The document discusses the roles and responsibilities of a project portfolio manager. A portfolio manager typically establishes frameworks and processes for portfolio management, guides the selection and prioritization of portfolio components, and ensures strategic alignment. They provide oversight and governance, communicate with stakeholders, and support senior-level decision making. Effective portfolio managers have expertise in areas like strategic management, methods and techniques, stakeholder engagement, leadership, and risk management.
2. 2
Difference between Program and Project Management
vs. Portfolio Management: A matter of focus
Program and
Project managers
focus on “doing
work right”
Portfolio managers
focus on: “doing
the right work”
3. 3
What a project portfolio manager do?
Portfolio
manager
may be an
individual, a
group or a
governing
body, they
typically do:
1. Establish and maintain a framework (a structure of ideas) and
methodology (policies and procedures) for portfolio management.
Procedure for acquisition projects (Orión):
1. Request for information
2. Request for quotation (same parameters)
3. Most relevant variables
4. Reference visits
5. Rational decision making
6. Top level validation
7. Memorandum of understanding
8. Contract negotiations (offset yes/no)
4. 4
What a project portfolio manager do?
Portfolio
manager
may be an
individual, a
group or a
governing
body, they
typically do:
2. Establish and maintain portfolio management processes: strategic management,
governance, communication, performance and risk management.
2/14/20
Evolución
de
Capacidades
2011 2014 2019 2030
Transformación Capacidades – Reasignación Tareas – Mayor tecnología
NAVAL
GUARDACOSTAS
INFANTERÍA DE MARINA
Fluvial
Terrestre
Anfibia
Complemento capacidades
para enfrentar amenazas
Consolidación de la paz Desarrollo en Postconflicto
Plan Orión Plan Puente Plan Faro
Período 1 Período 2 Período 3
Fuerza proyección
limitada
Defensa de Costas
y Bases Fijas
Control Principales
Ríos y Fronterizos
Seg. Marítima
MT & ZC
Fuerza Disuasiva
Seguridad ZEE
FORTALECER
SOSTENER
&
COMPLETAR
RENOVAR
5. 5
Governance
A set of
• Practices
• Functions
• Processes
Within a
framework
• Norms
• Rules
• Values
In order to
• Optimize
investments
• Meet
strategic
goals
6. 6
Governance + Management
1. Governance framework: oversight,
decision making, control, and
integration.
2. Approving related policies and
procedures
3. Approving component selection,
categorization, prioritization, and
authorization criteria
4. Reviewing and remediating escalated
issues and risks.
1. Portfolio alignment with stategic goals
2. Degree of organizational change to
achieve portfolio value
3. Leadership skills to foster portfolio
4. Influence of organizational areas
5. Determining risks
6. Control of resources allocation
7. Communications
7. 7
Communication management
Figure 7-3. Develop Portfolio Communication Management Plan: Inputs, Tools and techniques, and Outputs. P. 108
Stakeholder analysis:
Determine the different
individuals and groups
and determine their
concerns, interests
and influence.
Who are the members of your governing body? Who needs what
information? Which of the stakeholders are leaders, influencers, early
adopters? What is their political influence in the organization? Is their role
as a stakeholder recognized by the organization? Which of the
stakeholders can significantly influence others?
8. 8
Stakeholder engagement
Working with portfolio stakeholders contributes to
maximize portfolio and organizational performance
Senior Executives:
CEO, CFO, COO, etc.
Program and Project
managers
Resource
managers
Contracts staff
Regulatory
bodies
PMO
Topics What questions ask?
Personal
details
Mobiles, email, role
Objectives What should or could the initiative seek to
accomplish?
Issues Are there any issues that we need to be
aware of when planning the project?
Stakeholders Who do you see as the stakeholders of this
initiative?
Roles How do you see your role in achieving the
aims of this project?
Value-add What is the strategic contribution of the
project to the organization as a whole?
Resources Which specialist personnel, equipment and
technology will be required?
Approach How do you think we should approach to
implement this initiative?
Risks What challenges represent obstacles to the
success of this project?
Sustainability How should will ensure sustainability of the
project’s deliverable?
This is an
ongoing process
9. 9
Communication management
Figure 7-3. Develop Portfolio Communication Management Plan: Inputs, Tools and techniques, and Outputs. P. 108
“It is important for the portfolio manager to engage with stakeholders to endure their
needs are being met and are aligned with the communication management plan .
