Introduction to the Project Portfolio Management Process

Mastering the Project Portfolio

Introduction to the Project Portfolio

Management Process

Tom Geoghan and Bruce Snow

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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

“Vision without action is merely a dream.

Action without vision just passes the
time.
Vision with action can change the
world.”

Joel Barker, “Mr. Paradigm”

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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Sustained Organizational Mastery

“Implement - Carry out, accomplish, give practical effect to
and ensure actual fulfillment of concrete measures”
Merriam Webster’s Collegiate Dictionary

Strategize Implement Operate

Organizational mastery of project management drives

successful implementation of business strategies
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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Integrated Project System

Portf
o lio

To ple
Peo cess
ols
Pr o
Progr
ams

Proje
cts

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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Project Management Disciplines

Portfolio - the prioritized set of all

Portfoli projects and programs in an
o
organization

Program - a single coordinated effort

Progr with multiple interdependent
a ms
projects

Project - a unique effort with a defined

beginning, a defined end, a
Proje specific deliverable, and
cts defined resources

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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Organizational Practices
Portf
o lio

To
Progr
ams

ols
Peo
Pr o

ple
Proje ces
ct s s

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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Implementation Maturity
Poorrttff
oolliioo

To ple
Peo cess
ols
Pr o
Prooggrr
Involvement at all levels aam
mss
of the company

PProje
rojeccttss
0
1
Establish baseline 2
using assessment
3
4
5 7
Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Project Portfolio Management

Definition

The management of that collection of

Projects and Programs
in which an organization invests to
implement its strategies.
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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Portfolio Management Defined (cont.)

! A dynamic decision process
! The project lists are continually updated and
revised
! New projects are evaluated, selected, and
prioritized against existing projects
! Existing projects may be accelerated, cancelled,
or de-prioritized
! Resources are allocated and re-allocated in
alignment with organizational strategic objectives
Cooper, Edgett, and Kleinschmidt
(1998)
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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Challenges Energizer

! What challenges do you face managing the

portfolio of projects within your organization?

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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Why Portfolio Management?

! Unsure of what projects are going on in the organization
! Lack of understanding of project interdependence
! Uncertainty with regard to how projects support
organizational strategy
! Surprised when projects do not meet expectations
! Resources that work overtime while other resources are
under-utilized
! Projects that add value way out of proportion to the
resources and attention expended
! Consistent failure to meet project cost, schedule, and
technical milestones

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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Portfolio Management Process

ESTABLISH THE PRIORITIZE DETERMINE THE OPTIMIZE MASTER
PORTFOLIO MANAGEMENT THE PROJECT RESOURCE CAPACITY THE PROJECT THE PROJECT
ENVIRONMENT WORK AND DEMAND PORTFOLIO PORTFOLIO

1.1 4.1
2.1 3.1 5.1
DETERMINE THE AUTHORIZE THE
ESTABLISH THE DEFINE THE MONITOR THE
LEVELS Of PROJECT DEVELOPMENT OF
PROJECT DOMAINS RESOURCE CAPACITY PROCESS OPERATIONS
ORGANIZATION DETAILED PLANS

1.2 2.2 4.2

5.2
CREATE THE DEVELOP THE ESTIMATE THE
MEASURE THE
PORTFOLIO PRIORITIZATION DETAILED RESOURCE
PROCESS IMPACT
MANAGEMENT TEAM (S) CRITERIA REQUIREMENTS

1.3 4.3 5.3

2.3 3.2
IMPLEMENT THE ANALYZE THE PROJECT INCORPORATE
IDENTIFY ESTIMATE THE
PORTFOLIO MANAGEMENT PORTFOLIO RESOURCE THE PROCESS
PROJECT WORK RESOURCE DEMAND
TEAM CHARTER UTILIZATION LESSONS LEARNED

1.4 3.3 5.4

2.4 4.4
ESTABLISH PROJECT ANALYZE RESOURCE MASTER THE
PRIORITIZE THE AUTHORIZE
PORTFOLIO FRAMEWORK CAPACITY VS. PROJECT
PROJECTS PROJECT RESOURCES
PROCESSES RESOURCE DEMAND ORGANIZATION

4.5
TRANSITION TO
MASTERING THE
PORTFOLIO

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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Establish
Establishthe
the
Environment
Environment

Prioritize
Prioritizethe
the Resource Determine
Determine
Project
ProjectWork
Work Utilization Resource
Resource Capacity
Capacity
and
andDemand
Demand

Optimize
Optimizethe
the
Project
ProjectPortfolio
Portfolio
Major
Components
Master
Masterthe
the
Project
ProjectPortfolio
Portfolio 13
Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Goals of the Portfolio Management Process

! Align project work with the strategic direction of

the organization

! Maximize the value of resource utilization

! Balance the project portfolio

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Introduction to the Project Portfolio Management Process
Mastering the Project Portfolio

Course Objectives

! Fully comprehend an effective process

for managing a project portfolio

! Apply those experiences to a

sample portfolio scenario

! Consider portfolio management implementation

concerns such as technology and metrics

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