the Project Portfolio Management process and maturity · PDF fileDeveloping the Project...

Developing the Project Portfolio Management process and maturity

step by step

Matti HaukkaPartner, Senior Consultant, Project Institute Finland Ltd.

© Project Institute Finland Ltd2

Challenge of PPM

• It is not so much the process and the system itself but how some basic prerequisites are working:

– Competence and processes of single PM – Key roles (Project Owner, PMO, PM and PPM Board)– Strategy towards the Project Orientated company


Projects

”normaalit”prosessit

Small and mediumsized projects

Projects

”normaalit”prosessit

Projects

”recurring”processes

Small uniqueassignments

The blocks describe the distribution of work time of personnel in a company that has many projects

A

B

C

No harmonizedmodels:

Small uniqueassignments Small unique

assignments



Problem area!

Which tasks and endeavors should be managed using PM and PPM processes:


Strategy group

PPM Board

PMO

Owner/ steering group

Project manager

G2G2

Strategy

Programs

Projects

Portfolio budgeting to strategy

Updating portfolio practices

Business plans Projects

E.g. twice/year

Project comparison

G1G1 G4G4

Resource analysis

Updating the

portfolio status

One meeting e.g. once/month Changes

Overall portfolio

status

Strategic reporting

Changes

Project planning Reporting Final

report

G1G1 G2G2

Resource analysis

G4G4

G3G3

Communi- cating

decisions

G0G0

Strategy checks

Project portfolio management process


Five steps of PPM maturity model

1. Awareness of ongoing projects

2. Awareness of the status and balance of projects

3. Resource management across all projects and other work

4.Systematic project prioritization

5. Pre- and Post-project evaluation of business benefits and continuous development of project culture

Efficien

cyof

projec

t bus

iness

.

Faster

realiza

tion of

strate

gy

More ”What you get?”than ”How well?”


What you have on the beginning?

Strategy group

Project manager


report

StrategyStrategy


1st step of PPM maturity model


Project Owners

Key Role:Project Owner

We know what projects are going on


Level 1 prerequisites of functioning PPM

• Decision point model (stage-gate model)• Clear definition of a what is managed as a project• Updated project database• Project Owner is the key role


Project portfolio management process (1st level)

Strategy group Strategy

Programs

Projects


Project manager

G2G2Business plans Projects G1G1 G4G4G3G3G0G0

Information


2nd step of PPM maturity model



PMO

Key role:PMO (=Project Management Office)

We know the status and balance of projects


Project portfolio management process (2nd level)


Programs

Projects


Project manager


PMOUpdating

the portfolio

status

Strategic reporting

Communi- cating

decisions

Changes

Reporting

Overall portfolio

status


Level 2 Prerequisites of functioning PPM

• Harmonized Project Model• Quality of status reporting should be good enough• Project should have visible links with strategies• PMO should be established

IPMA-courses 2009 Portfoliomanagement transavia.com

Autonomousgrowth

Transavia.com focus area’s

ROCE 7%

transavia.com is the travel brand in NL with attention for its customers

Buildingtravel brand

Low cost,High productivity

Development.com

‘Compliance’ ContinuïtyHRM,

employee development

€ milj.

€ milj. € milj.€ milj.€ milj. € milj.€ milj.€ milj.

Gerard Geurtjens, IPMA Advanced training course H : Managing Corporate Project Portfolios, Copenhagen March 2006, 2007,2008 and 2009 ,Shanghai 18-20 October 2007, Croatia October 2008

IPMA-courses 2009 Portfoliomanagement transavia.com

Strategic report

autonomous growth,10%

building travel brand,20%

development .com,20%

low cost, highproductivity, 20%

compliance, 5%

business continuity,15%

HRM, employeedevelopment, 10%

autonomous growth,12%

building travel brand,7%

development .com,38%

low cost, highproductivity, 14%

compliance, 17%

business continuity,7%

HRM, employeedevelopment, 5%

Planned

Actual

Gerard Geurtjens, IPMA Advanced training course H : Managing Corporate Project Portfolios, Copenhagen March 2006, 2007,2008 and 2009 ,Shanghai 18-20 October 2007, Croatia October 2008


