P3O Practitioner Workbook

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Contents
Overview .......................................................................................................................3
Why Have a P3O®?.......................................................................................................10
Case Study: P3O® Pilot .................................................................................................19
Designing a P3O® Model..............................................................................................20
Implement and Re‐energise.........................................................................................44
Case Study: No Skeletons in the Cupboard at BT Design ............................................59
How to Operate a P3O® ...............................................................................................60
Roles.............................................................................................................................72
Case Study: Skipton Building Society ...........................................................................89
Glossary of Terms and Definitions ...............................................................................96
Overview
Definitions
P3M
Portfolio, Programme, and Project Management (also including value and risk
management).
Portfolio
The totality of an organisation’s investment (or segment thereof) in the changes
required to achieve its strategic objectives.
Programme
A temporary, flexible organisational structure created to coordinate, direct, and oversee
the implementation of a set of related projects and activities to deliver outcomes and
benefits related to the organisation’s strategic objectives.
Project
A temporary organisation, created for the purpose of delivering one or more business
products to an agreed business case.
Portfolio Management
A coordinated collection of strategic processes and decisions that enable the most
effective balance of organisational change and business as usual.
Project Management
The planning, delegating, monitoring, and control of all aspects of the project, and the
motivation involved, achieve the project objectives within the expected performance
targets for time, cost, quality, scope, benefits, and risk.
What is a P3O®?
A decision‐enabling and support business model for all business change within an
organisation.
This includes single or virtual structures, i.e. offices (permanent and/or temporary),
providing a mix of central and localised functions and services, and integration with
governance arrangement and the wider business such as other corporate support
functions.
The elements that make up P3O®:
 Organisation Portfolio Office
 Hub Portfolio Office
 Programme Office
 Project Office
 Centre of Excellence
An example of a P3O® Model
Based on AXELOS P3O® material. Reproduced under licence from AXELO S Limited. All rights reserved.
Key Functional Areas of P3O®

The three main functional areas of P3O® require different competencies, skills, and
experience:
1. Strategic planning or portfolio support – It focuses on supporting senior

management decision‐making. This includes the continuous portfolio definition
practices of understand, categorise, prioritise, balance, and plan management
dashboards, and most importantly the provision of challenge, scrutiny, and
oversight.
2. Tactical or delivery support – It focuses on hands‐on support to the successful
delivery of change, sometimes through a flexible pool of delivery programme and
project resources to enable fast mobilisation.
3. Centre of excellence or capability support – It focuses on the development of
standard processes, promoting consistent portfolio, programme, and project
working practices.
Exercise
In the pyramid illustrated below, assign where portfolios, programmes, and projects sit
in relation to one‐another.
Fill in the blanks regarding the differences between portfolio, programme, and project
management
1. ______management is just the management of an individual, standalone project.
2. A project is usually part of a_________, but a ________cannot be part of a
project.
3. Programme management is the management of several_________, directly
addressing how they are managing themselves.
4. __________deliver strategies, whereas projects will be strategy‐driven.
5. __________are made up of programmes.
6. Portfolio management determines the priorities of _____________.
Business as Usual
The way a business normally achieves its objectives.
‘Run the business, Change the business’
Based on AXELOS P3O®material. Reproduced under licence from AXELOS Limited. All rights reserved.
Organisational Context
An effective P3O® can increase an organisation’s chance of successfully delivering on its
strategic objectives by maximising benefits realised from its continued investment in
business change programmes and projects.
 It maintains a ‘big picture’ understanding of the business change portfolio
 Provides decision support to ensure the right programmes and projects are
launched
 Provides standards and processes to ensure a consistent delivery
 Delivers an independent oversight, scrutiny, and challenge, to ensure things are
done correctly
 Assistance in the building of a competent workforce capable of first‐class
programme and project delivery
 Improving upon organisational accountability, decision‐making, transparency,
and visibility
 Protecting revenue and spend
 Executing change more effectively and efficiently to improve programme and
project delivery
 Defending reputation and stakeholder confidence
Without the involvement of an effective P3O® model, organisational strategic
objectives may still be reached, but potentially in a fragmented or unstructured way.
This, therefore, could have an adverse effect on expected outcomes and generate a
significant threat to any already scarce resources.
P3O® Model elements aligned with portfolio, programme, and project lifecycles
Based on AXELOS P3O® material. Reproduced under licence from AXELOS Limited. Al l rights reserved.
Structures of Portfolio
There are five types of ‘models’ in P3O® that describe the way, in both structure and
nature, how offices and their functions can be organised.
1. Organisation Portfolio Office Model – A single, permanent organisation

level portfolio office, focused on strategic portfolio support, planning,
delivery support, and COE functions, with temporary programme and
project offices set up to support new initiatives as they are launched.
2. Hub and Spoke Model – Large organisation model with multiple de‐centralised
permanent portfolio offices designed to serve specific divisions, geographical
regions, business units, departments, or functions.
3. Temporary Office Model – No permanent office exists. Temporary programme and
project offices (or individuals with support skills) are set up as new initiatives are
launched.
4. Virtual Office Model – No physical central office. Business or functional units carry
out P3O® functions across the organisation.
5. Small Organisation Model – Very small office, or a single individual. Usually
focused on consistency of methods/training etc.
Quiz 1
1. Is the following statement true or false?
There are five key functional areas of P3O®.
 True
 False
2. What is a portfolio?
 A decision‐enabling and support business model for all business change within
an organisation
 A temporary organisation that is created for the purpose of delivering one or
more business products to an agreed business case
 The totality of an organisation’s investment (or segment thereof) in the
changes required to achieve its strategic objectives
 A coordinated collection of strategic processes and decisions that, together,
enable the most effective balance of organisational change and business as
usual
3. The Organisation Portfolio Office Model is…

 A very small office, or a single individual
 A single, permanent organisation
 A large organisation
 None of the above
4. A programme’s lifecycle is comprised of…

 Identify, Define, Deliver Capability/Realise Benefits, Close
 Define, Deliver Capability, Identify, Realise Benefits
 Define, Realise Benefits/Deliver Capability, Initiation, Close
 Start‐up, Identify, Initiation, Realise Benefits
Why Have a P3O®?
Any policies and performance requirements of an organisation are typically realised via
portfolios, programmes, projects, and operational business units.
An integrated set of outcomes and benefits are measured, managed, monitored, and
refined to ensure that optimal investment and strategic goals are achieved.
Benefits of a P3O®
 A strong visibility of progress
 Predictability of delivery
 ‘Big picture’ view
 A consistency to approach and delivery
 Decision‐making transparency
How Do P3O®s Add Value?
By adding an appropriate P3O® model in an organisation, it will optimise and improve the
delivery and implementation of business change.
An ideal P3O® will be able to operate and deliver the right services within an organisation’s
matrix structure. This will ensure that programmes and projects can coexist with existing
permanent functions.
A compelling business case must be presented to senior managers and other senior‐level
support in order to approve the venture.
Any potentially realised benefits will need to be fully understood as well as an estimation of
costs.
Any P3O® model worth its weight should be able to answer the questions ‘What value will it
add to the organisation?’ and ‘How will it work?’ with special consideration to
organisational and business divisional boundaries.
The agreement of the P3O®’s vision, operating model, and transition plan is integral to any
sort of sustained success it will yield.
Careful management is necessary for the P3O® to deliver value after it has been
implemented and established.
Change management is a vital part of a successful implementation. This change will be
widespread, though, and will affect multiple stakeholder groups.
It is recommended that the implementation is run as a programme, with the appropriate
best‐practice management and governance in place.
However, some organisations may have to limit the change to a small, single office. In
which case, the P3O® design and implementation phases will be managed as a project.
It is important to effectively engage with stakeholders, communicate well, and keep an eye
on benefits.
An understanding of any problems that may arise, and opportunities intended to
realise, would also be advantageous.
Governance Focus
 Business Change Strategy
 Business Change Design
 Business Change Delivery
 Business Change Value
Governance requirements, and the way in which the governance is supported and
enabled, will fluctuate depending on the organisation. An ideal P3O® will fulfil all of
these requirements.
Business change governance support and enablement

Based on AXELOS P3O® material. Reproduced under licence from AXELOS Limited. All rights reserved.
The P3O® can add real value to any senior management decision‐making and
governance capability if it:
 is an appropriate model for the organisation
 is adequately resourced
 interfaces with decision‐making bodies
 has services aligned with other service providers within the organisation, such as
finance, procurement, or audit
Best Management Principles for extracting value from programme and project
investment:
Govern effectively – How P3O®s can help
 Providing support to Senior Responsible Owner and Senior Management
 Ensuring risks, issues, and changes are escalated to the right decision‐making
authority
 Making sure complete, timely, and accurate data is collected at source so that
analysis and amalgamation enables quality decision‐making
Hold people to account – How P3O®s can help
 Providing the Senior Responsible Owner and Senior Managers with decision‐
making support
 Ensuring that the right decisions are escalated to the right people, with relevant
information to support the decision‐making process
 Providing standard role descriptions and terms of reference for the boards
 Providing support, coaching, and training for all roles available
Prioritise investment, align and adjust to business strategy – How P3O®s can help
 Maintaining a register of all programmes and projects within the portfolio,
including any ideas in the pipeline
 Facilitate and support pre‐programme and project scoping workshops
 Support risk identification workshops
 Providing a fast‐track mobilisation service to programmes and projects
 Supporting feedback from programmes and projects to strategy
Safeguard value – How P3O®s can help
 Supporting the business‐case process
 Providing a benefits tracking service to business owners
 Ensuring benefits are not double‐counted and that the measurement process is
robust and usable
 Helping to get more value via benefits from investment across programmes and
projects
Invest in people and process – How P3O®s can help
 Developing tailored approaches based on Best Management Practice approaches
and ensuring that they are easily accessible to everybody in the PPM community
 Developing training, coaching, and mentoring approaches for all roles within the
PPM environment
 Advising on skills and capability assessments
Track progress through highlight and exception‐based reporting – How P3O®s can help
 Providing timely reporting and exception management service from project to
portfolio level
 Developing management dashboards that engage and focus senior management
on the key risks and matters that affect the delivery of the portfolio
 Making sure that the data collection process operates proficiently and effectively
Exercise
List as many benefits for a P3O® as you can.
Investment for the P3O®

