Stepping up to manage programmes and portfolios by Mr Harold Petersen

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Stepping up to manage programmes and portfolios by Mr Harold Petersen

  1. 1. Stepping up to manage programmes and portfolios Harold Petersen, Director Advisory harold.petersen@uxcconsulting.com.au
  2. 2. 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
  3. 3. Why do projects and programmes fail? 3
  4. 4. Project Management silos 4
  5. 5. Align, control and optimise your portfolio of initiatives, its deliverables outcomes and benefits 5
  6. 6. 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
  7. 7. 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 7
  8. 8. 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. 9. 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
  10. 10. “……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
  11. 11. Example portfolio 11
  12. 12. 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 AlignmentwithStrategy 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
  13. 13. 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 Total $ Portfolio 3,000,000 Total Benefit of Portfolio 2,620,000 By Division Division B Total # Projects 4 Total $ Portfolio 3,250,000 Total Benefit of Portfolio 1,450,000 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 Overall Schedule Budget Risksand Issues Benefits Project StartDate Current Stage Gate Next Stage Gate NextGate DueDate Forecast Project EndDate Project Manager Comments Month1 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 #ofProjects ProjectSize 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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 17
  18. 18. 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
  19. 19. “………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
  20. 20. 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 Change Structural Alignment Request Fulfillment Event Management Event Management Knowledge Management Service Level Management Strategy Operations Transition Design Availability Management Capacity Management 20
  21. 21. 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 - ProgramVision 21
  22. 22. A programme is a multi year transformation to establish a blueprint 22
  23. 23. Benefits Map Strategic Objectives Objective1 Objective.. Objective2 Objectiveq 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
  24. 24. 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 24
  25. 25. Example P3M3 assessment 0 1 2 3 4 5 Management Control Benefits Management Financial Management Risk Management Stakeholder Management Organisational Governance Resource Management Portfolio Management Target Maturity 25
  26. 26. 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
  27. 27. Stepping up to manage programmes and portfolios Harold Petersen, Director Advisory harold.petersen@uxcconsulting.com.au Thank You!

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