portfolio, project and programme management

Strategy delivery:

Portfolio, Programme and Project

Management (P3M)

1. Strategy Delivery Model

2. Portfolios

3. Project and Programme Delivery

4. Projects Database

5. Summary

Thursday, July 28, 2011 1

Strategy and P3M

The OGC Model

Strategy sets priorities for MMU – programmes

& projects should help to deliver this

Portfolio = a collection of programmes &

projects that makes sense strategically

Programme = a collection of projects

that together deliver specific

strategic goals

Project = a temporary

organisation that delivers

specific outputs

The typical institutional situation

• No portfolios

• Projects and programmes are set-up and approved at different

levels

• There is no consistent standard for approval

• No one knows exactly how many programmes and projects are

going on

• Know one knows the extent to which benefits are delivered

It’s a bit of a mess!

Thursday, July 28, 2011 Strategy – Portfolio –Project 2

Strategy

Portfolio

Programme

Project

Strategy delivery:


Management

1. Strategy Delivery Model


Strategy delivery &

benefits model


Be

ne

fits R

ea

lisa

tion

Ma

na

ge

me

nt

Executive (L1)

• Decides strategy

• Converts strategy into Portfolio

• Assigns Portfolio to Oversight Groups

• Checks benefits deliver strategy

Oversight Groups (L2)

• Set up programmes

• Monitor programmes

• Check for overlaps / relationships

• Ensure benefits delivery

Programme Boards (L3)

• Manage programmes

• Set up projects

• Ensure business change

Project Boards (L4)

• Deliver outputs

• Check outputs deliver outcomes

• Work alongside change management

Strategy delivery:


Management

2. Portfolios


Why have Portfolios?• In large organisations, there can be many programmes and

projects. Portfolios are a mechanism for managing them in

comprehensible and achievable “chunks”

• Portfolios help to make funding arrangements more manageable,

e.g. so much for capital investment, so much for business

change, so much for academic innovation

• Once portfolios have been established, and the funding for them

agreed, it is much easier to prioritise programmes and projects

within the portfolios

What Portfolios should we have?

or something different?


This model shows

portfolios

partitioned in terms

of capital, business

improvement and

R&D – there are

other viable models:

choose what’s best

for youCapital

Programme

InnovationBusiness

Change

Strategy

Portfolio

A key role of the Executive in deciding portfolio

content is to make room for speculative innovation –

the kind of programme that could potentially give us a

significant leap forward in the HEI sector

What goes in the Portfolios?


Pro

po

sa

ls

How does this fit our

strategy?

PortfolioPortfolio

Questions:

1.Who makes the decisions?

Senior managementreview inputs and agree

portfolio (Executive)

2. Should all programmes & projects be decided at this level?

No - differentiate between strategic delivery (SD) and business as usual (BAU). Use a project assessment tool – this could be tweaked for SD / BAU. BAU projects can be decided locally.

Business Change Portfolio

ICT Strategy Group

How should Portfolios be

managed?


Stra

tegic

O

bje

ctiv

e 1

•P

rog

ram

me

A

•P

rog

ram

me

B

•P

rog

ram

me

C

Stra

tegic

O

bje

ctiv

e 2

•P

rog

ram

me

B

•P

rog

ram

me

C

Stra

tegic

O

bje

ctiv

e 3

•P

rog

ram

me

A

•P

rog

ram

me

D•

Pro

gra

mm

e E

1. Strategy

2. Portfolio

3. Programme

4. Project

• Output from Executive = Portfolios

• Each portfolio shows mapping of programmes against

Strategic Objectives

• Portfolio management includes setting up programmes

and assigning them to oversight groups such as ICT

Strategy Group

Question:

• What oversight groups do we need for our different

portfolios?

How should Portfolios be

monitored?

Business Change

delivers

Benefits

• Benefits Realisation Management techniques map the

connections between outcomes / business change and benefits

delivery

• This is monitored / managed at portfolio level (to check on

programme success)

• The project assessment framework provides consistency for the

projects monitoring process

• Carried out by Oversight Groups


Strategy delivery:


Management

3. Project and Programme Delivery


Ensuring programme & project

consistency

How do we ensure that we manage all our programmes and

projects consistently?

Use a project assessment framework to decide whether “bottom

up” proposals are

• Business as usual projects (these can go forward as part

of the business unit’s decisions)

• Strategic projects (these must be referred to a relevant

oversight group for approval via the Executive)


“Top down” projects are to enable strategic delivery

“Bottom up” projects are proposals that arise from within

Directorates outside the top-down strategic process

Criteria Score 1 Score 2 Score 3 Score 4

Cost £ £1,000-£10,000 £10,000 – £150,000 £150,000 – £500,000 >£500,000

Timescale in months 1-6 6 – 12 12 – 18 >18

Strategic prioritiesVery minimal

dependency

Contributing to other work that is linked to

a strategic target

Direct contribution

to a strategic target

Direct contribution to more than one

strategic target

Impact on organisational effectiveness

Very minimal (cost/benefit analysis)

Some new business processes and

possibly some re-

training

Significant re-structure of

processes and work

areas

Major, e.g. outsourcing, large scale restructuring

External imperatives Very minimal links

Some links to other work that is

delivering policy or

legislation

Direct links to policy or legislation

Fundamental to achievement of

policy or legislation

StakeholdersInternal and within

single business area

Internal across more than one business

area

Mainly external Internal and external

Contract complexityNo new contracts

required

Single contract with

known supplier

Multiple contracts

with known suppliers

Contract(s) with new

suppliers(s)

