Download - Overview of project portfolio management

Leadership, Strategic IQ, and Organizational Health

Tim WashingtonNovember 2013

An Overview of Project Portfolio Management

Overview of Project Portfolio Management

Project portfolio management is a combination of various management disciplines:

%Management Disciplines

General management

Business management

Project and program management


Project portfolio management (PPM) is a

senior leadership discipline that drives

strategic execution and maximizes

business value delivery through the

selection, optimization, and oversight of

project investments which align to business

goals and strategies.

PMI Quote

Paradigm Shift #1: Projects are an important vehicle for executing strategy


“Portfolio management is the strategy-based, prioritized set

of all projects and programs in an organization reconciled

to the resources available to accomplish them.”

Stanford Quote

Paradigm Shift #2: The single project view to a total portfolio view.


“[PPM is about] managing [the] composite

groups of projects with the same rigor,

balance, executive leadership, and decision-

making involvement as the company’s

financial portfolio. Portfolio

Management is an ongoing process that

includes decision-making, prioritization,

review, realignment, and reprioritization.”

Financial Portfolio Quote

Paradigm Shift #3: Projects are investments!


The Purpose of Portfolio Management

• Execute Strategy

• Deliver Business Value

• Enhance Decision Making

• Manage Organizational Change


At the highest level, Project Portfolio Management has four basic components:

All the steps necessary to construct an optimal portfolio given current limitations and

constraints

Ensure value is delivered by comparing expected benefits

with actual benefits; drive PPM maturity

Selected projects must align with the business strategy and meet other important criteria

OptimizePortfolio Value

Project benefits must be protected in order to deliver

maximum portfolio value

ProtectPortfolio Value

DeliverPortfolio Value

The Goal: Maximize value

delivered to customers and stakeholders

Select the Right Projects


Deliver Portfolio Value

Optimize Portfolio Value


Protect Portfolio Value

Prioritization

Portfolio Balancing

Project Sequencing

Capacity Planning

Portfolio Analysis

Project Monitoring

Portfolio Risk Mgt

Benefits Realization

Lessons Learned

Improve Portfolio Maturity

Efficient Frontier

Portfolio Planning

Portfolio Selection

Ideation

Work In-take

Decision Gates

Opportunity Mgt


Project Parking Lot

IDEATION/OPPORTUNITY MGT

WORK IN-TAKE

1 2 3

STAGE-GATE

Employees

Management






Training Quality

Q1 Q2 Q4Q3

Project H

Prj I

Project J

Project K

Project L

Project M

Project N

Project O

Project P

Project AProject B Project E

Project C Project F Prj G

Project Q

Standardize Training and Development

Q1

Project D

Resource Utilization






Q1 Q2 Q4Q3

Project H

Pr I

Project J

Project K

Project L

Project N

Project P

Project AProject B Project E

Project F Prj G

Project O

Q1

Project D

Resource Utilization

Standardize Training and Development

Training Quality

Sequencing based on:• Priorities• Dependencies• Resource

Capacity






Drive the ship

The goal is to deliver maximum business value

“All efforts should now be put into safeguarding the value of the portfolio.”

Therefore….

In a turbulent project environment, it is critical for the management team to drive future portfolio actions based on current project results






Current State

Future State(expected benefit)

Actual Benefit Benefit Gap

1. What future state benefits are we expecting? (business case)

2. What benefits have we realized? (benefits tracking)

3. How do we ensure we realize full benefits on future projects? (lessons learned)

Benefits realization becomes important if we want to close the gap!






Art Science

Successful portfolio management is a combination of art and science


Governance Process

DataLeadership

Strategic Execution

Better Decision Making

Art Science


What Kind of Governance Do You Need?

PPM is only bureaucratic if you have the wrong infrastructure


You need portfolio management when…

Your Project Managers feel like this

Employees react to organizational goals like this

Your organization acts like this


Contact Information

@ppmexecution

http://www.linkedin.com/in/timawashington

Name: Tim WashingtonEmail: [email protected]

www.ppmexecution.com

http://twitter.com/ppmexecution



Download - Overview of project portfolio management

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