3rd step of PPM maturity model




Proj

ect

Man

ager

s

Key role:Project Manager

Resource management is in control


Project portfolio management process (3rd level)


Programs

Projects


Project manager


PMOUpdating

the portfolio

status

Strategic reporting

Communi- cating

decisions

Changes

Reporting

Overall portfolio

status

One meeting e.g. once/month ChangesG1G1 G2G2 G4G4

Project comparison Resource

analysisResource analysis

Project planning

Final report


Five steps and PPM maturity model

Level 3 Prerequisites of functioning PPM:

• High quality planning, control and re-planning procedures • Rules and principles to solve conflicts in use in a uniform and agreed

manner• Advanced PM and PPM software tools• Project Manager is the key (critical) role


4th step of PPM maturity model

PPM

Boa

rd

Key role:PPM Board

Project prioritization is done systematically






Level 4 Prerequisites of functioning PPM

• Owner’s responsibility on achieving the business benefits and total success of the project should be emphasized

• PPM Board and its willingness and ability to put time effort on PPM

• Strategic level PMO should be established


Project portfolio management process (4th level)

Strategy group

PPM Board

PMO


Project manager

G2G2

Strategy

Programs

Projects

Portfolio budgeting to strategy

Updating portfolio practices

Business plans Projects

E.g. twice/year

Project comparison

G1G1 G4G4

Resource analysis

Updating the

portfolio status

One meeting e.g. once/month Changes

Overall portfolio

status

Strategic reporting

Changes


report

G1G1 G2G2

Resource analysis

G4G4

G3G3

Communi- cating

decisions

G0G0

Strategy checks


G0G1

G2 G3 G4Project Ideas

Project Proposals

Projects

ImportantPortfolio decisions

We should have a funnel – not a tunnel !

Level 4: Selection and Prioritisation


Selecting the right projects

If Owners, PMO and PM’s are taking care of their responsibilities, PPM Board can concentrate more on its most important task: Selecting the right projects!

G0G1

G2 G3 G4Project Ideas

ImportantPortfolio decisions


5th step of PPM maturity model





5. Pre- and Post-project evaluation of business benefits and continuous development of project culture

Proj

ect O

rient

edO

rgan

isat

ion


PBO (Project Based Organisation)

• Less hierarchy in permanent organisation• Project ownership as a main role of management• Project business success as a part of score cards • No ”shattered” projects• Effective and systematic use of programme management approach


”Shattered” project

• An entity (collection of ”projects”) which is not producing any business benefits until its all projects have completed should not be ”shattered” into separate projects

•Long Time to Market•Missing communication

Developing a product.Production dev.

Marketing

Overlapping shortens Time to Market, but due to need of intensive communication, coordination and integration this entity should be managed as one project, and an owner who takes the whole responsibility on business benefits must be recognized.

One projectOwnerProject Manager

”Shattered projects”


Developing PM Culture

Program/project oriented organisation

Source: Thiery (adjusted)

PMO

PMO

PBO

PBO

Corporate Portfolio

Single PM

PPM

Managing single Programs

Program Management


Summary and main conclusions

• Do not try to develop only your PPM Process and system – think what are the main prerequisites to achieve the success

• Biggest challenge is that the project ownership is working in a good manner – put your first efforts (training, guidelines, metrics, support and coaching) to develop this


Thank you!

You are able to hear more on IPMA Advanced Course H ”Managing the corporate project portfolios”

Instructed by: Matti Haukka and Gerard Geurtjens

Questions?

the Project Portfolio Management process and maturity · PDF fileDeveloping the Project...

Documents

Transcript of the Project Portfolio Management process and maturity · PDF fileDeveloping the Project...