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Core Portfolio, Programme and Project Management Data Model and Business Integrated (P3M) Governance - Portfolio

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The Core P3M Data Club was formed to create a data standard for portfolio, programme and project management. This enables us to more effectively deliver business integrated governance for Business as Usual and Change. This means our journey from Main Board objectives, targets and challenges can be delivered through portfolios, programmes and projects in the context of finance, management teams, support and assurance more easily and effectively. This will deliver more strategy outcomes, greater business agility, lower management overhead and efficiency benefits.

On from Main Board, this document outlines the assumptions we make around how Portfolios operate in translating Objectives for change into programmes and projects. We offer a business agenda for Portfolio Direction and Progress Groups that has a Change focus, and present management information definitions that we believe will support the business agenda.

From this, we have derived a data model that would support the MI for the business agenda and have integrated this with the Core P3M Data Model.

Link to higher resolution copy here: https://1drv.ms/w/s!AscRj7Bfp6vQgokByksCd_dKL1j7TQ?e=ua4rfD

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Core Portfolio, Programme and Project Management Data Model and Business Integrated (P3M) Governance - Portfolio

  1. 1. Page 1 This work is licensed under a Creative CommonsAttribution-ShareAlike 4.0InternationalLicense.
  2. 2. Page 2 Portfolio Thisdocumentintroduces the PortfolioManagementtopicsinthe Model andexplainsthe categoriesof Portfoliowe have consideredinourexample scenario, andhow theyrelate to managementteamsandMainBoard. Portfolios are writtenaboutextensively bythe APMand the PMI, are the subjectof an Axelos Publication“Managementof Portfolios®”andfeature centrally inthe PraxisFramework. This guidance buildsonthose foundations,offeringassumptions andgivingspecificsuggestionsfor Portfoliogovernance, supportingMIneedsandhence dataimplications basedonanexample scenario. Assumptions A Portfolioisacollection of assetsinteracting(ruleset) inactivitiesthatare boundinsome way for governance (suchas- theyare delivered bythe same groupof assetsand or delivertothe same consumers andorare conductedinthe same governance spansuchas a financial year/biennium/trienniumetc.) A Portfoliorequiresanaccountable leaderwhomaybe an individual oracommittee exercisingauthoritythroughitschair. Accountability coverssetting goalsand allocatingresources. Todothat the Portfoliolikely followsvaluesandprinciples thatitinterpretsanddelegatesaspolicy.Goalsandvaluesare primarily achieved/followed bydecisionmakingthatcombinesaview of the future, the presentandthe pastwithopinion, preference, values, meaningand pressures. A Portfoliomaybe a subsetof a higherentity. Governanceatthe Portfoliolevel consistsof balancingresponse topressures inordertoreturnthe maximum benefittostakeholders. PortfolioFunctionsare thusdeterminingwhostakeholders are andtheirinfluence andinterests, establishingagreedupon objectives, agreeduponpathstoobjectives, andthe statusof actionson those pathswithprojectionof where continuedactionwill potentially deliverthe Portfolioto. These principlesof participation, procedures, datagathering, analysis, anddecisionmakingrepeatwithinthe Portfolioforoperational (calendardriven) activitiesandchange/eventdrivenatthe scale of programme (change fromidea, throughselectiontostabilisingimpactsonoperations) andproject (developmentof solutiontoneed). The Core P3MData Clubhassought toplace the rightdata intothe right analysisprocessestosupporttimely (and hopefully excellentandimproving)decisionmaking. From APMDirecting Change