This may be achieved with interviews, questionnaires, surveys, stakeholder meetings,
and lessons learned sessions” (PPfM Std, p. 112)
10. 10
• Focus groups and brainstorming
• Associate the ideas into mind maps or similar
Facilitation techniques
• Interviews (structured, semi-structured, open)
• Observations (inside/outside) Ethnography
Survey techniques
• Votes to get consensus or majority
• Display popular opinion on recommended changes
Collaboration techniques
Elicitation techniques
11. 11
Communication management
Figure 7-3. Develop Portfolio Communication Management Plan: Inputs, Tools and techniques, and Outputs. P. 108
“In communication requirement analysis, the vehicle or tool used to communicate
information to the stakeholders and the frequency planned is evaluated to determine
if changes should be made” (PPfM Std, p. 112)
14. 14
What a project portfolio manager do?
Portfolio
manager
may be an
individual, a
group or a
governing
body, they
typically do:
3. Guide the selection, prioritization, balancing and termination of portfolio
components, ensuring strategic goals and organizational priorities alignment.
Prioritized projects
Infrastr
ucture
Marine
Corps
Naval
vessels
15. 15
What a project portfolio manager do?
Portfolio
manager
may be an
individual, a
group or a
governing
body, they
typically do:
4. Establish and maintain appropriate infrastructure and system to support
portfolio management process.
Jefatura de Proyectos
Especiales – Plan Orión
Subgerencia Técnica Subgerencia Administrativa
Grupo control seguimiento y
rendición de cuentas
Grupo de apoyo contratos
Grupo de apoyo financiero
Grupo de apoyo comisiones al
exterior
Grupo técnico
Grupo gerentes de
programas
Grupo inspectores
de programas
Vigilancia Tecnológica
Proyectos Offset
Fragatas
Submarinos
Aviación Naval
Guardacostas
Infantería de
Marina
Comités técnicos
Fragatas
Submarinos
Aviación Naval
Guardacostas
Infantería de
Marina
16. 16
What a project portfolio manager do?
Portfolio
manager
may be an
individual, a
group or a
governing
body, they
typically do:
5. Review, reallocate, reprioritize, and optimize the portfolio to ensure
alignment with organizational strategy.
17. 17
What a project portfolio manager do?
Portfolio
manager
may be an
individual, a
group or a
governing
body, they
typically do:
6. Provide key stakeholders with timely assessment of portfolio selection,
prioritization and performance.
Presidencia
Congreso
DNP
Cuerpo
diplomático
Medios
Rectores
Empresarios
Actores claves
validadores en
Plan Orión
18. 18
What a project portfolio manager do?
Portfolio
manager
may be an
individual, a
group or a
governing
body, they
typically do:
7. Meet legal and regulatory requirements.
• Selección directa - MOU
• Ley 80 - Adquisición tradicional
• Contratación interadministrativa
• Acuerdo de cooperación industrial y social
(Offsets)
• Transferencia de tecnología y de conocimiento
• Nacionalización
Requerimientos legales en Plan Orión
19. 19
What a project portfolio manager do?
Portfolio
manager
may be an
individual, a
group or a
governing
body, they
typically do:
8. Support of senior-level decision making.
20. 20
What are the typical skills during portfolio lifecycle?
Manage
risks
Monitor and prioritize
portfolio components
Resolve senior
level issues
Develop and
improve
processes
Apply
organization
knowledge
Apply
management
skills
Manage
organization’s
resources
Provide timely
information
Portfolio
manager daily
skills
e.g. Corruption, quality,
ignorance, etc.
e.g. Robustness of the
mathematical model, lack
of reports, low controls
e.g. Why not me?,
influences, train crash
e.g. AHP with
sensitivity analysis
e.g. Similar projects, experience,
industrial capabilities, lessons learned
e.g. Planning, decision-
making, delegation, problem
solving, motivation, etc.
e.g. RFIs, RFQs, Cash flow
planning, negotiation, finance
analysis, procurement, etc.
e.g. quality of reports, metrics,
usefulness of data.
21. 21
In which areas the project portfolio manager should have expertise?
