Webinar: Project portfolio management - slides
- 1. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Claude Maley The Webinar Will Start Shortly Project Portfolio Management
- 2. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Housekeeping • Slides will be available on our SlideShare page; the link will be emailed to you • Recording of the webinar will be available to download; the link will be emailed • Take the time to complete a post-webinar survey that will pop up at the end • You can type your questions throughout the session • Time will be allocated in the end for the speaker to address your questions
- 3. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Your Presenter Claude Maley is Managing Director of Mit Consultants, a consultancy and education practice servicing international clients in change management, and Chairman of a business solutions company. His functional management and consulting experience with major corporations such as Alcatel, BP, Cadbury Schweppes, Cartier, Caterpillar, Cisco, Ericsson, GE, Hewlett-Packard, IMS International, Motorola, Organon, Overseas Containers Limited, Pechiney, Renault Automobile, Siemens to name a few, has spanned more than 40 years in engineering, production and manufacturing, distribution, transportation and marketing services sectors.
- 4. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management 1-4 Project Portfolio Management Designed & Created by Ver. 2.1- 2015
- 5. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Webinar Objectives 1-5
- 6. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Value Creation & The Organisation's Strategic Intent 1-6 "BOTTOM LINE" IMPACT – VALUE CREATION Constant state of Change Iterative & Incremental in concert with Continuous Improvement, Business Process Re-engineering and Enabling Technology Change Management Strategic Transformational Tactical Operational Achieving Transformational & Operational Goals Maintaining Competitive Advantage Seeking Growth & Opportunities Sustaining Continuing Operations
- 7. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Organisation's ability to meet Market Requirements: Key Areas for an Organisation's Competitiveness 1-7 Competition Financial Constraints The Market Place Temporal Constraints Economical Globalisation Political & Regulatory External Influences CHANGE is the only Certainty in a World of Uncertainty Sustaining Business OPERATIONS and the constant need for INNOVATION And CONTINUOUS IMPROVEMENT Making Strategic Investments Redefining Organisational Structures Empowering People Enabling Technology Transforming Key Processes into Strategic Capabilities Analysing & Reviewing Market, Competition, Services & Products End-to-End Solutions Within Time to Market Constraints
- 8. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management "Are we Doing it Right?" 1-8 Are we doing it RIGHT ? Right Market Right Products Right Organisation Right Skills Right Investments Right Size Perform Continuous Analysis & Evaluation of BUSINESS PROCESS MODELS What are the Opportunities: New Market New Product/Service Alliances o Key Business Concerns : o ARE WE DOING THE RIGHT THING? o ARE WE DOING THE THING RIGHT? What are the Operational Issues: Waste Heavy Process Points Costly Steps Low Quality Inadequate Response
- 9. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Strategic Goals 1-9 Organisations initiate Strategy Formulation by specifying their Mission, Goals, and Objectives & setting the Long-Term direction and scope for the whole Organisation Performance of SWOT analysis to select Appropriate Strategies, based upon: Organisational Change Impact Formal & Informal Organisational Structures Organisation "Culture" Appropriate approach to Implement the Strategy Strategic Business Objectives are Goals deemed most Important to the Current and Future Health of an Organisation
- 10. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Business Alignment and Business Benefits Project Portfolio Management is the Key Approach to Accomplish Strategic Business Goals 1-10 Projects are Managed to Create Value for the Organisation, the Market and the Community
- 11. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Tactics The Projects to launch to fulfil the Strategy From Strategic Vision to Projects 1-11 StrategyApproach Mission Qualitative Statement describing the Organisation's Purpose Strategy Organisation's Road Map to achieve Business Objectives Vision Global Macro picture of where an Organisation wants to be Concept Planning & Execution Objectives Quantitative description of the desired Accomplishments
- 12. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management For each Identified PROJECT • Map against Strategy • Establish Ownership & Operational Costs • Define Revenue/Benefits • Determine Overall Life Cycle Benefits Determining Strategic Direction and Financial Justifications for Projects 1-12 Tactics The Projects to launch to fulfil the Strategy Strategy Organisation's Road Map to achieve Business Objectives Defining the Case Definition of Success Criteria (KPI's) Prioritisation of Benefits Rank Benefits Primary benefits Secondary benefits: Benefits Strategy Concept Business Benefits
- 13. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Program/Project Strategy and Portfolio Management From Strategic Vision to Projects 1-13 StrategyPortfolio Portfolio Management Objectives & Strategy Tactics Vision & Mission Planning & Execution Concept Planning & Execution Concept Planning & Execution Concept
