Project, Program & Project Portfolio Management

Methods, Process, Tools & Techniques

Anand Subramaniam

The ultimate leader is one who is willing to develop people to the point that they surpass him or her in knowledge and ability.
- Fred A. Manske, Jr

Highlights
    
Project Management Project Methodology Program Management Project / Program Office Project Portfolio Management

Project Management

Why Projects fail?

Reasons for Project Failure

 Poor project specification  Scope/objectives unclear  Unrealistic timescales  Over-optimism  Under-resourcing  Lack of buy-in from key players  Failure to manage user expectations  Failure to manage change  Inappropriate staff  Too much reliance on one individual

Managing Projects - Do & Dont

Do  Get all stakeholders to sign up to project plan  Seek help if you need it  Devote time to early work Dont  Overload people  Accept an unreasonable deadline without challenging it  Assume others have same priorities as you  Use tools and procedures you dont need
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Criteria for Successful Project

 Communication, Communication, Communication  Time invested at start to understand purpose and build relationships  A clearly defined scope  Realistic objectives  Commitment and buy-in from Project Board and senior managers  Clearly defined roles and responsibilities  A motivated and valued Project Team
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Traits of a Good Project Manager

        Spends time upfront understanding project and getting commitment from stakeholders Communicates with all stakeholders openly and honestly Explains and gets agreement from people on what they need to do and when Listens Understand scope and objectives and keeps them in mind when making decisions Builds the team and makes the most of members skills Keeps Project Team involved and motivated Is prepared to take calculated risks         Plans thoroughly keeps workload, resources and timescales in balance at all times Is accountable for all aspects of the project Makes decisions based on the information available Puts the project before any other allegiances Is honest with themselves and others Uses common sense Is a good negotiator Anticipates, prioritises and addresses potential and real problems as soon as they become apparent

Importance of Lessons Learned Report

 Review lessons learned from previous projects  Set up a Lessons Learned Log  Capture lessons learned throughout life of project  Review Log at key points in project  Write lessons learned report  Share lessons and good practice
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Continuous Improvement
        Build knowledge bases Record lessons learned Refer to case studies, websites Learn from experience of others Contribute to the body of knowledge Learn from and build on own experience Keep up-to-date with relevant publications Join associations, support groups, committees
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Project Methodology

Benefits of having a Methodology

No Methodology Projects tend to be developed to attract funds Projects have to fit a standardised set of outputs Focus is on writing applications for funding Stakeholders have not been active in designing projects Projects are driven by the funder or technical supply Poor analysis of local situation Activity focused Impact cannot be verified Short term vision Projects tend to include many areas and become complex and exclusive Inconsistent documentation Having a Defined Methodology Projects are designed to solve problems Projects develop local criteria and indicators to suit the local situation and achieve excellence Focus is on designing and making decisions before writing the proposal Stakeholders help to define the problems and make decisions about the solutions Projects are led by demand Through stakeholders involvement, the local situation is well understood Projects are designed through identifying objectives as solutions to each problem Each objective has clear evidence indicators that can be verified The focus is always on the long-term and sustainable benefits Projects tend to be placed in an operational strategy and remain focused on a single outcome All documents are standardised to improve consistency and content

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PMBOK
 The PMI Project Management Body of Knowledge (PMBOK) is an inclusive term that describes the sum of knowledge within the profession of project management.  PMBOK includes knowledge of innovative and advanced practices that are widely applied in all fields of project management.  Project management is the application of knowledge, skills, tools and techniques applied to meet a projects requirements.
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PRINCE2
 PRINCE2 (PRojects IN Controlled Environments) is a process-based approach for project management providing an easily tailored and scaleable method for the management of all types of projects.  The method is the de-facto standard for project management in the UK and is practiced worldwide.
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Other Methodologies
      
Agile SDM Lean Six Sigma Kepner Tregoe Lean Six Sigma Theory of Constraints (TOC)
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PMBOK vs. PRINCE2

PMBOK
Comprehensive Largely descriptive, prescriptive on a high level Core and facilitating processes; need to be scaled to needs of project Customer requirements driven Sponsor and stakeholders US/International Standard

