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Project Portfolio Management for Everyone
Knowth Consulting Presents
Standard Assumptions About Project Portfolio Management
Need to begin with a top down strategy and direction
Executives drive the PPM process. PMs and functional managers have no control
The more mature the PM process the better
Detailed project reporting is necessary to support analysis
Task level staffing and time cards by task are required to get a handle on resource utilization
The PPM Pyramid
Culture
Power Rules
ProcessMat
urity
Goals
Operating in the Value ZonePortfolio
Management
Project Management
OrganizationalInfrastructure
& Culture
The Zone
Defining the Value Zone Alignment – Do the projects
contribute to the strategic goals of the company?
Alignment
Innovation – are we receptive to and do we invest in something New?
Inno
vatio
n
Fit – is this project doable with the resources we have now?
Fit
Value – is the value received worth the effort?
ValueZone
Introducing Scalable PPM
Intended to be culturally neutral
Intended to support top down or bottom up management
Stresses Communication Risk Management Leadership
Assumes a WIFM of increased promotability
Focuses on Value Based Decisions
PPM Pyramid and the Language of Resource Management The Role of Executive
Management is to Allocate the money and the people
The Role of Functional Management is to Manage the money and the people
The Role of Project Management is to spend the money and support the people
PMs and Project Teams
Functional Management
Executive Mgmt
The PPM Process - Executive Management’s Responsibilities
Determine Strategy
Select Top Tier Projects Innovate“Mind the Gap”
Apportion remaining Funds
Infra-structure: 45%
Apportioning Funding
Utility:20%
Enhancement: 10% 15%
Frontier: 10%
Invest – 30%
10 %
Manage – 35% Optimize – 35%
Conventional Functional Management Responsibilities
Re-evaluate list of new projects Confirm resource availability Confirm cross-project dependencies
Evaluate maintenance and enhancement efforts (M&E) Confirm resource availability
Establish monitoring procedures Project steering committee
Scalable PPM – Functional Management Responsibilities
Determine Strategy
Select Top Tier Projects Innovate“Mind the Gap”
Apportion Remaining Funds
Analyzing the Current State
Inventory and Assess Assets
Assess Value in current IT products and services What do we have? When was it
implemented
How is each system working? Limping Meets Exceeds
Can this system be used elsewhere?
Current Systems
New Projects
Scalable PPM – Functional Management Responsibilities
Determine Strategy
Select Top Tier Projects Innovate“Mind the Gap”
Apportion Remaining Funds
Analyzing the Current StateImputing Strategy
Balance ResourcesEliminate Projects
Align People with Resource Requirements
People Identify
Current Skills Identify
Current Capabilities
Identify Growth opportunities
Encourage Cross-training
Make sure no one is struggling
Resources Identify resources
types for projects Understand
availability and capacity of generic human resources
Assign resources to projects
Establish the relationship between resource constraints and project status
Techniques for Eliminating Projects that Fail the Value Equation
Re-assign resources (starve)
Re-design (merge two projects)
Re-move (eliminate a cancelled project)
Re-schedule (delay, move to pipeline)
Re-scope
Re-classify
Scalable PPM – Functional Management Responsibilities
Determine Strategy
Select Top Tier Projects Innovate“Mind the Gap”
Apportion Remaining Funds
Analyzing the Current StateImputing Strategy
Balance ResourcesEliminate Projects
Define Measurements
Conventional Project Management Responsibilities Responsible for soliciting weekly
work plan
Responsible for evaluating risk of task completion
Responsible for keeping the focus on feature driven prioritization
Accountable for recommending changes and solutions based on emerging information
Scalable PPM – Project Management’s Responsibilities
Determine Strategy
Select Top Tier Projects Innovate“Mind the Gap”
Apportion Remaining Funds
Analyzing the Current StateImputing Strategy
Balance ResourcesEliminate Projects
Define Measurements
Execute Projects
Report on Performance
Scalable PPM Project Management Responsibilities
Understand the Value Proposition of your project
Make sure that you have identified the risks on your project in a manner that is meaningful to top Management No more than three risks Have a clear contingency and/or mitigation
strategy Make sure you are communicating the right
message to the right people Understand the value to your stakeholders Understand your progress in delivering that
value Practice Servant Leadership
Your team creates the results – You remove roadblocks
The Scalable PPM Process
Define Measurements
Determine Strategy
Select Top Tier Projects Innovate“Mind the Gap”
Apportion Remaining Funds
Analyzing the Current StateImputing Strategy
Balance ResourcesEliminate Projects
Execute Projects
Report on Performance
Principles of Scalable Portfolio Management Everyone is
accountable Need to have goals
Everyone is responsible Need to have
performance measures
Everyone should practice continuous collaboration
No one should struggle
Strategic Objectives
Potential Projects
Resources
Optimum Portfolio
Risks
The Benefits of Scalable Project Portfolio Management
A technique for allowing companies to align their process to their culture without sacrificing their PPM efforts
A method for imputing strategy and gaining consensus
An approach that allows all levels of management to participate in managing their portfolio of projects
A value based approach to portfolio decisions
Resources for more information about Scalable Project Portfolio Management
Ask us for a copy of this presentation Go to http://finance.groups.yahoo.com/group/scalableppm/
and join a discussion on portfolio management
Go to the knowledge Center at www.knowth–consulting.com for more papers and book reviews on project portfolio management
