Project Portfolio Management By/ Mohamed Abdul Latif Ahmed, PMP, M.Sc. December 2009 “Managing the...

Project Portfolio Management

By/Mohamed Abdul Latif Ahmed, PMP, M.Sc.

December 2009

“Managing the right projects is as important as

Managing the projects right ”

1

Presentation Outlines

• What is Project Portfolio Management• Project Management Vs. Portfolio Management• Portfolio Management Processes, competencies and

Methods• Portfolio Risk Management• Portfolio Level Reporting

2

What is Portfolio Management?

A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work tomeet strategic business objectives.

The projects or programs in the

portfolio may not necessarily

be interdependent or

directly related.

Portfolio

Programs

Projects

Projects

PMBoK® Guide, 4th Edition, © PMI3

The Project Pipeline(Without Portfolio Management)

IDEAS

PROJECT PIPELINE

PROJECT FAILURES

COMPLETEDPROJECTS

4

IDEAS

PROJECT PIPELINE

PROJECT FAILURES

COMPLETEDPROJECTS

Portfolio ManagementEx: using a PMO

BUSINESS CASE FILTERBENEFITS FILTERVALUE FILTER

The Project Pipeline(With Portfolio Management)

5

Positioning Portfolio Management

Vision

Mission

Organizational Strategy& Objectives

High LevelOperations Management

Management ofOn-Going Operations

(recurring activities)(producing value)

Management ofAuthorized Programs & Projects

(projectized activities)(increasing value production capability)

Project Project PortfolioPortfolio

ManagementManagement

6

Why link portfolios to strategies?

1. Maintaining portfolio alignment to organization’s strategic goals

2. Allocating financial resources according to its priorities

3. Allocating human resources according to its priorities

4. Measuring project contributions to strategic goals

5. Strategic risk management showing how projects risks will affect strategic goals

7

Relation btw. Project Management & Portfolio Management

PortfolioLevel

Project / Program

Level

• Strategies & Priorities

• Progressive Elaboration

• Portfolio Level Changes

• Governance

• Performance Reports

• Change Requests with impact on other components

8

Project Management Vs. Portfolio Management

TacticalTacticalStrategic

Tactical

Practice Standard for Portfolio Management , 2nd Edition, © PMI 9


Scope

Projects Portfolios

Defined Objectives, Scope progressively

elaborated

Business scope changing with changing strategic goals

Strategic

Tactical

10


Change

Projects Portfolios

Changes expected, PM try to keep

change controlled

Continually monitor changes in the broad environment

Strategic

Tactical

11


Planning

Projects Portfolio

Project plans are created with more details as the project progresses

Create and maintain processes and communication plans relative to the aggregated portfolio

Strategic

Tactical

12


Monitoring

Projects Portfolio

Monitor and control the work of producing the products and services that the project was undertakento produce

Monitor aggregate performance and value indicators

Strategic

Tactical

13


Success

Projects Portfolio

Success is measured by achieving quality, schedule, budget constraints and a degree of customersatisfaction

Success is measured in terms of achieving strategic objectives

Strategic

Tactical

14

Portfolio Management Processes

Knowledge Area

AligningProcess Group

Monitoring & Controlling Process

Group

Portfolio Governance

1.Identify Components

2.Categorize Components

3.Evaluate Components

4.Select Components

5.Prioritize Components

6.Balance Portfolio

7.Authorize Components

1.Review and Report Portfolio Performance

2.Monitor Business Strategy Changes

3.Communicate Portfolio Adjustments

Portfolio Risk Management

1. Identify Portfolio Risks

2. Analyze Portfolio Risks

3. Develop Portfolio Risk Response

1.Monitor and Control Portfolio Risks


Competencies Required for a Portfolio Manager

• Strategic Alignment• Portfolio Management Methods and Techniques

(more on next slide)• Program and Project Management• Process Development and Continuous Improvement

(TQM, Lean Six Sigma)• General Business Skills (KPIs, Financial Management,

Business cases)• General Management Skills• Stakeholder Management• Risk and Opportunity Management

16

Portfolio Management Methods and Techniques (Elaborated)

• Project Selection Methods• Decision Support tools and Models (ROI, IRR, etc)• Prioritization Algorithms• Capability and Capacity Modeling• Project and Program Auditing• Organizational and Portfolio Risk Management

17

Sample Tools:Portfolio Scoring Using Multi Criteria


Sample Tools:Portfolio Balancing Using Indicators


Portfolio Risk Management

• Portfolio risks are uncertain event (s) that may affect at least one strategic business objectives and may have impact on one or more success criteria of the portfolio

• Successful portfolio management develop a balanced portfolio considering the risk tolerance of the organization, and ensuring that projects and programs manage their risks pro-actively to protect the overall portfolio.