- 14. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Project Portfolio Management Vision 1-14 * PMI Standard for Portfolio Management In alignment with the organizational vision Supportive of the strategy and objectives of the organization Reflects the organization’s cultural values Meaningful and valid to stakeholders
- 15. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Defining Scope and Extent of the Project Portfolio: Definitions 1-15
- 16. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Goals of Project Portfolio Management for Business Alignment 1-16 A Project Portfolio will reflect the Organisation's Strategic Intent Alignment of Projects to the Overall Business Strategy is continuously Reviewed The Project Portfolio will set: • Priorities • Investment Decisions • Resources Allocation Projects are Quantified by : • Value to the Business • Business Drivers • Measurable Deliverables • Rank and Priority
- 17. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Focus of Project Portfolio Management to Achieve Business Benefits 1-17 Aligned to the Political, Economic, Social, Technological & Environmental Realities Adds Value to the Organisation based upon robust Business Cases Fulfils and Manages Stakeholder Expectations Ensures Corporate Wide Communication Is Financially Viable and Delivers Returns Dynamic and Responsive to Changes Maintains Alignment to overall Strategy
- 18. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Defining Strategic Programs/Projects for Project Portfolio Management 1-18 Corporate Strategy Initiatives CAPEX Total Funding & Resources Operations OPEX Client/Customer Offerings Project A Project B Project C Project n . . . Challenges • Assessing Projects • Selecting Projects • Stopping/ending Projects • “Skunk works” Projects Benefits • Improved productivity • Greater economic value • Faster time-to-market • Improved staff morale • Increased shareholder value • Enhanced organisational learning
- 19. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Steering Strategic Programs/Projects in a Project Funnel Process 1-19 Transformational Operational Market Data Corporate KPI's Strategic Drivers Assess Evaluate Plan Implement Deliver Establish Balance between : Transformational and Operational Needs Seek Consistency and Alignment to Corporate KPI's Align Funding to Priorities Balance Needs to Organisational Capacity Apply Rigour in Selection Criteria Support the Process Decision Point Management Approval
- 20. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Project Selection Funnel 1-20 Stage 1: Pre-Survey Business Analysis Stage 2: Business Processes Identified with Key Metrics Stage 3: Assess Projects for Benefits Stage 4: Prioritise Projects and ensure Organisational Buy-In Selection & Priority is Business Driven Requires Quantitative & Qualitative Criteria Fit to Strategy Go & NoGo Criteria Common Reporting & Analysis Prioritisation Criteria Combined Capacity Planning
- 21. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Project Portfolio Management Cycle 1-21 Initiatives CAPEX Operations OPEX Client/Customer Offerings USE a Formal Cycle and Initiate the Process Project Goals to Business Value Confirm Portfolio Project Selection Criteria Determine on Portfolio Reporting Agree Roles & Responsibilities Establish Refresh Portfolio Project Selection Update Portfolio Manage Portfolio
- 22. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Establishing Strategic Intent for Program/Projects 1-22 The Strategic intent determines the resources that should be allocated to the Programmes/Projects in the Portfolio The Strategic Intent is mapped onto a set of projects and programmes, including their resource allocations Each Programme/Project then corresponds to a subset of the overall Strategic Intent, which it will deliver by means of the allocated resources Each project is defined by its contribution to the portfolio's strategic intent
- 23. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Project Portfolio Selection Screening Potential Project Candidates 1-23 Portfolio Committee Portfolio Management Team Project Sponsor Project Manager Projects are Assessed and Challenged to ensure their contribution to Business Value Assumptions are Validated or Infirmed Reviewers request lacking or omitted Information Selected Projects raise the levels of Commitment Project Manager to demonstrate an Entrepreneurial Approach
- 24. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Project Portfolio Governance Approval, Sign-off and Launches 1-24 Final Approval on Project Selection • Management Sign Off • Project Charter Prioritise Project • Ascribe a RANK • Assign Key Resources Document Key Project Drivers • Business Goals • Decision Points • Assumptions • Risks Approve Project Funding • Release Initial Funds • Determine Management Reserve and Variance Range Refresh Portfolio Project Selection Update Portfolio Manage Portfolio
- 25. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Project Portfolio optimisation - Capacity Planning, Schedule Optimisation Consolidate Project Data into the Portfolio Develop Individual Project Plans • Organisation • WBS and Schedule/Cost Charts Aggregate Project Plans • Establish Portfolio Time Frame • Develop Resource Charts • Determine Cumulative Project Costs Rearrange Project Priorities • According to Business Goals • Establish Modified Project Schedules Re-Approve Project Portfolio Contents • Finalise Funding • Secure Management Sign Off Capacity planning is the evaluation of the RESOURCE capacity needed by the Organisation to meet demands for its Projects
