This document discusses project portfolio management. It defines portfolio, program, and project management and their differences. Specifically, portfolio management focuses on doing the right projects to achieve strategic goals, while project management focuses on doing individual projects right. The document outlines common challenges with portfolio management like poor prioritization and lack of governance. It then presents a portfolio management process model involving principles, definition cycles, and delivery cycles to help address these challenges. Finally, it discusses implementing an enterprise-wide portfolio management process and the services a consulting firm can provide to help organizations assess, define, modify, and transition to an improved portfolio management process.

1. PROJECT PORTFOLIO MANAGEMENT
Blog
Xellentro Consulting Services LLP | July 2014

2. Introduction
SPPM Workshop

3. Portfolio – Program – Project Management
Portfolio
Program
Project
Doing the Right
Thing
Realizing the
Benefits
Doing things
Right
 Strategic Alignment
 Governance
 Risk
 Resource
 Verification &
Validation
 Prioritization
 Resource
 Scope
 Cost
 Time
 Quality

4. Challenges of Portfolio Management
Strategy
Governance
Management
Tools
• Alignment to objective not there
• Many projects and programs meeting same objective
• Many “Must Have” Projects and Programs
• Prioritization not done properly
• No process for poor performing projects to be killed
• Business case unrealistic
• BAU projects are managed separately
• Interdependence not assessed properly
• Lack of experience to manage
• PM skills not valued as critical
• Change absorption Capability is less
• Inconsistent data and no “single version of truth”
• Lack of effective reporting and analysis
• Reporting seen as a burden and ineffective

5. Portfolio Management Process Model
Proper understanding and Implementation of Portfolio Management Process
helps to remove the challenges mentioned. MoP defines the following as the
model of Portfolio Management

6. Portfolio Management Process
MoP defines a set of Portfolio Management Principles and Portfolio Definition
and Delivery Cycles as part of the Portfolio Management Process
Principles
Senior Management
Commitment
Governance Alignment
Strategy Alignment
Portfolio Office
Energized Change Culture
Definition
Cycle
Understand
Categorize
Prioritize
Balance
Plan
Delivery
Cycle
Management Control
Benefits Management
Financial Management
Risk Management
Stakeholder Engagement
Organization Governance
Resource Management

7. Portfolio Management Implementation
To be able to get the benefit, there is a need to have an Enterprise wide
Project Portfolio Management Process to be implemented giving the holistic
advantage. The data and information needs to travel at all levels.
Alignment
with Business
Objectives
Visibility & Control
Collaboration
Enterprise
Project
Management
Portfolio
Management
Execution
Management
PMO, Program and
Project Managers
Project Team Members
Investment Decision Makers
and
Portfolio Managers

8. Portfolio Management Consulting
We at Xellentro help organizations to get this advantage by providing our
experts to:
 Assess the current state
 Do Gap Analysis of the process
 Define / Modify the process to remove the gaps
 Hand-hold the Program and Project Managers to implement the process
 Setup and handhold Program Managers/Portfolio Management Office
 Help creating the competency with training and hand-holding
 Transition to the organization
 Audit and/or Maturity Assessment at regular intervals

9. Xellentro Consulting Services LLP
C 402, Ajmera Infinity, Electronics City
Phase 1 Bengaluru, 560100