STANDARD PORTFOLIO PROJECT MANAGEMENT

Portfolio Management Overview & Organization

• Portfolio Management Process– Strategy & Investment Alignment– Portfolio Component Management Life Cycle– Portfolio Management Process Cycle– Establishing Portfolio Management Process

• Portfolio Stake Holder Roles & Responsibility• Organizational Influence:– Organizational Culture– Economic Impact– Organizational Impact– Enterprise Environmental Factors

Specific unit organisasi masing-masing

Portfolio Stakeholder

1. Executive Review Board

2. Portfolio Process Group

3. Portfolio Management Board

4. Portfolio Managers

5. Sponsors

6. Program Managers

7. Project Managers

8. Program/Project Management Office

9. Marketing Management

10. Operation Management

11. Engineering Management

12. Legal Management

13. Human Resources Management

14. Functional Management

15. Finance Management

16. Customers

17. Vendor & Business Partner

Portfolio Management Process

• Portfolio Process Management Interaction• Portfolio Management Process Group• Aligning Process• Monitoring Controlling Process

Portfolio Management Knowledge Area

• Portfolio Governance1. Identify Components

2. Categorize Components

3. Evaluate Components

4. Select Components

5. Prioritize Component

• Portfolio Risk Management1. Identify Portfolio Risk

2. Analyze Portfolio Risk

3. Develop Portfolio Risk Register

4. Monitor & Control Portfolio Risk

6. Balance Portfolio Adjustment 7. Authorize Components 8. Review & Report Portfolio Performance 9. Monitor Business Strategy Changes10.Communicate Portfolio Adjustment

Process & Knowledge Area

Portfolio Management Process GroupProcess

Knowledge AreaAligning Process Group Monitoring & Control Process Group

PortfolioGovernance

Identify Components (4.1) Review & Report Portfolio Performance(4.9)

Categorize Components (4.2) Monitor Business Strategy Change (4.10)

Evaluate Components (4.3) Communicate Portfolio adjustment (4.7)

Select Components (4.4)

Prioritize Components (4.5)

Balance Portfolio (4.6)

Authorize Components (4.8)

Portfolio RiskManagement

Identify Portfolio Risk (5.1) Monitor Control Portfolio Risk (5.4)

Analyze Portfolio risks (5.2)

Develop Portfolio Risk Responses (5.3)

Project Portfolio Management Process

Current Strategic Plan:• Goals

definitions & Categories• Key

Performance Criteria

Capacity Definition

Analyse Portfolio Risk

Identify Portfolio Risk

Sellect Components

Evaluate Components

Categorize Components

Identify Components

Communicae Portfolio

Adjustment

Authorize Components

Balance Portfolio

Develop Portfolio Risk responses

Proritize Components

Monitor Business Strategy Changes

Review & Report Portfolio

Performance

Monitor & Control Portfolio

Risk

Conmponent Execution and

Reporting

Strategic Planning Process output: Current Strategic

PlanAligning Process Group Monitorin &

Controlling Process Componet Procees

Sigficance Change

Aligning Process Group

Identify Components

Identify Components

• Evaluating ongoing components and new components proposal against pre-determined portfolio and component definitions and related key descriptions

• Projectting components that do not fit within the predetermined definition(s),and

• Calssifiying identified components into predefined calsses, such as project, program, portfolio and other works

Identify Components- (Governance)

• Strategic plan

• Component definition

• Component key descriptions

• Inventory of all existing components

• New component proposals

• Documentation of all inventoried components based on key descriptors

• Comparison of all inventoried components with component definition

• Identification of components

• Expert judgment

• List of components

• Key descriptions for each component

• List of rejected components

Input Tools and technique Out puts

Component Register

• Project ID number• Project/Program Name• Business case• Brief Scope• Strategic Objective to meet• Key Deleiverables• Estmated Duration• Estimated Cost• Resources Needed• Risk Aseesment

Categorize Components

Categorize components

• Identify relevants strategic categorize relevant components based on the strategic plan

• Comparing identified to the categorization criteria, and

• Grouping each components into only one category

Categorize Components- (Governance)

• List of components • Key descriptors for each component• Category definitions

• Categorization of components • Expert judgment

• List of categorized components

Inputs Tools and technique Out puts

Evaluate Components

Evaluate Components

• Evaluating components with scoring model comprising weighed key criteria

• Producing graphical representations to facilitate decision making in the selection process, and

• Making recomendations for selection process

Evaluate Components- (Governance)

• Strategic plan • List of categorized

components • Key descriptors for

each component

• Scoring model comprising weighted key criteria

• Graphical representations.