Identifying the Stakeholders
It is essential to identify and engage with your stakeholders, especially in regards to a
programme that could affect many of them.
Senior managers who will benefit from the change should be identified and engaged
immediately.
They will need to buy into the benefits that they will receive and use their influence to
drive the change forward.
Another critical success factor is the nomination of a P3O® sponsor, making sure they
are a senior manager with authority, influence, and charisma.
This person must embody the P3O® vision and ensure organisational commitment at all
levels.
Identifying the Problem
The success of a change programme hinges on the understanding of problems that
need to be solved, and realising what opportunities need to be maximised.
Consensus between the board on the serious issues and problems are essential, too.
This assures that the P3O® sponsor fully understands what success looks like across the
organisation at all levels.
Gathering these views and gaining a consensus on the right issues could take the form
of interviews, workshops, or surveys.
By debating any problems in open sessions, the root cause of these problems, and their
solutions, will be recognised and defined.
Overcoming Common Barriers
Lack of Focus
There can be a reluctance from senior managers to consider the full requirements of a
P3O® model, instead focusing on a single component (training, PPM, framework
development etc.)
This can only partially deliver the P3O® functionality, which will then lead to
restrictions on the value of the P3O®, and a failure of realised benefits.
In many organisations, two problems prohibit gaining the consensus of senior
executives:
 Many executives do not understand how change management should work, with
no differentiation to other forms of management
 Executives who do have some understanding, though, do not understand what is
in it for them
Funding the P3O® Model
Another barrier when building a consensus is the perception of the overhead
associated with P3O® operations. Some stakeholders will be reluctant to fund the
overhead to structure a P3O® model.
Once the P3O® is operational, an effective way to maintain focus on the value of P3O®
is to report on achievements towards the success measures against the cost of the
P3O® business units.
Some organisations might not see the value in providing support to programmes and
projects, so a project manager might take cost‐cutting measures so that tasks can be
completed within budget.
This can lead to a staggered, slower‐pace of change throughout the organisation, as
well as potentially delay benefits.
Challenging the Current Culture
A proposed P3O® model might challenge the current culture in an organisation, which
can threaten the ability of the P3O® to realise any forecasted benefits.
If the embedded culture is at senior level, it can be especially difficult to impose a new
model, with the potential for failure considerably higher.
Effective stakeholder analysis and a strong communications plan will assist in breaking
down these barriers.
Bureaucracy of the P3O® Processes and Standards
A common barrier to building a consensus among senior management is the perceived
bureaucracy associated with compliance with repeatable processes and governance
arrangements for the delivery of business change.
Processes should be kept as simple as possible, and new processes should align with
existing procedures that are already seen to add value.
It would be beneficial to introduce, or strengthen, formal sign‐offs for business cases
and implement a gated sign‐off approach to stop rogue projects at its inception.
In order for projects and programmes to be deemed a success, most of the services
that are described in the P3O® model must be carried out.
Other Barriers
Some other common barriers include:
 A lack of authority for the P3O® to provide the governance and control
arrangements
 Inadequate use of the individual P3O® offices, or lack of integration with other
functions, within the wider organisation
 A lack of clarity in the roles, responsibilities, and accountabilities of the P3O®
staff
 No clarity in the scope of individual P3O® offices
 Absence of commitment from senior management to the P3O® concept
Timescales
The projected timescales for a programme to be established and implemented can
differ depending on the level of value to be achieved, and/or the level of activity to be
undertaken.
A typical change programme to move an organisation from Level 1 P3M3® maturity, to
Level 3 P3M3® maturity could take between 18 months and two years.
This timeframe can be varied due to the level of investment to shorten it, or a lack of
investment, which will slow it down.
A stepped approach to change is the ideal way of implementation, allowing capabilities
to be introduced and fully embedded.
Timescales are ultimately driven by the ability of senior management and their
appetite for making decisions on the way forward.
Quiz 2
1. Is the following statement true or false?
A ‘big picture’ view is not a benefit of a P3O® model.
 True
 False
2. Which of the following is not an aspect of governance focus?
 Business Change Strategy
 Business Change Value
 Business Change Design
 Business Change Process
3. Any P3O® model worth its weight should be able to answer the question:
 ‘What value will it add to the organisation?’
 ‘Are our benefits double‐counted?’
 ‘How many months will it take to implement this change?’
 ‘How many workshops will we need to hold?’
4. How long could it take for an organisation to move from a Level 1 to a Level 3
P3M3® maturity?
 Between 12 months and 2 years
 Between 18 months and 2 years
 Between 6 months and a year
 Between 2 years and 3 years
Case Study: P3O® Pilot
Based at Tameside Council in Ashton‐Under‐Lyne, Greater Manchester, Martin McCann has
spent the last few years developing and implementing their tailored Project Management
Approach. As part of the transformation team, his main role is to encourage, support the
adoption, and application of best practice project and programme management within the
organisation.
‘The implementation of the Project Management Approach underpins the Council’s
Transformation Programme, which has a large number of new and existing projects within
its remit. We’re facing changes which are both exciting and challenging,’ Martin says.
He was keen for Tameside to be among the first organisations to pilot the new P3O®
guidance from OGC. P3O® brings together a set of principles, processes, and techniques to
facilitate effective portfolio, programme, and project management through enablement,
challenge, and support structures. These structures also bridge the gap between the
strategy and policy makers and the Council’s service delivery teams.
‘I met Anne Marie Byrne, the P3O® project manager, at a conference, and from what she
said about P3O® I knew that it would be both relevant and timely for my organisation to
take part,’ Martin said.
Martin and his colleagues have been tasked with setting up a Programme Office to provide
monitoring, reporting, and control information on the transformation work programme.
‘The P3O® guidance is a comprehensive, practical resource that pulls together threads from
all the OGC best practice methods. The guidance provides both interesting and useful
information and it came at the perfect time for me to start applying it. It has helped solidify
and structure many of my plans and ideas for setting up our own PSO. It has also provided
me with good ideas on how to sell it to the right people within the organisation,’ he says.
Martin also plans to use the P3O® guidance to incorporate relevant generic and functional
roles and responsibilities into the job descriptions of any new programme office staff. ‘I
have tried to link the P3O® roles and responsibilities to the functions and services the
programme office intends to provide over the next few years, illustrating the levels of
resource we will need if we want to run an effective programme office that continues to
meet our needs as the Council’s PPM capabilities increase. Given that it can take a few
years to start reaping the benefits of more effective programme management, I want to
plant the seeds and start the process as early as possible, whilst managing expectations
properly on the way!’
‘The manual will be a real boon to anyone starting out on setting up a P3O®. It does a
good job of tying P3M3®, PRINCE2®, and MSP® together in a comprehensive fashion,
which is exactly what a good P3O® should be able to do. I also found that reading the
P3O® guidance has helped clarify my understanding of how to apply MSP® in general,’
he says.
Designing a P3O® Model
The design of a P3O® model should address:
 The P3O® model itself and how it will be deployed
 How many separate offices there should be
 The functions and services they offer
 Where component offices are physically located
Organisational factors that can cause variations on the models:
 Economic sector (public, private, voluntary)
 Size of the organisation
 Approach to organisational governance arrangements
 Number, size, complexity, and duration of projects
 Organisational portfolio, programme, and project management maturity
 Centralisation vs decentralisation of core services
 If the business is driven by local or central investment decisions
 Any opportunities provided by the organisation for growth of staff
 If there is a mind‐set of continual improvement in the organisation
 Whether programmes and projects are carried out as internally focused
initiatives, or if they are delivering to a client base
 Any geographical divisions of the organisation
Another dimension that drives the P3O® model is the business goals of the
organisation, which could include the following:
 Improving the quality/quantity of the service
 Reducing time to market
 Increasing revenues
 Reducing costs
 Improving the quality of a product
As outlined in the first module of the workbook, a P3O® provides a decision‐
enabling/delivery support structure for change within an organisation.
The three functional areas in which the P3O® can provide this service:
 Strategic planning/portfolio support functions
 Delivery support functions
 Centre of excellence functions or services
These functional areas require different skills, competencies, and experience. Often,
offices are set up to focus on one of these areas, or rather a large office split up into
teams.
It is essential for the head of the P3O® to develop the services in line with business
requirements and continually demonstrate the value of these services provided.
Design Considerations for a P3O® Model
Reporting Lines
 ‘Where should a P3O® sit within the organisation?’
 ‘Where should its component offices report in terms of line management?’
There is no simple or single answer to these questions, because a P3O® model is
usually made up of different components and offices that serve a business need.
For a P3O® to maximise its value to an organisation, though, it will need to report to a
main board director (strategy or business change).
Where an organisation portfolio office exists, it should report to a main board director,
the CEO, COO, CFO, or CIO.
However, if the portfolio office is a hub in a decentralised model, aligned with a
particular division or department, then report to the divisional director.
Reporting lines should also be reflected in programmes and projects.
Consider whether there will be direct reporting lines to the programme or project
manager, and also if the programme office/hub portfolio office reports to the
programme or project directors.
Centralised vs Decentralised Offices
In many organisations, a single P3O® office will sit in a central corporate function or
department.
This office performs one, or all, of the portfolio support, delivery, or COE functions.
Some organisations will set up an office for each of these.
In other organisations, specifically large or functionality‐focused ones, with
decentralised decision‐making and a strategy of deploying local resources closest to
business delivery, there may be a small central office with portfolio support and COE
functions working out of hub offices.
Decentralised models tend to focus their support on local need, but care must be taken
to ensure that a consistent organisation‐wide set of standards are enforced.
P3O® Model with an Organisation Portfolio Office
In this model, there is one permanent P3O® office, which may be called the
organisation portfolio office. This office carries out the following activities:
 Strategic planning/portfolio support – Enabling strategies, prioritisation, senior
management decision support
 Delivery support – Flexible resource pool of delivery support staff (specialists,
coordinators, support officers etc.)
 Centre of excellence – Standards, assurance, competencies, and training
Depending on the maturity of the organisation, and where the office reports within the
organisational structure, the office’s services may be limited. It may also have to work
with other organisational departments to deliver all requirements.
If a programme or project creates a temporary office, the support staff will need to be
trained appropriately and they may be line‐managed through the organisation portfolio
office or the business units themselves.
However, in some organisations, strategic planning support functions may have
evolved into a separate office under a strategy director. An example of this is displayed
below:
An example of a P3O® model separate strategic portfolio office
Where this occurs, the ideal scenario would be a merging of the two offices under a
single director. If this is not a viable option, though, then the two offices should work
closely with each other.
Underlying Success Factors for Models with an Organisation Portfolio Office,
Advantages and Consequences
A P3O® champion representing senior management continuity of support
 Allows for decision‐making at senior levels and drives action through other
management teams
 However, the P3O® is not recognised, processes are not used, and processes are
not embedded in the culture and the initial rollout effort is wasted
Clarity of strategy and direction for management of change
 Gives direction for prioritisation and capacity planning
 However, the organisation does not have a portfolio of programmes and projects
aligned to the organisation’s goals, and too many programmes or projects are
started that do not add real value to the organisation
A highly respected, charismatic, and comfortable head of P3O®
 Gives the P3O® units gravitas across the organisation, and the head of P3O® is
invited to senior planning meetings so they can influence decisions
 However, P3O® requirements are not considered when key restructuring
decisions are made, and rolling out standards and methods across an
organisation is difficult
A portfolio office that is staffed with highly competent senior staff
 The ability to empathise with delivery programmes and projects, knowledge of
what works and what does not, and getting the respect of others is easy
 However, P3O® can be seen as just an admin office, or a ‘post box’
An established programme/project management forum/community of practice (COP)
 Lessons are shared ‘in context’ – of how enterprise standards translate into
reality, the organisation portfolio office can learn directly from programme and
project managers, and any changes in industry practices can be communicated
easily to the full PPM community
 However, there is a potential for local programme offices to form cliques, with no
sense of corporate identity, and there is no face‐to‐face forum to discuss and
debate issues and updates to organisational best practice
A blueprint for the P3O® that is regularly reviewed and updated in line with
improvements
 Allows for a structure and focus for P3O® development and delivery, and utilised
to focus senior management’s attention on the added value of the P3O® and
challenge attempts at cost‐cutting
 However, the purpose and services of the P3O® model are vulnerable to constant
change as senior managers champion changes over time, and personal visions
intervene
An intranet or collaboration zone where all PPM staff can access best practice and
standards
 A single source of access for standards that are periodically updated, and
lessons/emerging industry good practice can be centrally applied and easily
accessed by all
 However, local standards evolve and develop constantly, and individuals will save
templates on local drives and do not keep up with changing best practice
A P3O® champion representing senior management continuity of support
Clarity of strategy and direction Gives the P3O® units gravitas across
for management of change the organisation, and the head of
P3O® is invited to senior planning
meetings so they can influence
decisions
A highly respected, charismatic, Allows for a structure and focus for

