Portfolio Managment


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MSP best practice. Portfolio Management

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  • Portfolio Managment

    1. 1. Portfolio Management Denis Hellewell 4 March 2005
    2. 2. This presentation <ul><li>A review of portfolio management & the Centre of Excellence (COE) </li></ul><ul><li>Some background </li></ul><ul><li>What we did – and the supporting rationale </li></ul><ul><li>What it looks like </li></ul><ul><li>Where this fits with our COE and how it is scalable. </li></ul><ul><li>Purpose </li></ul><ul><li>To share the approach taken </li></ul><ul><li>To outline how this approach was implemented </li></ul>Desired outcome A common view of where we are now and how we got there.
    3. 3. A few definitions <ul><li>We began using these definitions </li></ul><ul><li>Portfolio: </li></ul><ul><li>“A grouping or bundle of projects, collected together for management convenience. They may or may not have a common objective, they are often related only by the use of common resources” </li></ul><ul><li>Portfolio Management: </li></ul><ul><li>“The management of a number of projects that do not share a common objective” </li></ul>Found that these definitions weren’t fit for our purpose… so now
    4. 4. A few definitions <ul><li>We now uses these definitions </li></ul><ul><li>Portfolio: </li></ul><ul><li>“ A series of strategically aligned programmes and fixed life-span projects that deliver beneficial change.” </li></ul><ul><li>Portfolio Management: </li></ul><ul><li>“ The co-ordinated control of connected or unconnected programmes of work that change the organisation to achieve objectives detailed in our corporate strategy and deliver benefits that are of strategic importance.” </li></ul>
    5. 5. Benefits of Portfolio Level Management <ul><li>Improved organisational performance </li></ul><ul><li>Motivate staff, customers and suppliers through better communications </li></ul><ul><li>Assure continued organisational development </li></ul><ul><li>Reduce boardroom-level “surprises” </li></ul><ul><li>Provides robust governance, applied across all projects </li></ul><ul><li>Avoid many common failures on programmes and projects </li></ul><ul><li>Avoid hardship to stakeholders </li></ul><ul><li>Minimise risks that arise from projects </li></ul><ul><li>Maximise benefits realised from programmes and projects </li></ul>
    6. 6. Delivering Corporate Benefits Through portfolio management initiatives Benefits objective objective objective Benefits Benefits Benefits Benefits Benefits Delivery Project Delivery Project Delivery Project Delivery Project Delivery Project Project stopped as no identifiable benefit delivery Programme and Project Portfolio
    7. 7. The purpose of Portfolio Management <ul><li>‘Tying it all together’ </li></ul><ul><ul><li>delivering the business benefits across the portfolio </li></ul></ul><ul><ul><li>coordinating the project portfolio in consideration of the business </li></ul></ul><ul><ul><li>Increasing overall performance of the portfolio </li></ul></ul><ul><ul><li>Facilitate visibility of the business to the board and stakeholders </li></ul></ul><ul><li>So how is this actually done ? </li></ul>
    8. 8. Portfolio Management; the link to Governance <ul><li>Portfolio management is a subset of corporate governance </li></ul><ul><li>Project Management activities generally lie outside the concerns of corporate governance </li></ul><ul><li>Portfolio management connects project management activities into those of the corporate body </li></ul>organisation corporate governance project management portfolio management
    9. 9. Portfolio ‘touch-points’ portfolio management considerations – tying it all together Portfolio of projects decision making Business as usual Business as usual Business programme Business education Best practice Project Register Effective project management Alignment to strategy Release management Company planning & forecasting Budget management Resource allocation & commitment
    10. 10. Connecting Projects to Corporate Governance <ul><li>Reporting structures </li></ul><ul><ul><li>Getting the correct level of information to the decision maker </li></ul></ul><ul><li>Risk management structures </li></ul><ul><ul><li>Getting risks assigned at the correct levels </li></ul></ul><ul><li>Business benefits management </li></ul><ul><ul><li>Realisation of benefits across the whole organisation </li></ul></ul><ul><li>Financial management </li></ul><ul><ul><li>Managing across the investments not in isolation </li></ul></ul><ul><li>Governance structures </li></ul><ul><ul><li>Having the correct functions making the correct levels of decision </li></ul></ul>
    11. 11. Coherent reporting structures Programme/Project/Portfolio Governance and Control Projects Operations Board Programme Board Programme Manager Business Health Check Business Sponsor SRO Minister report report report report <ul><li>Interdependencies </li></ul><ul><li>Risk </li></ul><ul><li>Cost </li></ul><ul><li>Schedule </li></ul><ul><li>Progress </li></ul>feedback feedback feedback feedback
    12. 12. Portfolio Management Principal players <ul><li>Corporate level programme/portfolio board </li></ul><ul><ul><li>The SRO </li></ul></ul><ul><ul><li>The Programme Manager </li></ul></ul><ul><ul><li>The Business Sponsor </li></ul></ul><ul><ul><li>The Customers </li></ul></ul><ul><ul><li>Major Stakeholders </li></ul></ul>So how was this actually implemented
    13. 13. Single Portfolio Management and the CoE CoE Basic CoE with a lack of definition within the organisation Programmes & projects CoE Programmes & projects portfolio management CoE Programmes & projects portfolio management corporate programme board corporate board Formalisation and bounding of the role of the COE Proceeded to grow the functionality by adding functional heads & strengthening the boundaries Identified, reviewed & rationalised the current set of projects & programmes Integrated/migrated the projects and programmes into the CoE over a short period of time Defined portfolio management processes around the CoE This then expands the CoE to incorporate portfolio management processes Sitting outside the CoE is the overall governance in the form of the Corporate Programme Board The Corporate Programme Board report directly into the Corporate board
    14. 14. Portfolio Governance Structure Corporate Programme Board SRO PM PBS SRO PM PBS SRO PM PBS Supplier (IT) Chief Financial Officer (Director of Finance) Supplier (PDU) Assurance (PDU) Coordination (PDU) Work Package Development Team Work Package Development Team PjM BS PjM BS PjM BS PjM BS PjM BS PjM BS PjM BS
    15. 15. Multiple Portfolios and the CoE Portfolio manager Portfolio manager Portfolio manager portfolio programme board CoE Programmes & projects portfolio management portfolio programme board CoE Programmes & projects portfolio management portfolio programme board CoE Programmes & projects portfolio management Corporate board
    16. 16. So What Does a Portfolio Look Like ? <ul><li>Like a CoE </li></ul><ul><li>Like a piece of corporate governance </li></ul><ul><li>Like an optimised delivery system </li></ul><ul><li>Like a group of projects and programmes </li></ul><ul><li>Like something that fits the organisation and works …. </li></ul>
    17. 17. Summary: our Outcomes <ul><li>Governance </li></ul><ul><li>Prioritisation </li></ul><ul><li>Shared resource allocation </li></ul><ul><li>Unified Risk Management </li></ul><ul><li>Silo breakdown </li></ul>