Project, Program & Project Portfolio Management

Methods, Process, Tools & Techniques

Anand Subramaniam

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“The ultimate leader is one who is willing to develop people to the point that they surpass him or her in knowledge and

ability.”

- Fred A. Manske, Jr

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Highlights

Project Management Project Methodology Program Management Project / Program Office Project Portfolio Management

Project Management

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Why Projects fail?

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Reasons for Project Failure

Poor project specification

Scope/objectives unclear

Unrealistic timescales Over-optimism Under-resourcing Lack of buy-in from

key players

Failure to manage user expectations

Failure to manage change

Inappropriate staff Too much reliance on

one individual

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Managing Projects - Do & Don’t

Do Get all stakeholders

to sign up to project plan

Seek help if you need it

Devote time to early work

Don’t Overload people Accept an

unreasonable deadline without challenging it

Assume others have same priorities as you

Use tools and procedures you don’t need

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Criteria for Successful Project

Communication, Communication, Communication

Time invested at start to understand purpose and build relationships

A clearly defined scope Realistic objectives Commitment and buy-in from Project Board and

senior managers Clearly defined roles and responsibilities A motivated and valued Project Team

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Traits of a Good Project Manager

Spends time upfront understanding project and getting commitment from stakeholders

Communicates with all stakeholders openly and honestly

Explains and gets agreement from people on what they need to do and when

Listens Understand scope and objectives

and keeps them in mind when making decisions

Builds the team and makes the most of members’ skills

Keeps Project Team involved and motivated

Is prepared to take calculated risks

Plans thoroughly – keeps workload, resources and timescales in balance at all times

Is accountable for all aspects of the project

Makes decisions based on the information available

Puts the project before any other allegiances

Is honest with themselves and others

Uses common sense Is a good negotiator Anticipates, prioritises and

addresses potential and real problems as soon as they become apparent

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Importance of Lessons Learned Report

Review lessons learned from previous projects

Set up a Lessons Learned Log Capture lessons learned throughout life of

project Review Log at key points in project Write lessons learned report Share lessons and good practice

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Continuous Improvement

Build knowledge bases Record lessons learned Refer to case studies, websites Learn from experience of others Contribute to the body of knowledge Learn from and build on own experience Keep up-to-date with relevant publications Join associations, support groups, committees

Project Methodology

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Benefits of having a MethodologyNo Methodology Having a Defined Methodology

Projects tend to be developed to attract funds Projects are designed to solve problems

Projects have to fit a standardised set of outputs Projects develop local criteria and indicators to suit the local situation and achieve excellence

Focus is on writing applications for funding Focus is on designing and making decisions before writing the proposal

Stakeholders have not been active in designing projects

Stakeholders help to define the problems and make decisions about the solutions

Projects are driven by the funder or technical supply

Projects are led by demand

Poor analysis of local situation Through stakeholders’ involvement, the local situation is well understood

Activity focused Projects are designed through identifying objectives as solutions to each problem

Impact cannot be verified Each objective has clear evidence indicators that can be verified

Short term vision The focus is always on the long-term and sustainable benefits

Projects tend to include many areas and become complex and exclusive

Projects tend to be placed in an operational strategy and remain focused on a single outcome

Inconsistent documentation All documents are standardised to improve consistency and content

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PMBOK

The PMI Project Management Body of Knowledge (PMBOK®) is an inclusive term that describes the sum of knowledge within the profession of project management.

PMBOK® includes knowledge of innovative and advanced practices that are widely applied in all fields of project management.

Project management is the application of knowledge, skills, tools and techniques applied to meet a projects requirements.

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PRINCE2

PRINCE2 (PRojects IN Controlled Environments) is a process-based approach for project management providing an easily tailored and scaleable method for the management of all types of projects.

The method is the de-facto standard for project management in the UK and is practiced worldwide.

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Other Methodologies

Agile SDM Lean Six Sigma Kepner Tregoe Lean Six Sigma Theory of Constraints (TOC)

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PMBOK vs. PRINCE2

PMBOK PRINCE2

Comprehensive Focuses on key risk areas only;

does not claim to be complete

Largely descriptive,

prescriptive on a high level

Highly prescriptive, especially on

Process Structure, but adaptable

to any size project

Core and facilitating

processes; need to be scaled

to needs of project

All processes should be

considered; also need to be

scaled

Customer requirements driven Business case driven

Sponsor and stakeholders Clear project ownership and

direction by senior management

US/International Standard UK Standard

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PMBOK vs. PRINCE2 - Components

PMBOK Knowledge Area PRINCE2 Components

Integration Combined Processes, Components, Change Control

Scope, Time, Cost Plans, Business Case

Quality Quality, Configuration Management

Risk Risk

Communications Controls

Human Resources Organisation (limited)

Procurement Need to create procurement products

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PMBOK vs. PRINCE2 - Match

PMBOK P2: Project Level P2: Stage Level

(“phase-by-phase”)

Initiating Starting Up; Directing Managing Stage

Boundaries; Directing

Planning Initiating, Planning Managing Stage

Boundaries; Planning

Executing/

Controlling

[managed on a stage by-stage basis]

Controlling a Stage;

Managing Product

Delivery; Directing

Closing Closing A Project Managing Stage

Boundaries

Program Management

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What is Program Management?

