Earned Value and Portfolio Management - What does it look like - David Dunning
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Transcript of Earned Value and Portfolio Management - What does it look like - David Dunning
Earned Value and Portfolio Management ‐What does it look like?
Presented by David Dunning, Professional Services Director, CPS
With the release of the P3O® Best Practice guidance through its first anniversary, the release of MoP, and the continual necessity to focus on the right projects and programmes for scarce business resources, how do the enablers for portfolio management help us with Earned Value Management as a set of delivery controls? How do I get on the road to this and how can I make a case to a sceptical organisation?
P3O® and MoP® are Registered Trade Marks of the Office of Government Commerce.
Corporate Project Solutions• People
Recruitment– Permanent– Interim positions
Training – Maturity/Capability Assessment– Planning– Process based– Microsoft Project– EPM Administration
• ProcessP3O® Services Change ManagementP3RM Consulting
• TechnologyMicrosoft Platforms– Project Server (EPM)– Project Portfolio Server– MOSS / SharePointCPS Solutions
Agenda
What is Portfolio Management?
• “A portfolio is the investment in the changes required to meet strategic objectives “– P3O®
• Portfolio Management ‐ Coordinated strategic processes and decisions to balance organisational change and business as usual
• It is not ‘bigger project / programme management’
Context
Ability to Id
entify
Busine
ss Value
Poten
tial
(Portfolio M
anagem
ent)
Ability to Deliver and Realise Business Benefits(Programme / Project Management)
100%
100%
0%
Value Lost
Programme and Project Management enables organizations to successfully deliver the selected business value opportunities ‐THINGS RIGHT
Prog. / Project
Mgt.
Portfolio Management enables organisations to identify and select the investments that will maximise business value – RIGHT THINGS
Portfolio Management
60%Value Realised
(average company today?)
Align Investment to Strategy
Optimisation of project selection promotes strategic priorities
UnalignedUnaligned
OptimisedOptimised
EVM – Corporate or local?
I can run a project and…•Manually collect data carry out EVA
– Time consuming– Aggregation issues– I can do this if I want to…
•Hook it into Corporate tools– Clear governed and supported process– Common tools– Common will – hard to do…
Corporate
or Local?
Corporately…
Good Planning & Estimating(Historical
Data)
Work PackageManagement
EffectiveRisk Management
Progress Management
Baseline / Change Control
Actual TimeActual Costs
SystemInterfaces
SpecialistReports
Standards, Processes and Roles
What Makes this so difficult?
Uncertainty/ no relevant historical data
Poor Scope statements
WBS Design?Ad hoc Riskpractices
Progress MgmtDone informally
Scope Control?
Actual Time- Not collected
What is anActual Cost?
SystemInterfaces?
SpecialistReports?
Standards, Processes and Roles?
Benefits of Portfolio Management
• Increase the proportion of projects and programmes directly linked to the corporate strategy, saving time / resource from being spent on the ‘wrong’ stuff
• Directly save costs through standard, repeatable processes and simplified cost effective reporting
• More output from resources through effective prioritisation and efficient scheduling
• Directly support measurement of project and programme benefits, maximising what is possible and encouraging the ‘right’ projects in the first place
• Initiate cost effective, consistent Governance of projects and programmes to provide assurance of delivery quality making the decision making process more reliable
• Saving wasted resources by learning from experience and implementing changes from lessons learned.
Benefits
But ‐What is the Cx level need?
• What is does my strategy mean in terms of Change? Can we actually do it?
• How much will Change cost (resource, money, risk)?
• What is the value of the Change? (Benefit, revenue, saving)
• What happens if something changes?
• How am I assured my business system works?
• How can I check that Changes are happening?
Benefits of Portfolio Management to EVM• Highest Level Commitment implicit
• Support and Governance provided
• Bottom to top reporting is key– Schedule, cost, risk, progress etc. ‐ EV stirred in?
– Will to fix the issues!
What do I have to Address?
Organisation
Process
Peop
le
Techno
logy
Strategy
Organisation Components
• Strategy Office– Do we have “bright buttons” who
can assist thought leaders with detail and analysis?
– Can we put a high level agreeable strategy in place to work around, then develop further?
– How do we publicise this?
– How do we change this?
• Portfolio, Programme, Project Office– If there is no strategy, can we get
down a set of assumptions to be going on with?
– Can we supply visibility, scrutiny and oversight?
– Can we assist delivery and support?
– Can we provide experts to define how to run things?
Project Organisation
Center of Excellence
Project Organisation
Governance
Is this one central function?Process, Standards, Tools, PM Knowledge Owner, Learning Facilitator, Best practice owner
Local support offices run from a Central ‘support’ office ?Project Start up? Planning help?Reporting? Gates? Closure?
Local compliance management?Process adherence? Standards usage?Plan quality?
Decision Support
Does this function exist?Scrutiny / OversightPriority Generation / ImplementationBusiness Perspective
Delivery Support
What to do to get going…
Establish ‘Organisational Will’ at the right level
Devise a problem statement – to gain
stakeholder engagement
Appoint a Senior Responsible Owner – a business person to front
the change
Appoint a capable Programme Manager – to
deliver effectively
Set the capability / benefit expectations – so
that success can be measured
Assess the current state of strategy management and 'P3 organisation’provision – to make
change provision feasible
Map out the vision for how the objectives can be met – keeping short and long term needs visible
Prepare Benefit Profiles, a Business Case,
Programme Brief, Programme Preparation Plan and Vision statement
How to go about it?
• Tranche 1 – contains step 1 in the Vision = CONSOLIDATION– Assessment
• Organisation / capability mapping– Design
• Initial P3O® Service Level / staffing• PfM, MSPTM, P2 ‐ Processes /
Standards• EPM Tools / Reports• Data Migration
– P3O® Consolidation• Tranche 2 – commitment to it once
there is success of Tranche 1 = ADD THE VALUE REQUIRED
Identify Define
DesignConsolidate
P3O® BusinessOperations
Realising the Benefits
CONSOLIDATION
DesignConsolidate
P3O® BusinessOperations
Close
Realising the Benefits
e.g. P3O® StructureProcess / StandardTools ConfigurationTraining Preparation
e.g. Data OKImprovement forumsCapability assuranceLearning / advancement
Realising the Benefits –e.g. AwarenessReadinessPrerequisite trainingTrainingData MigrationGovernance Review
Assessment
Next Tranche Trigger
ADD THE VALUE REQUIRED
To find out more & stay in touch…
http://www.apm.org.uk/group/portfolio‐management‐sig
Thank you for listening!
[email protected] 895600 / 07767 803540LinkedInhttp://uk.linkedin.com/pub/david‐dunning/3/bb9/ba7