The New PMI

Standard for Program Management

and
Standard for Portfolio Management

Ruth Anne Guerrero

PMI Standards Manager
September 7th, 2006
 Purpose of this Presentation

To introduce

The Standard for Program Management

&
The Standard for Portfolio Management
 Agenda
• Introduction
• What is Program Management?
• The Standard for Program Management
• Program Management Process Groups
• What is Portfolio Management?
• The Standard for Portfolio Management
• Portfolio Management Processes Groups
• Questions
 PMI Standards Background
• Professional Need
• Develop Standard(s) for Program Management and
Portfolio Management
– Processes/process groups, terminology, basic structures
- Consistent with PMBOK® Guide
– Knowledge areas to be developed in future editions
• Determine need for one or two standards
– Research/Industry Consensus
– Differences/Similarities
• Exposure Drafts Posted Summer 2005
• Publish Both May 2006
 History of Events

• Chartered Program and Portfolio

Management Project (March 2003)
• Determined 2 standards needed (2003)
• Developed Both Standards (2004 - 05)
• Exposure Drafts Posted (Fall 2005)
• Publish Both (May 2006)
Key PMI Standards as of May 2006

Organizational
Best Practices

Good Practices
in use today
 Tables of Contents Comparison
PMBOK® Guide—Third Edition The Standard for Program Management The Standard for Portfolio Management

Section I Section I Section I

The Project Management Framework The Program Management Framework The Portfolio Management Framework
Chapters 1 & 2 Chapters 1 & 2 Chapters 1 & 2

Section II Section II Section II

The Standard for Project Management of a Project The Standard for Program Management The Standard for Portfolio Management
Chapter 3 – 5 Process Groups Chapter 3 – 5 Process Groups Chapter 3 - 2 Process Groups
44 Project Management Processes for a Project 39 Program Management Processes 9 Portfolio Management Processes

Section III Section # - None Section # - None

The Project Management Knowledge Areas No Knowledge Areas No Knowledge Areas
Chapter 4 through 12

Section IV Section III Section III

Appendices Appendices Appendices
Appendix A through G Appendix A through H Appendix A through D

Section V Section IV Section IV

Glossary and Index Glossary and Index Glossary and Index
 Major Distinctions

• Program Management • Portfolio Management

– Includes non-project – Not a project; more an
work ongoing business
– Bounded context process
– Audience defined by – Broad strategic focus
program goal(s) – Audience is Senior
– Major Themes Executive Level
• Benefits Mgmt – Major Focus
• Stakeholder Mgmt • Alignment
• Governance • Decision making
– Doing the ‘right’ things
High-Level View: Portfolio,
Programs, Projects
What is Program Management?
 What is a Program?

• A program is a group of related projects

managed in a coordinated way to obtain
benefits and control not available from
managing them individually. Programs may
include elements of related work outside of
the scope of the discrete projects in the
program.
 What is Program Management?

Program Management – the centralized

coordinated management of a program to
achieve the program’s strategic objectives
and benefits.
Program Life Cycle
 Table of Contents Comparison
PMBOK® Guide - Third Edition The Standard for Program Management
Section I Section 1
The Project Management Framework The Program Management Framework
Chapters 1 and 2 Chapters 1 & 2
Section II Section II
The Standard for Project Management of a Project The Standard for Program Management
Chapter 3 – 5 Process Groups Chapter 3 – 5 Process Groups
44 Project Management Processes for a Project 39 Program Management Processes
Section III Section # - None
The Project Management Knowledge Areas No Knowledge Areas
Chapters 4 through 12
Section IV Section III
Appendices Appendices
Appendix A through G Appendix A through H
Section V Section IV
Glossary and Index Glossary and Index
Themes of Program Management

• Benefits Management
• Stakeholder Management
• Program Governance
Program Benefits Management
 Benefits Management Theme