The orchestration of a portfolio of projects effecting organisational

change to deliver business benefits of strategic importance

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Why Program Management?

Good management control of costs The wider context of risks is better understood The gap between strategies and projects is filled Co-ordination and control of the complex range of activities Projects are prioritised and integrated to manage resources

better Effective management of the Business Case to achieve the

vision Formal process for identifying, managing, realising and

measuring benefits A management framework that focuses on business change

objectives Clear responsibilities for preparing for implementing business

change

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Project vs. Program Management

Area Project Management Program Management

Focus Single objective Business strategy

Scope Narrow Wide-ranging, cross-functional

Benefits Determined in advanceAccrue after completion

Used to make decisionsAccrue during the programme

Deliverables Few, clearly defined Many , many initially undefined

Timescale Clearly defined Loosely defined

Change To be avoided Regarded as inevitable

Success Factors

Time, budget, specification Mission, cash-flow, ROI

Plan Specific, detailed, bounded High-level and evolving

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Change Management - Blueprint

Data required Business models of the new functions,

processes and operations Organisation structure, staffing levels,

roles, and skill requirements Information systems, tools, equipment and

buildings Costs, performance and service levels for

support of future operations

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Benefit Definitions

Depends on other activities outside the control of the programme

Business / operations areas expected to be affected

Projected changes from the current business operations

current measures of the business operations and the target for improvement (e.g. financial savings or improved throughput)

When the benefit is expected to be realised Financial & non financial value of the benefit

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Risk Hierarchy

Strategic - Other programmes, other initiatives, inter-programme dependencies, political pressures

Program - Changing objectives, program definition, management skills, inter-project dependencies

Project - Project risks, third party

Operational - Transfer of deliverables to operations, acceptability within business operations, acceptability to stakeholders

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Program Stakeholders

Third-party suppliers Regulatory bodies The program management team The governing body of the program People creating the program’s deliverables Providers of support for the program's deliverables All business areas impacted by the program, both during the

program or after its completion Providers of support to the program's activities in areas outside the

Program Manager's control Custodians of standards and policies relating to the program's

activities Providers / supporters of the technical infrastructure used by the

program

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Program - Key Roles

Change Agents Quality Manager Governing Body Program Sponsor Program Manager Technical Authority Business Planners Project Managers Business Change Managers Program Management / Support Office

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Program vs. Project Manager

Program Manager Plans program-level activities and

schedule of projects Defines TOR for projects Starts, stops and monitors

progress of constituent projects Manages program level risks and

issues. Delegates risks to projects Sets policies and procedures for

projects Resolves resource conflicts Determines program standards

Project Manager Plans a project given the

dependencies and interfaces defined by the Program Manager

Works within the defined TOR Runs a project, reporting to the

Program Manager Manages project risks and issues,

escalating to the Program Manager wherever necessary

Runs project according to policies and procedures

Uses assigned resources Delivers products to the defined

standards

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Program Manager Competencies

Strong leadership and management skills Effective interpersonal and communications skills Ability to create a sense of community Ability to find ways of solving and pre-empting problems Marketing and communication skills to “sell” the program into the

business areas Good knowledge of techniques for planning, monitoring and

controlling programmes Knowledge of project management approaches Good knowledge of budgeting and resource allocation procedures Knowledge of business change techniques, e.g. BPR Knowledge of benefits identification and management techniques

Project / Program Office - Questionnaire

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Project Management Office

How do you keep costs down? How do you eliminate redundancy? How do you ensure cross-functional

alignment? What is the impact of change? How can you leverage your existing

investments in information and IT?

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Program Management Office

Can you estimate the business value of programs ? How do you plan and manage the investments and deliver the

business benefits? How can you gauge under / over performance of programs? How do you link business case to business strategy? How can you effectively use business cases for executive

decision making? How can you assess the actually achievement to the

anticipated business value? How can you scope the complexity of the programs initiated? How can you estimate the transformation change and the

change management strategy for business improvement programs?

How can you stop programs for underperformance or for not supporting the business strategy anymore?

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Transformation Change

How do you define and manage strategic business change?

How do you maximise the value in investments in business change?

