portfolio management
TRANSCRIPT
Portfolio ManagementDoing the right projects,
At the right time,In the right way.
Right Projects Right Time Right Way
Every project, program and stream of activity contributes to the strategy
All activities, programs and projects are planned to deliver on:
• The business schedule
• Without conflict with or cannibalisation of other activities
The hygiene factors:
• Feasible Plan
• Appropriate method
• Useful indicators of success
• Useful reporting
• Workable governance
• Streams of activity
• Programs
• Projects
The Elements of Portfolio Management
Getting to Effective Portfolio Management
Identify projects and programs
Assess them against the
strategyMap all the projects and
programs into a timeline
Assess the schedule against
the strategy
Identify the methods and tools
being used
Assess whether these fit the
strategy
Bring it all together in scenarios
against which executives can make informed
decisions on the priorities of and investment in projects and
programs
Implement and
manage
Agree policies, processes and procedures to be used by the organisation
Identifying Projects and Programs1. Some are obvious.
2. Others need to be uncovered:• As a working definition of these RNC uses -
o any activity that spans disciplines and/or management units in its development or deployment;
o and any activity that cannot be achieved within a discipline and/or management unit within existing budget;
o any activity within a discipline and/or management unit where the people working on it would otherwise be engaged in work on other projects (i.e. where discipline insular activities cannibalise other work outside the discipline).
3. Management needs to decide on the criteria for defining a project and in refinement of the above can cover, expenditure levels (though this is a poor indicator of contribution of a project). This decision can be taken once all the activities are identified.
4. Management needs to decide what if any consequences there are for keeping ‘skunk’ projects.
Assess the Projects Against the StrategyThe organisation’s goal
The
orga
nisa
tion’
s st
rate
gy
Strategy is delivered through streams of activity
All projects must contribute to these streams of activity.
Make the assessment based on planned benefit
rather than just investment.
Identify the Methods and Tools Being Used
Thoughts to consider:
1. Having different methods and tools isn’t necessarily a bad thing – as long as management has the visibility, transparency and confidence it needs in order to make informed decisions.
2. Think in terms of what you want to know and see, rather than allowing tools and project people to let you know what they want you to know.
3. Consider eliminating ‘amber’ as a project status colour.
4. Consider eliminating percentage complete and go instead for agreed progress at date and for investment. Any deviation needs a remediation plan.
5. Consider creating a trusted advisor to the projects. The tools and methods will never make up for poor execution, and an experienced project person will glean more about status over a coffee than reading reports.
Working Assumptions1. People will resist providing transparency into their projects and programs.
2. Every sponsor believes their projects and programs are critical.
3. Every project and program will be incredibly successful – at the start and until it isn’t.
4. Sponsors and project leaders will need convincing to adopt any change in practice and reporting – there will be push back.
5. It will be difficult for the executive to provide the authority to the PMO that it needs in order to obtain really useful information (now and ongoing) – influence and support will be required.
6. Every project and program person will think it’s a good idea to look into someone else’s project.
7. People will become very committed to the tools and reporting they are using at the moment and will obfuscate any change with escalation around time wasting, impact on time, resources and outcome.
Talk to us –
Diane DromgoldManaging DirectorRNC Global Projects
Head Office Level 5719-29 Martin PlaceSydney NSW 2000
Other OfficesSingapore; Hong Kong; USA; Canberra
[email protected] 622 649+61 2 9238 1990