The Standard for Program

Management – Third Edition

Update

Ray Mead PMP MBA,

Director, PM-Partners group

“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
Advances and Learnings

The Standard for Program Management - Third Edition Review

Comparing Program Standard First
and Second Editions
First Edition
– Three major program management “themes”
• Stakeholder Management
• Governance
• Benefits Management
– Life cycle delivery scheme with processes and knowledge
areas interwoven throughout

Domain focus

The Standard for Program Management - Third Edition Review

Comparing Program Standard First
and Second Editions
Second Edition
– Life cycle dominant
– Added and refined knowledge areas and process groups
– Paralleled PMBOK Guide® format (ITTOs)
– Program Management ”themes” removed

Process focus

The Standard for Program Management - Third Edition Review

The Standard for Program Management –
Third Edition update
Third Edition
– Harmonized key content for the “core” Standards and Lexicon,
PMBOK Guide®, Program Standard, Portfolio Standard, OPM3
– Added business value discussion
– Defined differences among Projects, Programs, Portfolios
– Redesigned format and retired ITTOs
– Non-linear, non-sequential Program Management performance
domains reinforced
• Strategic Alignment
• Benefits Management
• Stakeholder Engagement
• Governance
• Program Management Life Cycle
• Program Management Supporting Processes
Domain focus

The Standard for Program Management - Third Edition Review

 Program Strategy Alignment

Program Benefits Management

Program Stakeholder Engagement

Program Governance

Program Life Cycle Management

Program Definition Program Benefits Delivery Program Closure
Program Governance
Benefits Closeou Transitio Benefits
Preparation Initiation Planning Execution
Realization t n Sustainment

Program Management Supporting Processes

The Standard for Program Management - Third Edition Review

The Program Life Cycle
Continuing the evolution

Presentation Title
 Program Life Cycle Evolution
October, 2006 October, 2008 January, 2013

The Standard for Program The Standard for Program

The Standard for Program
Management - First Edition Management – Second Edition
Management – Third Edition

Life Cycle Phases Life Cycle Phases Life Cycle Phases Life Cycle sub-phases

Pre-Program Setup Pre-Program Preparations Program Formulation

Program Definition
Program Setup Program Initiation Program Preparation

Component Planning and

Establishing a Program Authorization
Management and Program Setup
Technical Infrastructure Component Oversight and
Program Benefits Delivery Integration

Delivering the Component Transition and

Delivery of Program Benefits
incremental Benefits Closure

Program Transition
Closing the Program Program Closure Program Closure
Program Closeout

Presentation Title
Important Complements To The Text:
Appendices

• Appendix A: Summary of Changes

• Appendix C: Program Manager Skills and Competencies
• Appendix D: Program Types
• Appendix E: Artifacts (Replaces ITTOs)

Presentation Title
 The Standard for Portfolio
Management – Third Edition
Update

Steve Butler PMP MBA,

Head of Delivery, PM-Partners group

“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
©2012 Permission is granted to PMI for PMI® Marketplace use only.
PFM3 Team Vision

Provide a Standard that

is innovative, widely
recognized, utilized,
and formalizes the
portfolio management
profession.
 Key Project Objectives

• “Good practice”; most portfolios, most of the time.

• Target audience: portfolio management practitioners and other
stakeholders of the portfolio, program, and project management
profession.
• Harmonized with other PMI foundational standards
• Examine the process groups and processes to determine whether
combining, deleting, or adding new processes would add clarity to the
standard
• Extend the standard to address principles, processes, and knowledge
areas unique or relevant to portfolio management
• Based on consensus input (Core Committee, Standards Program
Working Session, Consensus Body, Exposure Draft)
 PFM3 Core Committee
Jen Skrabak
(US-CA)
Chair

