Earned Value and Portfolio 
Management ‐
What does it look like?
Presented by David Dunning, Professional Services Directo...
Corporate Project Solutions
• People
Recruitment
– Permanent
– Interim positions
Training 
– Maturity/Capability Assessmen...
Agenda
What is Portfolio Management?
• “A portfolio is the investment in the changes 
required to meet strategic objectives “
– P...
Ability to IdentifyBusiness Value Potential
(Portfolio Management)
Ability to Deliver and Realise Business Benefits
(Progr...
Align Investment to Strategy
Optimisation of project selection promotes strategic priorities
UnalignedUnaligned
OptimisedO...
EVM – Corporate or local?
I can run a project and…
•Manually collect data carry out EVA
– Time consuming
– Aggregation iss...
Corporately…
Good Planning
& Estimating
(Historical
Data)
Work Package
Management
Effective
Risk Management
Progress
Manag...
What Makes this so difficult?
Uncertainty
/ no relevant
historical data
Poor Scope
statements
WBS Design?
Ad hoc Risk
prac...
Benefits of Portfolio Management
• Increase the proportion of projects and programmes directly linked 
to the corporate st...
But ‐ What is the Cx level need?
• What is does my strategy mean in terms of 
Change? Can we actually do it?
• How much wi...
Benefits of Portfolio Management to 
EVM
• Highest Level Commitment implicit
• Support and Governance provided
• Bottom to...
What do I have to Address?
Organisation
Process
People
Technology
Strategy
Organisation Components
• Strategy Office
– Do we have “bright buttons” who 
can assist thought leaders with detail 
and a...
Project Organisation
Center of 
Excellence
Project 
Organisation
Governance
Is this one central function?
Process, Standar...
What to do to get going…
Establish ‘Organisational 
Will’ at the right level
Devise a problem 
statement – to gain 
stakeh...
How to go about it?
• Tranche 1 – contains step 1 in the 
Vision = CONSOLIDATION
– Assessment
• Organisation / capability ...
To find out more & stay in touch…
http://www.apm.org.uk/group/portfolio‐management‐sig
Thank you for listening!
David.Dunning@CPS.co.uk
01628 895600 / 07767 803540
LinkedIn
http://uk.linkedin.com/pub/d
avid‐du...
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Earned Value and Portfolio Management - What does it look like - David Dunning

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This is one of many excellent presentations given over the last three years of the eVa in the UK series. They can also be found in the archive at: http://evaintheuk.org/archive along with back-copy video footage in http://evaintheuk/pmchannel
EVA19, the long established Earned Value conference, has this year described its theme as looking at a project management ‘ABC’ – Agile, Benefits and Complex.
The four day event, which returns to the Armourers Hall, runs from the 19th to 22nd of May with the flagship conference being held on 20th and 21st May and workshops before and after.
The conference will look at how this ‘ABC’ can be made to work within a portfolio and how agile fits into major and minor projects. It will investigate how to manage the relationship between portfolio benefits and project budgets, and whether complex projects even exist.
Conference organiser and APM chairman, Steve Wake says:
“Currently there is little evidence that this ‘ABC’ is being effectively deployed and managed. This conference aims to address that concern through EVA’s trademark blend of learning and professional development. Case studies and unusual presentations, delivered by top-notch speakers and experienced practitioners, will again engage and entertain the audience.
We’ve used string quartets to illustrate points in the past and this year we will be using a Blues band for the first time.”
Speakers across the two days include many familiar faces from the APM events programme including; Adrian Pyne of the APM ProgM SIG ‘Changing the project wasteland with a portfolio culture that works,’ APM Honorary Fellow Tim Banfield Director at the Major Projects Authority and Stephen Jones, Sellafield and Planning Monitoring and Control Specific Interest Group (PMC SIG) and Carolyn Limbert of the APM PMC SIG to talk about agile, benefits and complex.
Peter Taylor, the Lazy Project Manager will be presenting on “The project manager who smiled” and the ever popular Stephen Carver will present the leadership lessons that can be learnt from Alfred the Great.
In addition, there will be speakers from AIRBUS, TfL, Bloodhound, Heathrow T2 and London Tideway Tunnels.
The conference will be supplemented by a number of workshops being held at the Chartered Institute of Arbitrators, Bloomsbury Square on Monday 19th and Thursday 22nd May 2014.
'eVa in the UK' http://evaintheuk.org is building a reputation, brand and a learning legacy for the Project Management Profession. The event series is now in its nineteenth year. It is almost as if it all kicked-off when Steve Wake was in short trousers and knights roamed the land on their chargers!
#eva19 is an excellent example of Listening, Learning and Leading #apmLLL in action, and great opportunity for professional development.
I would encourage anyone who is interested in 'Building a better Project Manager,' to take a look at the web site book your place and get involved.

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Earned Value and Portfolio Management - What does it look like - David Dunning

