aew services © 2009 1 project portfolio management: new opportunities for project managers &...
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1AEW Services © 2009
Project Portfolio Project Portfolio Management: Management:
New Opportunities for Project New Opportunities for Project Managers & Business AnalystsManagers & Business Analysts
R. Max Wideman, P.EngR. Max Wideman, P.EngFCSCE, FEIC, FICE, FPMIFCSCE, FEIC, FICE, FPMI
AEW ServicesAEW Services2216 West 21st Avenue2216 West 21st Avenue
Vancouver, BCVancouver, BCV6L 1J5V6L 1J5
Phone/FAX 604-731-0569Phone/FAX 604-731-0569Web site: http://www.maxwideman.comWeb site: http://www.maxwideman.com
Project Management ConsultingP
O
EM
C AEWS
PlanOrganizeExecuteMonitorControl
SITEBC Knowledge Development SITEBC Knowledge Development SeminarSeminar
Vancouver, BC, January 10, 2009Vancouver, BC, January 10, 2009
2AEW Services © 2009
Key Presentation PointsKey Presentation Points
I believe that Project Portfolio Management (PPM)I believe that Project Portfolio Management (PPM)
1. Is a major future career opportunity For Project Managers and Business Analysts
2. Is not an "extension of project management" And pretending it is so, will not make it so
3. Instead, it is a whole new discipline That will come to recognition in the next five years And for which PMs & BAs are eminently suited
4. The time to plan your career for it Is now
3AEW Services © 2009
Recent Consulting Example:Recent Consulting Example:Enterprise Project Management OfficeEnterprise Project Management Office
Principle goals of EPMO at Ontario Lottery & GamingPrinciple goals of EPMO at Ontario Lottery & Gaming1. Survey and understand "corporate projects"
2. Improve project management processes & practices Including skill sets, reporting consistency & success
3. Facilitate PPM prioritization & strategic focus
4. Support effective allocation of capital
Expected program durationExpected program duration 4 to 5 years
Basis of system developmentBasis of system development All available information sources Including extensive reference to my web site at:
www.maxwideman.com
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But first, what exactly is . . .But first, what exactly is . . .A Project Portfolio Management System (PPMS)A Project Portfolio Management System (PPMS)
Especially, an Enterprise-wide one ?
I suggest that an E-PPMS isI suggest that an E-PPMS isA methodical approach to managing a portfolio of
corporate programs, projects and initiatives of whatever typeDesigned to ensure that the available resources
are all used effectively and efficientlySuch that the resulting products realize
measurable benefits for the organization, consistent with corporate strategy, and
A system that ensures the most value for least risk for the invested resourcesAllowing corporate strategy to be communicated
throughout the organizationEnabling only those projects that support the
strategyAnd feeding back benefit realization data to
enable continuous improvement
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Fundamental E-PPMS RequirementFundamental E-PPMS RequirementA "gated" project life span for A "gated" project life span for allall projects projects
Is essential for performing E-PPM responsibilities
Idea
Need
Concept
Finishing Product
Finishing Project
Transfer Productto
Customer
Execution of Plan
Real Work
Emergence of Product
Developmentof idea
Definition
ProjectPlanning
PHASES
1 32 4
Ideally, one single pass
Total Project Life Span
Business Case Project Charter Product
ST
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Pha
se G
ate
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EN
D
Pha
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ate
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Concept of SuccessConcept of Success
What is the true meaning of PPM "success"What is the true meaning of PPM "success"Not just "On time, within budget"Not just product delivered (at any time or cost)Not just delivered to scope and qualityNor even delivered to "customer satisfaction"
The purpose of an E-PPMSThe purpose of an E-PPMSAnd hence the real measure of E-PPM success
Is this:
Are the projects making money for the organization?!!(Or, in the case of government: Providing better service)
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Corporate Management PerspectiveCorporate Management Perspective
What corporate management needs to know What corporate management needs to know Where are corporate resources being consumed
And is that arrangement optimized?
Are project objectives still in alignmentOr have the corporate goals, objectives changed?Or the corporate vision and priorities changed?
What performance results are being obtained?Indeed, are planned benefits actually being realized?
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The extent of the problemThe extent of the problem
To answer these corporate management questionsTo answer these corporate management questionsTracking must continue through the product life cycle
Not just through the project life span
There must be feedback to the planning process
Hence a "total system" is required
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The ideal PPM SystemThe ideal PPM System
A total PPM system should consist of A total PPM system should consist of 1. A need and opportunity collection system
With findings reported as a Business Case (justified)
2. A selection process To limit projects to available resources (no overload) And weed out inappropriate projects
3. A prioritization process To get them done in the right order (smooth sailing)
4. A people resource planning process To ensure the availability of the right skills (competence)
5. A product creation process (project management)
6. A feedback mechanism For "continuous improvement" (proof of value)
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E-PPMS exampleE-PPMS exampleAs applied to our OLG-EPMO client, the system looks like thisAs applied to our OLG-EPMO client, the system looks like this
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The "People Problem" - 1The "People Problem" - 1In practical termsIn practical terms
Modern organizations consist of three parts
1. Corporate Governance Top executives responsible for vision and
success/failure decisions relating to long term survival/prosperity and operational efficiency
2. Project management Project people dedicated to the narrow focus of
producing new product results to keep the organization at the forefront of its industry
3. Operations management Business-as-usual people responsible for
maintaining services and/or product output
An E-PPM office must deal with all three !An E-PPM office must deal with all three !
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The "People Problem" - 2The "People Problem" - 2
All three organizational groupsAll three organizational groupsHave a different focus
Involve different skills, training and experience
Hold different attitudesIn short, the people are differentWhich is why people moved from one group are not
always comfortable and successful in another
Have different priorities
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Executive Sponsorship - 1Executive Sponsorship - 1
Assuming Assuming The right collection and number of projects have been
selected
There is a critical link requiredTo connect individual projects to the corporate
strategy
There is also a critical link requiredTo connect the benefits realized to the new product
And back to the product's original Business Case
A key position isA key position isAn "Executive Sponsor"
Who is a member of the corporate governance group
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Executive Sponsorship - 2Executive Sponsorship - 2
Executive Sponsor's essential responsibilitiesExecutive Sponsor's essential responsibilitiesOwns the project's Business Case
That justifies the project on the basis of expected
benefitsEnsures relevant metrics are established & used Ensures benefits are actually harvested
QuestionQuestionWho should be responsible for the cost of gathering and
analyzing benefit data and feeding it back to executive management ?I suggest all of these are the responsibility of
Corporate management
15AEW Services © 2009
ConclusionConclusion
I believe that Project Portfolio Management (PPM)I believe that Project Portfolio Management (PPM)
1. Is a major future career opportunity For Project Managers and Business Analysts
2. Is not an "extension of project management" And pretending it is so, will not make it so
3. Instead, it is a whole new discipline That will come to recognition in the next five years And for which PMs are eminently suited
4. But, the time to plan your career for it Is now