disciplines ‘A P3O Enables timely decision-making by Senior Management Ensures investment is spent on things that matter Answers the need for better-quality information Meets the needs of Program and Project Delivery teams Optimizes the use of scarce resources Establishes and Assures Consistency in Methods’
- 24. ‘P30 brings things together and makes the puzzle complete by bringing in the enterprise notion.’
- 25. P3O stands for Portfolio Program Offices Project } P3O Inter-relates with Portfolio, Programs and Projects
- 26. A P3O is … … a decision-enabling / delivery-support model for all business change within an organization.” It is a model to bridge the temporary change initiatives with the permanent „business as usual‟ organization. A P3O has 3 possible functions: Portfolio Office (PfO): supports Strategic Decision-making Centre of Excellence (CoE): central source of Expertise Delivery support (DSU): supports Results and Benefits delivery
- 27. P3O : from Strategy to Projects Internal Projects Revised Mission New Goals & Objectives Portfolio of Strategic Choices Strategy Implementation Project Selection External Project Management Program Management Porfolio Management Strategic Management P 3 O
- 28. Why a P3O? WHY ? Supports Senior Management decision-making Ensures Consistent project delivery, less ‘reinventing the wheel’ Continuous improvement culture and progress reviews towards completion Enables the removal of low-value projects Ensures programs & projects are aligned to corporate mission, goals and objectives Creates an objective methodology to identify, rank, prioritize and select new projects Optimizes management and up-skilling of resources More accurate estimates based on history and lessons learned Develops a ‘bigger picture view’ and better understanding of all changes Ensures a healthy balance of projects with different cost, schedule, complexity and risk profiles Well-managed project scopes, less cost overruns, more projects delivered on time at quality
- 29. The importance of Alignment Doing the Right Things Doing Things Right Exploit what we did Align Execute Measure Formal Approach to Manage Strategic Initiatives
- 30. A P3O offers Support & Control P3OSupport Control - Master Program & Project Schedule - Overview on all Organizational Change - Fast-track Program & Project Start-up - Integrated Progress Reporting - PM standards, methodology, processes - Project Consulting & Mentoring - PM coaching / training / certification - Formal Issue Tracking & Reporting - PM tools and tools support - Project Audits - Business Case & Follow-up - Strategic Alignment Reviews - Program & Project Approval process - Program & Project Prioritization - Program & Project Management - Contract Management - Resource Management - Cost and Schedule Control
- 31. P3O : Critical Success Factors - Train, Train, Train - Have Dedicated P3O Staff - C-Level Commitment to all levels - Focus on Benefits Realization - Consistent Messages at all levels - Simultaneous Communication at all levels - Prioritize and manage project Initiatives - Communicate, Communicate, Communicate, - Experienced leader to prevent pitfalls - Link priorities to the current objectives - Develop a Framework to manage the process
- 32. Tony Vynckier P3O The Value Adding PMO from Strategy to Projects