What is project portfolio management?

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 What do PPM practitioners say?
“Portfolio management is about choosing the right projects and
programs for the corporate strategy. It’s how you translate your
strategic vision down to the individual projects to achieve the
greatest potential ROI”

Raed Skaf, OPM3 Assessor, PMP Executive Manager of the PMO and Budgeting,
Riyadh, Saudi Arabia

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 What do PPM practitioners say?

“Portfolio management lets executives look holistically across

the group of projects to get the pulse of the portfolio’s return
on investment (ROI) and strategic alignment. You can’t do that
when you look at each project as an isolated event”

Marc Crudgington, PMP, Vice President, Information Security at Woodforest National Bank

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Is project portfolio management all about ROI?

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 What do PPM practitioners say?
“Good portfolio management provides clarity in the sea of
good ideas. There may be a lot of ‘good’ projects, but
understanding which ones would be ‘best’ allows companies
to leapfrog over the competition.”

Lori LaBeau, Lead Portfolio Project Manager for Enterprise Portfolio Management | Vantiv |
Cincinnati, Ohio, USA
Vantiv handles more than 12.9 billion payment transactions and processes approximately
US$426 billion in volume annually

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31
 What do PPM practitioners say?

“Smart executives are beginning to realize current

operations represent what their organizations are today,
while their portfolio of projects and programs represents
what they will be in the future ”

PMI White Paper: The Power of Portfolio Management

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 Current operations and future
MARITIME DOMAIN AWARENESS
✓ Natural resources protection
Probability of occurrence

✓ Humanitarian Aid
Maintain high standards of
✓ Life at sea protection
operational efficiency
✓ Maritime interdiction despite the limited means
✓ Transnational crime combat
Sustaining dissuasive
strategic capabilities
✓ Sea control and sovereignty

✓ Force demonstrations
✓ Crisis management
✓ Low intensity conflicts

✓ Conventional wars
✓ High intensity conflicts

Bartlett et al. “Translating Strategy to Forces” Level of violence

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Current operations and future

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 Is life that linear?

Organizational strategy:
Projects Programs Portfolios
mission, vision and values

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Is life more intended or emergent?

e.g. Col peace process

“A formal strategy process

is important – it brings
clarity and discipline”
(Morris, 2005, p. 6) 36
How do we manage portfolios of projects?

How do we align all this mess?

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 e.g. lessons learned,
Knowledge databases, RFI, RFQ
e.g. prioritization analysis,
strategic alignment analysis
e.g. communications
Techniques What do we Processes management, risk
management
use to manage
portfolios?

e.g. PMIS, OPM3

e.g. scenario analysis,
Tools Skills
management skills

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Importance of portfolio management for
organizational strategy
Impact of PfM on strategy:
1. To maintain portfolio alignment
with strategic objectives
2. To allocate financial resources
according to prioritization
3. To allocate human resources and
to develop the talent
4. To allocate materials, equipment,
spaces, etc.
5. To measure portfolio performance
accordance strategic objectives
6. To manage portfolio’s risks
(positive/negative) internally and
externally
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 Portfolio management facilitates alignment
between organizational and individual's strategy

PfM, PgM and PM

are about people!

47
Who cares about PPM?

Operations
managers

Senior
PMO guys
executives

Portfolio
managers

Strategy Suppliers
management and
staff customers
Lecturers Program and
and students project
of PPM managers

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 What is Project Portfolio Management?

The coordinated management of one or more portfolios to achieve

organizational strategies and objectives.

It includes the organizational process to evaluate, select, prioritize

and allocate limited resources.

It accomplish organizational strategy with vision, mission and values.

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Workshop:

In groups of two or individually please build a portfolio according to the following criteria:

• A sonorous name for the portfolio

• A minimum of three strategic objectives
• A minimum of three programs
• A minimum of three projects in each program
• How the projects may be managed better through their inclusion into a program?
• From the 9 projects, eliminate two, giving the reasons of your decision
• A minimum of three operations
• How this portfolio connects with your individual objectives
• Prepare a 5-minute presentation of your work

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 profit
Type of
organizations nonprofit

government
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4 expected transformations at the University

Conceptual:
Social: New Social: New Intrapersonal:
New
Conscience Friends New me
Knowledge

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