Project Portfolio Management - An insiders overview


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Presentation to PMI-IIBA Professional Development Day 2008

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  • Excellent presentation. A good combination of all the pieces that make up PFM. Could you please email id: Thanks in advance.
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  • 06/08/09 In our increasingly global economy – which is FLAT/TILTED , in which we are all competing with organizations about which we often know very little, in parts of the world with which we may not be at all familiar, it is becoming clear that one critical competitive advantage is the ability to translate strategy into organizational success through projects
  • Project Portfolio Management - An insiders overview

    1. 1. Organizational Strategy Successful Projects PPM - An insider’s Overview Presented by: Saji Madapat, CPIM CSSMBB PMP OPM3 & PPM Team Member PMI/IIBA Professional Day
    2. 2. Presentation Outline <ul><li>Present Scenario </li></ul><ul><li>Why PPM? </li></ul><ul><li>What is in PPM for my organization? </li></ul><ul><li>The Evolution – PMI Perspective </li></ul><ul><li>SO What is a Portfolio? </li></ul><ul><li>Organizational Context of Portfolio Management </li></ul><ul><li>Cross-COMPANY Portfolio Management Process Relationships </li></ul><ul><li>Project & Portfolio Attributes </li></ul><ul><li>Implementation Approaches </li></ul><ul><li>Roles/Responsibilities and Expectations </li></ul><ul><li>What is in it for YOU? </li></ul><ul><li>Q & A </li></ul>
    3. 3. Present Scenario <ul><li>Annual IT application development statistics: </li></ul><ul><li>$250 Billion on 175,000 Projects </li></ul><ul><li>31% will be cancelled </li></ul><ul><li>53% will cost 189% of original estimates. </li></ul><ul><li>only 52% of required features and functions. </li></ul><ul><li>Time overruns 82% </li></ul><ul><li>$55 Billion dollars total project waste </li></ul>Source: The Standish Group CHAOS Report 2003
    4. 4. <ul><li>PMI conducted 5 Global studies: </li></ul><ul><li>involving 30,000+ practitioners </li></ul><ul><li>including C level executives </li></ul><ul><li>In their business environment: </li></ul><ul><li>desired project results were seldom achieved </li></ul><ul><li>project evaluation often not linked to business value </li></ul><ul><li>despite selection criteria, & processes in place to align projects to strategy, projects still failed </li></ul>Why PPM?
    5. 5. Why PPM? <ul><li>Significant findings: </li></ul><ul><li>only 25% achieved well-balanced project portfolios. </li></ul><ul><li>75% do not believe their organizations are delivering the projects necessary to achieve organizational strategies! </li></ul>
    6. 6. Organizational Strategy Successful Projects PPM <ul><li>Most Organizations have a Strategy Planning Process </li></ul><ul><li>PPM Bridges the gap between Organizational Strategy & Successful Projects </li></ul><ul><li>The PMBOK ® Guide enables you to successfully accomplish projects </li></ul>
    7. 7. <ul><li>Bridges - organizational strategy and projects. </li></ul><ul><li>Credibility and visibility of PM profession . </li></ul><ul><li>Understand organizational project management maturity . </li></ul><ul><li>Analyze maturity of different parts of the organization </li></ul><ul><li>PPM is a balancing act. Balancing resources against organizational needs - operations (on-going efforts to “keep the lights on), tactical and strategic needs. </li></ul>What is in PPM for my organization?
    8. 8. The Evolution – PMI Perspective <ul><li>1983: Ethics, Standards and Accreditation (ESA) </li></ul><ul><li>1987: PMBOK ® Standards </li></ul><ul><li>2002: Project Manager Competency Development Framework (PMCD) </li></ul><ul><li>2003: OPM3 </li></ul><ul><li>2006: The Standard for Portfolio Management & The Standard for Program Management </li></ul>Projects Organization People
    9. 9. SO What is a Portfolio? A portfolio is a collection of Projects and/or programs (even sub portfolio’s) and other work (ex. maintenance) that are grouped together to facilitate the effective management of that work to meet strategic business objectives.
    10. 10. Organizational Context of Portfolio Management
    11. 12. Optimize Scarce Resources Reduce Risk Benefit Aggregate Detailed Planning Insight & Synthesis Process Competencies Proj, Prog& Exec Project Team Management Strategic Tactical Leadership Business Performance Budget, Time, Specification Success Broad Minimum Change Business Narrow & Specific Scope Portfolio Project Attributes
    12. 13. The P’s Tactical Focus Strategic Focus Investment Centric Performance Centric Program Management Unity in diversity Project Management Focused. Getting things done Right Portfolio Management Cross Organizations. Getting Right things done PMO Crosses the IT boundary. Federated Model
    13. 14. Implementation Typology Process Improvement System Implementation “ To Be” “ As Is”
    14. 15. Traditional Implementation Process Improvement System Implementation TRADITIONAL PATH
    15. 16. Comprehensive Implementation Process Improvement System Implementation Comprehensive path
    16. 17. Compact Implementation Compact path Process Improvement System Implementation Comprehensive
    17. 18. Implementation Approaches Process Improvement System Implementation Comprehensive Technical path Compact
    18. 19. Current state of PMO’s <ul><li>Most PMO’s are: </li></ul><ul><ul><li>Laboriously Built </li></ul></ul><ul><ul><li>Painfully Maintained </li></ul></ul><ul><ul><li>Almost NEVER used </li></ul></ul>
    19. 20. What is in it for YOU? <ul><li>“ The corporation as we know it, </li></ul><ul><li>which is now 120 years old, </li></ul><ul><li>Is not likely to Survive the </li></ul><ul><li>next 25 years. </li></ul><ul><li>Legally & Financially, Yes, </li></ul><ul><li>But not Structurally & Economically.” </li></ul><ul><li>-Peter Drucker, </li></ul><ul><li>Business 2.0, August 2002 </li></ul>
    20. 21. Any Questions? Carrot and sticks to : Saji Madapat [email_address]
    21. 22. Saji K. Madapat CPIM, CIPPM, PMP, CSSMBB - [email_address] Mobile: 001-214-454-7254 As an Advisor- Project Portfolio Management Office, Saji is an integral part of the Project Portfolio Management Office initiative of $5.5B FedEx Freight for its IT & Business Projects. Earlier he had the techno-functional and project portfolio responsibility for Global Business Performance Systems (PPM & Hyperion BI) in 20 countries of Buckman Labs (a globally Most Admired Knowledge EntPPMrise -6 time MAKE award winner). He also worked with leading consulting firms including Bearing Point (KPMG), Ernst & Young (Cap Gemini), Arthur Anderson, BaaN (Vanenburg) Business System and CroweChizek on various high-profile PPM and Business Performance Management projects in the US. Saji is a graduate of Executive Global leadership Masters Program from PMI’s Leadership Institute. He served three terms as VP, Finance & nominated for President (2006) of the award-winning Project Management Institute (PMI) Memphis TN Chapter. Currently he is serving as a member of PMI Code of Ethics Implementation Advisory Committee (CIAC) and earlier as PMI ambassador (Component Mentor – 2006 & 2007) to its most crucial region - Asia. Saji Authored and presented over 30 papers at various Global Leadership Conferences. He is also active in PMI committees and global activities, which includes judge of PMI's 2004, 2005 & 2007 Project of the Year (POY) Award applications, mentoring initiatives and contribution to PMI’s strategic initiative on OPM3 (Organizational Project Management Maturity Model), PPMS (Program Portfolio Management Standards) and PMCD (Project Manager Competency) Standard Framework.