How to create blueprints for change in the business and its IT resource?

How to deliver and maintain information system solutions?

How to deliver change - on time, on budget, to defined requirements?

Project Portfolio Management

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What is PPM?

Align Plan Execute Measure

Ongoing Re-calibration

Core Operating Processes (Prioritisation, Governance, Monitoring, Resources)

Project Approvals,

Completions & Cancelations

Project Approvals,

Completions & Cancelations

Work Output &Performance

Trends

Work Output &Performance

Trends

ContinuousImprovement

Recommendation

ContinuousImprovement

Recommendation

Net ValueContributionNet Value

Contribution

Optimal Resource / $$

Utilisation

Optimal Resource / $$

Utilisation

Balance Risk Vs. Value

Balance Risk Vs. Value

Focus on Value

Focus on Value

Regulatory ComplianceRegulatory Compliance

ChangingPrioritiesChangingPriorities

Project ChangesProject

ChangesCorporate Strategy

Corporate Strategy

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Symptoms calling for PPM…

Symptoms

Symptoms

Teams overworked / under appreciated

Teams overworked / under appreciated

Project benefits not captured or trackedProject benefits not captured or tracked

Rework and “out of control” costs with 3rd party vendors

Rework and “out of control” costs with 3rd party vendors

No prioritisation process for

business requests

No prioritisation process for

business requests

Seek accurate estimates based on

firm’s history & lessons learned

Seek accurate estimates based on

firm’s history & lessons learned

No tracking or

accountability for project

success

No tracking or

accountability for project

success

Frequent change of status of projects (active – on-hold – priority – on-hold)

Frequent change of status of projects (active – on-hold – priority – on-hold)

Intense competition internally with regard to financing / staffing

projects

Intense competition internally with regard to financing / staffing

projects

Too many small

projects underway

Too many small

projects underway

Excessive project

delays due to lack of resources

Excessive project

delays due to lack of resources

Many projects are not adding “strategic value”

to the organisation

Many projects are not adding “strategic value”

to the organisation

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PPM - Benefits

Benefits

Improves communication and supports agreement on project goalsImproves communication and supports agreement on project goals

Justifies killing projects that do not support organisation strategyJustifies killing projects that do not support organisation strategy

Links project selection to strategic metricsLinks project selection to strategic metrics

Builds discipline into project selection processBuilds discipline into project selection process

Provides executive oversight of the firmProvides executive oversight of the firm

GRB & PMO jointly execute PPM ProcessesGRB & PMO jointly execute PPM Processes

Allocates resources to projects that align with strategic direction

Allocates resources to projects that align with strategic direction

Prioritises project proposals across a common set of criteria, rather than on politics or emotion

Prioritises project proposals across a common set of criteria, rather than on politics or emotion

Balances risk across all projectsBalances risk across all projects

Provides the structure/process for project portfolio governance & avoids duplication / waste

Provides the structure/process for project portfolio governance & avoids duplication / waste

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PPM - Goals

Helps the organisation to make the best use of its resources

Enables the removal of low value projects from the portfolio

Ensures that all new and existing projects are aligned with the organisation’s mission, goals and objectives

Produces and maintains a comprehensive listing of all projects which the organisation is undertaking

Develops a “bigger picture view” and a deep understanding of the project collection as a whole

Creates an “objective” methodology for identifying, ranking, prioritising and selecting new projects

Ensures that a healthy balance across different types of projects with different cost, schedule, complexity and risk profiles is maintained

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Project Portfolio Management (PPM)

Are you doing the right things? Are you doing them the right way? Are you getting them done well? Are you getting the benefits? How are (or will) the benefits be delivered?

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PPM (Contd.)

How do you ensure that the investments are aligned with the key business objectives?

How do you find the most efficient ways to realise the strategic goals?

How do you check the right balance of investments across the portfolio?

How do you realise the predicted benefits of these efforts? How do you assess programs and projects in the portfolio

and to say 'No' and 'Stop‘? How do you provide information to make better decisions? How do you align actions to strategy and increase success on

strategic initiatives? How do you minimise risk, manage workload, decrease time

to delivery, decrease costs and to increase value delivered?

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PPM (Contd.)

How do you create an Inventory of current programs and projects?

How do you apply categorisation to understand the different kinds of initiative in the portfolio?

How do you apply evaluation criteria which enables reliable selection of high value / low risk initiatives?

How do you create visualisation of the Portfolio to support executive decision making?

How do you define and create the capability / Maturity level target and develop a "roadmap" of how to get there in a realistic timeframe?

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“You can tell whether a man is clever by his answers. You can tell whether a man is

wise by his questions.”

- Naguib Mahfouz

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Good Luckhttp://www.linkedin.com/in/anandsubramaniam