A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related
A program is group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programs include an element of ongoing work and may include elements or related work outside the scope of discrete projects in the program
A temporary endeavor undertaken to create a unique product, service, or result
Putting the P’s together – A High Level Project Portfolio Management Model NPI Technology Operations New Objectives Complete A N N U A L Quarterly Monthly Strategic Planning Project Management Business Unit Planning Project Portfolio Management Post Audit Strategic Initiatives A B C ssess Value alance Capacity ommence Execution Remove Low Value Projects Reassess Executing Projects Programs Capital Management
Portfolio Management linked to Strategic Planning
Portfolio Management is the middleware between Strategic Planning and Project Delivery.
Portfolios provide a cohesive view to track and align the priorities as set by the Strategic Planning process.
Program Management linked to Strategic Planning
Program Management provides the alignment of Strategic Objectives to delivery streams (programs) that achieve business value as set by the Corporate Strategic plan.
Programs provide the intersection framework between Strategic Objectives and Technology infrastructure and provide a clear alignment to Executive Sponsors.
Through these programs, Funnel management is aligned to the weight associated with each program and thus with each Strategic objective in terms of priority and value to the strategy.
Project Portfolio Management Detailed Model Unapproved Cancelled In-Progress Projects On-Hold Projects Portfolio Screening New Projects Project Scoring Portfolio Ranking Portfolio Simulation Out of Capacity Complete A N N U A L Quarterly Monthly Portfolio Monitor Pre-Assessment Approved and not Resourced Strategic Planning Project Management Business Unit Planning Project Portfolio Management Post Audit Strategic Initiatives In-Progress Projects On-Hold Projects Screened Approved Unapproved
A-B-C Process of Project Portfolio Management Project Management
Issue Portfolio Makeup
Emphasize link to Strategy
Re-plan existing projects
Start New projects
Terminate misaligned projects
Mitigate Portfolio Risk
Optimize Portfolio Value
Simulate Alternative Scenarios
Equalize Capacity and Demand
Reallocate key Resources
Change, add, Delete project schedules
Do Projects meet Watershed Criteria?
Review Project Resource needs & Variances
Identify dependencies and overlaps
Program Management Commence Balance Assess Portfolio Management
Display project ranking based on criteria such as total score, cost, revenue, risk level, ROI, and others.
Override projects from “Approved and not resourced” to “Unapproved”, based on corporate strategy and business objectives
Projects are qualified (rejected or approved) based on internal goals and predefined threshold metrics such as cost, risk, IRR, risk level, and ROI.
Newly screened, on-hold, out of capacity, or in progress projects are filtered through this process.
Based on predefined scoring criteria, projects are sorted.
Filter projects based on high-level watershed criteria.
New projects are entered once management reach consensus on which projects are aligned with business objectives
Project Screening Functionality Process
Project Portfolio Management Processes… continued Functionality Process
Define portfolio group threshold and corporate threshold criteria.
Based on company’s specific business goals, define scoring rules and metrics.
Define resource pool and skill inventories
Define project alert criteria
Alert appropriate individuals when critical schedule, financial, or resource thresholds are exceeded or project conflicts arise.
Monitor overall performance of “Approved” or “In-progress” projects.
Change the state of projects – put project on hold, cancel project, or change project from “In-progress” to “Complete”
Simulate “Approved and not resourced” and “Must do projects” and select ones that fit budget and resource constraints.
Put unselected or “Out of capacity” projects back to the screening module.
Ensure that “Must do projects” are approved.
Manage skills inventory for optimum utilizations. Allocate resources on projects, move resources from one project to another, put resources back on the resource pool.
Build a portfolio plan with 3 P’s in mind Construction Stage deliverables & dependencies Project deliverables & dependences Program deliverables & dependencies Portfolio deliverables & dependencies
Executive Portfolio Summary Yellow $200K $275K 28/NOV/03 10/FEB/04 40% Introduce ePost - VP Billing Green $300K 23/SEP/03 60% Create Marketing Campaigns - VP Billing Promote eBilling Reduce Invoice Production cost by 20% Billing Billing Status Original & Current Budget Original & Current End Date % of Objective Project Idea & Sponsor Objective Program Strategic Initiative