  3. 3. Page 3 Portfoliopolicy isinterpretedbyprogrammestocreate processes andprocedures. Proceduresare enactedatprojectandprogramme level. Procedures define the activitiesthatare undertaken toachieve the hierarchy of outputs, outcomes, goals, objectives, visionandmission. In the example scenario, we have classifiedsome distinctPortfoliotypes- asoutlinedbelow. Organisationsmayhave one ormore of these Portfoliotypes. However, all include:  Business casesandstrategicobjectives impliedinBusiness/OperatingPlans(strategicorfinancial)  DesiredoutcomesarisingfromTargetsgiventoBusinessasUsual (BAU) and ObjectivesgiventoChange Portfolios  Remitanddefinition of relatedgovernance responsibility  Prioritywithinthe business,Finance andresources Examplesof Portfoliosanorganisationmayhave: Change  Strategy Advancement/TransformationPortfolio- corporate level. SuchPortfoliosare characterisedby o significantstrategicbusiness case o corporate risk/highpriority o top downbudgetsandhigh-levelsponsorship o delivery primarily throughclearprojectsandprogrammes o benefitrealisationandstrategyattainmentgoals  Innovation – insteadof leading‘topdown’ some organisations open‘Challenges’ thatmaysolicitresponse ‘Bottomup’ andmaybe a greatsource of advancementopportunities thathave notbeendevelopedfromstrategy o Corporate Innovation– These maystart witha top downChallenge fromMainBoard, go cross company andhave dedicatedfundingtobe creative with o Local Innovation - These maybe local to a ManagementTeamdomainandbe fundedoutof local operational budgetsusinglocal resources. An organisationmaywantvisibility againstlocal initiativesconsumingfinanceandresources thatare non-strategicitemsforopportunistic overall improvement.Visibilityalsoavoidsduplicationacrossthe organisationandcanstop initiatives (whichmayotherwisebe leftas obsolete byanew corporate initiativeordirectionchange) oralternatively acceleratethose thatare beneficial.
  4. 4. Page 4 Businessas Usual  Operational Work - is certainly notclassified as‘Change’, butdistinctAccountability Nodescan/shouldbe identifiedinaPortfolioandmanaged alongside initiativesthatare classified as‘Change’ whenbothBAUand change initiatives have dependencies betweenthem, draw onthe same resource poolsand/ortime boxedfinance pots. In additiontoservice workstreamsorproduct/assetdevelopment, whilenotdirectly deliveringchangestoattainstrategy, local change/operational improvementiskey tostrategy attainmentif itsupportsBAUTarget attainment. Forexample - we can’tachieve strategy if salesdon’tmaterialise to fundit. Furthermore, the BAUManagementTeammay use “projectsandprogrammes”tactically todelivertime boxed/definedoperational work, using workplanningtechniques andsystemsforPortfolioitemsthatare not classifiedasmajorprojects.  CustomerPortfolio- is a special case of BAU because of the needto capture costs accurately, togenerate revenuedirectly (e.g.revenue projects- not call centre type services) andtoaffectcorporate metricslike customersatisfaction. CustomerPortfolios typically have a‘Business Manager’ accountable forsales, revenueandprofitability - anddependingonwhethertheyhave responsibility foradelivery team–qualityandcustomer satisfaction. BusinessManagerswillhave abusiness planandtargetsandmanage delivery via‘service management’ortactical use of projects/programmes, and‘contractmanagement.  