1. Infrastructure Delivery Management Toolkit: 2010 Edition
Delivery Process 1: Portfolio Management
Introduction
Sonny Schmidt
development through partnership

2. Overview of Portfolio Management
“Infrastructure networks, ... represent a vast investment, made over many generations ... that support the fabric of modern living in our communities. It is important that we employ the very best management skills and practices to ensure that related services are delivered economically and sustainably.” (IIMM v3 2006)
Public organisations are required to provide their mandated services effectively, efficiently and reliably.
Well managed infrastructure assets assist organisations to achieve these objectives by creating the physical environment and networks enabling the delivery of the organisation’s services.
Thus Infrastructure Portfolio Management is a component of an organisation’s (department, municipality, etc) service delivery procedures.
It is not sustainable to focus on meeting infrastructure needs through investment (new building, purchases) only.
Must recognise the long term life cycle costs associated with the ongoing operation, maintenance and renewal of infrastructure.
Improving the management of infrastructure can bring major benefits by ensuring that scarce resources are used in the most cost effective manner, thereby:
enhancing economic growth,
improving living standards and
improving environmental sustainability.

3. Overview of Portfolio Management
“Portfolio Management is concerned with doing the right work” (Standard for Portfolio Management PMI)
Portfolio Management is the combination of management practices applied to infrastructure assets
Objective of developing, implementing, monitoring and controlling prioritised work lists
Based on long term plans, available budgets and an organisation’s management capacity.
Portfolio Management also includes identifying and managing non-asset solutions

4. Overview of Portfolio Management (PMI)
Portfolio Management is the combination of management practices applied to infrastructure assets
Objective of developing, implementing, monitoring and controlling prioritised work lists
Based on long term plans, available budgets and an organisation’s management capacity.
Portfolio Management also includes identifying and managing non-asset solutions

5. Statutory Requirements for Portfolio Management (1)
PFMA Section 38 (1):
“ .. evaluating all major capital projects ..”
“..effective, efficient, economical and transparent use of resources..”
“.. safeguarding and maintenance ..”
Chapter 5 of Treasury Regulations:
Prepare and submit a strategic plan and APP for MTEF period annually
Accounting officer responsibilities for departments (amongst others)
UAMP is considered to be part of a department’s strategic plan
Required to include infrastructure discussion on infrastructure expenditure in the strategic plan

6. Statutory Requirements for Portfolio Management (2)
GIAMA:
U-AMP:
Reviewed, submitted annually
Strategic needs assessment
C-AMP
Life cycle management plan for assets
OHS: Operations and Maintenance requirements
In operation in provincial governments from 1 April 2010
OHS: standard requirements that should be factored into Portfolio Management – not discussed in the module.

7. Standards and Guidelines
International Infrastructure Management Manual (IIMM)
Standard for Portfolio Management (PMI)
Standard for Programme Management (PMI)
GIAMA Guides for Asset Management Plans
Based on work in Australasia; SA version 2006 with IMESA and COGTA (DPLG) participation
Project Management Institute’s publications
Guideline for Users – User Asset Management Plans (20 Oct 2008)
Guideline for Custodians – Custodian Asset Management Plans (20 /2008)

