stepping up to manage programmes and portfolios by mr harold petersen

Stepping up to manage

programmes and portfolios Harold Petersen, Director Advisory

[email protected]

How much of the investments in IT are wasted?

A recent study conducted by The Standish Group found

that only 32 percent of all IT projects succeeded while the

remainder (68 percent) were either challenged or failed.

Large projects/initiatives not only fail more often they

deliver less. According to a McKinsey/Oxford study half of

IT Change Initiatives with budgets of over $15 million

dollars run 45% over budget, are 7% behind schedule and

deliver 56% less functionality than predicted. That means

that:

2

Why do projects and programmes fail?

3

Project Management silos

4

Align, control and optimise your portfolio of

initiatives, its deliverables outcomes and benefits

5

Agenda

o P3O - to optimise controls and capability uplift across the portfolio

o MSP - to align related projects and transformation mgt with strategy

o Applying P3O and MSP

6

Agenda




7

P3

Portfolio Management

Programme Management

Project Management

O

Office P3O® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries

The P3OSwirl logo® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries

This is a Value Added product which is outside the scope of HMSO Core Licence.

Sections of the P3O® Reference Manual have been reproduced under licence from OGC

© Lucid IT Pty Ltd, 2010 - All rights reserved 8

9

P3O Manual

o Introduction

o Why have a P3O?

o What is a P3O model?

o How to implement or

o re-energize a P3O

o How to operate a P3O – tools and

techniques

o Appendices

o Glossary

o Index 9

“……a coordinated collection of strategic

processes and decisions that together enable the

most effective balance of organisational change

and business as usual/operations.”

© Crown Copyright 2008. Reproduced under Licence from OGC

10

Example portfolio

11

Example Prioritisation

Project Prioritisation Matrix

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

0 5 10 15 20 25 30

Complexity

Alig

nm

en

t w

ith

Str

ate

gy

Size of ‘bubble’ in this model

indicates the size of the

Investment. This could be

tailored to NPV, IRR, etc.

“Dogs”

“Hard-earned Value”

“Join the Queue”

“Low Hanging Fruit”

“No Go zone”

12

Portfolio Management Dashboard

# Projects at each stage: Not Started 3 Gate 1 2 Gate 2 2 Gate 3 1 Gate 4 2 Gate 5

# Projects at each status: Red 1 Amber 2 Green 7

Project Portfolio Investment Statistics

Total # Projects 10

Total $ Portfolio 6,345,000

Total Benefit of Portfolio 4,105,000

By Division

Division A

Total # Projects 4



By Division

Division B

Total # Projects 4



By Division

Division C

Total # Projects 2

Total $ Portfolio 95,000

Total Benefit of Portfolio 35,000

Project Name

Project Sponsor/

Project Manager

Approved

Budget $ Priority Category Ove

rall

Sch

ed

ule

Bu

dge

t

Ris

ks a

nd

Issu

es

Be

ne

fits

Pro

ject

Star

t D

ate

Cu

rre

nt

Stag

e

Gat

e

Ne

xt

Stag

e

Gat

e

Ne

xt G

ate

Du

e D

ate

Fore

cast

Pro

ject

End

Dat

e Project

Manager

Comments Mo

nth

1

2 3 4 5 6 7 8 9 10 11 12

Business Unit 1

Project 1 Executive A 2,000,000 1 Amber 1/01/2013 1/09/2013

Manager A

Project 2 Executive A 125,000 2 Green

Manager B

Project 3 Executive B 50,000 1 Green

Manager D

Business Unit 2

Project 4 Manager E 0 0 Green

Manager F

Project 5 Manager G 0 0 Green

Manager H

Project 6 Manager I 0 0 Green

Manager J

Corporate Programme 1

Project 7 0 0 0 Green

0

Project 8 0 0 0 Green

0

Project 9 0 Green

0

Business Unit 3

Project 10 0 0 Green

0

Project 10 0 0 Green

0

Etc 0 Green

Commercial

Strategic

Commercial BAU

Commercial BAU

0

0

Compliance

0

0

0

Category

Cost Reduction

Projects by Category

Compliance

Cost Reduction

Customer Experience

Revenue Growth

Acquisition

0

1

2

3

4

5

6

7

Large Medium Small

Amber

Green

Red# o

f P

roje

cts

Project Size

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Div A Div B Div C

Acquisition

Revenue Growth

Customer Experience

Cost Reduction

Compliance

Mature P3Os provide

o Governance – supporting governance through scrutiny

and challenge, ensuring return on investment through

effective management of delivery and risk.

