P3M - Project, Program, Portfolio Management Framework

Project, Program, Portfolio
Management (P3M™)
Framework
Rob Buhrman, PMP, PgMP, CSM, ITIL
robbuhrman@gmail.com

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P3M Framework

Agenda
Problem Statement
Industry, Public Sector, and Inside the Organization

Definitions and Linkage
PM, PgM, PfM
P3M Framework
Definition and Objectives
P3M Implementation Methodology
Assess, Recommend, Promote, Implement, Operate
Contact Info
Email, Blog, Bio


P3M Framework

Problem Statement
Industry and Public Sector

2006 STANDISH GROUP CHAOS
REPORT
46% of application development
projects are “challenged,”
meaning they fail to deliver
results on-time, within budget,
or in scope.
2010 IT PROJECT SUCCESS
SURVEY
Traditional Projects: 47% are
successful, 36% are challenged,
and 17% are failures.

2010 UNITED STATES OFFICE
OF MANAGEMENT AND BUDGET
M-10-25
Too many Government IT
projects cost hundreds of
millions of dollars more than
they should, take years longer
than necessary to deploy, and
deliver technologies that are
obsolete by the time they are
completed.


P3M Framework

Problem Statement
Inside the organization

 Lack of standardized project management
processes across the organization
 Project Managers leverage various tools for
tracking projects
 No consistent way of deciding how to
allocate investment resources
 Project costs are tracked at various levels of
detail
 No consistent way of monitoring and
controlling project performance

P3M Framework

Definitions
Project Management (PM) – The application of knowledge, skills, tools
and techniques to project activities to meet project requirements.
Projects are temporary and create a certain product, service, or result.
Consequently, project management has a defined time period and results
that can be determined successful or unsuccessful.
Program Management (PgM) – The centralized management of a group of
related projects to obtain benefits and control not available from
managing them individually. Key themes include Benefits Management,
Stakeholder Management, Financial Management, and Program
Governance
Portfolio Management (PfM) – The centralized management of one or
more portfolios, which includes identifying, prioritizing, authorizing,
managing and controlling programs, projects, or other related work, to
achieve specific business objectives. Key themes include Strategic
Alignment, Value Management, Risk Management, Resource Management,
and Performance Management.


P3M Framework

Portfolio, Program, Project Linkage

Portfolio

Executing the
"right" projects

Programs

Projects

Projects

Executing
projects "right"

Projects


P3M Framework

P3M Framework Definition and Key Objectives
Project, Program, Portfolio Management (P3M) Framework – A set of policies,
processes, tools, and governance models designed to support organizations in
achieving strategic and tactical benefits from their investments in projects,
programs, and portfolios.
P3M Objectives
• Transparency – Line of sight into decisions, performance, and benefits
• Accountability – Ownership and decision-making thresholds defined and
governed
• Compliance – Comply with organizational and public sector policies, regulations,
and guidelines
• Cost Savings – Eliminate wasteful spending, out-of-control execution, reinvention, and disconnected operations
• Funds Optimization – Obtain optimal benefits for amount budgeted and
expended
• Benefits Realization – Achieve the intended benefits as described in the business
case


P3M Framework

P3M Framework Lifecycle

*PgM and PM lifecycles aligned with PMI


P3M Framework

P3M Framework Implementation Methodology

Supports continuous
improvement to meet
defined outcomes

Are we
getting the
benefits?

Are we
doing the
right
things?

Are we
getting
them done
well?

Operate

Leverages best-inclass people,
process, and
technology

Leverages industry
best practices and
public sector guidelines

Assess

Are we
doing
them the
right way?

Implement

Recommend

Promote

Achieves
leadership and
stakeholder
buy-in and
ownership


Assess

P3M Framework

P3M Framework Methodology

Operate

Recommend

Develop a comprehensive view of the current state
Implement

Promote

Are we effectively communicating with
our stakeholders?

Do we have the right
resources on this
effort? Are they
trained/certified?

How are resources being
consumed? What are my
risks across the program?

Are my projects on time,
on schedule, and within scope?
Are they achieving planned
benefits?

How well defined
are our processes?
Are they being used
effectively?