8. The IDMS DP1: Portfolio Management DP2: Project Management
Prov Infr Strat
DP1: Portfolio Management
DP1-1 Infrastructure Planning
DP1-2 Programme Management
Develop U-AMP (including prioritised MTEF works list)
Develop C-AMP (including work plans)
Dev Proc Strat
Develop/review IPMP
Manage Implementation
G1(a)
G1(b) G2
PC1
PF1.4
PF1.3
PF2.1
PF2.2
PF2.3
PF3
PF4
PF5
DP2: Project Management
DP2-1 Planning (Develop IPIP)
DP2-2 Design
DP2-3 Works
DP2-4 Close Out
Package prep
Package definition
Works planning
Design developt.
MFC Info
Con/Del works
Handovr works
Project Close Out
Update Asset Register G3 G4 G5
G6(a)
G6(b) G7 G8
PC2
PC3
PC4a
PC5
PC4b T1 T2
Delivery Gates:
G1a – Approved U-AMP (incl MTEF list)
G1b – Approved C-AMP (incl Works list
G2 – Accepted Procurement Strategy
G3 – Accepted Strategic Brief
G4 – Accepted Concept Report
G5 – Accepted Design Development Report
G6 a – Accepted Production Information
G6b - Accepted Manufacture, Fabrication & Construction information
G6c ?? – Sonny to confirm if required
G7 – Accepted works in accordance with requirements
G8 – Works taken over by User, complete with record information
Procurement Milestones:
PC1 – Procure PSP for Programme Management, incl strategic procurement services
PC2 – Management Contractor / Framework Contract
PC3 – Design and Construct
PC4a – Design by Employer (Consultant procurement)
PC4b – Design by Employer (Contractor procurement)
PC5 – Develop and Construct
Performance Management Processes:
PF1.1 – Develop Indicators from Strategic Plan objectives
PF1.2 - Develop Indicators from Programme Implementation Plans and Budgets
PF1.3 – Develop Indicators from Project / Operational & Maintenance Plans
PF1.4 – Link Indicators and RACI to individual Performance Agreements
PF2.1 – Monitor & Evaluate Inputs, Activities and Outputs against plan
PF2.2 – Monitor & Evaluate Outcomes against plan
PF2.3 – Monitor & Evaluate Impacts against plan
PF3 – Publish Performance Information
PF4 – Review / Appraise individual performance
PF5 – Take management action
Triggers:
T1 – Trigger – To O&M on requirements for works that will be delivered
T2 – Trigger – To other Dep’s on requirements for other services (staff, books (Edu), pharmaceuticals (Health), etc)
PF1.4
PF1.3
PF2.1
PF2.2
PF2.3
PF3
PF4
PF5
DP3: Operations & Maintenance
DP3-1 Recognise & accept assets
DP3-2 Mobilisation for Facilities Mgt
DP3-3 Operations
DP3-4 Maintenance
DP3-5 Demobilise Facilities Mgt G8
PF1.4
PF1.3
PF2.1
PF2.2
PF2.3
PF3
PF4
PF5

9. Portfolio Management Process
Outputs include first 2 Gates in the CIDB Gateway Process
Key input is the Asset Register – record of each asset

10. Components of Portfolio Management
Continuous activity that produces plans and reports at scheduled times (minimum)
Effective implementation of management activities best carried out in collaboration by User and Custodian (User remains accountable for delivery)

12. Operation and Maintenance Management
Portfolio Management
Operation and Maintenance Management
Project Management
Feedback from Projects in Progress
Feedback from Operations and Maintenance
Handover of constructed, upgraded or rehabilitated asset

13. OAG: Asset Life Cycle (Asset Management Guidelines)

14. User and Custodian Portfolio Management Outputs
organisations
Custodian
U-AMP
Construction procurement strategy
IPMP
Organisation and Support plan
Monitoring reports
Recommended actions
C-AMP
Work Plans
Portfolio Management outputs by responsible organisation
The Implementing Agent is managed by the User on the basis of the SDA between the organisations and the IPIP it submits

15. Benefits of Portfolio Management
Strategic Alignment
Improved Stakeholder Management
Good Governance
Legislative Compliance
Consistent Reporting
Improved Risk Management
Gives confidence that infrastructure is well managed;
Using standardised methods to plan, deliver and monitor services;
Allows time for important processes to take place – Optimised decision making
Implementing good management procedures contributes to risk reduction
Data is recorded allowing for analysis to improve systems and procedures
Continuous improvements gives confidence that the portfolio management is sustainable

16. Portfolio Management is a continuous process
Conclusion
Portfolio Management is a continuous process
Reports are snap shots at specific times
Collaboration with custodian - develop
Document work – institutionalisation, transfer lessons learned

17. Thank you 2006 Ver planning philosophy remains the same
GIAMA requirements added – essentially a combination of the outputs of each of the steps in the roadmaps
Good working relationship between Custodian and User essential
Flows now linear – easier for people to use