Asset/Product Portfolio.Asset/ProductManagersmaybe accountable forproduct performance, whichmaybe supported byadedicatedteam, or a flexible teamdrawnfromwithinthe businessmatrix. The Asset/Productwillhave abusiness planandtargetstojustify itsuse of finance/resourcesandmaybe deliveredviaprojectsorcontinuous releases. While inthe past,separate processes/governance/systemsforcustomerdelivery, engineeringmanagement, andtransformationplanningmayhave providedusefuladvancesincapability, these maynow be seenas‘islandsof automation’ whichpreventthe “bigpicture”beingachieved. Hence more organisations understandthata BAU workstreamisjustan Accountability Node the same asa projectexceptthatithas a differentplanshape, leadership and accountability. Tomanage bothworktypeseffectively, bothmustbe broughttogethertoenable overallprioritisation/dependency/resource/financial managementsothat(forexample) the ‘change lead’ cansee workcommitmentsanddependencies forpeopleintheirprojectandthe ‘line manager’ can see whenexternal commitmentsare requiredintheirteams. WhichPortfoliosanorganisationwantstomanage togetherisachoice. Some maywant to focusonlyon ‘Change’, otherson‘Customer’and ‘Asset/Product’,perhapssome willwanttooversee all.Withorganisations doingmore workin‘projectlike’ butnotprojectways, the term“Project
  5. 5. Page 5 PortfolioManagement”isbecomingalessthanall-encompassingterm,andmore are lookingto‘ModernWork Management’ and‘Agile’ approaches asthe definitions of projectsandprogrammesblurorbecome un-necessary .Whatremainsisthe needtomanage priorities, dependencies, resources, risks, benefitsandfinancesirrespective of anentitybeinga‘project’, and‘product’oran ‘initiative’.If organisations define thesePortfolios incommonways, thenthe itemscan be visualised together, and: - Value maximised–asspendingisfocusedonbestoptionsandduplication isreduced - Problems solvedwithoutcausingchaos– implications canbe managed - “Business Agility”enabled–asit becomes clearwhatchoicesthere are if rebalance isneeded. Key PortfolioRoles Bestpractice (inthiscase derivedfromManagementof Portfolios®), suggests that we shouldsplitthe governance of Portfoliosinto2distinctroles– PortfolioDirectionandPortfolioProgressGroups(PDGandPPG).These two roles, however, maybe carriedoutby one combinedPortfolioGroupinsome organisations. Itdepends onthe situation. Notonly may PDG and PPG overlap, buttheymaywell alsooverlapwithMain Board functionstoo.Clearly, rolesandresponsibilities needtobe crystal clear so that accountability canbe properly allocated. SubPortfolios maybe ledbya (Business Unit) ManagementTeamleaderwho takeson a PDG role for initiatives containedwithintheirdomain–the ManagementTeamLeaderiseffectively the Sub-PortfolioSponsor. ManagementTeamsleadthe Operation, butalsomake ultimate decisions aboutresourcingandbenefitrealisationwithintheirdomains. The ManagementTeamcan alsotake onthe PPGrole for theirsub-Portfolio, but thismay be delegatedtoasub-committee/directreportof the Management Team. Where a business unitisnotthe ‘Lead’business unitforasub-Portfolio, a ManagementTeamLeadermightstill supportaPPG ledina sibling
  6. 6. Page 6 ManagementTeamand be responsibleforsome resourcingandbenefitdelivery. ManagementTeamsmayof course use differentlanguage, andrecoil atP3Mbasedterminology. Forexample, the SalesDirectormayineffectrunthe PortfolioDirectionGroupfortheirCustomerPortfolio–but insteadof “Programmes”there maybe “Business Streams”witha“Business Manager”and insteadof “projects”, “Accounts”witha “Relationship Manager”etc. Ensuringclearaccountabilities androleswhateverthe title iscrucial. A keyaspectto PDG, PPG, ManagementTeamsand Finance isthe needtoshare data. For controlsdayto day, we needlive data, butforstrategyand performance review/decisionmaking–we needreliable, integrateddata– butto have thislive isperhapsun-necessary andexpensive. Itistherefore vital to orchestrate governance operationanduse cadence toharmonise. A discussion of thiscanbe foundinthe FrameworkOverview Linksto a model explainingPDG, PPGrelationtoManagementTeamscan be provideduponrequest.
