Project project portfolio magament

1. Project, Program & Project Portfolio
Management
Methods, Process, Tools & Techniques
Anand Subramaniam

2. 2
“The ultimate leader is one who is willing to
develop people to the point that they
surpass him or her in knowledge and
ability.”
- Fred A. Manske, Jr

3. 3
Highlights
 Project Management
 Project Methodology
 Program Management
 Project / Program Office
 Project Portfolio Management

4. Project Management

5. 5
Why Projects fail?

6. 6
Reasons for Project Failure
 Poor project
specification
 Scope/objectives
unclear
 Unrealistic timescales
 Over-optimism
 Under-resourcing
 Lack of buy-in from
key players
 Failure to manage
user expectations
 Failure to manage
change
 Inappropriate staff
 Too much reliance on
one individual

7. 7
Managing Projects - Do & Don’t
Do
 Get all stakeholders
to sign up to project
plan
 Seek help if you need
it
 Devote time to early
work
Don’t
 Overload people
 Accept an
unreasonable
deadline without
challenging it
 Assume others have
same priorities as you
 Use tools and
procedures you don’t
need

8. 8
Criteria for Successful Project
 Communication, Communication,
Communication
 Time invested at start to understand purpose
and build relationships
 A clearly defined scope
 Realistic objectives
 Commitment and buy-in from Project Board and
senior managers
 Clearly defined roles and responsibilities
 A motivated and valued Project Team

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Traits of a Good Project Manager
 Spends time upfront
understanding project and getting
commitment from stakeholders
 Communicates with all
stakeholders openly and honestly
 Explains and gets agreement from
people on what they need to do
and when
 Listens
 Understand scope and objectives
and keeps them in mind when
making decisions
 Builds the team and makes the
most of members’ skills
 Keeps Project Team involved and
motivated
 Is prepared to take calculated
risks
 Plans thoroughly – keeps
workload, resources and
timescales in balance at all times
 Is accountable for all aspects of
the project
 Makes decisions based on the
information available
 Puts the project before any other
allegiances
 Is honest with themselves and
others
 Uses common sense
 Is a good negotiator
 Anticipates, prioritises and
addresses potential and real
problems as soon as they become
apparent

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Importance of Lessons Learned Report
 Review lessons learned from previous
projects
 Set up a Lessons Learned Log
 Capture lessons learned throughout life of
project
 Review Log at key points in project
 Write lessons learned report
 Share lessons and good practice

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Continuous Improvement
 Build knowledge bases
 Record lessons learned
 Refer to case studies, websites
 Learn from experience of others
 Contribute to the body of knowledge
 Learn from and build on own experience
 Keep up-to-date with relevant publications
 Join associations, support groups, committees

12. Project Methodology

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Benefits of having a Methodology
No Methodology Having a Defined Methodology
Projects tend to be developed to attract funds Projects are designed to solve problems
Projects have to fit a standardised set of outputs Projects develop local criteria and indicators to suit the local
situation and achieve excellence
Focus is on writing applications for funding Focus is on designing and making decisions before writing the
proposal
Stakeholders have not been active in designing
projects
Stakeholders help to define the problems and make decisions
about the solutions
Projects are driven by the funder or technical
supply
Projects are led by demand
Poor analysis of local situation Through stakeholders’ involvement, the local situation is well
understood
Activity focused Projects are designed through identifying objectives as solutions to
each problem
Impact cannot be verified Each objective has clear evidence indicators that can be verified
Short term vision The focus is always on the long-term and sustainable benefits
Projects tend to include many areas and become
complex and exclusive
Projects tend to be placed in an operational strategy and remain
focused on a single outcome
Inconsistent documentation All documents are standardised to improve consistency and content

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PMBOK
 The PMI Project Management Body of
Knowledge (PMBOK®) is an inclusive term that
describes the sum of knowledge within the
profession of project management.
 PMBOK® includes knowledge of innovative and
advanced practices that are widely applied in all
fields of project management.
 Project management is the application of
knowledge, skills, tools and techniques applied
to meet a projects requirements.

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PRINCE2
 PRINCE2 (PRojects IN Controlled
Environments) is a process-based
approach for project management
providing an easily tailored and scaleable
method for the management of all types of
projects.
 The method is the de-facto standard for
project management in the UK and is
practiced worldwide.