and comfortable head of P3O® P3O® development and delivery,
and utilised to focus senior
management’s attention on the
added value of the P3O® and
challenge attempts at cost‐cutting
A portfolio office that is staffed Allows for decision‐making at senior

with highly competent senior levels and drives action through
staff other management teams
An establishes Lessons are shared ‘in context’ – of

programme/project management how enterprise standards translate into
forum/community of practice reality, the organisation portfolio office
(COP)staff can learn directly from programme and
project managers, and any changes in
industry practices can be communicated
easily to the full PPM community
A blueprint for the P3O® that is The ability to empathise with

regularly reviewed and updated delivery programmes and projects,
in line with improvements knowledge of what works and what
Exercise
Match‐up the relevant advantages with each underlying success factor.
Gives direction for prioritisation and capacity planning
P3O® model with hub portfolio offices connected by spokes
A P3O® model with hub portfolio offices will have a permanent central organisation
portfolio office that is connected to a number of permanent decentralised offices.
These offices then act as hub portfolio offices to the temporary programmes and
projects that they service.
This model is often referred to as a hub‐and‐spoke model, providing the benefit of
scalability for large organisations and supports business ownership by maintaining a
level of decentralisation.
All information flows, and processes arranged, so that they move along spokes to the
organisation‐level office at the centre.
The figure illustrated below depicts a permanent central organisation portfolio office
with hub portfolio offices.
An example of a P3O® model hub portfolio offices temporary programme

This model is often the choice for large, more complex organisations, possibly with a
multi‐ national reach. A geographical spread of sites may necessitate the setting up of
separate portfolio offices.
Programmes and projects will use the standards and assurances from the corporate
COE or the local hub portfolio office, depending on the size and maturity of the
organisation.
Underlying success factors for hub portfolio offices
An effective capacity planning and flexible resourcing model
 Allows for the geographic clustering of resources, and resources will be familiar
with the local business model and working practices
 However, resources continue to be bought in, or asked to travel over a large
geographical area
Availability of good heads of portfolio offices using core standards and methods
 Provides a flow‐down of good practice and standards with localised tailoring and
application
 However, the local hub portfolio offices develop their own standards and do not
share best practice, and the transfer of staff across portfolio offices requires
constant training
An established head of portfolio/programme offices forum
 Consistency of application of enterprise or corporate best practice, and learning
from each other how best to apply enterprise or corporate standards
 However, the local hub portfolio offices develop their own standards and do not
share best practice, and the transfer of staff across portfolio offices requires
constant training
Virtual P3O® Model
The ultimate decentralised model is the virtual P3O® model, where there is no
permanent office.
Any functions and services are embedded in the organisation’s business delivery units,
with activities undertaken by a central strategy or business‐planning office or the
finance department.
This model typically exists in organisations with a high‐level of PPM maturity, where
consistent standards are embedded, the PPM resources are highly competent, and
P3O® functions and services can be provided across the organisation without the need
for a physical structure.
A significant aspect of this model is the programme, risk, and project management
forums/communities of practice.
All PPM professionals come together at regular events to share best practice and learn
about any new methods of working.
It is a common place for a virtual P3O® to be developed using external resources and
internal collaboration tools.
This allows a more community‐based connection, with a similar core team. In terms of
cost‐reduction, this could be valuable for an organisation to explore further as its PPM
maturity rises.
Underlying success factors in the virtual office model
The organisation has a P3M3 maturity level of three or above
 Allows for consistent, reliable working practices, as well as a culture of review
and continual improvement
 However, there is no consistent way of working and there is the potential that
multiple methods will progress across the organisation
Established programme/project management forums
 The sharing of best practice and a collaborative approach to the updating and
embedding of these practices
 However, the base standards and practices can stagnate, and any updates
without consultation are seen as an imposition and consistency of approach
disappears over time
A single point of ownership by a senior PPM professional for portfolio, programme,
and project standards
 The senior professional is outward‐facing to look for and contemplate advances
in best practice
 However, local variations sneak in and the earlier work is undone
Standards are continually developed and embedded through reference to external
best practice
 Provides a single point of reference for virtual teams to access, which is updated
regularly
 However, local variations sneak in and the earlier work is undone
A strong, underlying PPM culture
 Those involved in delivering change (mainly the senior board members)
understand their roles and the benefits of a consistent approach
 However, programmes and projects act individually and do not deliver consistent
working practices, and the training overhead for programme and project
managers to bring boards and business resources up to date is excessive
Exercise
Match‐up the relevant advantages with each underlying success factor.
The organisation has a P3M3 The senior professional is outwardfacing
to look for and contemplate
maturity level of three or above advances in best practice
Those involved in delivering change (mainly

Established programme/project
the senior board members) understand
management forums their roles and the benefits of a consistent
approach
A single point of ownership by a

Allows for consistent, reliable working
senior PPM professional for
practices, as well as a culture of
portfolio, programme, and
review and continual improvement
project standards
Standards are continually The sharing of best practice and a

developed and embedded collaborative approach to the updating and
through reference to external embedding of these practices
best practice
Provides a single point of reference
A strong, underlying PPM for virtual teams to access, which is
culture updated regularly
Permanent vs Temporary Offices

In a P3O®, it is usually recommended that permanent offices be established in order to
provide functions and services that support ongoing portfolios, senior management
decision‐making, and the setting of generic standards for all change initiatives.
These permanent offices are likely to be organisation portfolio offices, local hub
portfolio offices, and COEs, resourced by permanent staff that are trained to perform
specific functions.
When a new programme or project is launched, it may require its own temporary
programme or project office.
If there is a permanent office with a central flexible delivery team, then these resources
may be requested from there.
This ensures that the start‐up process is fast‐tracked and costs are kept to a minimum
due to already trained staff.
However, in some organisations the central pool either may not exist or will not be big
enough to cope with the demand, in which case staff will be seconded to project roles.
Some organisations might develop a framework agreement with a partner organisation
to provide all programme and project staff (managers and support).
Whenever contract or framework staff are used, though, they should be inducted into
the organisation’s standards and ways of working.
With an organisation that has a low PPM maturity level, each new programme or
project is usually staffed with local business people, sometimes supplemented with
contract staff to bring in any additional expertise.
Although there is no organisation portfolio office, there may be an underlying project
method, which is defined on the company intranet or already established in the
company’s culture.
This model suffers from inconsistency of approach on programmes and projects, with
extreme variations in terms of delivery success, dependent on local business managers’
competence.
Underlying success factors for temporary offices
Centrally documented programme or project standards and templates
 All programme and project managers will have a central point to refer to for
standards and templates, and there will be a consistency of approach and
terminology across the organisation
 However, all programme and project managers act individually and use their own
templates, and where there is a large contract PPM pool, external staff bring
their own familiar standards and ignore any internal enterprise or corporate ways
of working
A consistent approach to programme and project management training through the
procurement of an approved set of courses and training providers
 All staff are advised to go on similar courses through a standard set of providers,
and this training will be upheld by consistent messages and language
 However, staff select which courses they wish to attend, meaning there are
inconsistencies in the language and messages. Additionally, training providers are
not able to tailor courses specifically to a local company’s culture
An established heads of programme/project offices forum, including key staff from
portfolio offices
 Allows for the consistency of application of enterprise or corporate best practice,
as well as the learning from one another about how best to apply these
standards
 However, local offices develop their own standards and do not share best
practice, and the transfer of staff across programme and project offices requires
constant re‐ training
Co‐located vs Distributed Models
The ideal scenario is to have a permanent organisation office with staff physically co‐
located, ensuring team cohesion and consistency of approach.
However, in some organisations, because of a lack of physical office space, or an
adherence to work/life‐balance policies allowing individuals to work from home, the
team will work in a distributed model.
Where a distributed office or team exists, it is important that there is a recognised
single set of standards, albeit with separate owners for components of the standards.
It is crucial that the distributed team communicates frequently, with meetings, central
information portals, and collaborative working practices.
What Functions and Services Should the P3O® Offer?
High‐level Functions and Services
The many functions and services that the P3O® provides should be able to contribute
directly to the outcomes required by the organisation, whilst being based on the
business drivers, levels of governance, and customer demands.
Although every office may deliver all of their functions and services, they may also have
a different functional emphasis: planning, delivery, or COE.
Organisation portfolio offices typically focuses on delivery support services, but
temporary programme and project offices will focus on delivery support services.
High‐level functions and services of a P3O® model