Track recordHave done this

before many timesHave done this

before once or twice

Have done similar before, but not the

same

Have not done anything like this

before

DependenciesVery minimal links with other projects

Links with other projects but little

impact

Links with other projects upon which this project depends

Other projects depend upon this

project

Student impactVery minimal impact

on students

Minor impact on

student administration

Minor impact on academic services

Major impact on academic service

and/or student

administration

40

35

30

25

Ris

k

20

15

10

5

0

0 5 10 15 20 25 30 35 40

Impact

Not a project

Small project

Medium project

Major project

Business as usual Strategic

Project assessment framework

means that all projects are

scored using a standard and

consistent approach

Central

Projects

Database

Added to Added to

central

database

Added to Added to

central

database

Added to Added to

central

database

Managing programme & project

delivery

How do we ensure that we manage and monitor all our

programmes and projects consistently and effectively?


Proposed

projectProposed

project

Executive

Faculty /

Director-

ate

Project

Assessment

Framework

Project

Assessment

Framework

type?

Strategic

Business

as usual

Oversight

Group

Prog /

Project

Board

Project

Board

Benefits Realisation ManagementBenefits Realisation Management

New

strategic

proposal

Reviewed Reviewed

by

Executive

Assessed using

project assessment

framework

Assigned

oversight

group

Set up

prog/proj

Board

New

dept/fac

proposal

Reviewed

by

dept/fac

Assessed using

project assessment

framework

Type = Business as

Usual

Set up

project

Board

New BAU

proposal

Reviewed

by dept

mgmt

Assessed using

project assessment

framework

Type = Strategic

Managing programme & project

delivery: central databaseWhy have a single central database of all programmes

and projects?

1. allows better strategic decisions – e.g. you can see if

similar programmes / projects already exist

2. allows better resource management – e.g. you can see where

resources are currently being directed

3. allows for benefits tracking across the whole portfolio,

including BAU and Strategic

4. allows assessment of risk between as well as within projects –

e.g. delivery timing causing resource peaks

5. allows estimation of project costs overall going forward, thus

aiding financial planning

Doesn’t having to report to a central database just duplicate

the work of boards, etc.?

In a sense there is duplication, but the database will only require

summary information about programmes and projects that should

already be easily available and thus not cause too much effort to

produce:

• Name of project / programme

• Sponsor

• Programme / project manager

• Status (proposal, planning, on hold, underway, complete)

• Size (from project assessment framework)

• Start & estimated end dates

• Key milestones

• Estimated costThursday, July 28, 2011 Strategy – Portfolio –Project 13

Central

Projects

Database

Strategy delivery:


Management (P3M)

4. Projects Database


Getting project management right

Project Assessment Framework:

• Provides a standard for programme and project

scoping

• Provides a decision making tool

• Indicates “size” of project allowing approach

to be tailored appropriately

Programme and Project Boards:

• Need to have the “right level” of sponsorship

and membership

• Board members must:

• understand their roles and responsibilities

• provide appropriate commitment

Project Managers:

• Need appropriate skills and training (not

just PRINCE2)

• Need appropriate time and resource

Tools and Templates:

• Project Manager User Group now established

• Currently reviewing proposed standard

templates and toolkits

• Templates applied as appropriate

to project size


Overall approach needs corporate approval and buy-in

40

35

30

25

Ris

k

20

15

10

5

0

0 5 10 15 20 25 30 35 40

Impact

Not a project

Small project

Medium project

Major project

EQAL

Curricu lum Review

AssessmentRecords managementSIPs/Hub

Regulations

Academic databaseTimetablesAME

Student

engagement

PARM reviewAME reviewThreshold standards

Programme Board

Programme Manager Change Manager

Strand 1 Strand 2a Strand 3aStrand 2b Strand 3b Strand 4

VLEPortalMobile accessPodcasting

Talis Aspire

TrainingEQAL leadsOnline training

1 [0] 2 [5]3

[15]

4

[20]

5

[35]

6

[45]

7

[48]

8

[58]

9

[195]

10

[205]

Put milk in cup [5]

11

[210]

Who does what?

Project Boards:

• Check output meets requirements

• Hand over to (programme) change management

• Check that outcomes are delivered

The project assessment framework provides

consistency for the projects monitoring process

Programme Boards:

• Responsible for ensuring project outcomes

are embedded as business change

• Benefits Realisation Management techniques

support this

Oversight Groups:


map the connections between outcomes /

business change and benefits delivery

• This is monitored / managed at portfolio

level (to check on programme success)

Executive:


map the connections between benefits

and strategic objectives

• This is monitored / managed at senior

management level (to check on portfolio

success)


Strategy delivery:


Management

5. Summary


Strategy delivery model summary

• Top down model – new programmes and projects emerge

as part of Executive strategy review

• Tiered model – each tier operates at a different level of

operations:

• L1 = strategic (Executive)

• L2 = strategy enabler (Oversight Groups)

• L3 = benefits management (Programme Boards)

• L4 = delivery (Projects)

• Project assessment framework ensures consistency in

terms of project definition

• Assessment framework also allows for bottom up proposals

to be reviewed consistent with overall framework

• The model provides for both implementation and

monitoring

• Benefits Realisation management provides framework for

both implementing the delivery model and measuring

success


In terms of organisational maturity for portfolio,

programme & project management, if you fully implement

and embed this model you would be at level 4 of the 5-

level OCG P3M3 Maturity Model1

1 See http://www.p3m3-officialsite.com/P3M3Model/P3M3Model.asp