Fundamentals of program, project portfolio management

2,382 views

Published on

Presentation given to the PMI Bangkok Chapter in January 2013

Published in: Business
2 Comments
3 Likes
Statistics
Notes
No Downloads
Views
Total views
2,382
On SlideShare
0
From Embeds
0
Number of Embeds
17
Actions
Shares
0
Downloads
0
Comments
2
Likes
3
Embeds 0
No embeds

No notes for slide

Fundamentals of program, project portfolio management

  1. 1. Fundamentals in Project Portfolio Management Robert J Twiddy 9 January 2013 Mr. Robert Twiddy provides key strategy, program and project management, training, coaching and mentoring to executives of top worldwide companies. He is currently supporting Forensics Ministry of Justice and NLP Top Coach in Thailand. He has provided Balanced scorecard, Sales SPIN courses, Coaching, PM Methodology, Project portfolio management and supporting IT methods tools and techniques. He is carrying out research with Thammasat Business School in How Thai companies translate strategy in to action with an emphasis on the ASEAN Economic Community preparation for 2015 and beyond”Tuesday, 8 January 13Wednesday, 16 January 13
  2. 2. PMI s PULSE OF THE PROFESSION IN-DEPTH REPORT PORTFOLIO MANAGEMENTWednesday, 16 January 13
  3. 3. About the Study PMI’s 2012 Pulse of the Profession In-Depth Report: Portfolio Management was conducted in March 2012 among 443 portfolio managers around the world. OF THOSE SURVEYED: 27% are external client portfolio managers Regardless of type, they have been portfolio managers for an average of 40% are business unit portfolio 33% are enterprise portfolio managers 6 years (and project managers for about 14 years) managers SOME OF THE INDUSTRIES REPRESENTED: 12% 25% Financial 10% Information Technology Services Government 8% 7% 6% Consulting Manufacturing Telecom ANNUAL REVENUE: 14% Less than US$50 million 26% Between US$50 million and US$1 billion 19% Between US$1 billion and US$5 billion Over US$5 billion 41% 10 Pulse of the Profession Portfolio ManagementWednesday, 16 January 13
  4. 4. Why Do Organizations Need Portfolio Management? The projects an organization has today demonstrate where it is now. The portfolio shows where the organization is going. A portfolio should be a true measure of an organization s intent, direction and progress. And portfolio management helps create a blueprint toward that vision. WHY DO ORGANIZATIONS PRACTICE PORTFOLIO MANAGEMENT? Customer Satisfaction 73% Cost Reduction 59% Revenue Growth 58% Improved ROI 45% Improved Development Costs 40% Regulatory Compliance 35% Innovation 34% Internal Knowledge Sharing 32% Employee Satisfaction 29% Share of Market 21% Sustainability 18% Supplier Relations 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 5 KEY DRIVERS OF EFFECTIVE PORTFOLIO MANAGEMENT Consistency and logic Senior management Competent portfolio Standardized metrics of organizational Mature project receptivity governance and criteria strategic objectives management of ce 78% 66% 62% 59% 58% 3 Pulse of the Profession Portfolio ManagementWednesday, 16 January 13
  5. 5. Conclusions and Implications Portfolio management is more than a theory. Executed effectively, it delivers solid business benefits—whether it’s greater efficiency or a boost to the bottom line. Organizations that described themselves as highly effective in portfolio man- agement increased the average number of projects meeting or exceeding their forecasted ROI by nearly 30 percent compared to those that described themselves as minimally effective. Highly effective Minimally effective at portfolio at portfolio % management management Increase AVERAGE PERCENTAGE OF PROJECTS: Completed on time 68% 50% 36% Completed on budget 64% 54% 19% Met original goals and business intent 77% 65% 18% Met/Exceeded forecasted ROI 62% 48% 29%   All of these benefits can give organizations a distinct advantage over competi- tors. Such forward-thinking strategic project planning transforms organizations from defensive and reactive to proactive and dynamic. Portfolio management drives increased ROI and reduces risks—helping orga- nizations consistently deliver business value, a rare commodity in today’s volatile global marketplace. The Result Improved Increased portfolio = ROI and = More powerful business value management less risk 9 Pulse of the Profession Portfolio ManagementWednesday, 16 January 13
