Agenda

Project Portfolio Management Overview

meet strategic business objectives

identifying, prioritizing, authorizing, managing, and controlling

Portfolio Definition

Ref: www.pmi.org

Portfolio Management

Starts with many… projects are weeded out based on Strategic Alignment & business value

ApproveApprove ImplementImplementReviewReview PrioritizePrioritizeProposalProposalIdeasIdeas

Objectives

Oosthuizen, C., Grobbelaar, S. S., & Bam, W. (2016). Exploring The Link Between Ppm Implementation And Company Success In Achieving Strategic Goals: An Empirical Framework. South African Journal Of Industrial Engineering

Meet company’s objectives.

Eg: Return-on-investment, long-term profitability, market success, or other strategic

objectives.Maximize Value

Long-term and short-term projects

High-risk projects versus low-risk projects

Balancing of technologies, markets, project types, and product categories.Balance

Business’s strategy and the breakdown of spending across markets, areas, projects, and other categories that are directly tied to the organization's strategy.

Strategic Direction

Resource constraints; Project’s demand versus the readinessThe right number of projects

Benefits

Integrated Global View

Consistence Governance

Optimize Returns

Optimize Outcomes

Standards and Best Practices

Resource Management

Koh, A., & Crawford, L. (2012). Portfolio Management: The Australian Experience. Project Management Journal

Portfolio Planning Process

Source: Project Management by Eric W. Larson and Clifford F Gray

Portfolio Planning: A Framework

SWOT Analysis

(Internal / External)

Strategic Choices (Portfolio)

Strategy Implementation

Programs and Projects

Vision / Mission

Strategy Objectives

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Core Values & Mission

1

Vision, Mission, Goals, Objectives

Source: Lewis, J. P. (2007).Fundamentals of Project Management (pp. 44-55). American Management Association International. Tibergien, M. (2013). Vision, Mission, Goals, Objectives. Investment Advisor, 33(9), 59-60.

What you do & for Whom

Mission

Achieve Goals

StrategicObjectives

GoalsAchieve the Mission

Core Values

What your business want to become?

Vision

Example Mission Statements

Our mission is to serve as a center for research, scholarship, and creativity and to teach a diverse community of undergraduate, graduate, and professional students to become the next generation of leaders.

“leading change to improve society and to help solve the world’s greatest problems”

(www.unc.edu)

The mission of Harvard College is to educate the citizens and citizen-leaders for our society. We do this through our commitment to the transformative power of a liberal arts and sciences education.

(www.harvard.edu)

In collaboration with our colleagues across campus, we prepare students to succeed academically, professionally and personally, to embrace a commitment to lifelong learning, and to become informed, engaged, and productive citizens

(Division of Academic and Student Affairs )

(www.ncsu.edu)

Organization Structure

Definition: An Strategic Business Unit (SBU) is a product or Service, or line of related products or services, or mix of related products or services that meet a common market needs

Corporate Strategy

Strategic Business Unit 1

Business Strategy

Strategic Business Unit 2

Business Strategy

Finance Marketing WPR HRSales

Information Technology

SWOT Analysis

2

SWOT – Internal & External – A Sample

Adapted from Apollo Education Group, Inc. (2015). MarketLine Company Profile, 1-29.

Strengths

Location

Affordability

Faculty student ratio

Highly qualified Faculty

Honors Programs

Rank

Opportunities

Growing online learning IndustryGlobal MarketsIndustry Partnerships

Weakness

Adopting to Rapid Technology Changes

Understaffing / Underfunding

Lack of Infrastructure

Teaching next generation students / Millennials

Threats

Increasing international competition Losing key faculties Federal Funding / Support Compliance and Regulations, Higher Education

Opportunity Act, etc. Disruptors

In 10 years over 40% of the Fortune 500 will no longer be here… Fast Company, April 2011

In 10 years over 40% of the Fortune 500 will no longer be here… Fast Company, April 2011

