Proventures reconnect session on Project Portfolio Management (PPM) P Seenivasan PMP,PgMP,PfMP Director, Proventures Education and Consulting 28th May 2015

Pulse of the Profession Salient features from PMI report 2015

High performing Vs Low performing Meet 90% of the business goals Wastes 12 times less money than low performing organization But only 12% of the organizations are high performing LPO meets 36% While, LPO wastes 24% investment, HPO wastes 2% Out of 100 organizations 88 are LPO

Basics for a HPO Fully understand the value of project management Actively engaged executive sponsors Aligning projects to strategy Developing and maintaining Project Management Talent Establishing a well-aligned and effective PMO (Project Management Office) Using standardized Project Management practices throughout the organization

High-performing organizations

Successful projects

Talent Management

Process focus within HPO

Benefit Realization Maturity

Of the projects started in your organization in the past 12 months that were deemed failures, what were the primary causes of those failures?

Part II PPM overview

“Strategy can not be planned because planning is about analysis and strategy is about synthesis.” - Henry Mintzberg, ( former President of the Strategic Management Society) “You’ve got to be very careful if you don’t know where you are going, because you might not get there.” - Yogi Berra

five organizational styles to strategic technology planning Navigator Evangelist Conductor Guerrilla Research team Gartner Group has identified five organizational styles that are crucial to strategic technology planning. The first is a navigator that tracks and evaluates the impact of emerging technologies for strategic advantage. The second is the guerrilla, a pragmatic and tactical team for deploying new technologies. Third, a priest or evangelist is needed for educating and persuading senior management. Fourth, a conductor is required for coordinating the plan with other organizational units. Finally, a research team should be in place to investigate technologies ahead of institutional need. In each instance, there is a balance between being technology-focused versus being business focused.

Let us look at the overall Landscape! Vision Mission Strategy and Objectives Portfolio Management Projects and Programs (Projecticed activities to build service Capability) Ongoing operations ( Recurring activities that support service delivery ) Organizational Infrastructure and Resources Operation Management Program and Project Enterprise Business Value Management

Business Value Concept that is unique to each organization Project Management - Introduction Business Value Concept that is unique to each organization Defined as the entire value of the business (The sum total of all tangible and intangible elements) Tangible elements include monitory assets, fixtures, stakeholder equity and utility Intangible elements include goodwill, brand recognition, public benefits and trademarks Depending on the organization, business value scope can be short, medium or long term Value may be created through the effective management of on-going operations In order to bridge the gap between organizational strategy and successful business value realization, the use of portfolio, program and project management techniques is essential © 2013 Progressive Ventures. All rights reserved.

Why ePMO – Portfolio Perspective Portfolio is a component collection of Programs, Projects or Operations managed as a group to achieve strategic objectives - Portfolio Management Standard Edition 3 Portfolio components are identified, measured, evaluated, ranked, balanced, authorized, monitored and controlled to achieve strategic objectives Portfolio is perpetual for a live organization

Portfolio Management What - Why - How - Where- It is a centralized management of one or more portfolios Why - To enable executive management to meet organizational goals and objectives How - through efficient decision making Where- It concerns one or more portfolios, programs, projects, and operations

Enablers for PPM The organization including the executive management embraces the practice of Portfolio Management Proposed Project, Program and Operational components need to be evaluated Appropriate skilled staff members are available to manage Portfolio Project and Program Management processes already exists The organizational roles and responsibilities are defined Mechanisms are in place to communicate decisions and other informations internally and externally

Portfolio Management Process groups They are performed in sequence and have clear dependencies They are independent of application areas and industry The process groups and processes within the process groups may be iterated prior to Portfolio component authorization The process groups are not phases of Portfolio Management