  7. 7. Page 7 Portfolio Direction Group Assumptions The followingmaterial is derivedfromManagementof Portfolios®,andoffersasetof assumptionsunderlyingthe businessof the PortfolioDirectionGroup (PDG) for thismodel andprovidesguidance:  PDG Consistsof the Main Board members andManagementTeamheads whoare collectivelyaccountableforensuringthatthe Portfolio deliversthe changes,outcomesandbenefits withinthe organisation’s strategicobjectives  Makes proactive decisionsandprovidesoversight,directionandleadershipthatenergisesthe deliveryteamsandthe organisationtoachieve the objectivesof the strategy  Meetingsmaybe attendedbyadditional memberswhere required,includingthe PortfolioManagement,SeniorBusinessChange or Programme ManagementRoles  Accountable tothe Main Board (orits Change Sub-Group) forrealisationof strategicoutcomesfromthe Portfolio The PDG hasthe followingassumedresponsibilities:  Constantlymonitorthe environmentandmarketforimpactson the strategicdirectionof the Portfolio  Ensuringthat the Portfolioremainsoncourse (ordirectionischanged) todeliverthe desiredstrategicbenefitsandoutcomes  Overall ownership,oversightanddirectionof the Portfolio.Setthe strategicvisionforthe Portfolio  SettingcriteriaforPortfolioinclusion  Ultimate decisionbodyoncontentof the Portfolio–inclusion,removal,priorityof initiativesinthe Portfolioandthe strategicbalance  Ensure that BAU and the Change Portfolioare alignedeffectivelytodeliverthe StrategicObjectives.  Ensure that any conflictsbetweenthe PortfoliodeliveryandBusinessasUsual that cannot be resolvedbythe PPGare addressed.  Delegate translationof strategicobjectivesintospecificprioritised,balancedandplanned Portfolioitemsandoversightof deliverytothe PPG  Reviews the statusof the PortfolioregularlyviaManagementDashboards(focusingonprediction/forecastof achievementof strategic outcomesandbenefitswithinthe mediumtolongtermenvironment/market  ReviewrecommendationsandissuesfromPortfolio ProgressGroupandmake decisionsaccordingly  Manage expectationsof strategicstakeholders
  8. 8. Page 8 Agenda & Dashboard – PDG The processof arrivingat actionsanddecisionsforthe Portfolio Directionis referredtohere asan “Agenda”,as we believe thatmuch of the decisionmakingneedstobe concludedata meeting(oraseries of cyclical meetings) where decisionsare captured,andactions allocated. The keyinformationthatthe PDG needstointerrogate toprovide effectiveoversightissummarisedinthe Dashboardbelow:
  9. 9. Page 9 Progressand Status - Thissectionlooksbackwardsandpicksup overall Portfolioprogress/performance/accomplishment, escalationsandexceptions,reviewof cost/resource performance Enablers - thissectioncoversa re-statementorreviewof the overall strategicgoalsandimperativesstatedas objectives/challenges(havethere beenanychangesinunderlying drivers) andtheirstatus.Thissectionhighlightsnewideas,input fromthe marketintermsof satisfaction/threats/opportunities/trendsandthe trendinrisk appetite,customerfeedback,andHealth/Safetymetrics. Prediction- a lookforwardand predictionof outcomesand confidence trendinthe achievementof those outcomes –the PDG meetingwouldfocusheavilyonoutcomes(butwouldtake input fromthe PPGon forecastoutputs). Thissectionof the dashboard and meetingincludesreviewof forecaststrategicoutcomes,overall costs,resource issues,reviewof risksandconfirmpriorities/balance of finance/resourcescommitment. Decisionswouldthenbe taken tocommence,slow/speedup/change/stopexistingPortfolioitems,andreviewresources/fundingposition. A keyaspectto the PDG reviewisBenefits/Outcomerealisation. Whileitmaybe withinthe role of a Programme Boardto manage benefitrealisationata programme level,the PDGtakesaccountabilityforoverall businesschange andbenefitrealisationachievementintheir Portfolio/sub-Portfolio.However, some Portfoliosgoacrossthe business,whichmeanthatManagementTeamLeaderswhoare notPPG leaderswilldeliver(atleastpartof) some change projectsandtheirrelatedbenefits.Benefitsare alsotherefore includedwithinourManagementTeamReviewexample,especiallybearinginminda Managementteammayalso become accountable forongoingbenefitsonce aprogramme anda its related Portfoliohasdisbanded.