Mike Reed
(US-OH) Elaine Lazar
Vice Chair (US-PA)
PMI Standards
Specialist

Andy Gwen Farhad

Clive Enoch Abdollahyan Yvan Petit
Anderson Whitman Wende Wiles Steve Butler
(So Africa) (Brazil) (CAN)
(US-CA) (US-NC) (US-MD) (UK)
CH 1&2 Lead CH 7&8 Lead Volunteer/Edit
CH 3 Lead CH 4&5 Lead CH 6 Lead Harmonization
Intro/Overview Communication/ Lead
Processes Strategic/ Performance Lead
Governance Risk
A comprehensive approach was used for the
PFM3

Deferred Comments from Second Edition

Gartner Research Report

Research across hundreds of portfolio management
literature (books, papers, and other documents)

Core Committee and Subteam of Portfolio Management
experts and practitioners across industries and geographies

Standards Program Working Sessions/SME Review/Public
Exposure Draft/Consensus Body/MAG

Research Informed Standards Project – Market Research on
Portfolio Management
 Alternative approaches to portfolio management
 Components missing from the PMI Standard
 What practitioners think vs. what the standard suggests
 Motivation for implementation
 Prioritization of portfolio
 Project Timeline & Key Deliverables
Phase
Phase II
Initiate
Initiate Phase
Phase IIII Phase
Phase IV
IV
Knowledge
Knowledge Phase
Phase III
III
Chapter
Chapter Final Review
Final Review
Areas/Process
Areas/Process Final Draft
Final Draft
Development
Development Publication
Publication
Group
Group Development
Development
Aug
Aug –– Sept
Sept
2010
2010 Mar
Mar –– Jul
Jul Oct
Oct 2011
2011 ––
Oct
Oct 2010
2010 –– Aug
Aug –– Sept
Sept
2011
2011 Jan
Jan 2013
2013
Feb
Feb 2011
2011 2011
2011

•Formally initiate •Propose revised •Initial draft/approach to •Final Peer/Core •MAG and
project; sign charter KAs/PGs Process Chapters (April ) Committee Review Consensus Body
(Aug) Map •Integrate KAs/PGs into (Aug-Sept) Review
•Select core •Conduct Standards chapter content (Mar- •Finalize Standard to •Public
committee (Sept) Program Working May) PMI (incl Diagrams, Exposure Draft
•Select sub-team Session Review & •Finalize Chapter drafts Examples, Graphics) Dec 14 2011 –
committee (Sept – Feedback (Jun) Sept 2011 Jan 13 2012
Oct) •Develop KAs/PGs •Peer/Core Committee •Final
content – CHP 3 Review of Chapter Adjudication April
Initiating
Initiating (Processes) as Drafts (Jul) 2012
standalone document •Publication Jan
(Oct-Feb) 2013
•Peer/Core
Planning
Planning Committee
TODAY
Review/Finalization
(Mar)
Executing
Executing
 Core Definitions

• Portfolio
– collection of projects, programs, and other work that is grouped together to
meet organizational strategy and objectives
• Portfolio management
– interrelated organizational processes by which an organization prioritizes,
selects, and allocates its limited internal resources to best accomplish
organizational strategy and objectives
• Portfolio manager
– Focus on doing the right work, not on doing the work right; organizational
scope
– Continuous monitoring of broader internal and external environment, strategic
changes, and aggregate performance, risk, and resource allocation
 Portfolio Management Context

• Projects produce deliverables

• Programs output benefits so as to
sustain, advance or achieve
organizational objectives
• Portfolios ensure the alignment of
the diverse objectives and inter-
dependence of programs, projects,
and other work to organizational
strategic goals

– Right work, Right time,

Right resources
Project / Program / Portfolio Key Distinctions
 PFM3 - Process Groups and
Knowledge Areas Changes
Second Edition
Process Groups (2)
•Aligning (11)
•Monitoring & Controlling (3)
Knowledge Areas (2)
•Portfolio Governance
•Portfolio Risk Management
Third Edition
Process Groups (3)
•Defining (8)
•Aligning (6)
•Authorizing & Controlling (2)
Knowledge Areas (5)
•Portfolio Strategic Management
•Portfolio Governance Management
•Portfolio Performance Management
•Portfolio Communications Management
•Portfolio Risk Management
Italics are new for PFM3
 PFM3 Process Groups

