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PMI Global Congress 2005: Portfolio and Program Management implementation in an European IT organization
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PMI Global Congress 2005: Portfolio and Program Management implementation in an European IT organization

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  • Full Name Full Name Comment goes here.
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  • Dear Kose-san
    Lessons learned (LL) are described in more detail in PMBoK than in Progam Mgmt Standard. They are mostly mentioned as component of Organizational Process Assets with 9 processes creating LL and many more having them as inputs. Also 5 techniques are creating LL. So a DFD can be created for them.

    Please keep in mind, that LL are not only created at project closure, which supports continuous improvement.

    ad a) the method is to gather all LL found during the project and document them in the knowledge base
    ad b) in many processes OPA and LL are inputs
    ad c) LL are mentioned as inputs to Strategic Alignment and Governance domains.
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  • Kose, Lessons Learned are handled in deeper detail in PMBoK than in Program Mgmt Standard. And in PMBoK they are mostly a component of Organizational Process Assets. I found 9 processes specifically creating LL and many more having LL as an input. Also, there are 5 T&T describing LL as one of their outputs and two which have it as input (including X3.6, which is not a T&T but an activity). Be aware that LL are created not only at project closure but also at phase closure (a). I will comment on your question re. Program bootstrap at a later time.
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  • You are the experts of program management.

    Did you find, tools and techniques of the following?
    (a) after the project was completed, the method of extracting the 'lessons learned'.

    (b).How to take advantage of the next project, the 'lessons learned' that .

    (c) In Boots trapping Program( and /o projects) stage, the minimum necessary 'lessons learned'.

    I'm sure, that the DFD of the 'PMBOK Project' that it does not even defined.
    These appear to be tools and techniques should be defined in the 'PMBOK Program Management'.
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  • 1. Portfolio and Program Management implementation in an European IT organization Thomas Walenta, PMP PMM09
  • 2. Agenda • Scenario Background • Organizational Project Management • Program Management • Portfolio Management
  • 3. 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
  • 4. 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
  • 5. PM Tool Project 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
  • 6. 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 Benefits Interfaces Integration Scope and deliverablesFocus 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.“
  • 7. 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 funds Program Mgr: Creates funding from achievement – self financing Example 2: Attitude to Scope: Project Mgr: Defined at outset and fixed until changes authorized Program Mgr: Shaped to meet emerging and changing business needs * UNDERSTANDING AND ASSESSING PROGRAMME MANAGEMENT COMPETENCE., PMI Congress 2003 – Europe, Sergio Pellegrinelli et al.
  • 8. (Multi) Project Management Server Op‘s Applic. Mainten. User Help DeskProject 4 .........Project 1 Operational Layer Functions (Projects, Teams, Production) Project 3 Project 5 Project 6 Project 2 Sponsors Stakeholders, e.g. Users Business Steering Committee The way often seen to manage complex business initiatives concentrates on Project Management, not Program Management and leaves out the focus on Transition & delivering Business Results Transition Business Results Funding
  • 9. SLF4 Relationship Management Specialist Team Program Management SLF3 Organizational Change Management SLF2 Architectual Solution Bord SLF7 Test & Transition Management SLF5 Quality Assurance / Risk SLF6 Program Mgmt Office SLF8 Resource Management Server Op‘s Applic. Mainten. User Help DeskProject 4 .........Project 1 Operational Layer Functions (Projects, Teams, Production) Strategic Layer Functions Project 3 Project 5 Project 6 Project 2 Enduser Training Team SponsorsStakeholders, e.g. Users Business Steering Committee The Program Management System (PMS) ensures the linkage between involved and affected stakeholder groups and the integration among projects and with ongoing tasks SLF1 Business Strategy -> BTC
  • 10. How Strategic Layer Functions work: Business requests are considered 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.) Technical Implementation (Projects) SLF 2 •Technical Evaluation •Go/No Go Decision SLF 3 •Information and Communication •Education •Stakeholder Care Business (Process & Transformation) Owners Business Change Implementation Requests Changes Sponsor go / nogo Feedback loop
  • 11. 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 / Operations 100% SLA End2end Test Test GoLive Prep After GoLive Support Imple ment Hand over Project(s) Design Stabilization SLF 7 Production/ Maintenance Require ments SLF 2 Transition(s) Businessvalue
  • 12. 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 initiatives PMS: 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 SLF1 Business Strategy
  • 13. Active and Proposed Work Approved Portfolio Prioritization Business Decision Criteria Control work Collect Assess Manage Project Portfolio Management System (PPMS) Regular Reports Reviews Benefits Realization / Portfolio Health Reallocate Resources Adjust Priorities Remove Completed Projects Cancel Projects Business Strategy & Objectives ProposeStrategychange Funding / Sponsors Resource capacity 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.
  • 14. Active and Proposed Work Approved Portfolio Prioritization Business Decision Criteria Control work Collect Assess Manage Project Portfolio Management System (PPMS) Regular Reports Reviews Benefits Realization / Portfolio Health Reallocate Resources Adjust Priorities Remove Completed Projects Cancel Projects Business Strategy & Objectives ProposeStrategychange Funding / Sponsors Resource capacity To start a beneficial Portfolio Management cycle, business objectives have to be formulated and transformed into business decision criteria used to select & prioritize the portfolio of projects to be executed
  • 15. Active and Proposed Work Approved Portfolio Prioritization Business Decision Criteria Control work Collect Assess Manage Project Portfolio Management System (PPMS) Regular Reports Reviews Benefits Realization / Portfolio Health Reallocate Resources Adjust Priorities Remove Completed Projects Cancel Projects Business Strategy & Objectives ProposeStrategychange Funding / Sponsors Resource capacity The components of the approved project portfolio will be monitored regularly by the means of a Project Portfolio Management System (PPMS)
  • 16. Active and Proposed Work Approved Portfolio Prioritization Business Decision Criteria Control work Collect Assess Manage Project Portfolio Management System (PPMS) Regular Reports Reviews Benefits Realization / Portfolio Health Reallocate Resources Adjust Priorities Remove Completed Projects Cancel Projects Business Strategy & Objectives ProposeStrategychange Funding / Sponsors Resource capacity 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.
  • 17. • 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
  • 18. 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
  • 19. 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
  • 20. PMM09 Thomas Walenta, PMP walenta@de.ibm.com +49 171 3358938 Contact Information