20

<Insert Picture Here>

Enterprise Project Portfolio Management (EPPM)

Sherief El AbdPROMASTAR , CAP, AEPPrimavera Professional Services Consultant

Oracle Industry PresenceLeadership

More than 200 upstream companies run Oracle Applications

Top 5 of 5 for Oil Field Service, Drilling and Equipment Providers run Oracle

49 of top 50 Energy companies run Oracle Applications

Leadership in Oil & Gas: All Major Oil Sectors

More than 200 Downstream companies run Oracle Applications

Enterprise Project Portfolio Management(EPPM)

Value

25

Program and Project ManagementProgram and Project ManagementProgram and Project ManagementProgram and Project Management

Resource ManagementResource ManagementResource ManagementResource Management

Portfolio Management & OptimizationPortfolio Management & OptimizationPortfolio Management & OptimizationPortfolio Management & Optimization

Oracle Enterprise Project Portfolio Management

Risk ManagementRisk ManagementRisk ManagementRisk Management

Demand Management

Demand Management

Portfolio Prioritization

Portfolio Prioritization

“What if” Analyses“What if” Analyses

Corporate AlignmentCorporate Alignment

Project Scheduling

Project Scheduling

Earned Value

Management

Earned Value

Management

Project Costing &

Billing

Project Costing &

Billing

Contract Management

Contract Management

ModelingModeling Risk Reporting

Risk ReportingRisk AnalysisRisk Analysis

Resource Supply & Demand

Resource Supply & Demand

Contractor ManagementContractor

ManagementCapacity PlanningCapacity Planning

Services Billing

Services Billing

Level 1 Users

Job Site Resources

Level 2 Users

Project Participants

Stakeholders

Level 3 Users

Executives

Project

Managers

Resource

Managers

Resource Managers

Program Managers

Level 4 Users

Administrators

PMOPlanners & Schedulers

Project Managers

P6 Different User Levels:The right tools for the

right roles

Oracle Application Integration Architecture AIA Process Integration PacksAccelerates Time to Value

ConfigurableExtensible

One to Many Framework

Pre-defined Integration Flows and Artifacts

55 Core DifferentiatorsCore Differentiators

Faster Implementations Reduced Risk Lower Integration Costs

Order toCash

Design toRelease

Order toBill

Cust.MDM

Prod.MDM Others…Oracle to

SAP

AIA AIA Process Integration PacksProcess Integration PacksPre-built Composite Application Processes

Fully Supported by

Oracle

Integrating with Existing Business Systems•From enterprise resource planning (ERP) systems to financial systems to desktop productivity tools such as Microsoft Outlook and Microsoft Excel.

•Primavera Web Services enables a complete, enterprise wide integration strategy that will help you reach your business objectives.

Technical Overview of Primavera Integration PathsP6 Web Services Approach

Technical Overview of Primavera Integration PathsERD Approach

•A sample view of the Primavera Inspire for SAP-facilitated bidirectional data flow between Primavera and SAP solutions. When data is entered into either system, the other system is updated.

•The graphic assumes both SAP Plant Maintenance and Project System solutions are integrated with Primavera solutions.

Technical Overview of Primavera Integration PathsInspire Approach

Oracle Enterprise Project Portfolio ManagementA Visible Difference

Before

• Point systems for ERP, Project Mgmt, HCM

• Squandered resources

• Lack of cost transparency

• Inconsistent delivery and project quality

• Slow reaction time

• No accountability

After

• Accurate and enterprise-wide visibility

• Locate and capitalize on talent

• Financial governance and compliance

• Real-time program and project management

• Full life-cycle, risk analytics

• Single source of record

BusinessDevelopment

Project Execution

Business Management

Plan, Design, and Procure

Project Close-Out

1

3

4

2

5

Operate & Maintain6

Project Leads

Design Approval Change Order

Work Order

Budget &Forecast

Forecast& Actuals

Oracle for the Oil & Gas Lifecycle

Thank You

Welcoming your Contacts to:[email protected]

[email protected]

www.promastar.com

Questions?Questions?

Project Portfolio Management By/ Mohamed Abdul Latif Ahmed, PMP, M.Sc. December 2009 “Managing the...

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