Stakeholders

Resources

Process

Performance Technology

Are we doing the right
things to be successful?
How can we improve?

Are we reducing
costs by
streamlining and
standardizing?
What systems and
applications can we use to
manage our
program/projects in a
consistent, efficient manner?


Assess

P3M Framework


Operate

Recommend

Leverage industry best practices and public sector guidelines
Implement

Promote

Industry Best Practices
• Software Engineering Institute (SEI) / Capability Maturity Model Integrated (CMMI) – Is a model or collection
of “best practices” that organizations follow to dramatically improve the effectiveness, efficiency, and quality
of their product and service development work.
• Project Management Institute (PMI) – Serves practitioners and organizations with standards that describe
good practices, globally recognized credentials that certify project management expertise, and resources for
professional development, networking and community.
• IT Governance Institute – Helps enterprise leaders understand how effective governance can make IT
successful in supporting the enterprise's mission and goals.
• Knowledge Capital and Experience – Leverage external and internal experience assessing, implementing, and
operating PMOs providing best-in-class people, methodologies, and tools.

Public Sector Best Practices
• United Statement Office of Management and Budget (OMB) Direction - OMB requires agency investment
submissions to be justified by rigid cost/benefit analyses. It further requires that full life cycle costing be
used; full funding for costs must be appropriated in advance; cost, schedule, and performance goals be clearly
identified, achievable, and measured using Earned Value Management (EVM); and, that risks be identified.
Recent guidance requires large IT projects to be implemented in 90 to 120 day increments to achieve benefits
sooner and reduce the risk of schedule and cost overruns.
• United States Government Accountability Office (GAO) IT Investment Management (ITIM) - The ITIM
framework is a maturity model composed of five progressive stages of maturity that an agency can achieve in
its IT investment management capabilities. For each maturity stage, the ITIM describes a set of critical
processes that must be in place for the agency to achieve that stage.


Assess

Operate

Recommend

Define current and desired level of P3M maturity
Implement

Promote

Level 5

Level 4

Level 2

Level 1

Defined/Standardized
· Policy, process, and methodology formally established
and communicated for projects, programs, and portfolios
· Programs and projects defined with appropriate business
and technical objectives
· PMO chartered to support the framework
Visible But Reactive
· Management has gained and communicated an awareness of
the need for project management
· Organization is in the process of learning and repeating certain
techniques and methods from project-to-project as needed

Input

Level 3

Measured and Managed
· Formal and standardized P3M metrics collected
to support the portfolio governance process
· Risks, outcomes, benefits, and business
strategy/mission value quantified and managed

Output

Predictive and Optimized
· Proven full life-cycle P3M framework is
implemented, enforced, and integrated into
organizational culture
· Predictive analytics used at all levels of
organization for transparency and accountability
· On-going program to institutionalize best
practices has been implemented

Outcome

P3M Maturity Model

Maturity

P3M Framework


Initial/Ad hoc
· Aware of need for project structure and risks of poorly managed projects
· Use of project management techniques left to the individual

Adoption


Assess

P3M Framework


Operate

Recommend

Develop an opportunity matrix and sequence plan
Implement

Promote

Opportunity Objective

Outcome/Benefit

Timeframe

Provide
consolidated
status and
financial
reporting

Develop and implement standard report
templates and provide procedures for their
use

Consistent information and ability to
rollup results from projects to
programs to portfolios

Short term

Establish a reports repository for historical
reporting and tracking

Ability to show trends which helps
focus on future improvements

Short term

Implement an automated reports
portal/dashboard for all stakeholders to
access and drill down on details

Less resource workload and easily
accessible by stakeholders

Long term

Improve the
ability for
projects to
deliver on
schedule and
on budget
while
meeting
requirements

Develop procedures for developing a project Standardized project schedules which Short term
schedule using WBS, dependencies, and
can be assessed using critical path
resources and require it for all projects
methods and can be viewed across
projects to see resource leveling
issues

Develop procedures and implement a an
Best practice for preventing project
integrated baseline review of all new
issues before the project begins
projects to assess schedule, cost (estimates),
technical, and resource risk

