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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 ConsultingPO

EM

C AEWS

PlanOrganizeExecuteMonitorControl

SITEBC Knowledge Development SITEBC Knowledge Development SeminarSeminar

Vancouver, BC, January 10, 2009Vancouver, BC, January 10, 2009

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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 Analysts2. Is not an "extension of project management"

And pretending it is so, will not make it so3. 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

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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 & success3. Facilitate PPM prioritization & strategic focus4. 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 is

A 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

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Execution of Plan

Real Work

Emergence of Product

Developmentof idea

Definition

ProjectPlanning

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Ideally, one single pass

Total Project Life Span

Business Case Project Charter Product

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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 alignment

Or 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 spanThere 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 parts1. 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 outputAn 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 focusInvolve different skills, training and experienceHold different attitudes

In short, the people are differentWhich is why people moved from one group are not

always comfortable and successful in anotherHave different priorities

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Executive Sponsorship - 1Executive Sponsorship - 1Assuming Assuming

The right collection and number of projects have been selected

There is a critical link requiredTo connect individual projects to the corporate

strategyThere is also a critical link required

To connect the benefits realized to the new productAnd 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 benefits

Ensures 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

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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 Analysts2. Is not an "extension of project management"

And pretending it is so, will not make it so3. 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