  6. 6. AgendaWednesday, 16 January 13
  7. 7. Project Portfolio Management: Metrics that WorkWednesday, 16 January 13
  8. 8. PPM InterestWednesday, 16 January 13
  9. 9. PPM InterestWednesday, 16 January 13
  10. 10. PPM InterestWednesday, 16 January 13
  11. 11. Project Portfolio Management PMBOK 4th editionWednesday, 16 January 13
  12. 12. PPM ScopeWednesday, 16 January 13
  13. 13. Who is your PPM audience?Wednesday, 16 January 13
  14. 14. Who is your PPM audience?Wednesday, 16 January 13
  15. 15. Project Portfolio Management Project Portfolio Management: A Practical Guide to Selecting Projects, Managing Portfolios, and Maximizing Benefits (H B fit (Harvey A L i ) A. Levine)Wednesday, 16 January 13
  16. 16. Past/Current State Operations Management Project ManagementWednesday, 16 January 13
  17. 17. PPM as the HubWednesday, 16 January 13
  18. 18. Project Portfolio Management governanceWednesday, 16 January 13
  19. 19. Challenges of PPM OrganizationWednesday, 16 January 13
  20. 20. Challenges of PPM CulturalWednesday, 16 January 13
  21. 21. Challenges of PPM KnowledgeWednesday, 16 January 13
  22. 22. PPM: Three Dangerous Myths Myth 1: PPM resides with ITWednesday, 16 January 13
  23. 23. PPM: Three Dangerous Myths Myth 2: The Right Tool Drives PPM SuccessWednesday, 16 January 13
  24. 24. Wednesday, 16 January 13
  25. 25. PPM: Three Dangerous Myths Myth 3: The Best Starting Place is PPM Best PracticesWednesday, 16 January 13
  26. 26. Benefits of PPM (but not a Silver Bullet)Wednesday, 16 January 13
  27. 27. Benefits of PPM (but not a Silver Bullet)Wednesday, 16 January 13
  28. 28. Tuesday, 15 January 13Wednesday, 16 January 13
  29. 29. Management ProcessesTuesday, 15 January 13Wednesday, 16 January 13
  30. 30. Tuesday, 15 January 13Wednesday, 16 January 13
  31. 31. Tuesday, 15 January 13Wednesday, 16 January 13
  32. 32. !"#$%&(!#")#*+#(,-.-/%0%.(1(2+3%&4&*%( Create Select Plan ManageWednesday, 16 January 13
  33. 33. !"#$%&(!#")#*+#(,-.-/%0%.(1(2#"%(!"#&%33%3( Create Select Plan Manage Demand Management Portfolio Selection Capacity Planning Resource Management Financial Management Time Reporting Portfolio Reporting Project Reporting Project Scheduling Team Collaboration Program ManagementWednesday, 16 January 13
  34. 34. !"#$%#& !"#$%#&%()*"+)*,-..),/-$*-0*#..*1-&2*#,&-33*"+)*4$")&5&3)* Create Select Plan Manage •! !"#$%&("))(&*%+$+,(-&./(0.&1(.&2&+(( ((((((($.(+$&"$345(#&.65$+( •! 7$"82"&249(/$&45+,(:")%";.8(5&4$&4"(( ((((((("82($/#)"$+( •! !.8$&.)(48:+$/8$+($<&.%3<(3.:&8"85(( ((((((((0.&1=.0((Wednesday, 16 January 13
  35. 35. !"#"$%& !"#$%&(")*+,$-&)+*.+/(+%&01&1/(2"3(&0%&*1&$2(-)*(+*(4$% Create Select Plan Manage •! Objectively prioritize business drivers and drive consensus •! Derive varying priority scores to evaluate competing investments •! Identify portfolios that align with strategy and maximize ROI •! Utilize advanced portfolio analytical techniques to reach the Efficient FrontierWednesday, 16 January 13
  36. 36. Why is “doing the right projects” (=PPM) important? 100% 50% value lost PPM 66% Selecting the right 50% value realized Investment PM ‘Do the right things’ 75% 100% Delivering the investments right ‘Do the things right’ Tuesday, 15 January 13Wednesday, 16 January 13
  37. 37. !"#$% !"#$%"&()*+,-.(/%"0*1(*+$/2$)(3$4/(+#(*4+5*-4($0$"%$3"%".1( Create Select Plan Manage •! Identify resource gaps across the planning horizon •! Finalize release roadmap and headcount requirements to maximize resource utilization •! Search for team members with availability and assign to project •! Finalize plan and baseline before moving into executionWednesday, 16 January 13