Competitive Strategy: Porter Model

Source: Michael E. Porter, Competitive StrategyRef: Babson Olin School of Business Advertisement, Fast Company April 2011http://www.socialnomics.net/2012/01/04/39-social-media-statistics-to-start-2012/

Technology and Market Place

Changes

Technology and Market Place

Changes

OrganizationalAgility

OrganizationalAgility

Objectives & Choices3

SpecificS

MeasurableM

AchievableA

RealisticR

Time-basedT

Strategic Objectives (Sample)

Increased Collaboration with Students by employing advanced Collaboration / Communication Technologies to improve student engagement score by x%

Digitize to improve quality and learning outcomes by x%

Operational Excellence

(Increase Productivity x%, Reduce Cost x%)

Operational / Issue Metrics

Digitization / Automate End to End Process

Knowledgebase

Collaboration

Resource Optimization

Transform the Business (TTB) Grow the Business (GTB) Run the Business (RTB)

Enter New Market Segments to increase revenue by x%

Faster Time To Market by x%

Source: Gartner.com

Strategic Choices (Example)B

usi

nes

s • Offerings (Low Cost,

Differentiator,

Hybrid)

• Growth: (New Market, Vertical, Horizontal)

• Operational Excellence (Productivity, Cost Savings, etc.)

Tech

no

log

y • Build vs Buy

• Build and Buy

• Alliances

• New Technologies (Analytics, Mobile Cloud, SaaS, etc)

• Security

• Retire Old Technologies

Res

ou

rces • Training

• Skills Development

• New Skills

• Innovation

Strategy Implementation4

Leadership & Communication

Governance

Outcome Measurement

Continuous Improvement

Implementation Process

Leadership & Communication

Frequency: Quarterly & MonthlyMode: Key Meetings, in-Person, Intranet, EmailsWhat: Cascade leadership Mission and Strategy, Strategy Alignment, Goals, Lessons Learned, Success and Failures

Leadership Team

Portfolio Managers

Programs and Project Managers

Frequency: Yearly & QuarterlyMode: Key Meetings, In-Person, Town Hall, Intranet, etc.What: Mission , Strategy, and Alignment, Success & Failures

Frequency: Quarterly, Monthly, Weekly, DailyMode: In-Person, EmailsWhat: Project goals, Plan with Start and End Date, Resources, Time, Tasks, Scope, Risks, etc.

Governance Structure (Sample)

Portfolio Manager / PMO

Assemble, integrate, and coordinate the network of resources to deliver projects/ product development.

Ensures the availability of the right resource at the right place & Resource planning

When appropriate, escalates issues across organizational boundaries & Stakeholder management

Manage Risks

Benefits / Outcome realization

Leadership Team

Project Management Office(PMO)

Project 1 Project 2 Project 3 Project 4 Program 1

Project 1..n

What to MeasureDelivering Value

(Cost, Time, Scope, and

Benefit Realization - KPIs)

Manage RelationshipsManage Risks

Ref: http://www.pmi.org/learning/library/supersizing-pmo-performance-stakeholder-relationship-7640

StakeholdersStakeholders

When to Measure

For Program / Project Managers (Weekly / Daily):

Closely monitored, Detailed at Tasks, Resources, Scope, and Time

For SBU Leaders / Portfolio Managers (Quarterly / Monthly / Weekly):

High-Level, Summarized, Status, Risks, and Progress

For C-Level Leaders (Yearly / Quarterly / Adhoc):

Categorized by SBU, Investments, Outcomes, Status, Risks, etc.

