This document discusses various aspects of project and portfolio management. It covers strategic planning, identifying projects, project proposals, selection methods, and factors that contribute to project success. Key points include the importance of aligning projects with organizational strategy, using techniques like cost-benefit analysis and weighted scoring to select projects, and how project management processes have improved over time, leading to higher success rates.

1. Project Management 2. Portfolio Management

2. Week 2

3. Project selection and portfolio management

4. Project selection and portfolio management

5. Project selection and portfolio management What are the inputs that cause the project process to begin?

13. http://www.teachers.ash.org.au/ researchskills /Dalton. htm

15. Strategic Planning

17. Strategy 2 Strategy 1 Strategy 3 Strategy 4 Organisation Mission Money Customers Efficiency and Effectiveness Adaptability

18. 5 Forces analysis Supplier power Customer power Threat of New Entrants Substitutes Intensity of competition Michael Porter’s ‘5 Forces’ – 1980’s

19. business model template VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS INFRASTRUCTURE CUSTOMER OFFER FINANCE Osterwalder’s Business Model framework 2006 http://business-model-design.blogspot.com

20. Process efficiency Scorecard Customer satisfaction Financial Learning and innovation Balanced Scorecard Kaplan & Norton (1994?) HBR

21. Kaplan & Norton (1998?) HBR http://www.visual-literacy.org/periodic_table/pix/strategy-bsc-map.png Strategy Map

22. Strategy 2 Strategy 1 Strategy 3 Strategy 4 Organisation Mission Money Customers Efficiency and Effectiveness Adaptability

24. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals

25. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals

26. SWOT Analysis

28. S T W O

29. S T W O Positive Negative

30. S T W O Internal External

31. S T W O Internal External Positive Negative

32. S T W O Internal External Positive Negative

33. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals

34. http://en.wikipedia.org/wiki/SMART_(project_management) Time-bound T Relevant R Achievable A Measurable M Specific S

35. http://en.wikipedia.org/wiki/SMART_(project_management) Recorded, Rewarding, Reviewed [8] R [1] Exciting, Evaluated, Ethical E [1] Time framed [2] , Timed, Time-based, Timeboxed, Timely [6] [5] , Timebound, Time-Specific, Timetabled, Trackable Time-bound T Realistic [2] , Results/Results-focused/Results-oriented [6] , Resourced [7] , Rewarding [3] Relevant R Agreed, Attainable [6] , Assignable [2] , Appropriate, Actionable, Action-oriented [3] Achievable A Meaningful [3] , Motivational [3] , Manageable Measurable M Significant [3] , Stretching [3] , Simple Specific S Minor Terms Major Term Letter

37. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals

39. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals

40. Organisation Mission Money Customers Efficiency and Effectiveness Adaptability Strategy 2 Strategy 1 Strategy 3 Strategy 4

41. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals

42. Organisation Mission Money Customers Efficiency and Effectiveness Adaptability projects projects projects projects Strategy 2 Strategy 1 Strategy 3 Strategy 4

44. Figure 2.1 Strategic Management Process (Gray & Larson, 2006, p25)

45. projects

46. projects projects projects projects

47. projects projects projects projects projects projects projects projects projects projects projects projects

49. Programme OPM3 Portfolio Projects

50. Projects Programme Portfolio Project Programme Project Project Projects Project Project Projects Project Project Projects

51. One Portfolio or Several? Categories Approaches to project portfolio management

52. One Portfolio or Several?

53. Categories Venture: Projects that transform the business Growth: Projects that grow revenue or market share Core: Projects that help run the business

57. Different views from senior management on what (and how) should be done

58. Competition (& effective utilisation) for resources

60. Figure 2.8 Sample project portfolio approach (Schwalbe, 2005, p51)

61. Figure 1.5 Project management compared to project portfolio management (Schwalbe, 2005, p15)

62. Money Customers Efficiency and Effectiveness Adaptability projects projects projects projects projects programme projects projects projects projects programme projects Strategy 2 Strategy 1 Strategy 3 Strategy 4 Organisation Mission Programme projects projects programme

63. Short term Mid term Long term projects projects projects projects projects projects projects projects projects projects projects projects Strategy 2 Strategy 1 Strategy 3 Strategy 4 Organisation Mission projects projects projects projects

64. http://www.betterprojects.net/search?q=strategy

65. projects projects projects projects projects projects projects projects projects projects projects projects Strategy 2 Strategy 1 Strategy 3 Strategy 4 Organisation Mission projects projects projects projects

66. Identifying IT Projects

68. Figure 2.1 Pyramid for the Project Selection Process (Schwalbe, 2005, p35)

69. Project Proposals

71. Most business units have a strategic plan

72. Which SHOULD align with the organisation’s strategic plan Which SHOULD align with the organisation’s strategic plan

75. Project Initiation forms Figure 2.4B Risk Analysis (Gray & Larson, 2006, p39) Figure 2.4A Major Project Proposal (Gray & Larson, 2006, p38)

76. Project Initiation forms Figure 2.4B Risk Analysis (Gray & Larson, 2006, p39) Figure 2.4A Major Project Proposal (Gray & Larson, 2006, p38)

77. Project Selection Methods

78. Not all project proposals make it to initiation

84. Financial Analysis $$$ Net Present Value Payback model Return on Investment (there are more)

85. Financial Analysis $$$ Net Present Value Payback model Return on Investment (there are more)

89. Non-financial Analysis $$$ Weighted scoring model Balanced Scorecard

92. Applying a selection model

94. Project Selection

97. Table 3.4 Sample business case (Schwalbe, 2005, pp74-76) Example business case

99. Figure 2.3 The Process for Developing a Business Case (Marchewka, 2003, p34)

100. Project Success

104. 53% Challenged 16% Success 31% Critical Failures 1994 51% Challenged 34% Success 15% Critical Failures 2002

105. 1994 2005 Wasted money as a share of total project spend Billions of dollars

106. What happened?

109. Better Selection Portfolio Mgt Strategic Alignment More recently