  38. 38. !"#"$%& !"#$%&"#()*&#+,-"&./&0#(+"#112"-&/3"+1#()-/&4/56/5"7"5 Create Select Plan Manage •! Collaborate to effectively deliver selected projects •! Proactively monitor portfolio performance and visualize trends •! Drill down to the project level to assess risks, issues and status •! Track and compare budget, actual and forecast values •! Take corrective actions to improve project performanceWednesday, 16 January 13
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ompleted Page ! 15Wednesday, 16 January 13
  40. 40. Examples of Portfolio Management ModelsWednesday, 16 January 13
  41. 41. Strategic LinkageWednesday, 16 January 13
  42. 42. Sample Strategy ElementsWednesday, 16 January 13
  43. 43. Project Scoring Model Total Project Score Project Value to the Deliverable Organization Total Cost Duration Financial Strategic Scope QualityWednesday, 16 January 13
  44. 44. Project Scoring Model (Addition of Schema, Points) Total Project Score 70 of 100 points Project Value to the Deliverable Organization 30 of 40 points 40 of 60 points Total Cost Duration Financial Strategic 5 of 10 points 5 of 8 points 20 of 24 points 20 of 36 points Scope Quality 10 of 12 points 10 of 10 pointsWednesday, 16 January 13
  45. 45. Wednesday, 16 January 13
  46. 46. Wednesday, 16 January 13
  47. 47. Resource Allocation in the Portfolio Breakdown by Project Breakdown by Market Sector Types Target=10% Target=10% Target=10% Target=40% Target=20% T t 20% Target=20% Target=15% Target=10% Target=40%Wednesday, 16 January 13
  48. 48. Objectives Matrix Projects Row Scores 7 8 10 7 6 4 4 Column ScoresWednesday, 16 January 13
  49. 49. Project Portfolio Management: Metrics that WorkWednesday, 16 January 13
  50. 50. 5 Key Project Portfolio Metric Sets Portfolio Mix Portfolio Health Financial Management Value Demand/Capacity Tuesday, 15 January 13Wednesday, 16 January 13
  51. 51. 5 Types of Portfolio Metrics Category Key Questions Sample MetricsWednesday, 16 January 13
  52. 52. 5 Types of Portfolio Metrics Category Key Questions Sample MetricsWednesday, 16 January 13
  53. 53. 5 Types of Portfolio Metrics Category Key Questions Sample MetricsWednesday, 16 January 13
  54. 54. 5 Types of Portfolio Metrics Category Key Questions Sample MetricsWednesday, 16 January 13
  55. 55. 5 Types of Portfolio Metrics Category Key Questions Sample MetricsWednesday, 16 January 13
  56. 56. Portfolio Measurement LessonsWednesday, 16 January 13
  57. 57. Potential Enterprise Tools $$$$$ Gartner (June 2010)Wednesday, 16 January 13
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ompleted Page ! 15Wednesday, 16 January 13
  59. 59. resources status riskWednesday, 16 January 13
  60. 60. status projects phase dollarsWednesday, 16 January 13
  61. 61. Wednesday, 16 January 13
  62. 62. Technology Solution Sample Screens financialsWednesday, 16 January 13
  63. 63. Selection based on criteriaWednesday, 16 January 13
  64. 64. Achieve PPM SuccessWednesday, 16 January 13
  65. 65. Project Portfolio Management: Metrics that Work Completion of today’s talk covering PPM brings a way of connecting strategy to strategy execution where the projects generated from strategy initiatives are selected and executedWednesday, 16 January 13
  66. 66. Learnings for you • PPM requires you to understand more of the process holistically from the mission, vision and strategy of the company through to how it is executed • I would recommend the following training and coaching: • Balanced Scorecard and Strategy Execution Management • Project Portfolio Management fundamentals • Advanced Project Portfolio Management • Project Portfolio Management tools selectionWednesday, 16 January 13
  67. 67. • Q U E S T I O N S ?? Business Strategy Director PSI Solutions Co., Ltd. Tel: + 66 (0) 2 610 3963 Fax: + 66 (0) 2 885 0935 Email: rtwiddy@coepm.net Webpage: www.coepm.net Personal Website: www.roberttwiddy.comWednesday, 16 January 13

×