Integration with the Wider Organisation
The P3O® will not exist in a vacuum. It is vital to understand how the functions and
services provided will integrate into the wider organisation.
A common failure of permanent P3O®s is a lack of integration of the model within the
wider organisation model.
It is the job of the head of the P3O® to understand who is responsible for what various
tasks and functions, as well as how the model, and the various offices within it, will
interact with them.
Other functions include:
 Strategy development and management, including business planning

 IT service management (release, change, and configuration)
 Human resources
 Marketing/public relations
 Procurement/purchasing/commercial, including bid management
 Finance
 Corporate risk management
 Corporate information assurance
 Audit
 Quality
 Business operation
Other professional resources will exist in a matrix management environment with local
business lines management, but a professional link to an organisation portfolio office
or COE, just as P3O® resources do.
Clarity is required in terms of roles and responsibilities for delivering functions and
services across business areas.
Embedded resources may be assigned to another programme or project temporarily,
but their original department will ultimately still control them and the processes that
they follow.
The figure illustrated below is an example of the embedding of resources from an
organisation portfolio office, COE, and business functions into a temporary programme
office.
An example of the embedding of resources from an organisation portfolio office
The P3O® model provides the governance backbone for all change within an
organisation, certifying that all decisions are made at the appropriate level and in a
timely manner.
Effective collaboration with all bodies across the organisation is necessary due to the
influence on decision‐making.
This relationship needs to be clearly defined and rules of engagement recognised as
well.
Governance must be agreed and defined in terms of:
 Who makes the decision and when

 What delegated limits of authority are in place
 The rules and routes for escalation and cascading of information, risks, issues,
and changes
This agreement should reflect the governance and information required to meet the
needs of all stakeholders.
Independence of P3O® Assurance Services
Independent assurance services are often included within a P3O® service offering.
These may take many forms, such as coordinating or facilitating gated reviews, regular
health checks, internal or independent audits, and lesson reviews.
Assurance teams can also provide quality assurance to programmes and projects by
providing an assurance resource (full or part‐time) or independent guidance on the
tailoring of processes in the start‐up stage.
It is essential that the assurance service is independent of the programme or project
delivery, and there are no conflicts of interest.
The P3O® itself should be subject to independent assurance and external audit itself,
paying particular attention to the external review of COE functions and services, to
ensuring that good practice is being kept up‐to‐date with changing industry standards
and trends.
Within a multi‐programme/project environment, staff across the P3O® may carry out
assurance at appropriate checkpoints and at gated reviews.
Independent assurance external to the delegated assurance from the programme or
project board may be requested by senior management, and may be focused on
fulfilment of strategy, impact on business operations, management of dependencies,
or other areas of concern.
Information Assurance
The value of information assurance varies from organisation to organisation. Banking
organisations and others with sensitive information will understand that it is vital to
their business, and that they will need to invest both a lot of time and money into
maintaining their robust systems, processes, and procedures.
The Data Protection Act and the Freedom of Information legislation defines the
minimum statutory guidelines for all organisations – with implications for all portfolios,
programmes, and projects.
Information assurance is based on three concepts:
 Confidentiality
 Integrity
 Availability
These mean that information is only available to those who have a need and the
authority to see it, only those with the correct authority can change information, and
that the information is available whenever and wherever the business necessitates it to
be.
Careful consideration of the information assurance requirements for projects and its
outputs is imperative at the beginning of the process.
In cases where the information assurance function or department is separate within an
organisation, the P3O® should engage appropriately with the experts within it and
follow the process of embedding information assurance resources into portfolio,
programme, and project offices.
Non‐PPM Functions and Services
Sometimes, it may be necessary for the P3O® to undertake its functions and services
outside of the PPM area of operations.
This could involve:
 Providing a secretariat service to management boards
 Looking after travel and accommodation
 Liaising with procurement regarding the acquisition of equipment of resources
Exercise
In the alignment of governance services provided by the P3O®, governance must be
agreed and defined in terms of:
Fill in the blanks with Authority, Rules, Changes, Who, Cascading, Decision
 _______makes the______ and when
 What delegated limits of________ are in place
 The_______ and routes for escalation and _______ of information, risks, issues,
and_______
Sizing and Tailoring of the P3O® Model

Questions to be asked when designing a P3O® model:
 ‘How many people will the P3O® need?’
 ‘What level should they be at?’
The key drivers for the size of a P3O®:
 The number and size of the programmes and projects to be serviced by the P3O®
 The number of functions and services to be provided by the P3O®
 The size of the organisation
There are, however, many more factors to be considered.
A P3O® may service a single programme, a number of programmes, or the
organisation’s full portfolio of change.
The PPM maturity of the organisation needs to be taken into account by the P3O®
model, in order to determine the detailed size and design of the individual offices
within the organisation.
The size and design also depends on the P3O® vision and the business drivers that it is
set up to assist.
The number of staff within a P3O® inside of an organisation can vary between one
person to over one‐hundred. On average, though, the figure is between five and ten
people, especially when individuals are undertaking a generic role.
Sizing a permanent organisation portfolio office or a hub portfolio office will differ from
sizing a temporary programme or project office.
For temporary offices, resources may be:
 Taken from a flexible resource pool within a hub portfolio office
 Engaged on a temporary basis from the contract market
 Engaged as a work package through a framework agreement with a management
or PPM consultancy company
The structure of the P3O® model has an impact on the number of required resources.
It could be a more cost‐effective solution to upgrade an existing programme office to a
hub portfolio office to provide services to programmes and projects, rather than
establishing a dedicated programme or project office.
A mature organisation portfolio office, or an organisation with flexible resource pools,
will most likely have reduced staffing costs.
The design and shape of a P3O® model should not be carried out just by formula, as no
formula can fully take into account every small aspect of any organisation or
programme.
Sizing Option One – By Budget
This is based on the size and financial investment in the portfolio or programme.
Usually, the overall cost of the P3O® will range between 3% and 5% of the total
financial investment.
The level of P3O® provision will vary as the portfolio changes or the programme
progresses.
Sizing Option Two – By Size
This second model calculates the size of a temporary programme office, and bases
these calculations on the headcount of the programme.
The table on the next page illustrates how the overall headcount of a programme office
is taken as a percentage of the programme headcount.
It assumes the programme office:
 Produces some management reporting
 Uses basic IT tools
 Works within an environment where the P3M3 maturity level is between 2 and 3
Unit Headcount
Programme 30 60 120 200 300 500 1000
Programme office 3 4 7 9 12 17 25
% programme office staff 10 7 6 5 4 3 3
An adjustment to these numbers will be required for these situations:

 A higher or lower level of P3M3 maturity
 Additional services provided
 Programmes spread over multiple locations
 Complex or novel programmes
 Programmes with a large number of third parties
 Programmes with intricate finances and/or benefit management plans
 Programmes with a large number of projects
 The need for short‐term resources required for peak loading
 Programmes with a complex stakeholder communication plan
Sizing Option 3 – By Function
In this model, an estimate is made of the number of hours or days required per month
for each service the P3O® plans to deliver.
This is then converted into the number of full‐time equivalent employees required for
each service, which then gives an estimate of the number of resources needed for the
P3O®.
The size of an office, and the activities that it carries out, will vary throughout the
project or programme lifecycle.
This exercise should be carried out at least twice: once in the definition stage, and
another at the start of implementation.
The number of programmes or projects within the portfolio may drive sizing for some
functions at any time, whereas other functions could be driven by the governance.
structure and required input.
FTEs per functional area for a P3O® sizing model

Additional Considerations for a Temporary Programme or Project Office

Temporary programmes and projects will notice a variance in their sizes throughout the
lifecycles too.
This is where the use of flexible resource pools through hub portfolio offices can
become of value.
In the definition stage of a programme or project, internal consultancy is required for
establishing and tailoring standard processes, initiating the reporting cycle, developing
plans, and fast‐tracking the team.
Through the implementation and delivery phases, the need for constant planning
support reduces because the programme/project manager will take responsibility for
the updating of the plan.
The assurance role should continue to provide continuity, support through lesson
sharing, ongoing health checks, gated reviews, and advice.
Generic support from specialist may also be required during the delivery stage,
dependent on the size and complexity of the programme or project.
The closedown and post‐implementation review section of a programme or project will
no longer require delivery resources.
However, internal consultancy could assist in the independent lesson reviews and
evaluations.
A commonly found problem when reviewing temporary programme offices is that their
programme support staff is too large.
Often, this is because the number of staff is established during the definition phase and
then the staff is kept on to assist the project manager with their job.
Solutions to this problem include:
 Setting up hub portfolio offices with flexible resource pools, therefore utilising
the available support to provide delivery throughout the lifecycle
 Engaging consultancy support in the definition stage of a programme or project,
usually from a COE, external organisations, or PPM consultancy companies
 Engaging contract staff to assist in the definition phase. A problem with this,
however, is that the staff will not be trained in local standards and will often
bring their own processes on board
Quiz 3
1. For temporary offices, resources may be…
 Fully engaged in order to meet expectations
 Integrated into the wider organisation
 Carrying out information assurance tasks
 Taken from a flexible resource pool within a hub portfolio office
2. Information assurance is based on three concepts:
 Integrity, Definition, Availability
 Confidentiality, Integrity, Availability
 Availability, Integration, Definition
 Confidentiality, Definition, Availability
3. ‘Reducing time to market’ is a business goal of an organisation that drives the P3O®
model.
 True
 False
4. The ultimate decentralised model is the ______ where there is no permanent office.
 Organisation Portfolio Office Model
 Virtual P3O® Model
 Hub Portfolio Offices Model
 Procurement Standards Model
Implement and Re‐energise
Introduction to the Implementation Lifecycle
The P3O® implementation lifecycle has four major steps, which are supported by MSP®
Principles:
 Identify
 Define
 Deliver
 Close
Implementation Lifecycle for a permanent P3O® Model

