This document discusses using project portfolio management (PPM) at Rocky Flats Environmental Technology Site. PPM is needed to manage projects with fixed budgets and variable scopes, align projects with business strategies, and focus on strategic projects first. It allows for unifying reporting of project performance to customers and providing visibility across multiple projects. The document outlines key questions that must be asked and answered in PPM, including identifying needs, outcomes, work processes, and where relevant data resides. It also discusses reasons for using PPM from both business and technical perspectives to provide customers a unified view of investments and facilitate analysis of dependencies, risks, and performance measurement.

1. © 2002 CH2M HILL Communications Group
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disclosure is prohibited. Page 1
Using Project Portfolio
Management to Manage ICT
Projects at Rocky Flats
Environmental Technology Site

2. © 2004 CH2M HILL Communications Group
Data contained on this sheet is proprietary; use or
disclosure is prohibited. Page 2
BD02005 A 08/29/02
Using Project Portfolio Management requires an understanding of
the needs, outcomes, and work processes of ICT delivery
What are our “felt needs?”
What questions need to be asked and answered of any system or
process?
What are the external – customer facing – success factors?
What are the internal – delivery facing – success factors?
What are the data and transformation processes used to deliver
these success?
Where does this data currently reside?

3. © 2004 CH2M HILL Communications Group
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BD02005 A 08/29/02
What is the “felt need” of ICT that drives our Project
Portfolio Management efforts?
We have the need to …
Manage projects with a fixed budget and variable scope
Fiscal year funding, precedes scope definition
Align projects with the business strategy
What strategic initiative does the project support?
Focus on strategic projects first
What priority should this project have?
Unify reporting of project performance to our customers
Collective funding for multiple projects
Provide visibility management across a collection projects
Combine project attributes while maintaining visibility into individual
project’s details

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BD02005 A 08/29/02
These felt needs are addressed by asking and answering
the following…
What is our capacity for work?
What’s our performance by customer, by program, by owner …?
How do we manage across the enterprise …
Human and material resources
Funding and budget from multiple sources
Risk for individual and collections of projects
Capacity for work across our work load
Project and portfolio performance for a variety of measures

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BD02005 A 08/29/02
Why do we use project portfolio management as well as
our standard project management tools and methods?
Business (external) reasons …
Provide our customers with a unified view of their investment in
ICT projects.
 Utilization of funds
 Utilization of resources
 Unified risk assessment
 Summarized performance of the collection of projects in their
portfolio
Talk to the customer with a common language for measuring
project and portfolio performance
 Homogeneous data from heterogeneous projects
 Provide an “investment” view of our customers funds

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BD02005 A 08/29/02
Why do we use project portfolio management as well as
of our standard project management tools and methods?
Technical (internal) reasons …
Exposes dependencies among projects, funding sources, and
resources
Separates budget from funding
Facilitates analysis of risks
Resource dependencies
Funding gaps
Development dependencies
Provides a homogenous baseline for measuring project
performance
Funding sources
Technology basis
Resource basis

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BD02005 A 08/29/02
What dials, knobs and other indicators do we need to
know about when managing the portfolio of projects?
Controls (knobs)
Resource availability
Scope of work
Project duration
Quality goals
Risk acceptance level
Indicators (dials)
Cost variance
Schedule variance
Portfolio risk
Slack
Quality (defect rate)
Attributes of the work process that affect management decisions
Resource effectiveness
Defect generation rate
External work demand

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BD02005 A 08/29/02
What project portfolio data is needed and what are their
sources?
Data Source of data
Cost and Schedule data Project Server, ETS, Purchasing
Resource data Project Server
Workload demand CRM’s, customer, scheduled work
Schedule and Budget performance Project Accounting, EV, WAMS
Funding sources CRM’s
Risk assessment Schedule and cost variance
Slack Project Server
Quality PVCS, SQA, CM, IV&V