• Expert judgment

• List of evaluated components

• Value score for each component

• Graphical representations

• Evaluation process recommendations

Tools and techniqueInputs Out puts

Evaluation Checks

• Still meet objectives?• Have risk exceed the plan?• Still aligned with strategic obejctives/• Cost?• Any unnecessary featured added?• Resources effectiveness?• Dependency with other project?• Conflicts between components?• Any Redundancy?

Ranks

• Strategic Value• Ease of Implementation• Market needs• Financial benefit (ROI,IRR)• Cost• Resources Capacity

SELECT COMPONENT

Select Components

• Comparing components to selection criteria• Selecting components based on the evaluation

results, and• Producing a list of components for

prioritization

Select Components- (Governance)

Strategic plan List of evaluated

components Value score for each

component Graphical

representations Organizational

resources Evaluation process

recommendations

• Human resource capacity analyses

• Financial capacity analyses

• Asset capacity analyses

• Expert judgment

• List categorized, evaluated, selected and rejected components

• Selection process recommendations

Inputs Tools and techniques Out puts

Select Component

• Memilih proyek dimana organisasi mampu melaksanakan dilihat dari kapasitas dan kapabilitas sumberdaya organisasi, sumberdaya manusia, keuangan dan sarana

• Selanjutnya proyek-proyek yang dipilih dilakukan proses prioritasi

Concept or Needs

Identified

Sponsor Prepare

Business case

Review Proposal against

Prequalification

Submit Proposal to PMO

Ranking

Project Selection

Appeal & Sign off by GC

PPM Selection and Ranking Criteria

PMO Review

Prequalification Template

Prequalification Current

Tactical PlanStrategic Planning Process

Project Charter

Initiate Project

TracK ProjectPerformance

PMO Review

Delay or Terminate

Select PPM Tools

Change to PMO

PPM Process Defined

PPM Executive Charter

PPM OrganizationGovernance Council

BucketsRisk

Standard

Financial

Resources

If Rejected by PMO

OtherPropos

al

Select Integrated

Tools

Proposal Process Ranking and Selection

Prequalification Standards

Strategic Tactical Planning

Develop PPM Process On Going

Periodic

One time

Identify Portfolio Risk

Identify Portfolio Risk

• Structural Risks• Components Risks• Overall Risks

Identify Portfolio Risks-(Risk)

• Enterprise environmental factors

• List of categorized, evaluated, and selected portfolio components

• Organizational process assets

• Portfolio management plan

• Escalated component risks

• Documentation reviews

• Information gathering techniques

• Checklist analysis • Assumptions analysis • Diagramming

techniques

• Portfolio risk register

Inputs Tools and technique Out put

Analyse Portfolio Risk

Analyse Portfolio Risk

• Prioritizing identified Portfolio Risk

Analyze Portfolio Risks-(Risk)

• Portfolio risk register • Portfolio

management plan

• Risk probability and impact assessment

• Risk combining and modeling techniques

Tools and technique

• Portfolio risk register updates

• Portfolio risk exposure charts

Inputs Out put

Prioritizing Components

Prioritizing Components

• Confirming the classification of components in accordance with pre determined strategic categories

• Assigning scoring and weighted criteria for ranking components –against what?, and

• Determining which components should recieve highest priority –against strategic goals? within portfolio

Prioritize Components- (Governance)

• List of selected components

• Selection process recommendations

• Weighted ranking • Scoring techniques• Expert judgment

• List of prioritized components within each strategic category

• Supporting documents to prioritized component list

• Inputs• Tools and

technique• Out puts

Single Criterion Model

Multiple Criteria

Develop Portfolio Risk Response

Develop Portfolio Risk Response• Identified risk, their description, their causes, area(s) of the portfolio

(component, etc)• Risk owners and assigned responsibilities• Outputs from Analysed Portfolio Risk process, including lists of portfolio

risks and probabilistik analysis;• Specific actions to implement the chosen response strategy along with

the identification of designated risk response owner• Symptoms and warning of the risk occurence• Budget and schedule components required for implementation the

chosen responses• Contingency reserves of time and cost designed to provide for

stakeholders’ risk tolerances• Contingency plans and triggers for their execution

Develop Portfolio Risk Responses-(Risk)

• Portfolio management plan

• Portfolio risk register• List of prioritized

components within each strategic category

• Response strategic selection

• Scenario analysis

• List of prioritized components within each strategic category

• Supporting documents to prioritized component list

Inputs Tools and technique Out puts

Portfolio Balancing

Balance Portfolio

• Adding new components that have been selected and prioritize for authorization

• Identifying components that are not authorized on the review process; and

• Identifying components to be suspended, reprioritized, or terminated on the review process

Balance Portfolio (Governance)

• List of prioritized components within each strategic category

• Portfolio management criteria

• Portfolio management performance metrics

• Capacity constraints • Portfolio rebalancing

recommendations from reporting and review

• Portfolio risk register

• Cost benefit analysis • Quantitative analysis • Scenario analysis • Probability analysis • Graphical analytical

methods • Expert judgment

• List of approved portfolio components

• Master list updates• Approved portfolio

component allocation updates

Inputs

Tools and techniques

Out puts

Balancing

• Purpose of Portfolio?• Resources: Capacity vs demand?• Current vs Future?• Maximum value to business?• Allocation of critical Resources?• Resources & Project aligned with company’s

objective?• Any redundancies?• Any immediate reaction needed: accelerate,

hold, maintain, or cancel?