Identify
This process assesses the current state of P3O® provision and identifies the key
stakeholders. Outline documentation for the P3O® model is created at this point,
including a summary document called a Brief, which require validation by
management.
Activities also include:
 Agreeing the P3O® Vision
 Demonstrating the Value
 Agreeing the appropriate cost model
Identifying stakeholders
The portfolio, programmes, and projects cannot be considered successful without the
stakeholders being satisfied. One can recognise the stakeholders from the information
about the budget, project sponsor, objects, schedule, assumptions and constraints, and
Top Management. One can get a large amount of information about the stakeholders
by interviewing the experts, or through a brainstorming session. Good questions to
consider are:
 Who has direct involvement in the projects and/or programmes?
 Who has indirect involvement?
 Who are the suppliers?
 Who are the competitors?
 Who can make your portfolio/programme/projects fail?
 Who may be affected by the outcomes?
Assessing the current state
The main purpose here is to drive the right information from your analysis and
assessment. Impartial honesty is the best policy at this stage. You will need to gather
opinions from various stakeholders and pull together as much factual information
about the current portfolio, programmes, and projects you can find.
There are several forms of assessment, including:
 P3M3 Maturity Assessment
 PPM Maturity Model
 Value Matrix
P3M3® Maturity Assessments
P3M3 Structure
The level of organisational maturity in portfolio delivery demonstrates how well the
organisation can support its programmes and projects. The P3M3® Maturity Model is a
specific management maturity model to assess organisational effectiveness. There are
seven perspectives taken into consideration:
 Management Control
 Benefits Management
 Financial Management
 Stakeholder Management
 Risk Management
 Organisational Governance
 Resource Management
There are five levels of maturity:
0. Awareness
1. Repeatable
2. Defined
3. Managed
4. Optimised
A programme uses a P3M3® Model to:
 Improve performance
 Assess maturity of projects
 Measure itself against one or more perspectives
 Ensure it is working consistently across all projects
Overview of P3M3
Value Matrix
The P3O® Value Matrix is a simple tool to assist senior managers in determining their
core problems and assessing the scope of the P3O® model. In order to create a vision
of what the P3O® model should provide, we need to understand what is offered now
and how effective it is. Typical questions to ask during the data gathering are:
 Are the existing P3O®s doing the right thing?

 What is the current perception from stakeholders ‐ is it favourable and why?
 Are they doing what they do well? Do we have the right people and skills with
correct level of seniority and authority to get things done?
 What should a P3O® stop doing?
 What should a P3O® start doing?
By debating these issues in an open session, core problems can be identified, defined,
and the P3O® model design to resolve or limit them through the services provided. The
Value Matrix is intended to generate discussion and should be considered as part of a
well‐ planned and facilitated workshop or interview.
P3O® also suggests using a Value Matrix to determine the scope of the support and
assurance services to which the organisation has access. The matrix considers three
levels of change management that an organisation may experience in handling
portfolio, programme, and project management.
P3O® Value Matrix

Agreeing the Vision

The Vision Statement describes what the P3O® is and what it intends to do, describing a
compelling future state in a way that a variety of stakeholders can understand it, in
order to be convinced to support and invest in the P3O®. It uses the current reality as
part of its justification, using the current state assessments and business case, and
provides sufficient context and direction to enable the blueprint development.
Demonstrating the Value
The Business Case provides the justification for the proposed investment and should be
reviewed throughout the introduction of P3O®. Content and structure will vary
between P3O®s, because there is no ‘one size fits all’ solution. Outputs can be
summarised as a list of desired outcomes. It should be aimed at senior management. In
constructing the business case and gaining commitment from senior managers, it is
important to understand which benefits are achievable and what elements of P3O®
capability will need to be in place to realise those benefits.
The Business Case will include:
 Aims
 Background/Reasons
 Objectives for Portfolio, Programmes, and Projects
 Cost Benefit Analysis
 Possible risks
Exercise
In the box, explain the impact of the results of the P3M3 maturity assessment on the
design, planning and delivery of the P3O® Model and the P3O® Blueprint
Define
This process establishes the team, refines the Vision Statement and the Blueprint. It
works on Stakeholder Engagement and delivers an implementation plan. This is all
summarised in a Programme Definition Document, which should be validated by
management. It also includes developing, modelling, and validating the benefits.
Refining the Vision Statement
The outlined vision statement needs to be developed and refined to include a high‐
level view of outcomes that will be achieved across process, organisational, technology,
and information areas once the P3O® implementation is completed. Its main purpose is
to market the goals of the programme across with wider organisation.
The Blueprint
Blueprints often use the POTI Model to define the scope of all changes taking place as a
result of the projects. POTI stands for Processes, Organisation, Technology, and
Information; the four areas that outline all elements compiling the P3O® scope.
Processes
Projects adapt current processes and implement new ones. Any operational business
models that will undergo change due to the projects in the programme and portfolio
come under this area. For example:
 Performance levels
 Functions and services
 Use of pictures, process models, or swimlanes
Organisation
All personnel and HR organisation information, including any changes made,
requirements for the business, and organisational culture. For example:
 Re‐arrangement of staff
 Training requirements
 Roles and responsibilities
 Governance
Technology
All P3O® technology requirements are included in this section, including equipment,
tools, systems, and resources. For example:
 Equipment needs
 New networks or systems
Information
This area consists of mostly intangible data, such as new information requirements for
stakeholders. This may not be available early on in the blueprint development. For
example:
 Changes to reporting systems and requirements
 Project/Programme specific data outcomes
 Information assurance
An important factor to consider when developing the blueprint is the type of P3O®
culture the organisation hopes to create. A culture is a pattern of responses
discovered, developed, or invented during a group’s history of handling problems that
arise. Culture determines what sort of actions and behaviour is acceptable, relevant,
workable, or implausible. Below are characteristics of a beneficial P3O® model:
Information Sharing: Describes the exchange of programme and project data to report
information, knowledge, and wisdom between roles, technologies, and the broader
organisation.
Focus on learning: P3O®s provide services to enable improvement, so rather than track
data looking for failure, they review and challenge documentation early on in the
process, in hope of increasing portfolio, programme, and project maturity.
Value focus to all activities: The aim here is to improve decision making and focus on
finding more attractive options rather than opting for any alternative. There is a P3O®
need for greater depth, a clear governance structure, and a sound conceptual basis for
relating strategic objectives to each investment.
Innovative: For P3O®s, innovation looks to implement new ideas, create dynamic
products, and improve services. The successful delivery of projects and programmes is
the measuring tool for innovation.
Service focussed: P3O®s place significant impact on customer service as a cornerstone
to realising financial and quantifiable benefits. As programmes rely more on
consultancy services, it is vital that P3O®s look to continually improve the services they
offer.
Proactive analysis: Instead of reacting to a situation post‐occurrence, P3O®s support
seeing potential problems before they occur through proactive analysis. Taking action
towards a risk as it happens, rather than after, leads to a reduced impact and cost
Threats to achieving the Blueprint
 Lack of continued senior management commitment
 Resistance to change
 Overly focussed on toolsets, processes, and templates
 Managing the implementation of P3O® as a project
 Initial lack of quality of portfolio or programme information
 The P3O® becomes the de‐facto of business change
 Insufficient support to utilise or recruit required skills
Plan stages or tranches
Many P3O®s are closed down within a five‐year period, so it is important to clarify early
benefits to stakeholders for their investment. These can then be used to fund later
tranches, so that if the P3O® does last, it will finance itself.
 The first tranche of delivery should contain early benefits that achieve
demonstrable improvements and easily implemented deliverables. A portfolio
register is useful at this stage, so stakeholders and management can see all the
strategies, benefits, and impacts of programmes and projects on the organisation
as a whole. This should include a defined investment budget and balanced set of
resources.
 Aligning the development of P3O® capability with the normal organisation
business‐ planning cycle is also a good idea as it allows for integration of the
P3O® model and its benefits into the business budget lifecycle.
 A projects dossier aims to improve PPM maturity within the organisation and the
figure below shows an outline plan based on the dossier.
When developing a projects dossier, it is important to consider:
 Existing PPM maturity and targets
 Priorities for capability development
 Ability to embed change
 Functions and services as a results of P3O® added value
 Pace of change requirements
 Resource capacity
 Scale of portfolio
 Risks to delivery and planned benefits
Threats to achieving the Blueprint
 Lack of continued senior management commitment
 Resistance to change
 Overly focused on toolsets, processes, and templates
 Managing the implementation of P3O® as a project
 Initial lack of quality of portfolio or programme information
 The P3O® becomes the de‐facto of business change
 Insufficient support to utilise or recruit required skills
Plan stages or tranches
Many P3O®s are closed down within a five‐year period, so it is important to clarify early
benefits to stakeholders for their investment. These can then be used to fund later
tranches, so that if the P3O® does last, it will finance itself.
 The first tranche of delivery should contain early benefits that achieve demonstrable
improvements and easily implemented deliverables. A portfolio register is useful at
this stage, so stakeholders and management can see all the strategies, benefits, and
impacts of programmes and projects on the organisation as a whole. This should
include a defined investment budget and balanced set of resources.
 Aligning the development of P3O® capability with the normal organisation business
planning cycle is also a good idea as it allows for integration of the P3O® model and
its benefits into the business budget lifecycle.
 A projects dossier aims to improve PPM maturity within the organisation and the
figure below shows an outline plan based on the dossier.
When developing a projects dossier, it is important to consider:
 Existing PPM maturity and targets
 Priorities for capability development
 Ability to embed change
 Functions and services as a results of P3O® added value
 Pace of change requirements
 Resource capacity
 Scale of portfolio
 Risks to delivery and planned benefits
Outline plan for a P3O® establishment and PPM maturity development programmer
Develop, Model, and Validate the Benefits

