Embed Size (px)
DESCRIPTION
Citation preview
Portfolio and Program Management implementation in an European IT
organization
Thomas Walenta, PMPPMM09
Agenda
• Scenario Background• Organizational Project Management• Program Management • Portfolio Management
Large & mature IT organization at Japan HQ
Overall guidance from Japan HQ based on Japanese culture
Full scope of business activities in Japan (research, production, sales)
Architectures mostly based on experience & culture in Japan
Cultural consistent environment
Small & relatively young structures in ‚overseas‘ (Europe, US)
Regional environment & dependencies (Europe: multi-language, -culture, -legislation)
Focus on sales activities ‘overseas’ drives different IT support needs
‘Practical’ solutions with immediate quick wins are preferred
Cultural diverse environment
Challenges for European affiliates of Japanese corporations lead to the need of lean approaches and patience by trying to implement
Organizational Project Management
Organizational Project Management comprises Project, Program and Portfolio Management. All three layers have to be approached
to enhance Project Management maturity within an organization.
Portfolios
Programs
Projects
Strategy
Project Management (PM):Processes, Workproducts, Standards,
community - profession
Program Management (PgM): Integration and Interfaces, benefits
realization, strategic functions
Project Portfolio Management (PPM):Link to Business & Strategy, Populate
and Manage Portfolio
PM ToolProject Staff Development:
Basic education, career development, certification
At a specific organization, approaching organizational project management started with Program Management, was followed by
implementation of a tool and then approached Project Management
Project Management Basics:Standards, processes, templates
(workproducts), tools
Program Management System (PMS): Integration and Interfaces, benefits realization,
strategic functions
Project Portfolio Management (PPM):Link to Business, Populate and Manage
Portfolio
2002 2005
Tactical, deliverables
Strategic, benefits
2012?
Business Transformation
Centre
AgilityEffectivenessEfficiencyWhat is it about
Organization (CEO, COO)Strategic Objective Owner (Business Exec Sponsor)
Program Manager or Project Sponsor
Sponsor
Prioritization of Projects & Management of Resources
Value and BenefitsInterfacesIntegration
Scope and deliverables Focus of Mgmt
In periods, based on management cycle
In stages/projects, based on program plans
In phases, based on milestones
Decision-making
InfiniteTemporary, can be stopped when objectives are met
Finite, short termDuration
Permanently attempt to reach the mission of the organization
Achieve previously agreed and defined strategic objectives, business results
Deliver previously agreed and defined workproducts
Objective
PortfolioProgramProject
„A Program is a group of projects managed in a coordinated way to obtain benefits not available from managing them individually. Many programs also include elements of ongoing operation.“
Selecting the right Program Manager is a critical success factor. Research* indicates that even enhanced Project Management
Capabilities are not sufficient for Program Managers:• Program management work encompasses and extends the agenda, horizon and
disciplines of project management• Program work is seen as shaping, aligning, mediating, developing, nurturing, seizing
opportunities. From within a conception of successful Program Managers, Program work shares many characteristic of strategy implementation and strategic management
• Success, or even excellence, in ‘project management’ is unlikely to be, on its own, a relevant guide to prospective or potential performance in managing complex strategic programs
Example 1: Attitude to Funding:Project Mgr: Budget driven; manages allocated fundsProgram Mgr: Creates funding from achievement – self financing
Example 2: Attitude to Scope:Project Mgr: Defined at outset and fixed until changes authorizedProgram Mgr: Shaped to meet emerging and changing business needs
* UNDERSTANDING AND ASSESSING PROGRAMME MANAGEMENT COMPETENCE., PMI Congress 2003 – Europe, Sergio Pellegrinelli et al.
(Multi)Project Management
ServerOp‘s
Applic.Mainten.
UserHelpDeskProject 4
.........Project 1
Operational Layer Functions(Projects, Teams, Production)
Project 3 Project 5
Project 6Project 2
Sponsors Stakeholders, e.g. Users
Business
SteeringCommittee
The way often seen to manage complex business initiatives concentrates on Project Management, not Program Managementand leaves out the focus on Transition & delivering Business Results
Transition
BusinessResults
Funding
SLF4RelationshipManagement
SpecialistTeam
Program Management
SLF3Organizational
ChangeManagement
SLF2Architectual
Solution Bord
SLF7Test &
TransitionManagement
SLF5Quality
Assurance/ Risk
SLF6Program
MgmtOffice
SLF8Resource
Management
ServerOp‘s
Applic.Mainten.
UserHelpDeskProject 4
.........Project 1
Operational Layer Functions(Projects, Teams, Production)
Strategic Layer Functions
Project 3 Project 5
Project 6Project 2 Enduser
TrainingTeam
SponsorsStakeholders, e.g. Users
Business SteeringCommittee
The Program Management System (PMS) ensures the linkage between involved and affected stakeholder groups and the integration among projects and with ongoing tasks
SLF1BusinessStrategy-> BTC
How Strategic Layer Functions work: Business requests areconsidered by SLF1 (business strategy), evaluated by SLF2
(architecture) and communicated thru SLF3 (Organ. Change Mgmt.)
SLF1 Business Evaluation•Go/No Go Decision
Stakeholders (Users, Management,
etc.)