Portfolio Management : Mapping of Process Groups and Knowledge Areas Portfolio Management Knowledge Areas Portfolio Management Process Groups Defining Process Group Dev Portfolio Strategic Plan Develop Portfolio Charter Define Portfolio Roadmap Dev Portfolio Management Plan Develop Portfolio Develop Portfolio Performance Management Plan Dev Portfolio Communication Management Plan Dev Portfolio Risk Management Plan Aligning Process Group Manage Strategic Change Optimize Portfolio Manage Supply and Demand Manage Portfolio Value Manage Portfolio Information Manage Portfolio Risks Authorizing and Controlling Process Group NA Provide Portfolio oversight Authorize Portfolio Portfolio Strategic Management Portfolio Governance Management Portfolio Performance Management Portfolio Communication Management Portfolio Risk Management

Defining Process group The defining process group consists of those processes performed to establish the way the organizational strategy and objectives will be implemented in a portfolio It involves : Determining the Portfolio Strategic Plan Determine the Portfolio Structure and Roadmap Define the Portfolio Develop the Portfolio Management Plans and Subsidiary Plans

Aligning Process Group Aligning Process groups consists of processes to manage and optimize the portfolio This group determines : How the Portfolio Management components will be categorized, evaluated and selected for inclusion, modification or exclusion, and thereby manage the portfolio

Authorizing and Controlling Process Group Authorizing and Controlling Process Group consists of processes for determining the method to authorize the portfolio, and provide oversight The processes within this process group are often repeated during the portfolio management process Typically, these are ongoing functions of the governing body

PPM Process Group Interactions Organizational Strategy and Objectives OPA, PPA,EEF and Inventory of Work Defining Process Group Aligning Process Group Authorizing and Controlling Process group Projects, Programs and Other work Projects, Programs and Other work

Deliverables in PPM Authorizing and Controlling Process Group Enterprise/ Organization Portfolio Strategic Plan, Portfolio Charter, Portfolio Roadmap, Portfolio Process Assets, Portfolio Management Plan, Portfolio Authorizing and Controlling Process Group Organizational Strategy and Objectives OPA, PPA,EEF and Inventory of Work Defining Process Group Aligning Process Group Portfolio Reports Portfolio Component Reports Project, Program, and Other Work Governance Decisions

Integrated Portfolio Management Plan Portfolio Prioritization Managing Compliances Procurement Management Planning PfMP Components 3 4 5 6 11 12 Communication Planning Performance Management Plan Balancing Portfolio Change Control & Management Managing Strategic change 9 10 7 1 8 Risk Management Planning Managing Dependencies Governance Model Portfolio Oversight 2 Program governance monitors and reviews the progress of the program and the delivery of the coordinated benefits from its component projects. While it is not a specific phase in the program management life cycle, governance spans all of the program life cycle phases. Program governance oversees the progress of the program and the delivery of the coordinated benefits from its components. Programs are often too complex to be managed by a single individual, which is why appropriate implementation of program governance is critical for a program to succeed. Program governance assists in managing risks, stakeholders, benefits, resources, and quality across program life cycle. Program governance provides an appropriate organizational structure and the policies and procedures necessary to support program delivery through formal program reviews. This is facilitated by the regular and phase-gate-based oversight of deliverables, performance, risks, and issues by the program board. Program charter is a document defining the scope and purpose of a proposed program presented to governance to obtain approval, fundinf and authorization

Portfolio Functions Defining Aligning Authorizing Controlling

Role of Portfolio Manager Establishing and maintaining a framework and methodology and processes Guiding the selection, prioritization, balancing, and termination of portfolio components Establishing and maintaining appropriate infrastructure and systems to support portfolio management processes Continuously reviewing, reallocating, reprioritizing, and optimizing the portfolio to ensure ongoing alignment

Role of Portfolio Manager Providing key stakeholders with timely assessment of portfolio components, portfolio-level issues and risks that are impacting performance Measuring and monitoring the value to the organization through portfolio performance metrics and targets Meeting legal and regulatory requirements Supporting senior-level decision making Influencing active executive sponsorship engagement Participating in program and project reviews to reflect senior-level support, leadership, and involvement in key decisions.