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20100530 programs portfolios projects webinar


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Why all the confusion about programs and projects? How does portfolio management fit with all that?

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20100530 programs portfolios projects webinar

  1. 1. What’s in a Name?Programs, Portfolios and Projects Douglas Brown, Ph.D., PgMP 1
  2. 2. Things that make you go “hmm”• If these things keep happening to you – What idiot came up with these arbitrary deadlines and budgets? – Project has been on hold for months because we can’t get the right people (or it is slipping because we are trying to do it with the wrong people) – We keep having the same problem over and over. Everybody can see these problems but nobody does anything about it• Your program management is not working 2
  3. 3. Contributing to the confusion …• PMI’s early definition that a program is a grouping of projects (since OBE)• DoD uses the terms “program” and “acquisition” loosely – Calls everything a program, even when it is a project – Does not call anything a project – Projects last so long that they are really programs• Federal “acquisition” dominated by “contracting”• OMB is only interested in projects• Steady-state consumes 50-80% of the resources 3
  4. 4. What’s in a name?• Avoids confusion (too late) • Gives you a starting point – “Behold, the people is one, – Understanding your methodology and they have all one means you know what you would language, and this they begin do in the absence of other guidance to do: and now nothing will be restrained from them which • Take what you can get they have imagined to do” – Then, God be blessd, it is the – "When I use a word," Humpty blessed sun: Dumpty said in a rather a – But sun it is not, when you say it is not; scornful tone, "it means just – And the moon changes even as what I choose it to mean -- your mind. neither more nor less. – What you will have it named, "The question is," said Alice, even that it is; "whether you can make words – And so it shall be so for mean different things." Katharina. "The question is," said Humpty – If they want to have a portfolio Dumpty, "which is to be manager’s meeting instead of a master -- thats all." “program review” – great!! – Don’t let “red” become “green” 4
  5. 5. Pick a Starting Point Definitions – according to me …• Program: a collection of activities (project and sustainment) that establish and maintain solutions to complex organizational objectives over an extended period – Programs are a continuous cycle of creation, life and death• Project: a specific time-bounded effort to deliver a new capability – Projects deliver new capabilities• Portfolio: a collection of some or all investments viewed from a particular perspective with the intent of optimizing that perspective * – Selecting better apples from good apples 5* = deviation from PMI PGM standard
  6. 6. Alternative Frameworks Project Level (PMBOK) • Initiate • Plan CPIC (both levels) - OMB • Execute • Analyze or Pre-Select = Plan • Control • Select = Initiate • Close • No activity like Execute • Control Solution • Evaluate =Close Program Level (PMI Program standard) • Pre-Program Setup = Initiate • Program Setup = Plan and Program Management and Technical Infrastructure • Deliver the Benefits = Execute • No activity like Control • CloseGovernance 6
  7. 7. How it all fits Organizational governance Environment, market or higher authorities Strategy Portfolio managementIn theory … Program plan Program-level reviews Project-level reviews 7
  8. 8. Organizational governance• Generally, done by a board – Will require objective staff input to counter program spin• Define missions, objectives, major programs External authorities• Allocate major resource pools – Pie-slices; assumes competence of program planners – Recursive • Total reasonable requirements bubble up Strategy • Acceptable ceilings push down – Forms program baseline• Confirm directions of programs – Continued value, cost-benefit• Resolve organization-wide issues• Inquiry into specific critical activities 8
  9. 9. Program management• May be a person or a standing office• Operates WITHIN constraints (baselines) established by organizational governance• Develop program-wide governance• Program objectives – Refine – Allocate to “initiatives” – projects and sustainment• Allocate resource pools – Recursive – Creates project/initiative baselines• Oversee all projects and initiatives Program plan Program-level reviews – Conduct milestone reviews of initiatives – Including in-service reviews• Resolve program-wide issues – Especially dependencies 9
  10. 10. Recursive – cyclic Ne w Ne ne ed ed e e Ev s Ev s yz yz al al al al u An u An at at e e Continue Continue l l ro Se ro Se nt nt le le Co Co ct ct Wait till next What about these needs? year??!! This is bureaucratic bull … Cycle (Year) 1 Cycle (Year) 2 10
  11. 11. Project Management• Operates within baselines • Project manager masters established at program the details level – Integration• Triple Constraint – Scope – Cost – Schedule – Schedule – Cost – Scope – Performance – Quality – Risk• SDLC-based – Communications – Each phase / spiral / iteration follows the SDLC – Procurement – Resource• Project manager is generally a person with ad-hoc staff 11
  12. 12. PMP skills return in PGMP – in a different way• Scope, schedule, cost, quality: – Baselines; High-level milestones and dependencies• Procurements – May be centralized, maybe not – Program Office probably does not do detailed awards*• Communications – different focus – Building support and getting money• Risk – program-wide – Not as detailed. Search for common or institutional risks• Resources – pools vs names. Human capital planning. – One of most important efforts – Skill set pools; depends on resourcing at initiative level• Integration – the primary purpose 12* = deviation from PMI PGM standard
  13. 13. What about portfolios?• Wall Street metaphor – In the end, everything on Wall Street is a dollar instrument• Texts treat as a math problem – Identify weighting factors – Rate investments – Rack and stack – Deal from the top• It doesn’t work that way – Education > public safety? – “Math” only works when you have relatively similar items 13
  14. 14. Real-world portfolio managementWithin program Enterprise Never say never• Everything is reasonably • Focus on a single issue across homogeneous a wide range of investments• Still have to break between – Could be a strategic direction sustainment and project – Could be a compliance issue• For projects only: • Non-decisional – Rack and stack – Cannot approve or reject – Below the line: investment • “Shovel ready” (UFR) – May be permitted to hamper • Deferred or rejected progress if not addressed• For steady state: – Force direction with performance goals an benchmarks 14
  15. 15. Things that bug project managers …Needs to gain perspective Legitimate issues• “Arbitrary” budgets and • Off-the-cuff promises, completion dates are refusal to compromise $, doomed to failure time or scope• Demands for project • Micro-management of status requires self- MS-Project detail while incrimination losing focus on intent• Interference in activities • Other projects / initiatives below SDLC milestones are unreliable partners• Post-mortems just beat a • Widespread issues are dead horse known but never solved• Raising red flags causes • Cannot get significant embarrassment issues resolved 15
  16. 16. Roundup• Don’t let terminology get • Roles in the way of success – Organizational governance• Organizational change is establishes goals and sets priorities always hard – Program management – If program management provides the capacities that and/or transparency are project managers will need not part of the – Project management gets organizational culture, then the work done you are moving a lot of cheese – Portfolio management considers specific issues, or selects from among similar opportunities 16