How to Measure (KPIs, Status, Outcomes)

Green, 5

Yellow, 7

Red, 3

02468

# of Projects

# of Projects

0

20

40

60

# of Resouces

# of Resouces

0

100

200

300

400

Budget Actual

300 280

120

3 2

1

SBU1 SBU2 SBU3

By SBUs

Investment Value # of Projects

300 280

120

3 2

1

RTB GTB TTB

RTB – GTB - TTB

Investment Value # of Projects

Projects and status across organizationRed = Needs Attention, Yellow = Manageable, Green = Under

control

Resource Utilization

Budget Plan and Actual

Number of Projects across organization

Projects and value by Run, Improve, and Grow Projects and value by SBUs

< Continually Measure, Learn, & Improve >

Planning Timeline & Review (Example for a Financial Year from Oct to Sep)

Oct – Dec 2016Q1-FY17

Jan – Mar 2017Q2-FY17

Apr – Jun 2017Q3-FY17

Jul – Sep 2017Q4-FY17

Oct – Dec 2017Oct – Dec 2016

Q1

Year X-1Portfolio Planning

1-2 Months

Q1 Review

Year x+1Portfolio Planning

1-2 Months

Year XProject Execution

Monitoring and Control

Q2 Review Q3 Review Q4 ReviewYear End Review

Planning

Funding ApprovalCommunication

Resource Allocation

Challenges

Challenges

Project level activities Projects lack proper implementation Project Level

Too many weak projects are approved; resources, value, and priority not properly considered

Portfolio Level

Methods and evaluation tools to aid planning and management are inadequate

Competencies and Methods

Link to strategy and strategic criteria not clearly definedLink To Strategy

Resources are not allocated effectively; lack of consideration of smaller projects

Resource Management

The flow of information is inadequateand lacks usefulness

Information Management

Oosthuizen, C., Grobbelaar, S. S., & Bam, W. (2016). Exploring The Link Between Ppm Implementation And Company Success In Achieving Strategic Goals: An Empirical Framework. South African Journal Of Industrial Engineering

Key Factors for Success

Culture & Leadership

“Culture and leadership are two sides of the same

coin and one cannot understand one without

the other”

Dr. Edgar Schein

“Culture and leadership are two sides of the same

coin and one cannot understand one without

the other”

Dr. Edgar Schein

Market /Compete

Getting Job Done, Meeting Goals, Competitive

Market /Compete

Getting Job Done, Meeting Goals, Competitive

Hierarchy / Control

Formalized Structure Governance, Formal Rules, Stability

Hierarchy / Control

Formalized Structure Governance, Formal Rules, Stability

Adhocracy / Create

Entrepreneurial place, Take Risks, Innovation, Growth

Adhocracy / Create

Entrepreneurial place, Take Risks, Innovation, Growth

Clan / Collaborate

Extended Family, Loyalty and Tradition, High Cohesion and Morale

Clan / Collaborate

Extended Family, Loyalty and Tradition, High Cohesion and Morale

Ref: Engelen, A., Flatten, T. C., Thalmann, J., & Brettel, M. (2014). The Effect of Organizational Culture on Entrepreneurial Orientation:

A Comparison between Germany and Thailand. Journal Of Small Business Management.

Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework, by: Kim S. Cameron; Robert E. Quinn

Strategic Alignment

Vision Mission

Goals Values

Ref: Leadership Conversations: Challenging High Potential Managers to Become Great Leaders, Alan B, Richard S & Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, Rajendra, S., Jagdish, S, David, W

Have a clear communication strategy

Create Awareness and Socialize Strategy and Goals across organization

Frequency of communication

Multiple modes of communication. Eg. Email, WebEx, Video, In-Person, etc.

Customize content based on various stakeholder groups, needs, and interest

Communication

Transparent Project selection and approval process

Identify Key Performance Indicators (Socialize and Buy-in)

Technology and Tools to capture KPIs

Program and Project Process Maturity and Excellence

Standards and Best Practices

Continuous Improvement

Measure, Govern, and Improve

Summary

PPM Framework

&

Process

Strategic Alignment

Culture

&

Leadership

Communication

Governance

&

Measurement

Continuous Improvement

Questions?

dassconnect@gmail.com

https://www.linkedin.com/in/kaalidass