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Complete kit to set-up
initiatives portfolio
management
March 21, 2017
Juha-Matti Saario
Executive summary
Program Management Office (PMO) to drive a strategic approach to portfolio decision making for non-drug and non-volume driven projects
Establish a strategic decision making framework and governance that applies a similar rigor as for drug development projects
Drive a project toll-gate mindset with budget endorsement through portfolio management meeting
Assign project management leadership
• Getting resources
• Driving projects
• Passing toll-gates
Have a roadmap of tollgate decisions for the projects in scope
Initiatives Portfolio Management (IPM) operation model
Key roles and responsibilities
• IPM suggests and endorses new initiatives and provide initiative presentation material
• Sponsor (IPM member) helps recruit and deploy the right talent to approved projects, and discuss training needs
• Project Leader drives implementation and provide IPM with presentation material for stage-gate reviews
• PMO supports project portfolio prioritization and provide tollgate roadmap
• IPM network continuously improves and advises on project methodology, governance processes and related project systems
Initiatives Portfolio Management
SponsorLeader
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SponsorLeader
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SponsorLeader
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PMO
IPM network
Initiatives Portfolio Management (IPM) terms of referencePurpose Objectives
The IPM is a (cross) functional peer review team which objectively assesses current and candidate projects in the portfolio and approves any new initiatives and stage-gate reviews.
• Propose new initiatives for endorsement• Review and align on the key projects in the current project portfolio and their lifecycle stage• Ensure that all projects have consistent project charters and business cases, which aim to identify the contribution
to achieving strategic targets and identify the sponsor and project manager. (Please note, for in-flight projects, where there are no robust business cases then a rapid assessment of the projects will be undertaken to determine their key parameters, which are cost, resource requirements, and contribution to strategic objectives)
• Generate quick wins in identifying, reorienting or stopping initiatives that are not clearly contributing to strategic objectives, lack clear sponsorship or may overlap with other initiatives
• Build and enforce program and portfolio management best practice
Chair Members Frequency
Head of PMO Members of management team Biweekly / Monthly
Inputs Supplied by Roles and responsibilities Outputs Customer
1. Initiative proposals2. Project input material3. Portfolio tool
1. IPM members2. Project leads3. PMO
• Ensures that each project within the portfolio adheres to the applicable methodology
• Reviews and approves project tollgate transition requests• Decides on prioritization of all projects
IPM member• Ensures the governance processes are followed by all projects
within their respective areas of the organization• Serves as a primary point of escalation for all projects within
their respective areas of the organization
a. Action logb. Updated portfolio
tool
a. IPMb. IPM network
Scorecard driving in-scope projects
and priorities
Scorecard delivers significant benefits
Ensure strategic fit Provide transparency Factor in risk and cost
The need to manage the portfolio to ensure it delivers the strategic aims and provides the greatest return on investment
The need to provide visibility of progress to ensure decisions are
based on reliable information
Credible change for success comes from structured
planning and taking smart risks
Scorecard creation process
Define strategic objectives and metrics for measuring success, risk and investment
Uncover hidden projects and apply metrics to determine optimal fit, risk and investment weighting
Assign resource and group projects to initiatives to develop roadmap for project management
Perform portfolio review with core team and coach project leaders to deliver on time and quality
Communicate and celebrate success with the organization quarterly
Date 1Kick-off Date 2 Date 3 Date4
Decision tree to determine in-scope projects
Is this a non-volume driven project?
Does it require QIPM oversight?
Not in scope
Does this fulfill project definition (limited duration > 3
months)?
Does this address our strategic goal, or meet critical business
need?
In scope
Is this cross-functional, internal, or compliance
project?
Internal projectCross-fucntional
projectCompliance
project
No
Yes
Yes
Yes
No
No
No
Yes
Apply scorecard
Prioritization is based on calculated composite score
Composite score
Strategic fit score(4-point scale)
Innovation x 0.5Productivity x 0.3People & culture x 0.2
Risk score(4-point scale)
Complexity factor x 0.6Resource risk x 0.4= Strategic fit – (Risk x 0.2)
=SUM
=SUM
Strategic fit and Risk score calculationStrategic fit criteria 1 Low 2 3 4 High Weight
Innovation NoneImproves existing
solutionNew solution
in-houseIndustry first 0.5
Productivity NoneShort-term impact,
few impactedLong-term gain, many impacted
Immediate gain, many impacted
0.3
People & culture None SupportCulture is one of
the driverBig Boost 0.2
Total weight must equal 1.0 1.0
Risk criteria 1 Low 2 3 4 High Weight
Complexity factor• Novel approach / immature technology• Multiple functions• Multiple geographies• Links to projects with external partners• Resistance to change / cultural factors• Exposure to unforeseen events• Dependencies to other internal projects
0 or 1 factor 2-3 factors 4-5 factors 6+ factors 0.6
Resource risk• Large team• Majority staff part-time• Requires specific expertise• Reliance on subcontractors
0 factors 1 factor 2-3 factors 4 factors 0.4
Total weight must equal 1.0 1.0
Standardized project phases and tollgates for progress reporting
Share your thoughts and
ideas for improvement
Juha-Matti Saario