Develop a benefits management strategy, benefits map, benefit profiles, and a benefits
realisation plan as defined in MSP®.
Some of the benefit drivers a P3O® can provide are:
 Increased cost savings

 Increased cost avoidance
 Increased strategic alignment
 Increased programme and project throughout
 Optimisation of benefits
 Increased level of portfolio management maturity
 Reduction in threats
 Maximisation of opportunities
 More effective use of resources
A benefits map will illustrate the relationship between outputs, capabilities, outcomes,
benefits, and objectives. This is crucial to learn about the cause and effect relationship
between the elements in a programme. The benefits map contributes heavily to the
benefits realisation plan, outlining the realisation sequence through a chain of benefits.
Timescales can also be developed from the map, informing the creation of schedules within
the realisation plan.
Deliver
The P3O® guidance strongly recommends and incremental approach to implementation (in
tranches) with a focus on the realisation of benefits in each increment.
Deliver new capability, and transition and stabilise operations
Successful delivery of project outputs that enable benefits within time, cost, and quality
restraints is a key aim of implementing P3O®. However, it is vital to ensure the rate of
change is bearable by the organisation and ongoing support throughout integration is
maintained.
Realising the Benefits
Benefits realisation has three stages:
 Pre‐transition
 Transition
 Post‐transition
There can be a tendency to be over‐optimistic with expectations when defining and setting
targets of benefits. This can produce commitments from key stakeholders early on, which is
incredibly beneficial to the programme’s early stages. However, when the benefits are
reviewed, the support gained at the start could easily falter due to failed promises.
Choosing suitable KPIs (Key Performance Indicators) is crucial in benefits management.
Current KPIs must be supplemented by other measures to assess the benefits realised by
the programme. Some of these measures may fluctuate due to process variations or
seasonal trends, so it is important to understand and reflect this in the relevant plans.
Benefit Reviews
Benefits reviews can be time‐driven or event‐driven, taking place, at a minimum, at the end
of each tranche to ensure that benefits realisation is still on track.
The objectives of a benefits review is to:
 Assess and update each individual benefits profile and benefits realisation plan
 Check that all benefits are aligned to the programme’s objectives
 Inform stakeholders and senior management of the progress in benefits realisation
 Assess the level of benefits achieved against the benefits realisation plan
 Assess the performance of the changed business operations against their original
performance levels
 Review the effectiveness of how benefits management has been handled, sharing
any learned lessons
Reviews will require the benefits realisation plan itself, as well as its benefits map and any
relevant individual benefit profiles. If any concerns arise, then the benefits management
strategy should be revisited.
Close
When a specific programme has been developed to set up a new P3O® capability, formal
closure and post‐implementation and benefit reviews are essential. This enables making
the P3O® capability part of ‘business‐as‐usual’ and allows time to reflect.
Exercise: Give some examples of the steps you would take in the Buyitall scenario that
would incorporate these characteristics within its P3O® model
Information Sharing
Focus on learning
Value focus to all activities
Innovative
Service focused
Proactive analysis
Temporary Programme or Project Office

The temporary programme or project office is designed specifically for a finite lifecycle. This
means there are different requirements on size, scale, and complexity. There are key
success factors involved in the setting up of a temporary office:
Organisational Context
When there is an organisation portfolio office or hub portfolio office in place, the
temporary programme/project office may be resourced with standards and templates
provided by the Centre of Excellence. The processes of the temporary office will be a
standard function provided by the organisational portfolio office:
An example of a P3O® model temporary programme and project offices
In organisations without an Organisation Portfolio Office or Centre of Excellence, the set‐up

of the temporary programme/project office will rely on the local business team responsible
for the relevant programme or project and the maturity of their approach to PPM and its
processes. A physical programme or project environment is also required, perhaps using
existing business facilities to provide workspace, equipment, and software etc. Some
organisation have equipped office areas with team‐working tools specifically for short‐term
use.
Definition and Implementation
It is suggested that 10% of the programme/project timescale be spent on establishing the
temporary office, alongside other start‐up activities at the beginning of the
project/programme. The structure and functions of the temporary programme or project
office are determined in the initiation documentation and these requirements will drive the
office model and its processes.
Some key requirements are:
 A configuration library
 Guidelines for storage and security of documents
 Tools, including drawing and collaboration tools
The temporary programme or project office may be run by one person, or a team of generic
or function‐based roles. Deciding what skills are required takes into account the
stakeholders, the business environment, the scope, and the timescales. For example, a
project with multiple stakeholders with complex requirements might need a specialist
stakeholder and communications role. The members of the office may be permanent staff
taken from the Organisation Portfolio Office or other areas of the business. They could also
be temporary or contract resources, brought in specifically.
Wherever the resources are drawn from, induction and team building would be beneficial.
If a COE exists, it can provide an introduction into the organisation standards, or a manager
can give a project or programme briefing.
Running a temporary office through to delivery
The temporary office should constantly evaluate its processes to ensure they are the best
approaches, as well as its resources to check they are still providing value. It is
recommended that these reviews take place at the end of each tranche between the
programme manager and the office.
Key areas to focus on:
Key areas of focus for a temporary programme or project office

Closing and Recycling the temporary office

Due to its finite lifecycle, the temporary office must ensure its documentation, benefits,
contracts, and resources can be correctly transferred to operational areas. If an
organisation has tools, methods, and skills from a previous programme or project, it can be
left as part of a temporary office. It is common to mistakenly reinvent these elements,
when they are actually buried in documentation. Reusable elements include processes,
templates, tools, or best practices approaches, which should be fed back into the COE to
ensure a learning organisation.
Quiz 4
1. What does the P in POTI Model stands for?
 Performance
 Processes
 Project
 Portfolio
2. Which stage of the implementation cycle is the business case most relevant?
 Identify
 Define
 Deliver
 Close
3. How might your strategy change, knowing that some P3O®s only last about five years?
 Adjust the blueprint
 Reduce timescales
 Emphasise early benefits
 Increase costs at early stages
4. Which document outlines the details of all programmes/projects
 Blueprint
 Projects Dossier
 Business Case
 Portfolio Register
Case Study: No Skeletons in the Cupboard at BT Design
This case study describes how P3O® helped the senior management at BT Design make
business‐critical decisions.
Designed to enable decision‐making and support organisations going through large‐scale
change, Portfolio, Programme, and Project Offices (P3O®) is the latest best practice
guidance from OGC. Programme Manager Chris Barnes discusses how BT Design used P3O®
to create a Centre of Excellence. Utilising a highly professional group of evangelists for
P3O® to maximum effect, BT Design established a portfolio management approach which
showed senior management how the business was functioning.
In 2008, BT Design (the design and implementation arm of BT) was partway through a
significant transformation: the rapid expansion into new markets and geographies meant
we had to rationalise many disparate operational systems and legacy platforms in order to
realise significant potential benefits. We initiated Milestone – a programme aimed at
coordinating delivery of these rationalisation efforts, and paving the way for new
‘twentyfirst century’ platforms and technologies that would enhance our customers’
experience.
Milestone’s first objective was to understand the nature of the activity already underway.
Milestone brought together existing programmes focused on network rationalisation,
where there was a large element of interdependency. It was clear that these programmes
were being delivered in different ways and were at different stages in their lifecycles. We
needed to set out consistent approaches to deliver the programmes and follow best
practice. We felt that P3O® would give us consistency, delivery support, and the ability to
develop our capability. A programmer management approach, which underpinned our
activities with a proven set of tools, was very appealing.
We charted the lifecycle of programmer and project management capabilities to underpin
how much flexibility we had, so we could assess which programmers were a priority and
which were not.
We adopted a portfolio management approach for strategic planning, looking at
programmes together and analysing how well board‐level decisions were made. Some
programmes were very large but we wanted to know what their business case was, what
their benefits were and what management information could support their structure. We
wanted to be able to provide information that would help senior management make
informed decisions. We also looked at best practice and the use of MSP® and PRINCE2®, as
well as BT’s own expertise. We wanted to deliver a tailored approach to programmes and
grow capability. We decided to implement P3O® from the top down and to set
requirements that way. We showed the senior management team improved ways to report
on costs and on what benefits their programmes brought the organisation. We
demonstrated how important that kind of information is and how it filters down into
projects. Because we wanted to maximise resources, we had to make some tough, highlevel
decisions. Having the correct information and being able to plan strategically was key. The
reporting structure of P3O® allowed the flow of information to be traced back to its source.
How to Operate a P3O®

Overview of Tools and Techniques
Tool
A data manipulation system that informs and improves decision‐making through presenting
programme and project information and data.
Tools may be used in the following ways:
 Individual
 Collaborative
 Integrated
Technique
A procedure to accomplish a certain activity or task. Techniques use tools to collect,
manipulate, and present the inputs and outputs.
Standard techniques can be found:
 Within corporate or P3O® standards and policies

 In knowledge repositories
 With programme or project resources through skills transfer or coaching
 Within P3O® templates and deliverables guides
 Through the communication of approaches
Benefits of Tools and Techniques