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Other Methodologies
 Agile
 SDM
 Lean
 Six Sigma
 Kepner Tregoe
 Lean Six Sigma
 Theory of Constraints (TOC)

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PMBOK vs. PRINCE2
PMBOK PRINCE2
Comprehensive Focuses on key risk areas only;
does not claim to be complete
Largely descriptive,
prescriptive on a high level
Highly prescriptive, especially on
Process Structure, but adaptable
to any size project
Core and facilitating
processes; need to be scaled
to needs of project
All processes should be
considered; also need to be
scaled
Customer requirements
driven
Business case driven
Sponsor and stakeholders Clear project ownership and
direction by senior management
US/International Standard UK Standard

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PMBOK vs. PRINCE2 - Components
PMBOK Knowledge Area PRINCE2 Components
Integration Combined Processes,
Components, Change Control
Scope, Time, Cost Plans, Business Case
Quality Quality, Configuration
Management
Risk Risk
Communications Controls
Human Resources Organisation (limited)
Procurement Need to create procurement
products

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PMBOK vs. PRINCE2 - Match
PMBOK P2: Project Level P2: Stage Level
(“phase-by-phase”)
Initiating Starting Up; Directing Managing Stage
Boundaries; Directing
Planning Initiating, Planning Managing Stage
Boundaries; Planning
Executing/
Controlling
[managed on a stage
by-stage basis]
Controlling a Stage;
Managing Product
Delivery; Directing
Closing Closing A Project Managing Stage
Boundaries

20. Program Management

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What is Program Management?
The orchestration of a portfolio of
projects effecting organisational change
to deliver business benefits of strategic
importance

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Why Program Management?
 Good management control of costs
 The wider context of risks is better understood
 The gap between strategies and projects is filled
 Co-ordination and control of the complex range of activities
 Projects are prioritised and integrated to manage resources
better
 Effective management of the Business Case to achieve the
vision
 Formal process for identifying, managing, realising and
measuring benefits
 A management framework that focuses on business change
objectives
 Clear responsibilities for preparing for implementing business
change

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Project vs. Program Management
Area Project Management Program Management
Focus Single objective Business strategy
Scope Narrow Wide-ranging, cross-
functional
Benefits Determined in advance
Accrue after completion
Used to make decisions
Accrue during the programme
Deliverables Few, clearly defined Many , many initially
undefined
Timescale Clearly defined Loosely defined
Change To be avoided Regarded as inevitable
Success
Factors
Time, budget, specification Mission, cash-flow, ROI
Plan Specific, detailed, bounded High-level and evolving

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Change Management - Blueprint
 Data required
 Business models of the new functions,
processes and operations
 Organisation structure, staffing levels,
roles, and skill requirements
 Information systems, tools, equipment and
buildings
 Costs, performance and service levels for
support of future operations

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Benefit Definitions
 Depends on other activities outside the control of
the programme
 Business / operations areas expected to be
affected
 Projected changes from the current business
operations
 current measures of the business operations
and the target for improvement (e.g. financial
savings or improved throughput)
 When the benefit is expected to be realised
 Financial & non financial value of the benefit

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Risk Hierarchy
 Strategic - Other programmes, other initiatives,
inter-programme dependencies, political pressures
 Program - Changing objectives, program definition,
management skills, inter-project dependencies
 Project - Project risks, third party
 Operational - Transfer of deliverables to operations,
acceptability within business operations,
acceptability to stakeholders

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Program Stakeholders
 Third-party suppliers
 Regulatory bodies
 The program management team
 The governing body of the program
 People creating the program’s deliverables
 Providers of support for the program's deliverables
 All business areas impacted by the program, both during the
program or after its completion
 Providers of support to the program's activities in areas outside the
Program Manager's control
 Custodians of standards and policies relating to the program's
activities
 Providers / supporters of the technical infrastructure used by the
program

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Program - Key Roles
 Change Agents
 Quality Manager
 Governing Body
 Program Sponsor
 Program Manager
 Technical Authority
 Business Planners
 Project Managers
 Business Change Managers
 Program Management / Support Office

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Program vs. Project Manager
Program Manager
 Plans program-level activities and
schedule of projects
 Defines TOR for projects
 Starts, stops and monitors
progress of constituent projects
 Manages program level risks and
issues. Delegates risks to projects
 Sets policies and procedures for
projects
 Resolves resource conflicts
 Determines program standards
Project Manager
 Plans a project given the
dependencies and interfaces
defined by the Program Manager
 Works within the defined TOR
 Runs a project, reporting to the
Program Manager
 Manages project risks and issues,
escalating to the Program
Manager wherever necessary
 Runs project according to policies
and procedures
 Uses assigned resources
 Delivers products to the defined
standards

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Program Manager Competencies
 Strong leadership and management skills
 Effective interpersonal and communications skills
 Ability to create a sense of community
 Ability to find ways of solving and pre-empting problems
 Marketing and communication skills to “sell” the program into the
business areas
 Good knowledge of techniques for planning, monitoring and
controlling programmes
 Knowledge of project management approaches
 Good knowledge of budgeting and resource allocation procedures
 Knowledge of business change techniques, e.g. BPR
 Knowledge of benefits identification and management techniques

31. Project / Program Office -
Questionnaire

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Project Management Office
 How do you keep costs down?
 How do you eliminate redundancy?
 How do you ensure cross-functional
alignment?
 What is the impact of change?
 How can you leverage your existing
investments in information and IT?