Portfolio Balancing using indicators

Portfolio Balancing Menggunakan Kategori Strategi dan BU yang ditargetkan

Communicate Portfolio Adjustment

Communicate Portfolio Adjustment

• Communicating portfolio decisions to key stakehoders, both for components included in and those excluded from portfolio

• Acquiring stakeholders with the communications paln which may include review cycle, time lines etc; and

• Communicating expected and actual portfolio results, identifying variances and corrective action

Communication Portfolio Adjustment- (Governance)

• New criteria • Strategic plan update• Portfolio reporting and

review outputs • Organizational process

assets • Stakeholder

expectations and requirements

• Communication requirements analysis

• Portfolio management roles and responsibilities document

• Portfolio management communication plan

• Portfolio communications

• Tools and techniques

• Inputs • Out puts

Authorize Components

Authorize Components

• Authorizing selected components, deactivating, terminating components of the portfolio

• Allocating resources to execute selected portfolio components

• Reallocating budegt and resources from deactivated and terminated components and

• Communicating expected results (e.g. Review cyccle, tiemline performance metrics, and required deliverables) for each selected components

Authorize Components- (Governance)

• List of approved portfolio components

• Component funding requirements

• Component resources requirements

• List of deactivated and terminated components

• Portfolio management roles and responsibilities document

• Portfolio management communication plan

• Portfolio authorization process

• Additions to the active component inventory

• Component expectations updates

• Approved component resource allocations and expectations

• Excluded components • Portfolio milestone

Inputs Tools and techniques Out puts

Monitoring and Controlling Process Group

Monitor & Control Portfolio Risk

Monitor & Control Portfolio Risk

• Keeping track of the identified risk including those on the watch list

• Monitoring trigger conditions and, as necessary, invoking the corresponding contingency plans

• Monitoring residual risk• Reanalysing existing risk• Tracking changes in the stakeholder

community• Reviewing the execution of risk responses

while simulatneously evaluating their effectiveness and

• Identifying, analyszing and planning for newly arising risks

Monitor Control Portfolio Risk –(Risk)

• Portfolio management plan

• Portfolio risk register • Strategic goal

achievement reporting • Component data

• Portfolio risk audits • Variance and trend

analysis • Status meetings• Portfolio risk

reassessment

• Portfolio change requester

• Portfolio risk register updates

• Organizational process assets

• Inputs• Tools and

techniques• Out put

Review and Report Portfolio Performance-

Review and Report Portfolio Performance

• Review components sponsorship, accountability, and other ownership criteria against organizational governance standards

• Review component priorities, dependencies, scope, expected returen, risk, financial performance against portofolio control criteria adn organizational value and investment criteria

• Reviewing expected impact of business forecats, resource utilization, and capacity constraint on portfolio performance

• Determine whether to continue with, add to, or terminate specific compnents or to reprioritize and realign with the strategic goals

• Making recomendation and/or providing direction to component management and

• Proposing changes to how portfolio is managed (as needed)

Review and Report Portfolio Performance- (Governance)

• Component data• Resource allocation

and capacity data• Environmental

constraints • Organizational

governance standards, controls, and constraints

• Evaluations and selection criteria

• Key performance indicators (KPIs) updates

• Strategic goals and strategy

• Portfolio management criteria

• Project / portfolio management system

• Financial reporting systems

• Performance measurement techniques

• Graphical representations

• Portfolio management resources

• Portfolio management performance variance / alert techniques

• Directives regarding components

• Portfolio rebalancing recommendations

• Recommendations to business

• Refined selection criteria • Key performance

indicators (KPIs) updates • Strategic goal

achievement reporting

• Inputs • Tools and technique

• Out put

Monitor Business Strategy Changes-

Monitor Business Strategy Changes- (Governance)

• Portfolio reporting and review

• Strategic plan update

• Expert judgment • Criteria re-weighting • Graphical

representations

• New criteria

Inputs Tools and Technique Out put

Scope

Change

Leadership

Success

Management

Monitoring

Planning

Edisi 1