01 02 03 04 05
Portfolio strategic
management and
alignment
Portfolio
management
methods and
techniques
Stakeholder
engagement
Leadership and
management skills
Risk management
22. 22
Portfolio strategic management and alignment 01
1. Monitor changes in organizational strategy (e.g. from green to gray vessels)
2. How portfolio is supporting organizational strategy? (e.g. increase results)
3. What are the financial benefits? (e.g. develop vs. purchase)
4. What are the non-financial benefits? (e.g. Guajira children)
5. What are the positive risks of the portfolio? (e.g. international operations)
6. What are the negative risks of the portfolio? (e.g. lifecycle costs)
23. 23
Portfolio strategic management and alignment
01
Monitor changes in organizational strategy (e.g. from green to gray vessels)
• The conflict made changes from
transportation to combat.
• Enemy capabilities required that
vessels were armoured.
• Construction capabilities changed
acquisition process.
• Reduction of technological gaps
increased ambition.
• Strategic surface platform is the
highest technological project.
24. 24
Portfolio strategic management and alignment
01
How portfolio is supporting organizational strategy? (e.g. increase results)
Detection
Detention
Interception
and inspection
• The completion of the project
increase operability
• Different parts of the portfolio
have particular functions
• The sum of the parts is more than
each one individually
25. 25
Portfolio strategic management and alignment 01
What are the financial benefits?
Be careful between the sum of project benefits and the benefits of the portfolio
De 3.500 a 10.500
e.g. Forward y Diferencial cambiario
26. 26
Portfolio strategic management and alignment 01
What are the non-financial benefits?
National security
Rescue of people at sea
Water transportation to
isolated areas
27. 27
Portfolio strategic management and alignment 01
What are the positive risks of the portfolio?
Teaching maritime
interdiction operations in
the African horn
Scientific research
in Antarctica
How do we can increase
revenue?
How do we may engage
with other portfolios?
How do we may engage
with other strategies?
28. 28
Portfolio strategic management and alignment 01
What are the negative risks of the portfolio?
• Continuous use of war material
mean high life-cycle costs.
• More ships require more people,
more infrastructure, more training,
i.e. more costs
29. 29
Portfolio management methods and techniques
02
Decision support tools and models: typically is a software designed for supporting
analysts and decision makers to make better and faster decisions
1. Using past information if it is possible to predict
how the future will be.
2. Estimate how will be the different scenarios.
3. Calculate each probability
4. Compare the alternatives
5. Choose the most profitable option
30. 30
Portfolio management methods and techniques
02
Decision support tools and models: decision trees. Example: 300’ bakery
Alternative A:
Keep only one
Alternative B:
Make it bigger
Alternative C:
Expand to
another one
Decision
No investment
30’ monthly
50’ investment
100’ investment
45’ monthly, 30%
(45*0,3)+(35*0,7)
38’
35’ monthly, 70%
75’ monthly, 75%
(75*0,25)+(65*25%)
75,5’
65’ monthly, 25%
Rent: 5’
Salaries: 7’
Raw material: 5’
Taxes: 2’
Losses: 1’
Utilities: 1’
Others: 1’
Living: 6’
Savings: 2’
Bank 50’: 2’
Bank 100’: 3’
12.5 años
4’
2’
22’
31. 31
Portfolio management methods and techniques
02
Decision support tools and models: typically is a software designed for supporting
analysts and decision makers to make better and faster decisions
OMOE (Overall Measure Of Effectiveness)
• Decompose the effectiveness in more
manageable groups
• Compare between pairs
32. 32
Portfolio management methods and techniques
02
Decision support tools and models: typically is a software designed for supporting
analysts and decision makers to make better and faster decisions
Analytic Hierarchy Process: From
subjective concept to objective value
1: same value; 3: a bit better; 5: better;
7: too much better; 9: extremely better.
Combine between experts
Closest point
to the ideal
point
33. 33
Portfolio management methods and techniques
02
Prioritization algorithms: Any organization that manages a portfolio of projects needs
to define and communicate what kinds of project work is of highest value.
1. Alignment with organizational strategy (satisfaction of
organizational objectives, values, etc.)
