Proventures reconnect session on Project Portfolio Management (PPM) P Seenivasan PMP,PgMP,PfMP...
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Proventures reconnect session on Project Portfolio Management (PPM)P Seenivasan PMP,PgMP,PfMPDirector, Proventures Education and Consulting
28th May 2015Pulse of the ProfessionSalient features from PMI report 2015High performing Vs Low performingMeet 90% of the business goalsWastes 12 times less money than low performing organizationBut only 12% of the organizations are high performing
LPO meets 36%While, LPO wastes 24% investment, HPO wastes 2%
Out of 100 organizations 88 are LPOBasics for a HPOFully understand the value of project management Actively engaged executive sponsors Aligning projects to strategy Developing and maintaining Project Management Talent Establishing a well-aligned and effective PMO (Project Management Office) Using standardized Project Management practices throughout the organizationHigh-performing organizations
Process focus within HPO
Benefit Realization Maturity
Of the projects started in your organization in the past 12 months that were deemed failures, what were the primary causes of those failures?Part IIPPM overviewStrategy can not be planned because planning is about analysis and strategy is about synthesis. - Henry Mintzberg, ( former President of the Strategic Management Society)Youve got to be very careful if you dont know where you are going, because you might not get there. - Yogi Berrafive organizational styles to strategic technology planningGartner Group has identified five organizational styles that are crucial to strategic technology planning. The first is a navigator that tracks and evaluates the impact of emerging technologies for strategic advantage. The second is the guerrilla, a pragmatic and tactical team for deploying new technologies. Third, a priest or evangelist is needed for educating and persuading senior management. Fourth, a conductor is required for coordinating the plan with other organizational units. Finally, a research team should be in place to investigate technologies ahead of institutional need. In each instance, there is a balance between being technology-focused versus being business focused. 13Let us look at the overall Landscape!VisionMissionStrategy and ObjectivesPortfolio ManagementProjects and Programs (Projecticed activities to build service Capability)Ongoing operations ( Recurring activities that support service delivery )OrganizationalInfrastructure and ResourcesOperationManagementProgram and Project ManagementEnterprise Business Value Management Business ValueConcept that is unique to each organizationDefined as the entire value of the business (The sum total of all tangible and intangible elements)Tangible elements include monitory assets, fixtures, stakeholder equity and utilityIntangible elements include goodwill, brand recognition, public benefits and trademarksDepending on the organization, business value scope can be short, medium or long termValue may be created through the effective management of on-going operationsIn order to bridge the gap between organizational strategy and successful business value realization, the use of portfolio, program and project management techniques is essential
15 2013 Progressive Ventures. All rights reserved.Project Management - IntroductionWhy ePMO Portfolio PerspectivePortfolio is a component collection of Programs, Projects or Operations managed as a group to achieve strategic objectives- Portfolio Management Standard Edition 3Portfolio components are identified, measured, evaluated, ranked, balanced, authorized, monitored and controlled to achieve strategic objectives Portfolio is perpetual for a live organization
Portfolio Management What - It is a centralized management of one or more portfolios Why -To enable executive management to meet organizational goals and objectives How -through efficient decision making Where-It concerns one or more portfolios, programs, projects, and operationsEnablers for PPMThe organization including the executive management embraces the practice of Portfolio Management Proposed Project, Program and Operational components need to be evaluated Appropriate skilled staff members are available to manage PortfolioProject and Program Management processes already existsThe organizational roles and responsibilities are definedMechanisms are in place to communicate decisions and other informations internally and externally Portfolio Management Process groupsThey are performed in sequence and have clear dependencies They are independent of application areas and industry The process groups and processes within the process groups may be iterated prior to Portfolio component authorization The process groups are not phases of Portfolio Management
Portfolio Management : Mapping of Process Groups and Knowledge AreasPortfolio Management Knowledge AreasPortfolio Management Process GroupsDefining Process groupThe defining process group consists of those processes performed to establish the way the organizational strategy and objectives will be implemented in a portfolio It involves : Determining the Portfolio Strategic PlanDetermine the Portfolio Structure and RoadmapDefine the Portfolio Develop the Portfolio Management Plans and Subsidiary PlansAligning Process GroupAligning Process groups consists of processes to manage and optimize the portfolio This group determines :How the Portfolio Management components will be categorized, evaluated and selected for inclusion, modification or exclusion, and thereby manage the portfolio
Authorizing and Controlling Process GroupAuthorizing and Controlling Process Group consists of processes for determining the method to authorize the portfolio, and provide oversight The processes within this process group are often repeated during the portfolio management process Typically, these are ongoing functions of the governing body PPM Process Group InteractionsOrganizational Strategy and ObjectivesOPA, PPA,EEF and Inventory of WorkProjects, Programs and Other workProjects, Programs and Other workDeliverables in PPMDefining Process GroupAligning Process GroupAuthorizing and Controlling Process GroupPortfolio Strategic Plan, Portfolio Charter, Portfolio Roadmap, Portfolio Process Assets, Portfolio Management Plan, Portfolio
Portfolio ReportsEnterprise/OrganizationProject, Program, and Other WorkGovernance DecisionsPortfolio Component ReportsOrganizational Strategy and ObjectivesOPA, PPA,EEF and Inventory of WorkIntegrated Portfolio Management PlanPortfolio Prioritization Managing CompliancesProcurement Management PlanningPfMP Components34561112Communication Planning Performance Management Plan Balancing Portfolio Change Control & ManagementManaging Strategic change910718Risk Management PlanningManaging DependenciesGovernance ModelPortfolio Oversight2Program governance monitors and reviews the progress of the program and the delivery of the coordinated benets from its component projects.
While it is not a specific phase in the program management life cycle, governance spans all of the program life cycle phases. Program governance oversees the progress of the program and the delivery of the coordinated benets from its components.
Programs are often too complex to be managed by a single individual, which is why appropriate implementation of program governance is critical for a program to succeed. Program governance assists in managing risks, stakeholders, benets, resources, and quality across program life cycle.
Program governance provides an appropriate organizational structure and the policies and procedures necessary to support program delivery through formal program reviews. This is facilitated by the regular and phase-gate-based oversight of deliverables, performance, risks, and issues by the program board.
Program charter is a document defining the scope and purpose of a proposed program presented to governance to obtain approval, fundinf and authorization26Portfolio FunctionsRole of Portfolio Manager Establishing and maintaining a framework and methodology and processes Guiding the selection, prioritization, balancing, and termination of portfolio components Establishing and maintaining appropriate infrastructure and systems to support portfolio management processesContinuously reviewing, reallocating, reprioritizing, and optimizing the portfolio to ensure ongoing alignment
Role of Portfolio Manager Providing key stakeholders with timely assessment of portfolio components, portfolio-level issues and risks that are impacting performance Measuring and monitoring the value to the organization through portfolio performance metrics and targets Meeting legal and regulatory requirementsSupporting senior-level decision makingInfluencing active executive sponsorship engagementParticipating in program and project reviews to reflect senior-level support, leadership, and involvement in key decisions.