PRINCE2
Focuses on key risk areas only; does not claim to be complete Highly prescriptive, especially on Process Structure, but adaptable to any size project All processes should be considered; also need to be scaled Business case driven Clear project ownership and direction by senior management UK Standard
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PMBOK vs. PRINCE2 - Components

PMBOK Knowledge Area Integration Scope, Time, Cost Quality Risk Communications Human Resources Procurement PRINCE2 Components Combined Processes, Components, Change Control Plans, Business Case Quality, Configuration Management Risk Controls Organisation (limited) Need to create procurement products
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PMBOK vs. PRINCE2 - Match

PMBOK Initiating Planning Executing/ Controlling Closing P2: Project Level Starting Up; Directing Initiating, Planning [managed on a stage by-stage basis] Closing A Project P2: Stage Level (phase-by-phase) Managing Stage Boundaries; Directing Managing Stage Boundaries; Planning Controlling a Stage; Managing Product Delivery; Directing Managing Stage Boundaries

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Program Management

What is Program Management?

The orchestration of a portfolio of projects effecting organisational change to deliver business benefits of strategic importance

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Why Program Management?

        

Good management control of costs The wider context of risks is better understood The gap between strategies and projects is filled Co-ordination and control of the complex range of activities Projects are prioritised and integrated to manage resources better Effective management of the Business Case to achieve the vision Formal process for identifying, managing, realising and measuring benefits A management framework that focuses on business change objectives Clear responsibilities for preparing for implementing business change
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Project vs. Program Management

Area Focus Scope Benefits Project Management Single objective Narrow Determined in advance Accrue after completion Program Management Business strategy Wide-ranging, crossfunctional Used to make decisions Accrue during the programme Many , many initially undefined Loosely defined Regarded as inevitable Mission, cash-flow, ROI High-level and evolving
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Deliverables Few, clearly defined Timescale Change Success Factors Plan Clearly defined To be avoided Time, budget, specification Specific, detailed, bounded

Change Management - Blueprint

 Data required  Business models of the new functions, processes and operations  Organisation structure, staffing levels, roles, and skill requirements  Information systems, tools, equipment and buildings  Costs, performance and service levels for support of future operations
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Benefit Definitions
 Depends on other activities outside the control of the programme  Business / operations areas expected to be affected  Projected changes from the current business operations  current measures of the business operations and the target for improvement (e.g. financial savings or improved throughput)  When the benefit is expected to be realised  Financial & non financial value of the benefit
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Risk Hierarchy
 Strategic - Other programmes, other initiatives, inter-programme dependencies, political pressures  Program - Changing objectives, program definition, management skills, inter-project dependencies  Project - Project risks, third party  Operational - Transfer of deliverables to operations, acceptability within business operations, acceptability to stakeholders
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Program Stakeholders
Third-party suppliers Regulatory bodies The program management team The governing body of the program People creating the programs deliverables Providers of support for the program's deliverables All business areas impacted by the program, both during the program or after its completion  Providers of support to the program's activities in areas outside the Program Manager's control  Custodians of standards and policies relating to the program's activities  Providers / supporters of the technical infrastructure used by the program       

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Program - Key Roles

          Change Agents Quality Manager Governing Body Program Sponsor Program Manager Technical Authority Business Planners Project Managers Business Change Managers Program Management / Support Office
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Program vs. Project Manager

Program Manager
       Plans program-level activities and schedule of projects Defines TOR for projects Starts, stops and monitors progress of constituent projects Manages program level risks and issues. Delegates risks to projects Sets policies and procedures for projects Resolves resource conflicts Determines program standards

Project Manager
       Plans a project given the dependencies and interfaces defined by the Program Manager Works within the defined TOR Runs a project, reporting to the Program Manager Manages project risks and issues, escalating to the Program Manager wherever necessary Runs project according to policies and procedures Uses assigned resources Delivers products to the defined standards

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Program Manager Competencies

          Strong leadership and management skills Effective interpersonal and communications skills Ability to create a sense of community Ability to find ways of solving and pre-empting problems Marketing and communication skills to sell the program into the business areas Good knowledge of techniques for planning, monitoring and controlling programmes Knowledge of project management approaches Good knowledge of budgeting and resource allocation procedures Knowledge of business change techniques, e.g. BPR Knowledge of benefits identification and management techniques

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Project / Program Office Questionnaire

Project Management Office

 How do you keep costs down?  How do you eliminate redundancy?  How do you ensure cross-functional alignment?  What is the impact of change?  How can you leverage your existing investments in information and IT?

