Learn how to create a portfolio of projects and how to align projects with strategic objectives

1. Bogotá, 2020
Project Portfolio
Management
1. Introduction

2. 2
What is a portfolio?

3. 3
What is a portfolio?

4. 4
What is a portfolio?
Strategic objectives
Portfolios and programs
are long term

5. 5
What is a portfolio?
• Measured
• Ranked
• Prioritized
Quantifiable
components

6. 6
Past, present and future components
Future
Present
Past

7. 7
“If you can’t see the future of your
organization by looking at your portfolio, you
have no chance of getting there”.
Mark A. Langley, CEO, PMI

8. 8
Strategic situation in the neighbourhood by 2005

9. 9
Plan Orión Fase 1: 2007 – 2010
Cifras en millones de
pesos

10. 10
Plan Orión Fase 2: 2011 – 2014
Cifras en millones
de pesos

11. 11
Typical portfolio:
What do we know about Disney portfolio?

12. 12
Disney portfolio:
Animation, Walt Disney Motion,
Disney Music Group, 20th Century
Studios, Marvel Studios, Pixar
Parks, restaurants, resorts,
cruises, retail, other parks,
ports, vacation clubs,
beaches, etc.
Streaming services, ESPN+, Fox
Paramount, Walt Disney in
Spanish, Hindi, Chinese, etc.
Characters, media,
internet, development,
toys, comics, international,
…
Holding: real state, financial,
venture capital, Chinese,
unsorted, libraries, etc.

13. 13
Building a portfolio
What projects do we have in life?

14. 14
Are you doing the right things,
or just doing things right?

15. 15
Why we do s.h.i.t.?
Spectacularly and Highly Inefficient Things
• Too many small and low impact projects
• Too many projects for the limited resources available
• Poor prioritization
• Failure to kill projects
• Poor data on projects
• High project failure rate

16. 16
Portfolio, Program and Project Management Interactions

17. 17
Typical characteristics of portfolio components
1. A planned investment of the organization (e.g. Vasa)
2. Be aligned with the organization’s goals and objectives (e.g. McDonald’s Deluxe Burger)
3. Are involved in a group for effective management (e.g. Pto. Carreño)
4. Are quantifiable (measured, ranked and prioritized) (e.g. space mining)
5. Share and compete for organizational resources (e.g. SS206)

18. 18
What is a portfolio?
A collection of projects or programs or other work
grouped together to facilitate effective management
of work to meet strategic business objectives. The
projects or programs of the portfolio may not
necessarily be interdependent or directly related.

19. 19
What is a portfolio?
A collection of projects or programs or other work (operations) grouped
together to facilitate effective management of work to meet strategic
business objectives. The projects or programs of the portfolio may not
necessarily be interdependent or directly related.

20. 20
What is portfolio management?

21. 21

22. 22

23. 23
“Portfolio management is the art and
science of making decisions about
investment mix and policy, matching
investments to objectives, asset
allocation for individuals and
institutions, and balancing risk
against performance”
Source: Investopedia

24. 24
“Portfolio
management is the
art and science of
making decisions
about investment mix
and policy, matching
investments to
objectives, asset
allocation for
individuals and
institutions, and
balancing risk against
performance”
Source: Investopedia
Performance
Risk
X
coin flip
stocks X
start-ups X
commodities X
real state X
R&D X
X lottery
DMG X

25. 25
What is project portfolio management?

26. 26
What do PPM practitioners say?
“Portfolio management is about choosing the right projects and
programs for the corporate strategy. It’s how you translate your
strategic vision down to the individual projects to achieve the
greatest potential ROI”
Raed Skaf, OPM3 Assessor, PMP Executive Manager of the PMO and Budgeting,
Riyadh, Saudi Arabia

27. 27
What do PPM practitioners say?
“Portfolio management lets executives look holistically across
the group of projects to get the pulse of the portfolio’s return
on investment (ROI) and strategic alignment. You can’t do that
when you look at each project as an isolated event”
Marc Crudgington, PMP, Vice President, Information Security at Woodforest National Bank

28. 28
Is project portfolio management all about ROI?

29. 29
What do PPM practitioners say?
“Good portfolio management provides clarity in the sea of
good ideas. There may be a lot of ‘good’ projects, but
understanding which ones would be ‘best’ allows companies
to leapfrog over the competition.”
Lori LaBeau, Lead Portfolio Project Manager for Enterprise Portfolio Management | Vantiv |
Cincinnati, Ohio, USA
Vantiv handles more than 12.9 billion payment transactions and processes approximately
US$426 billion in volume annually

30. 30

31. 31
What do PPM practitioners say?
“Smart executives are beginning to realize current
operations represent what their organizations are today,
while their portfolio of projects and programs represents
what they will be in the future ”
PMI White Paper: The Power of Portfolio Management

32. 32
Probability
of
occurrence
Bartlett et al. “Translating Strategy to Forces” Level of violence
✓ Natural resources protection
✓ Humanitarian Aid
✓ Life at sea protection
✓ Maritime interdiction
✓ Transnational crime combat
✓ Sea control and sovereignty
✓ Force demonstrations
✓ Crisis management
✓ Low intensity conflicts
✓ Conventional wars
✓ High intensity conflicts
MARITIME DOMAIN AWARENESS
Maintain high standards of
operational efficiency
despite the limited means
Sustaining dissuasive
strategic capabilities
Current operations and future

33. 33
Current operations and future
“Plan Orión”
Submarines & Frigates upgrading
Riverine patrols, Landing crafts,
CPVs and OPVs shipbuilding
•Resources
•Enlistment
•Training
COLNAV
•Capacities
development
•Tot & ToK
R&D
•Sustenance
•Modernization
•Construction
COTECMAR
Riverine
and landing
vessels
2000
2006
2012
2018
2030
Strategic surface platform
2024
“Plan Faro”
Strategic vessels shipbuilding
CPVs &
OPVs

34. 34
Projects Programs Portfolios Organizational strategy:
mission, vision and values
Is life that linear?