2. Top management support (Identification of high value
from the top level)
3. Project’s maturity (how the project is ready to be done)
4. Risk assessment (how risky is the project)
5. Financial assessment (how profitable is the project)
6. Time assessment (what project would be the fastest)
# Who assess? (1-10 scale)
1 Strategic management office
2 CEO office
3 Project Management Office
4 Financial management office
5 Financial management office
6 Operations management office
34. 34
02
Portfolio management methods and techniques
Project and program auditing techniques: Are projects and programs are in-sync with their objectives?
Budget based Is the proposed project budget compatible with the organization’s limitations?
Does the project budget has a scope for bearing contingency or risk-related expenses?
Estimation based Has the cost estimation process been clearly-defined and documented?
Was cost estimation conducted in accordance with accounting regulations?
Strategic
Management based
Has the project manager acceptable levels of authority and accountability instructions?
Is there a system for analysing past projects for improving future performances?
Time based Time schedule development and control measures
Activity duration analysis in terms, including inter-team dependency
Resource based Resource planning and control in terms of allocation of resources
Resource planning and control in terms of analysis of consumption
Personnel based Allocation of staff and establishment of recruiting policies
Division of responsibilities regarding team development and training needs
Grading system to rank projects
Critically Deficient —serious
inability to match project guidelines
Weak — unable to entirely comply
with project objectives
Satisfactory — project principles
are followed but the overall
performance may improve
Good — compatibility with project
goals and effectiveness
Very Good — an ideal project
performance and adheres to
planning/monitoring expectations
35. 35
02
Portfolio management methods and techniques
Organizational, industry and domain acumen: portfolio managers need to know their sector
Relevant
markets
Customer base
Competition
Trends
Standards
Regulatory
environment
Code of
conduct
e.g. submarines
e.g. BDAs
e.g. Los Frailes
e.g. Unmanned vessels
e.g. OPV vs. Frigate
e.g. SOLAS (Safety
of Life at Sea)
e.g. MARPOL
(Maritime Pollution)
36. 36
Stakeholder engagement
03
Working with portfolio stakeholders contributes to
maximize portfolio and organizational performance
All O’s: CEO, CFO,
COO, etc.
Program and
Project managers
Resource
managers
Contracts staff
PMO
Topics What questions ask?
Personal
details
Mobiles, email, role
Objectives What should or could the initiative seek to
accomplish?
Issues Are there any issues that we need to be
aware of when planning the project?
Stakeholders Who do you see as the stakeholders of this
initiative?
Roles How do you see your role in achieving the
aims of this project?
Value-add What is the strategic contribution of the
project to the organization as a whole?
Resources Which specialist personnel, equipment and
technology will be required?
Approach How do you think we should approach to
implement this initiative?
Risks What challenges represent obstacles to the
success of this project?
Sustainability How should will ensure sustainability of the
project’s deliverable?
37. 37
Leadership and management skills
04
An effective portfolio manager has well-developed leadership
and management skills and is able to interact with executives,
managers and other stakeholders.
Recruitment
Retention
Goal Setting
Performance
Evaluation
Reward and
recognition
Succession
planning
Employee
development
Mentoring
Coaching
Motivating
Training
What people do I
need? Where are they?
How may I keep the
organization talent?
How can I match
people daily work with
organization strategy?
How to control
people performance?
How do I award the
best in class people?
How do I prepare the
next generation?
How do I make the
best of the people?
How I prepare my
people on the job?
How my people may
find a life purpose?
How I improve the
conditions at work?
What kind of education
need my people to their
job at best?
38. 38
Workshop 2
In the same groups continue with your portfolio as follows:
1. Describe one policy and two procedures (slide 3)
2. Mention two norms, two rules and two values (slide 5)
3. 1 criterion for categorization, 1 for prioritization, and 1 for authorization (slide 6)
4. Mention at least three key stakeholders (slide 8 and 17)
5. Mention one elicitation technique (slide 10)
6. Build your own communication matrix (slide 13)
7. Mention three regulatory requirements (slide 18)
8. Exemplify three portfolio manager daily skills (slide 20)
9. Identify the three most influential potential changes in the environment (slide 23)
10. Explain one financial benefit and one non-financial benefit (slides 25 & 26)
11. Identify one positive risk and one negative risk (slides 27 & 28)
12. Present your prioritization algorithms (slide 33)
13. Identify three areas of sectorial knowledge (slide 35)
14. Explain three leadership and management skills for your portfolio (slide 37)
Prepare a 15 min presentation, all people of the group must participate.