TechnicalImplementation
(Projects)
SLF 2•Technical Evaluation•Go/No Go Decision
SLF 3•Information and Communication
•Education•Stakeholder Care
Business(Process &
Transformation)Owners
BusinessChange
ImplementationRequestsChanges
Sponsor go / nogo
Feedback loop
The Test & Transition Mgmt. (SLF 7) owns the end-to-end test and transition processes. Architecture (SLF2) sets the
standards for the operational environment.
Production / Operations100% SLA
End2end Test
Test GoLive Prep
After GoLive Support
Implement
Handover
Project(s)
Design Stabilization
SLF 7
Production/Maintenance
Requirements
SLF 2
Transition(s)
Business value
Project Management Leadership Exchange 2004
12
BTC: Business Transformation Center, represents business, owns PPM decisions and process
CCC: Customer Competence Center, part of IT Organization
Supported by the processes and structures of PPM: Project Portfolio Management, Prioritizes business initiativesPMS: Program Management System, Manages business initiatives
BTC CCC
PMS
PPM
Implementation of a Business Transformation Centre (BTC)leads to improved interfaces between business and IT and is a first step to ownership of Portfolio Management
Business IT
SLF1BusinessStrategy
Active and Proposed
Work
ApprovedPortfolio
Prioritization
Business DecisionCriteria
Control workCollect
Assess
Manage
Project PortfolioManagement System
(PPMS)
RegularReportsReviews
BenefitsRealization /
Portfolio Health
Reallocate ResourcesAdjust PrioritiesRemove Completed ProjectsCancel Projects
Business Strategy &Objectives
Propose Strategy change
Funding / Sponsors
Resourcecapacity
Project Portfolio Management can be seen as a repetitive sequence of activities and decisions to ensure that the right work is selected, executed and monitored and delivering the benefits as promised.
Active and Proposed
Work
ApprovedPortfolio
Prioritization
Business DecisionCriteria
Control workCollect
Assess
Manage
Project PortfolioManagement System
(PPMS)
RegularReportsReviews
BenefitsRealization /
Portfolio Health
Reallocate ResourcesAdjust PrioritiesRemove Completed ProjectsCancel Projects
Business Strategy &Objectives
Propose Strategy change
Funding / Sponsors
Resourcecapacity
To start a beneficial Portfolio Management cycle, business objectiveshave to be formulated and transformed into business decision criteriaused to select & prioritize the portfolio of projects to be executed
Active and Proposed
Work
ApprovedPortfolio
Prioritization
Business DecisionCriteria
Control workCollect
Assess
Manage
Project PortfolioManagement System
(PPMS)
RegularReportsReviews
BenefitsRealization /
Portfolio Health
Reallocate ResourcesAdjust PrioritiesRemove Completed ProjectsCancel Projects
Business Strategy &Objectives
Propose Strategy change
Funding / Sponsors
Resourcecapacity
The components of the approved project portfolio will be monitored regularly by the means of a Project Portfolio Management System (PPMS)
Active and Proposed
Work
ApprovedPortfolio
Prioritization
Business DecisionCriteria
Control workCollect
Assess
Manage
Project PortfolioManagement System
(PPMS)
RegularReportsReviews
BenefitsRealization /
Portfolio Health
Reallocate ResourcesAdjust PrioritiesRemove Completed ProjectsCancel Projects
Business Strategy &Objectives
Propose Strategy change
Funding / Sponsors
Resourcecapacity
Regular reviews of benefits realization status and portfolio health may lead to proposed changes to the strategy, and will result in adjustments to the project portfolio.
• Used to drive project (scope, design, etc)
• Started in Analysis Phase, addressed throughout all phases of the project
• Used to engage executives throughout project and to secure support
• Flexible, on-going and accurate
• All benefits owned, measured and tracked
• Business can point to project benefits and have measurements to show benefit recognition
• Project Justification
• Completed in Analysis Phase and put in binder (then on a shelf collecting dust!)
• Executive support of benefit case to secure funding of project
• Static; a point in time
• Benefits generally not measured
• Management left wondering what they received for their money and where the expected benefits went
Benefits Realisation
Business Case
Benefits Realization (BR) takes the Business Case to the next dimension by specifying objectives to a stage of granularity, assigning
(business) owners and creating a BR track
PM Tool
Project Staff Development:Basic education, career development,
certification
All three layers of Organizational Project Management are addressed in parallel while recognizing where they depend on each other.
Project Management Basics:Standards, processes, templates
(workproducts), tools
Project Portfolio Management (PPM):Link to Business, Populate and Manage
Portfolio
2002 2005
Tactical, deliverables
Strategic, benefits
2012?
Business Transformation
Centre
Program Management System (PMS): Integration and Interfaces, benefits realization,
strategic functions
Takeaways
• Organizational PM maturity requires improvements in all 3 layers of strategic PM: Project, Program and Portfolio Management
• Each of these layers may be started in parallel, but they depend on each other if further developed
• Quick wins for Project, Program and Portfolio Management should be put in the context of Organizational PM to prepare presentation of a full concept for achieving OPM maturity
• Business benefit realization is a major contribution of fully implemented Project Portfolio Management
• Portfolio Management provides a strong linkage to business strategy and objectives by selecting the right work to do and by monitoring if benefits are realized