  10. 10. Page 10 MI Implication To populate the dashboardand carry out the Agenda,we have impliedthe followingManagementInformation (MI) needs: Progressand Status
  11. 11. Page 11 Enablers
  12. 12. Page 12 Prediction– Mid/Long Term
  13. 13. Page 13 Resources Thissectioncontainslinkstodetailedpresentation/backupmaterial tothe narrative above – available uponrequest:  Developmentof MeetingAgendas  Full detailsof the mappingof PortfolioAgendaImplications,MIExamplesGathered
  14. 14. Page 14 Portfolio Progress Group Assumptions The followingmaterial isderivedfromManagementof Portfolios®,andoffersasetof assumptionsunderlyingthe businessof the PortfolioProgressGroup (PPG) forthismodel andprovidesguidance:  Accountable tothe PDG  Oversee,understandandcategorise Portfolioitemsthroughprioritisation,balanceandplanning,tothe pointof handovertotheir programme/projectboards  MonitorPortfolioprogress/resolveissuesforthe PortfolioStrategyanddeliveryplan(outputs,benefitsandstrategyoutcomes)  Deliverycycle process(change authority) andoperationchecking - ensure initiativescomplywithdeliverystandards  Approve communicationson Portfolioprogressandsuccesses The PPG has the followingassumedresponsibilities:  Orchestrate the identificationanddefinitionof programmes,startupand initiationof projectstothe pointof handovertotheir programme/projectboards  Ensure that PDG strategic/prioritiesare reflectedin the Portfoliodeliveryplan  MonitorPortfoliooutputdeliveryprogress/status/resolve deliveryissues: • Programme/projectprogress,exceptionsandescalations • Deliverablesachievement • DependenciesandInter-Dependenciesalignmentandinterlocksagreedandon-track • Spendandaction onoverspend/underspend(reallocate) andtimescales • Review Portfolioissues,escalate asappropriate toPDG • Overviewof risks/dependencies • Resourcesandallocationoversight • Reforecastof benefitsandalignmenttostrategicobjectives • Approve minorchangesto Portfolioandconstituentprogrammesandprojects • Recommendmajorchangesto PortfoliotoPDG includingtermination andnew projects • Make Terminationrecommendationsof programmestoPDG  Ensuresthat deliveryplansare agreedwithBAUto cause minimumdisruption  Approve communicationson Portfoliostatusandprogress
  15. 15. Page 15  Periodicdeliveryeffectivenessreviewof bothprocessandindividual sponsorandprojectmanagerperformance –actionwhere appropriate Agenda & Dashboard - PPG The processof arrivingat actionsanddecisionsforthe Portfolio Progressis referredto here as an “Agenda”,aswe believe thatmuchof the decisionsneedstobe concluded at a meeting(oraseries) where decisionsare captured,andactionsallocated.
  16. 16. Page 16 The keyinformationthatthe PPGneedsto interrogate toprovide effectiveoversightissummarisedinthe AgendaDashboardbelow: Progressand Status. Thissectionlooksbackwardsand focuseson historical trendandlastperioddelivery performance/issues.Overall accomplishment,escalationsandexceptions,reviewof cost/resource performance,reviewof additional/frontdoor proposalsforpotential inclusioninthe Portfolio,reviewof assurance escalations. Enablers – thissectioncoversreviewof Objectives(have therebeen any changesinunderlyingdrivers),keypeople performancereview (e.g.Sponsors,Programme Managereffectiveness),Efficiencyand Effectivenesstrendreview,lessonslearnedrealisation,culture and ethicsimplicationsreview,satisfactionreviews(staff,customers) and reviewof currentPortfoliobalance. Prediction– lookingforwardsandreview riskandconfidence –in delivery/outputs/outcomes,cost/resourcesestimatestoconfirm priorities/balance of finance/resourcescommitmentandenable Portfolioitemstocommence,take escalations,wrapup decisions/actionsandcommunications.
  17. 17. Page 17 MI Implication To populate the Dashboardand carry outthe Agenda,we have impliedthe followingManagementInformationneeds: Progressand Status
  18. 18. Page 18 Enablers
  19. 19. Page 19
  20. 20. Page 20 Prediction– Mid/Long Term
  21. 21. Page 21 Resources Thissectioncontainslinkstodetailedpresentation/backupmaterial tothe narrative above – whichcan be provideduponrequest:  Developmentof MeetingAgendas  Full detailsof the mappingof PortfolioAgendaImplications,MIExamplesGathered

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