Automation of Business Procedures
 Reduced staff requirements
 Reduced overhead on project delivery teams
 Reduced need for manual processes e.g. data collection, printing, and distribution
Improved Compliance with Business Procedures
 Due to automation of workflows, approvals, and governance mechanisms
 Integration of business processes with organisation components
Improved Timelines of Decision‐Support Information
 Allowing automatic validation of information against standards
 Providing audited business rules around the information
 Enabling reallocation of manual processing time to improving information quality
 Providing structure to decision‐support information processes
 Introducing automated ways of assessing decision‐support information
Improved Decision Making
 Integration of data into repositories provides improved visibility and analysis of
cross‐programme information
 Due to ability to automate view and structure of information
 Improved capability to perform what if and scenario analysis
Improved Management
 Connectivity allows for improvements to collaboration between programme/project
team members
Improved Staff Competence
 Skills transfer
 Reduced reliance on conventional wisdom, and a transfer of knowledge to known
facts based on historical information
Rationalisation of legacy systems
 Tools for the P3O® that are of an integrated nature may be able to rationalise a
number of disparate systems
Critical Success Factors

Focus on adding value to the organisation rather than the features of the tool
 Marketing often focusses on the tool’s features and sophistication rather than their
use to the organisation
 Research services that compare tools also focus on the functions of the tool, when
they should look at ease of implementation and the quality and credibility of the
organisation behind the tool
 The Blueprint needs to consider any use and benefits of tools that will support the
P3O® and match the correct tool to the right requirement
Match the sophistication of the tools and techniques to the PPM Maturity of the
organisation
 The standard of the tools and techniques needs to align with the organisational
maturity because they need to integrate with the business processes, information
flows, and the competencies of the resources using them
There is a need for programme and project standardisation and data quality
 Advanced tools that can prioritise projects based on data received on costs, benefits,
etc., cannot work if the data quality is too low, as a result of a lack of project lifecycle
 Ensure the governance for programme and project delivery is in place to enable
decision making, and align the software with this decision making structure
Understand the intent of the tool or technique
 Some tools will be developed for specific purposes, or aligned with standards of a
specific industry to better suit their needs. This means that if offered to the wider
market, it might not be easily adapted to a new environment
 Understand the management methods from which the tool/technique was derived
Implement tools as part of an organisational change effort
 Tool suppliers often want a quick implementation, so will sometimes provide
standard project frameworks or transition plans for implementing tools
 It is critical to consider and plan the enabling projects and subsequent projects
around the tool implementation project.
 Manage the tool implementation as a business change project and not as a
technology implementation
 Clear guidance and training should be developed and delivered as part of the
implementation activities
 Tools should be assessed for the time and effort they will require in case new skills
within the P3O® are required, or if the PPM community will need more time
Maximise successful programme and project delivery through incremental

implementation
 Consider how implementation may be adopted incrementally to concentrate the
efforts of the delivery team
 Use pilot and early adopters and ensure all plans and successes are communicated
effectively to the PPM community
 The disadvantages/problems of ‘big bang’ project implementation equally apply to

tool implementation
Agree tool ownership within the organisation
 For integrated tools across the hub portfolio offices, it is important that ownership
and accountability for tool operations are clearly outlined and enables users to
provide feedback and enhancements
Exercise
Explain how organisational maturity impacts on successful tool implementation in relation
to the CSFs outlined above:
P3O® Tools
Examples of Tools
 Strategic Mapping Software
 EPM Solutions
 Enterprise Architecture Systems
 Knowledge Management Systems
 Performance Management Systems
 Risk Management Systems
 Requirements Management Systems
Enterprise PPM (EPM) Solutions
These are the most common integrated tools used in the P3O® that aid in data collection,
maintenance, and reporting all in one solution. This enables a roll‐up of information from
one data source to all project/programme levels; they can produce integrated reports for
multiple audiences from a single set of data. A wide range of EPM solutions are available
but organisations have difficulty utilising them due to low PPM maturity – this emphasises
how PPM maturity is a vital consideration in tool selection.
Selecting and Implementing an EPM Solution
Key questions to consider when developing a requirements document for the selection and
implementation of enterprise PPM solutions
Strategic
 How will the PPM tools support the proposed P3O® Model?
 What is the key objective of the PPM tools?
 Do the features match the organisation’s requirements?
 Is the organisation planning to use the PPM solution to support strategic or business
planning cycles?
 What features will be required now, and as the maturity of the organisation
increases?
 Is the current PPM maturity appropriate for a move from individual tools to
collaborative tools?
 What is the track record of PPM tools within the organisation?
 Does the organisation need to purchase and implement the PPM tools as part of a
permanent P3O® model, or use an outsourced solution as part of a temporary P3O®
model?
 How will senior management respond to new ways of working as a result of PPM
solutions?
 What are the organisational change management implications of moving to a PPM
solution?
 Is the organisation’s investment in multiple individual tools/software less efficient or
effective than implementing an enterprise PPM solution?
 What are the risks associated with the implementation of the PPM solution and how
will they be managed pProcess
 What processes will the PPM solution be aligned with? Can it support the current
processes and evolve to accept the new processes?
 What processes can be done more efficiently using the PPM solution than by the
manual one?
 What benefits can be realised by implementing more features?
 Which processes are the highest priority to implement to realise early benefits?
 How will the PPM solution integrate with the wider organisation?
Organisation
 What roles and responsibilities will the PPM solution require?
 What skills/competencies are required to implement, maintain, and improve the
PPM solution?
 Will the PPM maturity of the organisation impact positively or negatively the PPM
solution, and the realisation of its benefits?
 Are suitably skilled resources available to operate the PPM solution in production?
Tools and Technologies
 Will the architecture support project delivery?
 What licence requirements best suit the organisation’s approach?
 Should the tools be purchased outright, outsourced, or used via a host solution?
 Are the PPM tools easily configurable?
 What costs are associated with the customisation of the tool?
 What integration requirements will there be to legacy or line‐of‐business systems?
 What are the minimum data requirements? How much effort is needed to ensure all
aspects of information assurance?
Information Flows
 What key questions are being asked by senior management about the portfolio?
 What information is needed from project/programmes to achieve this?
 What information does the organisation need to monitor to achieve better
outcomes?
 Will the information be automatically rolled‐up, or will multiple systems be needed?
 Can data be easily migrated from current approaches into the PPM solution?
 Can data be easily validated after migration to maintain data quality?
 What capability is there to provide metrics on the health of the information within
the EPM solution?
P3O® Techniques
Examples of Techniques
 Portfolio Prioritisation and Optimisation
 Complexity Modelling
 Management Dashboards
 Knowledge Management
 Business Process Swimlanes
 Capacity Planning
 Assurance, Gated reviews, and Health Checks
Prioritisation and Optimisation
Objective: To categorise the programmes and projects within a portfolio, based on agreed
measures that are commonly financial or use a multi‐criteria analysis, such as risk.
Benefits: Aids in determining where investment should be directed, rather than all projects
going full‐throttle, using the same resources and being cost inefficient. It supports senior
management in decision–making, evaluating how programmes/projects are aligned with
strategic objectives.
An example of strategic alignment and risk level diagram

Complexity Modelling
Objective: To determine the appropriate lifecycle and governance for the programme/
project based on its complexity.
Benefits: Provides a structured approach to the tailoring of the standard lifecycle and
governance, thus providing both flexibility and standardisation of portfolio management
requirements.
Activities involved: The organisation must determine the criteria for the complexity of
projects and programmes. Analysis is performed to discover the drivers and their
parameters for the aforementioned criteria. Weightings are applied to create an algorithm
that results in an overall complexity score. The complexity score is used to determine the
recommended governance structures and tailored lifecycle for the project. It is important
to know that this technique will require refinement and ongoing review to ensure that the
weightings are appropriate to the governance applied.
Capacity Planning for Resource Management
Objective: To understand the resource capacity and competency supply‐and‐demand‐
levels, as well as take action to match these appropriately to delivery requirements.
Benefits: Reduces any obstacles in relation to capacity or competency that may impede
project/programme delivery
Sometimes, capacity planning is just an annual baseline for the planned porfolio that
informs project portfolio phasing to reduce gaps between resource supply and demand for
the year. It may also only address the capacity of key known resources points of failure, or it
may include competencies as well. As P3O® capacity increases, capacity planning may
involve frequent assessments based on resource experience.
Knowledge Management
Objective: To create an environment, including providing tools and processes, to support
the creation and sharing of knowledge.
Often confused with information management, knowledge management differs in that it
includes ideas, insights, experience. Due the difficulty of documenting that data, knowledge
management focuses on connection people.
The P3O®’s management of knowledge should be sensitive to the organisation’s view of
knowledge, but the P3O® can also change the opinion of the organisation by introducing
new knowledge management principles that tap into previously undervalued knowledge.
Management Dashboards
Objective: To provide decision‐support information across the portfolio using highlight and
exception‐based reporting, therefore giving a rolled‐up view of more detailed information.
Benefits: Supplements larger volumes of detailed reporting, allowing the decision‐makers
to better determine progress and understand where intervention may be required.
Activities Involved: When the programme or project sends in a status report, the dashboard
rearranges the data across different metrics. This allows the project board to quickly see
key information and evaluate where requires attention. The management board is updated
periodically and provided to the relevant governance group. The design and content of the
board must be fit for purpose for the relevant decision‐making bodies. Fitness for purposeis
confirmed by each of them, to ensure all requirements are satisfied.
It is important to note that this technique requires trustworthy and reliable information as
its main input. Information assurance should be applied to all data to ensure is trusted to
be the one version of the truth. If traffic lights are used, there must be consistent, agreed
use of red, amber, and green to ensure objective reporting.
An example of a portfolio management dashboard
Assurance, Gated Reviews, and Health Checks

Objective: To provide an individual assessment of the performance of the portfolio,
programme, or project against its objectives and the standards.
Benefit: Provides objective assurance of the decision‐support information inputted into the
P3O® and the reactive ability to get the programme or project back on track
Business Process Swimlanes
Objective: To document standard and repeatable business processes with appropriate
linkages and agreed accountabilities.
Benefits: Documents, baselines, and continually updates repeatable processes as progress
evolves in response to lesson sharing and increased PPM maturity.
An example of a swimlane for schedule management
Exercise: Match up the techniques and their objectives