35. 35
Is life more intended or emergent?
e.g. Col peace process
“A formal strategy process
is important – it brings
clarity and discipline”
(Morris, 2005, p. 6)

36. 36
How do we manage portfolios of projects?
How do we align all these mess?

37. 37
Knowledge
Processes
Skills
Tools
Techniques What do we
use to manage
portfolios?
e.g. lessons learned,
databases, RFI, RFQ
e.g. communications
management, risk
management
e.g. scenario analysis,
management skills
e.g. PMIS, OPM3
e.g. prioritization analysis,
strategic alignment analysis

38. 38
Portfolio
management
Program
management
Project
management
Allocation of resources (people,
equipment, funding) according to
organizational strategy
To achieve specific sets of benefits
by managing multiple projects to
support organizational strategy
Creation of specific deliverables
that supports specific organizational
strategy
How portfolio, program and project
management align with organizational strategy?

39. 39
Portfolio
management
Program
management
Project
management
It changes with according to the
strategic objectives of the
organization
It provides more relevant benefits
than if the projects are managed
separately
Projects have defined objectives
clear in the projects charter
How to understand portfolios, programs and
projects in terms of scope?

40. 40
Portfolio
management
Program
management
Project
management
It may change according to internal
and external environmental factors
It also changes according to internal
and external factors, but keeping
the alignment between projects
It need to keep managed and
controlled
How to understand portfolios, programs and
projects in terms of change?

41. 41
Portfolio
management
Program
management
Project
management
It is constantly done, aggregating
new projects or eliminating others
It creates high-level plans to manager
projects in a consistent way
Detailed information into the
different processes
How to understand portfolios, programs and
projects in terms of planning?

42. 42
Portfolio
management
Program
management
Project
management
Portfolio managers coordinate staff
at portfolio, program and project
levels with reporting responsibilities
Program managers coordinate the
program staff and the project
managers giving vision and leadership
Project managers control their
project team in order to meet the
project objectives
How to understand portfolios, programs and
projects in terms of management?

43. 43
Portfolio
management
Program
management
Project
management
It is measured in terms of the
aggregate investment performance
and the benefits to the organization
It is measured by the degree that the
program satisfies it own needs and
the organizational strategy
It is measured in terms of timelines,
budget, scope, quality and customer
satisfaction
How to understand portfolios, programs and
projects in terms of success?

44. 44
Portfolio
management
Program
management
Project
management
Portfolio managers monitor strategic
changes, resource allocation, portfolio
performance and risk
Program managers monitor goals,
schedules, budget and program
benefits
Project managers monitor daily work,
budget, time, quality and scope
How to understand portfolios, programs and
projects in terms of monitoring?

45. 45
Importance of portfolio management for
organizational strategy
Impact of PfM on strategy:
1. To maintain portfolio alignment
with strategic objectives
2. To allocate financial resources
according to prioritization
3. To allocate human resources and
to develop the talent
4. To allocate materials, equipment,
spaces, etc.
5. To measure portfolio performance
accordance strategic objectives
6. To manage portfolio’s risks
(positive/negative) internally and
externally

46. 46
Portfolio management facilitates alignment
between organizational and individual's strategy
PfM, PgM and PM
are about people!

47. 47
Strategy
management
staff
Portfolio
managers
Senior
executives
PMO guys
Operations
managers
Suppliers
and
customers
Lecturers
and students
of PPM
Program and
project
managers
Who cares about PPM?

48. 48
What is portfolio management?
The coordinated management of one or more portfolios to achieve
organizational strategies and objectives.
It includes the organizational process to evaluate, select, prioritize
and allocate limited resources.
It accomplish organizational strategy with vision, mission and values.

49. 49
Workshop:
In groups of two or individually please build a portfolio according to the following criteria:
• A sonorous name for the portfolio
• A minimum of three strategic objectives
• A minimum of three programs
• A minimum of three projects in each program
• How the projects may be managed better through their inclusion into a program?
• From the 9 projects, eliminate two, giving the reasons of your decision
• A minimum of three operations
• How this portfolio connects with your individual objectives
• Prepare a 5-minute prestation of your work

50. 50
profit
nonprofit
government
Type of
organizations

51. 51
Conceptual:
New
Knowledge
Social: New
Conscience
Social: New
Friends
Intrapersonal:
New me
4 expected transformations at the University

52. 52
Grades:
• Workshops (30%)
• Quizzes (30%)
• Participation (10%)
• Exam (30%)

53. 53
Program:
1. What is a portfolio? What is PPfM? (workshop)
2. People in PPfM? Portfolio Managers and PMOs (workshop and quiz)
3. How to manage portfolios. Knowledge and skills (workshop and quiz)
4. How to thrive on PPfM? Strategy and governance (quiz)
5. Tools and techniques. What else we can do? (exam)

54. Gestión de Portafolios
de Proyectos
1. Introducción
Gracias por su atención