Proventures reconnect session on Project Portfolio Management

(PPM)

P Seenivasan PMP,PgMP,PfMPDirector, Proventures Educat ion and

Consul t ing

28th May 2015

Pulse of the Profession

SALIENT FEATURES FROM PMI REPORT 2015

High performing Vs Low performing

Meet 90% of the business goals

Wastes 12 times less money than low performing organization

But 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 LPO

Basics for a HPO

Fully 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 organization

High-performing organizations

Successful projects

Talent Management

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 II

PPM OVERVIEW

“Strategy can not be planned because planning is about analysis and strategy is about synthesis.”

- Henry Mintzberg, ( former President of the Strategic Management Society)

“You’ve got to be very careful if you don’t know where you are going, because you might not get there.”

- Yogi Berra

five organizational styles to strategic technology planning

Navigator

Evangelist

ConductorGuerrilla

Research

team

Let us look at the overall Landscape!

Vision

Mission

Strategy and Objectives

Portfolio Management

Projects and Programs (Projecticed activities to build service

Capability)

Ongoing operations ( Recurring activities that support service

delivery )

OrganizationalInfrastructure and Resources

OperationManagement

Program and Project

Management

15

Business Value

• Concept that is unique to each organization• Defined 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 utility• Intangible elements include goodwill, brand recognition,

public benefits and trademarks• Depending on the organization, business value scope can be

short, medium or long term• Value may be created through the effective management of

on-going operations• In order to bridge the gap between organizational strategy

and successful business value realization, the use of portfolio, program and project management techniques is essential

© 2013 PROGRESSIVE VENTURES. ALL RIGHTS RESERVED.

PROJECT MANAGEMENT - INTRODUCTION

Why ePMO – Portfolio Perspective

Portfolio is a component collection of Programs, Projects or Operations managed as a group to achieve strategic objectives

- Portfolio Management Standard Edition 3

Portfolio 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 operations

Enablers for PPM

The 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 Portfolio

Project and Program Management processes already exists

The organizational roles and responsibilities are defined

Mechanisms are in place to communicate decisions and other informations internally and externally

Portfolio Management Process groups

They 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 Areas

DefiningProcess Group

Dev Portfolio Strategic Plan

Develop Portfolio Charter

Define Portfolio Roadmap

Dev Portfolio Management PlanDevelop Portfolio

Develop Portfolio Performance

Management Plan

Dev Portfolio Communication

Management Plan

Dev Portfolio Risk Management Plan

Aligning Process Group

Manage Strategic Change

Optimize Portfolio

Manage Supply and Demand

Manage Portfolio Value

Manage Portfolio Information

Manage Portfolio Risks

Authorizing and Controlling Process Group

NA

Authorize PortfolioProvide Portfolio

oversight

NA

NA

NA

Portfolio Strategic Management

Portfolio Governance Management

Portfolio Performance Management

Portfolio Communication Management

Portfolio Risk Management

Portfolio Management Knowledge

Areas

Portfolio Management Process Groups

Defining Process group

The 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 Plan Determine the Portfolio Structure and Roadmap Define the Portfolio Develop the Portfolio Management Plans and

Subsidiary Plans

Aligning Process Group

Aligning 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 Group

Authorizing 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 Interactions

Defining Process Group

Aligning Process Group

Authorizing and

Controlling Process

group

Organizational Strategy and Objectives

OPA, PPA,EEF and Inventory of Work

Projects, Programs and Other work

Projects, Programs and Other work

Deliverables in PPM

Defining Process Group

Aligning Process Group

Authorizing and

Controlling Process Group

Portfolio Strategic Plan, Portfolio

Charter, Portfolio Roadmap,

Portfolio Process Assets, Portfolio

Management Plan, Portfolio

Portfolio Reports

Enterprise/Organization

Project, Program, and Other Work

Governance Decisions

Portfolio Component Reports

Organizational Strategy and ObjectivesOPA, PPA,EEF and Inventory of Work

Integrated Portfolio Management Plan

Portfolio Prioritization

Managing Compliances

Procurement Management Planning

PfMP Components

3

4

56

1112Communication Planning

Performance Management Plan

Balancing Portfolio

Change Control & Management

Managing Strategic change

9

10

7

1

8

Risk Management Planning Managing Dependencies

Governance Model

Portfolio Oversight

2

Portfolio Functions

Defining Aligning Authorizing Controlling

Role 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 processes

Continuously 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 requirements Supporting senior-level decision making Influencing active executive sponsorship

engagement Participating in program and project reviews to

reflect senior-level support, leadership, and involvement in key decisions.