o Transparency – relevant, accurate and timely

information to support decision-making

o Delivery support – ensuring programme, project

managers and operational business managers do things

right and do them well, reducing bureaucracy and

encouraging consistency

o Reusability – embedding industry and sector best

practice and sharing lessons learned

o Traceability – history and documentation.”

14

Example High Level P3O Model

Organisation Portfolio Office

(permanent)

Hub Portfolio / Programme

Office (permanent)

Hub Portfolio / Programme

Office (permanent)

Programme Office

(temporary)

Project Office

(temporary)

Centre of Excellence

•Standards •Skills/training •Assurance •Knowledge Mgmt

© Crown copyright 2008 Reproduced under licence from OGC

15

Measures of an effective PMO o Overall programme and project success rates in relation to capital cost,

duration, operating cost and benefits realisation for each portfolio

o Improved portfolio balance – in terms of overall risk, programme and project

lifecycles, strategic alignment and investment type

o Enhanced contribution to strategic objectives.

o Reduction in programmes and projects started for the wrong reasons –

number of projects stopped

o Predictability of delivery – % increase in number of programmes and

projects delivering to time and scope

o Predictability of cost – % decrease in cost overruns on programmes and

projects

o Reduction in overall resource costs to deliver portfolio

o Skill level assessments and job satisfaction scores

16

Agenda




17

The MSP manual o Introduction and programme

management principles

o The governance themes

o The transformational flow

o Appendices

o Programme information

o Adopting MSP

o Programme Office

o Health checks

o Glossary

o Index © Crown copyright 2011 Reproduced under licence from the Cabinet Office

18

“………temporary, flexible organisations created to

co-ordinate, direct and oversee the implementation

of a set of related projects and activities in order

to deliver outcomes and benefits related to the

organisation’s strategic objectives.”

© Crown Copyright 2008. Reproduced under Licence from OGC

19

Example: ITIL/ITSM Implementation

Programme

Problem

Management

Problem

Management

Change Management

SD/Incident Management

Service Catalogue Management

Tools Implementation & Alignment

Time

Programme Management

Service Asset and Configuration Management

Release and Deployment

Management

Organisational/Cultural ChangeStructural

Alignment

Request Fulfillment

Event

Management

Event

Management

Knowledge Management

Service Level Management

Stra

tegy

Operations

Transition

Design Availability

Management

Capacity

Management

20

A programme vision and coherent target

capability

Target (post program) Capability / Blueprint :

Processes within <organisation> to enable the capability Organisation, people, culture aspects Tools/Technology/Infrastructure/Facilities Information Streams Operational performance of the capability Service portfolio and ‘customers’

Policy & Strategic

Objectives - 1 -

Policy & Strategic

Objectives - 2 -

Policy & Strategic

Objectives - n -

Pro

gra

m V

ision

21

A programme is a multi year transformation

to establish a blueprint

22

Benefits Map

Strategic Objectives

Objective 1

Objective ..

Objective 2

Objective q

Capability

Capability 1

Capability 2

Capability 3

Capability ..

Capability o

Project Deliverables

Project 1

Project n

Project …

Project 3

Project 2

Project 4

Project 5

Benefits

Benefit 1

Benefit 2

Benefit 2

Benefit ..

Benefit P

Agenda




24

Example P3M3 assessment

012345

ManagementControl

BenefitsManagement

FinancialManagement

RiskManagement

StakeholderManagement

OrganisationalGovernance

ResourceManagement

Portfolio Management Target

Maturity

25

Applying P3O and MSP

P3M3 Assessments

Project/Program

Health Checks Accreditation Training

Awareness/Overviews

Envision P3R

Health Checks,

Governance

CSI

Design and Plan a

P3O or Programme

Transform the

PMO/P3O

Initiate Programmes

26

Stepping up to manage

programmes and portfolios Harold Petersen, Director Advisory

[email protected]

Thank You!