Defining Determines how strategic objectives will be

Process Group implemented in a portfolio and defines and
authorizes a portfolio or sub-portfolio; develops the
portfolio management plan
Aligning Determines how the portfolio will be aligned to the
Process Group strategic plan by optimizing, determining value,
developing risk responses, and distributing portfolio
information
Authorizing and Determines how to monitor strategic changes; tracks
Controlling and reviews performance indicators for alignment;
Process Group authorize portfolio and verifies values to the
organization from the portfolio

20
 PFM3 Knowledge Areas –
Processes required to…
Strategic Align to the strategic objectives by validating the
Management strategic plan, and defining the portfolio structure and
roadmap
Governance Develop the portfolio management plan; define,
Management optimize and authorize portfolio

Performance Determine performance management plan, including

Management determining portfolio value, financial management, and
balancing supply/demand resource and capability
Communication Ensure timely and appropriate generation, collection,
Management distribution, storage, retrieval, and ultimate disposition
of portfolio information
Risk Conduct risk management planning, identification,
Management analysis, response planning, and monitoring and
controlling on a portfolio

21
 PFM3 Process Map
Process Groups
Knowledge Areas Authorizing and Controlling
Defining Process Group Aligning Process Group
Process Group
4.1 Develop Portfolio 4.4 Manage Strategic
Strategic Plan Change
Portfolio Strategic 4.2 Develop Portfolio
Management Charter
4.3 Define Portfolio
Roadmap
5.1 Develop Portfolio
5.3 Optimize Portfolio 5.4 Authorize Portfolio
Portfolio Governance Management Plan
Management 5.5 Provide Portfolio
5.2 Define Portfolio
Oversight
6.1 Develop Portfolio
6.2 Manage Supply and
Performance Management
Portfolio Performance Demand
Plan
Management
6.3 Manage Portfolio Value

Portfolio Communication 7.1 Develop Portfolio 7.2 Manage Portfolio

Management Communication Plan Information
Portfolio 8.1 Develop Portfolio Risk
8.2 Manage Portfolio Risks
Risk Management Management Plan
 Portfolio Operational Flow
Manage
Develop Strategic Authorizing and
Portfolio changes
Strategic
Plan
Controlling Processes
Develop Authorize
Portfolio Portfolio
Develop Management
Portfolio Plan
Charter
Define
Develop Portfolio
Performance Roadmap
Manage
Management Provide Supply and
Plan Portfolio Demand
Oversight
Develop
Communica-
tion
Management
Plan
Optimize
Define Portfolio
Develop Portfolio
Risk
Management
Plan
Manage
Portfolio
Value
Defining Processes
Manage Manage
Portfolio Portfolio
Risk Information

Aligning Processes
Foundational Standards - Table of Contents
Comparison
PMBOK® Guide—Fifth Edition
1 – Introduction
2 – Organizational Influences and Project
Life Cycle
3 – Project Management Processes
4-13 – Knowledge Area sections
Annex A1 – The Standard for Project
Management of a Project
Glossary and Index
The Standard for Program
Management - Third Edition
Chapter 1. Introduction
Chapter 2-8. The Standard for Program
Management
Five Program Management
Performance Domains and Program
Management Supporting Processes
No Program Management Process
Groups or Knowledge Areas
Appendices
Appendix A through E
Section IV
Glossary and Index
The Standard for Portfolio
Management - Third Edition
1 - Introduction
2 - The Portfolio Management Overview
and Organization
3 - Portfolio Management Process
Groups
4-8 Knowledge Area sections
Annex A1 – The Standard for Portfolio
Management
Appendices
Glossary and Index
 What does all this mean for me?

• PMBOK® Guide, Program and Portfolio standards

now all fully updated with current best practice
(OPM3® --Third Edition to follow in mid 2013)

• All three core Standards are now harmonized

• Real business value in implementing end to end

PMI standards

• Common language with the newly-released PMI

Lexicon of Project Management Terms (PMI.org)

• ……WILL MY PMP & PgMP STILL BE VALID??