  1. 1. Earned Value and Portfolio  Management ‐ What does it look like? Presented by David Dunning, Professional Services Director, CPS With the release of the P3O® Best Practice guidance through its first  anniversary, the release of MoP, and the continual necessity to focus on the  right projects and programmes for scarce business resources, how do the  enablers for portfolio management help us with Earned Value Management as  a set of delivery controls? How do I get on the road to this and how can I make  a case to a sceptical organisation? P3O® and MoP® are Registered Trade Marks of the Office of Government Commerce.
  2. 2. Corporate Project Solutions • People Recruitment – Permanent – Interim positions Training  – Maturity/Capability Assessment – Planning – Process based – Microsoft Project – EPM Administration • Process P3O® Services  Change Management P3RM Consulting • Technology Microsoft Platforms – Project Server (EPM) – Project Portfolio Server – MOSS / SharePoint CPS Solutions
  3. 3. Agenda
  4. 4. What is Portfolio Management? • “A portfolio is the investment in the changes  required to meet strategic objectives “ – P3O® • Portfolio Management ‐ Coordinated strategic  processes and decisions to balance  organisational change and business as usual • It is not ‘bigger project / programme  management’ Context
  5. 5. Ability to IdentifyBusiness Value Potential (Portfolio Management) Ability to Deliver and Realise Business Benefits (Programme / Project Management) 100% 100% 0% Value Lost Programme and Project  Management enables  organizations to  successfully deliver the  selected business value  opportunities ‐ THINGS RIGHT Prog. /  Project  Mgt. Portfolio Management enables  organisations to identify and select the  investments that will maximise business  value – RIGHT THINGS Portfolio  Management 60% Value Realised (average company today?)
  6. 6. Align Investment to Strategy Optimisation of project selection promotes strategic priorities UnalignedUnaligned OptimisedOptimised
  7. 7. EVM – Corporate or local? I can run a project and… •Manually collect data carry out EVA – Time consuming – Aggregation issues – I can do this if I want to… •Hook it into Corporate tools – Clear governed and supported process – Common tools – Common will – hard to do… Corporate  or Local?
  8. 8. Corporately… Good Planning & Estimating (Historical Data) Work Package Management Effective Risk Management Progress Management Baseline / Change Control Actual TimeActual Costs System Interfaces Specialist Reports Standards, Processes and Roles
  9. 9. What Makes this so difficult? Uncertainty / no relevant historical data Poor Scope statements WBS Design? Ad hoc Risk practices Progress Mgmt Done informally Scope Control? Actual Time - Not collected What is an Actual Cost? System Interfaces? Specialist Reports? Standards, Processes and Roles?
  10. 10. Benefits of Portfolio Management • Increase the proportion of projects and programmes directly linked  to the corporate strategy, saving time / resource from being spent  on the ‘wrong’ stuff • Directly save costs through standard, repeatable processes and  simplified cost effective reporting • More output from resources through effective prioritisation and  efficient scheduling • Directly support measurement of project and programme benefits,  maximising what is possible and encouraging the ‘right’ projects in  the first place • Initiate cost effective, consistent Governance of projects and  programmes to provide assurance of delivery quality making the  decision making process more reliable • Saving wasted resources by learning from experience and  implementing changes from lessons learned. Benefits
  11. 11. But ‐ What is the Cx level need? • What is does my strategy mean in terms of  Change? Can we actually do it? • How much will Change cost (resource, money,  risk)? • What is the value of the Change? (Benefit,  revenue, saving) • What happens if something changes? • How am I assured my business system works? • How can I check that Changes are happening?
  12. 12. Benefits of Portfolio Management to  EVM • Highest Level Commitment implicit • Support and Governance provided • Bottom to top reporting is key – Schedule, cost, risk, progress etc. ‐ EV stirred in? – Will to fix the issues!
  13. 13. What do I have to Address? Organisation Process People Technology Strategy
  14. 14. Organisation Components • Strategy Office – Do we have “bright buttons” who  can assist thought leaders with detail  and analysis? – Can we put a high level agreeable  strategy in place to work around,  then develop further? – How do we publicise this? – How do we change this?  • Portfolio, Programme, Project Office – If there is no strategy, can we get  down a set of assumptions to be  going on with? – Can we supply visibility, scrutiny and  oversight? – Can we assist delivery and support? – Can we provide experts to define  how to run things?
  15. 15. Project Organisation Center of  Excellence Project  Organisation Governance Is this one central function? Process, Standards, Tools,  PM Knowledge Owner, Learning  Facilitator, Best practice owner Local support offices run from a  Central ‘support’ office ? Project Start up? Planning help? Reporting? Gates? Closure?  Local compliance management? Process adherence?  Standards usage? Plan quality? Decision Support Does this function exist? Scrutiny / Oversight Priority Generation /  Implementation Business Perspective Delivery Support
  16. 16. What to do to get going… Establish ‘Organisational  Will’ at the right level Devise a problem  statement – to gain  stakeholder engagement Appoint a Senior  Responsible Owner – a  business person to front  the change Appoint a capable  Programme Manager – to  deliver effectively  Set the capability /  benefit expectations – so  that success can be  measured Assess the current state  of strategy management  and 'P3 organisation’ provision – to make  change provision feasible Map out the vision for  how the objectives can be  met – keeping short and  long term needs visible Prepare Benefit Profiles, a  Business Case,  Programme Brief,  Programme Preparation  Plan and Vision statement
  17. 17. How to go about it? • Tranche 1 – contains step 1 in the  Vision = CONSOLIDATION – Assessment • Organisation / capability mapping – Design • Initial P3O® Service Level / staffing • PfM, MSP TM , P2 ‐ Processes /  Standards • EPM Tools / Reports • Data Migration – P3O® Consolidation • Tranche 2 – commitment to it once  there is success of Tranche 1 = ADD  THE VALUE REQUIRED Identify Define Design Consolidate P3O® Business Operations Realising the Benefits CONSOLIDATION Design Consolidate P3O® Business Operations Close Realising the Benefits e.g. P3O® Structure Process / Standard Tools Configuration Training Preparation e.g. Data OK Improvement forums Capability assurance Learning / advancement Realising the Benefits – e.g. Awareness Readiness Prerequisite training Training Data Migration Governance Review Assessment Next Tranche Trigger ADD THE VALUE REQUIRED
  18. 18. To find out more & stay in touch… http://www.apm.org.uk/group/portfolio‐management‐sig
  19. 19. Thank you for listening! David.Dunning@CPS.co.uk 01628 895600 / 07767 803540 LinkedIn http://uk.linkedin.com/pub/d avid‐dunning/3/bb9/ba7
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