Benefits Management
• Assesses benefits value and organizational impact
• Identifies benefits interdependencies
• Ensures targeted benefits are realistic
• Analyzes impact of program changes on benefits
outcome
• Assigns responsibilities and accountability for
benefits realization
Benefits Management Methodology
Stakeholder Management Theme
Stakeholder Management
• Identifies how the program will affect
stakeholders
• Develops a communication strategy to:
– Engage affected stakeholders
– Manage expectations
– Improve acceptance of project objectives
• Considers additional levels of stakeholders and
broader interdependencies amongst projects.
 Program Governance Theme
Governance
• Provides control of the organization’s investment
• Monitors the delivery of benefits through:
– Progress reports
– Reviews at each phase in the program’s life cycle
• Allows senior management to assess program
performance before allowing it to progress
Program Management
Process Groups
 Program Management Process
Groups
• Initiating Process Group
• Planning Process Group
• Executing Process Group
• Monitoring and Controlling Process Group
• Closing Process Group
 Initiating Process Group

• Initiate Program
• Authorize Projects
• Initiate Team
 Planning Process Group
• Develop Program Management Plan
• Interface Planning
• Transition Planning
• Resource Planning
• Scope Definition
• Create Program WBS
• Schedule Development
 Planning Process Group (cont.)
• Cost Estimating and Budgeting
• Quality Planning
• Human Resource Planning
• Communications Planning
• Risk Management Planning and Analysis
• Plan Program Purchases and Acquisitions
• Plan Program Contracting
 Executing Process Group

• Direct and Manage Program Execution

• Perform Quality Assurance
• Acquire Program Team
• Develop Program Team
• Information Distribution
• Request Seller Responses
• Select Sellers
 Monitoring and Controlling
Process Group
• Integrated Change Control
• Resource Control
• Monitor and Control Program Work
• Issue Management and Control
• Scope Control
• Schedule Control
 Monitoring and Controlling
Process Group (cont.)
• Cost Control
• Perform Quality Control
• Communications Control
• Performance Reporting
• Risk Monitoring and Control
• Program Contract Administration
 Closing Process Group

• Close Program
• Component Closure
• Contract Closure
What is Portfolio Management?
 What is a Portfolio?
Portfolio- A collection of projects or
programs and other work that are grouped
together to facilitate effective management
of that work to meet strategic business
objectives. The projects or programs of the
portfolio may not necessarily be
interdependent or directly related.
 What is Portfolio Management?

Portfolio Management- the centralized

management of one or more portfolios,
which includes identifying, prioritizing,
authorizing, managing and controlling
projects, programs, and other related work,
to achieve specific strategic business
objectives.
 Components of a Portfolio
• Represent investments made or planned by the
organization
• Are aligned with the organization’s strategic goals
and objectives
• Typically have some distinguishing features that
permit the organization to group them for more
effective management
• Are quantifiable; that is, they can be measured,
ranked and prioritized
Portfolio Management
Process Groups
 Portfolio Management Process
Groups
• Aligning Process Group (7 processes) –
Includes how components will be categorized,
evaluated and selected for inclusion, and managed in
the portfolio.
• Monitoring and Controlling Process Group (2
processes) – Consists of reviewing performance
indicators periodically for alignment with strategic
objectives.
Portfolio Management
Process Groups
Portfolio Management Process
Interactions
 Aligning Process Group

• Identification
• Categorization
• Evaluation
 Aligning Process Group
(cont.)
• Selection
• Prioritization
• Portfolio Balancing
• Authorization
 Monitoring and Controlling
Process Group

• Portfolio Periodic Reporting and

Review
• Strategic Change
 Portfolio and Program
Management Standards Team
Members

• PMI would like to thank all team members

for their contribution. Team members are
listed in both The Standard for Program
Management and The Standard for Portfolio
Management Appendix C.
 Summary
• The new standards for program and
portfolio management address the broader
issues of managing multiple projects in
organizations. By complementing PMI’s
PMBOK® Guide and OPM3®, these two
new standards provide managers and
organizations with a comprehensive
approach to managing a project
environment.
Questions
 Contact Information
• Name/Company

• Phone Contact

• Email

• Session #