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Program Management Office
 Can you estimate the business value of programs ?
 How do you plan and manage the investments and deliver the
business benefits?
 How can you gauge under / over performance of programs?
 How do you link business case to business strategy?
 How can you effectively use business cases for executive
decision making?
 How can you assess the actually achievement to the
anticipated business value?
 How can you scope the complexity of the programs initiated?
 How can you estimate the transformation change and the
change management strategy for business improvement
programs?
 How can you stop programs for underperformance or for not
supporting the business strategy anymore?

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Transformation Change
 How do you define and manage strategic
business change?
 How do you maximise the value in investments
in business change?
 How to create blueprints for change in the
business and its IT resource?
 How to deliver and maintain information system
solutions?
 How to deliver change - on time, on budget, to
defined requirements?

35. Project Portfolio Management

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What is PPM?
Align Plan Execute Measure
Ongoing Re-calibration
Core Operating Processes (Prioritisation, Governance, Monitoring, Resources)
Project
Approvals,
Completions &
Cancelations
Work Output &
Performance
Trends
Continuous
Improvement
Recommendation
Net Value
Contribution
Optimal
Resource / $$
Utilisation
Balance Risk
Vs. Value
Focus on
Value
Regulatory
Compliance
Changing
Priorities
Project
Changes
Corporate
Strategy

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Symptoms calling for PPM…
Symptom
s
Teams overworked /
under appreciated
Project benefits not
captured or tracked
Rework and “out of
control” costs with
3rd party vendors
No prioritisation
process for
business requests
Seek accurate
estimates based on
firm’s history &
lessons learned
No tracking
or
accountabilit
y for project
success
Frequent change of
status of projects
(active – on-hold –
priority – on-hold)
Intense competition
internally with regard
to financing / staffing
projects
Too many
small
projects
underway
Excessive
project
delays due
to lack of
resources
Many projects are not
adding “strategic value”
to the organisation

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PPM - Benefits
Benefits
Improves communication and supports
agreement on project goals
Justifies killing projects that do not
support organisation strategy
Links project selection to
strategic metrics
Builds discipline into
project selection process
Provides executive
oversight of the firm
GRB & PMO jointly
execute PPM Processes
Allocates
resources to
projects that
align with
strategic
direction
Prioritises project
proposals across a
common set of
criteria, rather than on
politics or emotion
Balances risk across
all projects
Provides the structure/process
for project portfolio governance &
avoids duplication / waste

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PPM - Goals
 Helps the organisation to make the best use of its resources
 Enables the removal of low value projects from the portfolio
 Ensures that all new and existing projects are aligned with the organisation’s
mission, goals and objectives
 Produces and maintains a comprehensive listing of all projects which the
organisation is undertaking
 Develops a “bigger picture view” and a deep understanding of the project
collection as a whole
 Creates an “objective” methodology for identifying, ranking, prioritising and
selecting new projects
 Ensures that a healthy balance across different types of projects with different
cost, schedule, complexity and risk profiles is maintained

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Project Portfolio Management (PPM)
 Are you doing the right things?
 Are you doing them the right way?
 Are you getting them done well?
 Are you getting the benefits?
 How are (or will) the benefits be delivered?

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PPM (Contd.)
 How do you ensure that the investments are aligned with the
key business objectives?
 How do you find the most efficient ways to realise the
strategic goals?
 How do you check the right balance of investments across the
portfolio?
 How do you realise the predicted benefits of these efforts?
 How do you assess programs and projects in the portfolio
and to say 'No' and 'Stop‘?
 How do you provide information to make better decisions?
 How do you align actions to strategy and increase success on
strategic initiatives?
 How do you minimise risk, manage workload, decrease time
to delivery, decrease costs and to increase value delivered?

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PPM (Contd.)
 How do you create an Inventory of current
programs and projects?
 How do you apply categorisation to understand
the different kinds of initiative in the portfolio?
 How do you apply evaluation criteria which
enables reliable selection of high value / low risk
initiatives?
 How do you create visualisation of the Portfolio
to support executive decision making?
 How do you define and create the capability /
Maturity level target and develop a "roadmap" of
how to get there in a realistic timeframe?

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“You can tell whether a man is clever by his
answers. You can tell whether a man is
wise by his questions.”
- Naguib Mahfouz

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Good Luck
http://www.linkedin.com/in/anandsubramaniam