- 26. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Portfolio Project Screening – A Continuous Process Major Decision Points at the GATES 1-26 Assess Evaluate Plan Implement Deliver Assessment of Project according to Evolving Business Value Appraisal of Business & Market Factors Review of Project Progress and Compliance to Objectives Changes in Priorities Risk Re-Assessment Benefit Management 1-26
- 27. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Project Portfolio Reporting Evaluation of the Portfolio to Expectations 1-27 • Are Strategic Intents Unchanged? • Are Projects in Alignment? • Are Project Budgets within Range? • Are Operational Benefits in Limits? • Are Project Schedules within Range? • Are Technical Issues Addressed? • Are Project Risks Managed Suitably? • Are Organisational Risks Assessed? • Are Internal/External Constraints & Interfaces Handled Appropriately Health Risks Constraints & Dependencies Strategic Alignment Value Portfolio Manager Collects, Collates & Reports 1-27
- 28. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Project Portfolio Management: Major Responsibility Areas 1-28 Determining a viable Project Mix, capable of meeting Organisational Goals Balancing the Project Portfolio to ensure Current & New Opportunities are Beneficial Monitoring and Reporting on the Performance of Projects in the Portfolio Analysing Project Portfolio Performance & engaging on Continuous ImprovementProviding Recommendations to Decision Makers
- 29. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Multiple Project Portfolios in the Organisation 1-29 Business Unit Business Unit Support Unit Support Unit Programmes & Projects Programmes & Projects Programmes & Projects Programmes & Projects Organisation's Executive VPs Project Portfolio Team Organisational Unit Organisational Unit Organisational Unit Organisational Unit Organisation's Line Reporting Project Portfolio Coordination Corporate Portfolio Unit Portfolio Unit Portfolio Unit Portfolio Unit Portfolio
- 30. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Operating in a Combined PPM/PMO Structure: Organisational Structure – Major Options 1-30 Project Management Office Business Strategy Project Portfolio Management Demand Management Project & Programme Management Centre of Excellence Business Strategy Project Portfolio Management Demand Management Project & Programme Management Project Management Office
- 31. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Instituting the Project Portfolio Management System 1-31 Confirm Business Strategy, Drivers and Business Value Determine Portfolio Project Selection Criteria Agree on Portfolio Reporting Select Project(s) for Portfolio using : Economic & Financial Criterion Balanced Scorecard Risk Ranking Rank Selected Projects Document Key Project Drivers Business Goals Assumptions Risks Approve Project Funding & Release Initial Funds Refresh Portfolio Project Selection Update Portfolio Manage Portfolio
- 32. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Operating in a Combined PPM/PMO Structure: Functional Focus in the Organisation 1-32 PPM - Supporting the Organisation's Strategic & Operational Goals Investment Management Demand Management Resource Management Benefits Management Risk Management Value Management Management of Programmes Management of Projects Expectations & Scope Management Monitoring, Control & Reporting Execution & Implementation Engineering & Planning PMO - Supporting the Organisation's Programme & Project Discipline Processes, Standards and Methodologies Project Support Competence & Skill Development
- 33. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Project Portfolio Manager: Scope and Range of Roles & Responsibilities The Portfolio Manager, typically a senior manager, or senior management team, is responsible for monitoring assigned portfolios, by: 1-33 Source: PMI® - Project Management Institute, Inc., Playing a key role in project prioritisation, ensuring there is a balance of components, and that they align with strategic goals Providing key stakeholders with timely assessment of portfolio and component performance, as well as early identification of (and intervention into) portfolio-level issues impacting performance Measuring the value to the organisation through investment instruments, such as return on investment (ROI), net present value (NPV), payback period (PP), etc.
- 34. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Extent of PPM Governance 1-34 Selecting Projects and Programmes to deliver the required results Ensuring Projects are aligned with Evolving Organisational Objectives Defining appropriate Governance processes to support the achievement of the Organisation’s Strategy Planning the organisation’s Project work-load on an on-going basis Negotiating Resource and Capacity issues and resolving problems at the Organisational level Organisations are Effective in their Project and Portfolio Management by defining and improving the processes within the PPM domain, especially concerning the Resource and Capacity Management & the prioritisation of Programmes & Projects in the Portfolio
- 35. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management Achieve the Organisation's Business Goals with Project Portfolio Management 1-35
- 36. Copyrighted Material. Not to be reproduced without prior written consent. Project Portfolio Management 1-361-36