Project Portfolio Management for Everyone

Knowth Consulting Presents

Standard Assumptions About Project Portfolio Management Need to begin with a top down strategy and

direction Executives drive the PPM process. PMs and

functional managers have no control The more mature the PM process the better Detailed project reporting is necessary to

support analysis Task level staffing and time cards by task

are required to get a handle on resource utilization

The PPM Pyramid

Culture

Power Rules

ProcessMat

urity

Goals

Operating in the Value ZonePortfolio

Management

Project Management

OrganizationalInfrastructure

& Culture

The Zone

Defining the Value Zone Alignment – Do the

projects contribute to the strategic goals of the company?

Alignment

Innovation – are we receptive to and do we invest in something New?

Inno

vatio

n

Fit – is this project doable with the resources we have now?

Fit

Value – is the value received worth the effort?

ValueZone

Introducing Scalable PPM

Intended to be culturally neutral Intended to support top down or bottom up

management Stresses

Communication Risk Management Leadership

Assumes a WIFM of increased promotability Focuses on Value Based Decisions

PPM Pyramid and the Language of Resource Management The Role of Executive

Management is to Allocate the money and the people

The Role of Functional Management is to Manage the money and the people

The Role of Project Management is to spend the money and support the people

PMs and Project Teams

Functional Management

Executive Mgmt

The PPM Process - Executive Management’s Responsibilities

Determine Strategy

Select Top Tier Projects Innovate“Mind the Gap”

Apportion remaining Funds

Infra-structure: 45%

Apportioning Funding

Utility:20%

Enhancement: 10% 15%

Frontier: 10%

Invest – 30%

10 %

Manage – 35% Optimize – 35%

Conventional Functional Management Responsibilities

Re-evaluate list of new projects Confirm resource availability Confirm cross-project dependencies

Evaluate maintenance and enhancement efforts (M&E) Confirm resource availability

Establish monitoring procedures Project steering committee

Scalable PPM – Functional Management Responsibilities

Determine Strategy

Select Top Tier Projects Innovate“Mind the Gap”

Apportion Remaining Funds

Analyzing the Current State

Inventory and Assess Assets

Assess Value in current IT products and services What do we have? When was it

implemented How is each system

working? Limping Meets Exceeds

Can this system be used elsewhere?

Current Systems

New Projects

Scalable PPM – Functional Management Responsibilities

Determine Strategy

Select Top Tier Projects Innovate“Mind the Gap”

Apportion Remaining Funds

Analyzing the Current StateImputing Strategy

Balance ResourcesEliminate Projects

Align People with Resource Requirements

People Identify Current

Skills Identify Current

Capabilities Identify Growth

opportunities Encourage Cross-

training Make sure no one is

struggling

Resources Identify resources

types for projects Understand

availability and capacity of generic human resources

Assign resources to projects

Establish the relationship between resource constraints and project status

Techniques for Eliminating Projects that Fail the Value Equation

Re-assign resources (starve) Re-design (merge two projects) Re-move (eliminate a cancelled project) Re-schedule (delay, move to pipeline) Re-scope Re-classify

Scalable PPM – Functional Management Responsibilities

Determine Strategy

Select Top Tier Projects Innovate“Mind the Gap”

Apportion Remaining Funds

Analyzing the Current StateImputing Strategy

Balance ResourcesEliminate Projects

Define Measurements

Conventional Project Management Responsibilities Responsible for soliciting weekly work plan Responsible for evaluating risk of task

completion Responsible for keeping the focus on feature

driven prioritization Accountable for recommending changes and

solutions based on emerging information

Scalable PPM – Project Management’s Responsibilities

Determine Strategy

Select Top Tier Projects Innovate“Mind the Gap”

Apportion Remaining Funds

Analyzing the Current StateImputing Strategy

Balance ResourcesEliminate Projects

Define Measurements

Execute Projects

Report on Performance

Scalable PPM Project Management Responsibilities Understand the Value Proposition of your project Make sure that you have identified the risks on

your project in a manner that is meaningful to top Management No more than three risks Have a clear contingency and/or mitigation strategy

Make sure you are communicating the right message to the right people Understand the value to your stakeholders Understand your progress in delivering that value

Practice Servant Leadership Your team creates the results – You remove

roadblocks

The Scalable PPM Process

Define Measurements

Determine Strategy

Select Top Tier Projects Innovate“Mind the Gap”

Apportion Remaining Funds

Analyzing the Current StateImputing Strategy

Balance ResourcesEliminate Projects

Execute Projects

Report on Performance

Principles of Scalable Portfolio Management Everyone is accountable

Need to have goals

Everyone is responsible Need to have

performance measures

Everyone should practice continuous collaboration

No one should struggle

Strategic Objectives

Potential Projects

Resources

Optimum Portfolio

Risks

The Benefits of Scalable Project Portfolio Management

A technique for allowing companies to align their process to their culture without sacrificing their PPM efforts

A method for imputing strategy and gaining consensus

An approach that allows all levels of management to participate in managing their portfolio of projects

A value based approach to portfolio decisions

Resources for more information about Scalable Project Portfolio Management

Ask us for a copy of this presentation Go to http://finance.groups.yahoo.com/group/scalableppm/

and join a discussion on portfolio management Go to the knowledge Center at

www.knowth–consulting.com for more papers and book reviews on project portfolio management