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Program Management Office

 Can you estimate the business value of programs ?  How do you plan and manage the investments and deliver the business benefits?  How can you gauge under / over performance of programs?  How do you link business case to business strategy?  How can you effectively use business cases for executive decision making?  How can you assess the actually achievement to the anticipated business value?  How can you scope the complexity of the programs initiated?  How can you estimate the transformation change and the change management strategy for business improvement programs?  How can you stop programs for underperformance or for not supporting the business strategy anymore?
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Transformation Change
 How do you define and manage strategic business change?  How do you maximise the value in investments in business change?  How to create blueprints for change in the business and its IT resource?  How to deliver and maintain information system solutions?  How to deliver change - on time, on budget, to defined requirements?
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Project Portfolio Management

What is PPM?
Corporate Strategy Focus on Value Balance Risk Vs. Value Regulatory Compliance Changing Priorities Project Changes

Ongoing Re-calibration

Align

Plan

Execute

Measure

Core Operating Processes (Prioritisation, Governance, Monitoring, Resources)

Optimal Resource / $$ Utilisation

Net Value Contribution

Project Approvals, Completions & Cancelations

Work Output & Performance Trends

Continuous Improvement Recommendation

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Symptoms calling for PPM

Teams overworked / under appreciated Intense competition internally with regard to financing / staffing projects Seek accurate estimates based on firms history & lessons learned

Rework and out of control costs with 3rd party vendors

No prioritisation process for business requests

Symptom s

Many projects are not adding strategic value to the organisation Project benefits not captured or tracked

Too many small projects underway

No tracking or accountabilit y for project success

Excessive project delays due to lack of resources

Frequent change of status of projects (active on-hold priority on-hold)

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PPM - Benefits
Justifies killing projects that do not support organisation strategy Balances risk across all projects Links project selection to strategic metrics Prioritises project proposals across a common set of criteria, rather than on politics or emotion Benefits Improves communication and supports agreement on project goals Builds discipline into project selection process GRB & PMO jointly execute PPM Processes Provides executive oversight of the firm Provides the structure/process for project portfolio governance & avoids duplication / waste
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Allocates resources to projects that align with strategic direction

PPM - Goals
      
Helps the organisation to make the best use of its resources Enables the removal of low value projects from the portfolio Ensures that all new and existing projects are aligned with the organisation s mission, goals and objectives Produces and maintains a comprehensive listing of all projects which the organisation is undertaking Develops a bigger picture view and a deep understanding of the project collection as a whole Creates an objective methodology for identifying, ranking, prioritising and selecting new projects Ensures that a healthy balance across different types of projects with different cost, schedule, complexity and risk profiles is maintained
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Project Portfolio Management (PPM)

    
Are you doing the right things? Are you doing them the right way? Are you getting them done well? Are you getting the benefits? How are (or will) the benefits be delivered?

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PPM (Contd.)
 How do you ensure that the investments are aligned with the key business objectives?  How do you find the most efficient ways to realise the strategic goals?  How do you check the right balance of investments across the portfolio?  How do you realise the predicted benefits of these efforts?  How do you assess programs and projects in the portfolio and to say 'No' and 'Stop?  How do you provide information to make better decisions?  How do you align actions to strategy and increase success on strategic initiatives?  How do you minimise risk, manage workload, decrease time to delivery, decrease costs and to increase value delivered?
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PPM (Contd.)
 How do you create an Inventory of current programs and projects?  How do you apply categorisation to understand the different kinds of initiative in the portfolio?  How do you apply evaluation criteria which enables reliable selection of high value / low risk initiatives?  How do you create visualisation of the Portfolio to support executive decision making?  How do you define and create the capability / Maturity level target and develop a "roadmap" of how to get there in a realistic timeframe?
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You can tell whether a man is clever by his answers. You can tell whether a man is wise by his questions.
- Naguib Mahfouz

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Good Luck
http://www.linkedin.com/in/anandsubramaniam

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