Mid-term

Implement an ANSI 748-b compliant earned Ability to monitor, control, and
Long-term
value management system (EVMS)
forecast scope, schedule, and cost
variance early in the project lifecycle

Assess

P3M Framework


Operate

Recommend

Communicate the benefits of P3M to leadership and stakeholders
Implement

Promote

Buy-in
[Sustained Usage of P3M
Framework]

Sustained
communications
to leadership and
stakeholders
selling the value
of P3M

Participation
[ Leverage P3M Artifacts]

Commitment
[Stated Desire for Improvement]

Awareness
[Recognition of the Problem]


Assess

P3M Framework


Operate

Recommend

Perform market research and alternatives analysis
Implement

Total 5-Year Investment


Total Year 5 Investment









Promote


$0

$0

$500,000 $1,000,000 $1,500,000 $2,000,000

Planview - Onsite

$5,000,000

Sikich (Assistance PSA) - Onsite

PlanView - SaaS










Sikich (Assistance PSA) - SaaS



$10,000,000

$0

$2,000,000

Tenrox - Onsite

$4,000,000

Tenrox - SaaS

$6,000,000

$0

$400,000

Unanet - Onsite

$800,000

$1,200,000

Unanet - SaaS


Assess

P3M Framework


Operate

Recommend

Stand up organization structure and charter governance bodies
Implement

Vision/
Mission

C-Suite/
Office of the Director

Strategic
Alignment

Line of Business/
Program Office

Promote

Board of Directors/
Oversight Agency

Executive Steering
Committee

Strategic Initiatives
Business
Alignment

Initiative
Initiative

Initiative
Initiative

Program
Management
Office (PMO)

Investment Review
Board

Portfolio
Benefits
Alignment

Program/Projects

Program/Project
Advisory Board


Assess

P3M Framework


Operate

Recommend

Achieve small successes first, then increase complexity, risk, & benefits
Implement

Promote

Program Management

Initiate

Plan

Execute, Monitor, and Control

Closeout

Iterations
- Charter
- Market
research
- Alternatives
- Business case
- Acquisition

Implementation

Requirements

Design

Build

Test

Deploy

Maintain/
Operate

Successfully
Migrate to
the To-Be
Vision and
Realize Key
Benefits that
Achieve the
Business
Strategy

Iterations

- Inventory projects, resources,
skills
- Develop policies, standards,
procedures, templates
- Analyze and plan for data clean
up and conversion

Transformation
Define
Application
Process/
Workflow

Define
Configuration
Values

Develop UAT
Test
Scenarios/
Scripts

Develop and
Execute
Training

Iterations
- Identify Stakeholders and
Communications Plan
- Develop Comm and CM Plans

Communication and Change Management
Execute Communication and Change Management
Iterations


Assess

P3M Framework


Operate

Recommend

Support operations, stakeholders, and governance
Implement

Promote

* Representative graphic from http://www.planview.com


P3M Framework

Contact Information
Robert M. Buhrman, PMP, PgMP, CSM, ITIL
rbuhrman@KoreFederal.com
Mr. Buhrman has over 16 years experience in IT and management consulting in both the
commercial and public sector. He was most recently the program manager for a large business
management improvement program, helping to transform a $800 million fee-for-service
Federal program into a best-in-class service delivery organization. He has led several
implementations of performance and project management solutions providing key insights and
improvement to customers’ business. Mr. Buhrman also has experience supporting
organizations with their migration to modernized systems including PMO and acquisition
support tasks. In addition, he has experience performing assessments of project performance
including the areas of planning, quality, and process assessments.
Mr. Buhrman’s implementation experience spans the full systems development lifecycle,
including planning, requirements, design, development/configuration, testing, training,
deployment, sustainment, and project management activities in support of enterprise resource
planning (ERP), commercial off-the-shelf (COTS), and custom-built enterprise solutions. He also
recently led a project management team supporting Agile development.
Mr. Buhrman is one of a small number of Project Management Institute (PMI) certified Program
Management Professionals (PgMP)® worldwide. He also is a certified Project Management
Professional (PMP)® since 2005 and a certified ScrumMaster® since 2011.


P3M - Project, Program, Portfolio Management Framework

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