Quiz 5
1. Which statement regarding assurance functions and services is false?
 Takes various forms including regular health checks
 Carries out audits of the programme performance
 Provides guidance on the decision support information
 Provides independent assurance in addition to that provided by a Programme
Board
2. Which tool links information in a hierarchical manner for multiple business change
initiatives?
 Individual
 Collaborative
 Integrated
 Assurance
3. Which of these is not a benefit of tools and techniques?
 Improved compliance with business procedures
 Reduced staff requirements
 Provides structure to decision‐support information
 Rationalisation of legal systems
4. Where are standard techniques typically documented?
 Within knowledge repositories
 Within the Portfolio Office Business Case
 Within P3O® templates and deliverables guides
 Within a number of places
Roles
P3O®s categorise roles into three sections: Management, Generic, or Functional. If the
office is large and/or permanent, the functional roles will often be assigned to one or more
people, whereas if it is small or temporary, the roles are often amalgamated under one job
desciption.
Management Roles
All management roles require:
 Strong leadership and management skills, coupled with strong PPM skills
 The ability to make and maintain relationships with all parts of the business, to
ensure all initiatives meet the requirements of the portfolio board
 An understanding of the bigger picture and the objectives of the portfolio in regards
to the wider environment and how to ensure alignment with wider policy and
strategic initiatives
 Established relationships across the business and portfolio, including senior
managers, programme and project teams, and third‐party service providers
P3O® Sponsor
Purpose:
 To support and guide the implementation and continuing lifecycle processes of
the P3O®
 Use strong leadership, management, and authority to establish and continually
improve the P3O® Responsibilities:
 Develop and maintain business case, to secure the investment to re‐energise the
P3O®
 Ensure business needs and issues are addressed properly
 Review whether projects and programmes are aligning with wider policies
 Identify how P3O® can assist in the change portfolio of other business areas
 Risk Management
Head of P3O® (Permanent Office)

Purpose:
 To set‐up and run the permanent office, perhaps taking over the role of portfolio
manager as well
 To ensure the integrity of the portfolio and its contents
 Identify any gaps in iniatives to clarify which activities will fill them
Responsibilities:
 Work with senior management to define and implement the portfolio framework
 Create strategies for the planning, monitoring, and delivery of the portfolio
 Support the portfolio director in agreeing projects to include in the portfolio
 Maintain relationships with other business initiatives to prevent responsibility
overlap
 Design management dashboards
 Allow programmes and projects access to strategic information
 Establish framework agreements for the purchase, roll‐out, and maintenance of PPM
tools, training, and consulting
Head of Temporary Programme or Project Office
Purpose:
 To set‐up and run the temporary office
 Identify any gaps in iniatives to clarify which activities will fill them
 Have the ability to deputise for the programme manager
Responsibilities:
 Support overall integrity and coherence of programme or project
 Support the programme manager in agreeing projects to include in the programme
 Ensure exisiting initiatives and projects are adopted into the programme
 Agree project closure with programme/project manager
 Maintain relationships with other programmes to prevent responsibility overlap
 Identify dependencies among the programme, its projects, and other initiatives
 Report progress via management dashboards
 Run end‐of‐tranche reviews and benefits reviews
 Discover the reasons why strategic initiatives are underperforming
 Inform project or programme of any changes
 Be responsible for team objectives and continual improvement of P3O® service
 Workload management and prioritisation between ad hoc requests and deliverables
Generic Roles
Portfolio Analyst
Purpose:
 To facilitate development and management of an optimised portfolio
 Ensure senior management decisions lead to fulfillment of strategic objectives
Responsibilities
 Provide strategic overview of all portfolio contents, reporting anomalies
 Evaluate process for possible improvements to aid project workflow and delivery
 Manage prioritisation model
 Initiate reviews of post‐programme/project evaluation reports and benefits to ensure
all goals are met
 Design portfolio delivery plan, resource schedule, risk register, KPIs, and portfolio
dependencies register
 Assess benefits management across programmes to identify gaps and overlaps and
eliminate double counting
 Scan for impending strategy or policy changes
 Provide aggregated analysis to the strategy board
 Develop portfolio stakeholder strategy and ensure effective communication
Programme or Project Specialist
Purpose:
 To provide specialist hands on support for programme and project managers
 Promote PPM management methods and standards to implement best practice
 Provide a consultancy service to boards (could be advice centre or have a specific
purpose like workshops)
 Work with programme manager and business managers to define governance levels
and decide on level of support
Responsibilities
 Coordinate information about the running, progress, and problems of
programmes/projects
 Provide briefings on their roles and responsibilities to the board and assurance staff
 Review completed programmes/projects to gather preventative information on
problems and/or good practice
 Design and support governance and reporting
 Build register of approved training courses and PPM events, detailing content, level,
and dates
 Maintain a repository of good programme/project documentation and a library of
other useful resources, such as training aids or reference materials
Programme/Project Officer
Purpose:
 To improve the planning and delivery process, by collecting and maintaining data in
consistent form
Responsibilities:
 Establish guidelines, procedures, and templates to collect and maintain consistent
data
 Implement information management system, and manage all configuration libraries
 Provide basic training in configuration management techniques
 Establish risk, issue, and change control processes and templates and assist in their
delivery
 Provide a coordination/administration service to a programme or project
Exercise:
Your organisation does not have enough funds to fill all these roles. Evaluate their use, by
filling out the table below with a summary of the main consequences to the P3O® if they
are lost.
P3O® Sponser
Head of P3O®
Head of Temporary Office
Portfolio Analyst
Programme Specialist
Programme Officer
Functional Roles
Benefits and Value
Purpose
The purpose of the benefits and value role is that a reliable ‘fit for purpose’ approach to
benefits and value management is implemented and applied through the portfolio or
programme, and that benefits realisation is enhanced from the organisation’s investment in
change.
This role is typically undertaken by the portfolio benefits manager, or by someone that
reports to the portfolio benefits manager.
The finance department also plays a vital role in shaping the approach, methods, and
standards to be implemented.
Responsibilities
 Developing and sustaining the P3O®’s benefits management framework
 Forming the infrastructure essential in the implementation of the benefits
management framework
 Providing training and awareness‐building meetings on the application of the benefits
management framework
 Contributing in the investment appraisals, making sure that business‐case benefits
forecasts are dependable, and that they meet the organisation’s benefits eligibility
rules
 Working with the business change managers and their teams to encourage more
effective benefits management practices
 Providing guidance and support to the PPM and business‐as‐usual colleagues on the
expansion of initiative‐level benefits forecasts and benefits management policies
 Providing assurance on the effectiveness of benefits management
 On behalf of portfolio or programme management:
o Assisting the agreement of the benefits management strategy
o Leading benefits and dis‐benefits identification activities
o Leading and facilitating MoV studies
o Holding benefits‐mapping workshops, as well as evolving and maintaining a
benefits map
o Facilitating agreement on the benefits realisation plan
o Upholding the benefits forecast
o Evaluating the impact of change requests for their possible effect on benefits
realisation
o Tracking and reporting benefits realisation development for the dashboard
o Escalating issues with benefits realisation, as appropriate
 Setting the standards for, and observing, post‐implementation reviews to compare
benefits realised with the benefits forecast
 Working with the business managers or business change mangers to recognize
further opportunities for benefits management
 Frequently revising and improving the effectiveness of benefits management
arrangements
 Assessing benefits management across a number of programmes or projects to
detect gaps, overlaps and conflicts, and eliminating double‐counting in the benefits
plans of individual programmes and projects
Commercial
Purpose
The purpose of the commercial role is to ensure that the organisation carries out the role of
‘informed customer’, and that all commercial/procurement practices and decisions meet
the designated standards and offer the organisation value for its money.
It can also take on the role of supplier relationship manager, developing efficient and
effective relationships with suppliers, outsourcers, and partners.
This role may be a P3O® role, but is more likely to be embedded in the P3O®, with formal
line management from the commercial, procurement, or purchasing function.
Responsibilities
 Early engagement with commercial, procurement, or purchasing teams to scope the
commercial element of the portfolio, programme, or project
 Providing ongoing liaison with commercial, procurement, or purchasing teams
 Providing liaison with the relevant statutory procurement functions
 Developing and executing the portfolio, programme, or project procurement
strategy
 Undertaking contracts management, including tracking deliverables against existing
contracts and managing any third-party or sub-contractor contracts
 Ensuring that all contracts remain up‐to‐date and exit strategies are in place
 Providing analysis of any requests for change that may have a contractual impact
 Coordinate purchase order activities
 Ensuring compliance with any applicable organizational, national, and international
standards and legislation
 Providing commercial expertise/advice to the portfolio and programme teams, and
constituent projects
 Facilitating relationships between the organisation’s senior management community,
SROs, and senior managers within the supplier community
 Taking on supplier relationship manager responsibilities, which may include:
o Aiding the management of supplier and contractual risk, gauging all aspects of
supplier performance, and initiating remedial actions whenever and wherever
required
o Conducting contractual reviews with all major suppliers to the programme or
project on a regular basis
o Handling all aspects and stages of the contract lifecycle on behalf of the
programme or project manager
o Sustaining a catalogue of suppliers, services, products, and contracts within the
programme or project
o Providing a single liaison and contact point for all supplier and contractual issues
o Developing a full understanding of supplier strategies, plans, business needs, and
objectives
o Ensuring that the programme or project is working in partnership with suppliers,
building on long‐term relationships
o Enabling the development and negotiation of appropriate, achievable, and viable
contracts and contractual goals with suppliers
o Facilitating the negotiation of ‘value‐for‐money’ services and products with all
suppliers
Communications and Stakeholder Engagement

Purpose
The purpose of this role is to make sure that the management of the portfolio, programme,
or project’s stakeholders is effective.
Responsibilities
 Sustaining the list of stakeholders and their interests
 Leading the work to detect and document the programme stakeholders, their
interests, and their possible influence on the programme
 Aiding the formulation of a stakeholder engagement strategy and the related
portfolio, programme, or project communications plan to ensure:
o An awareness amongst all stakeholders of the benefits and influences of the
portfolio or programme
o That expectations do not drift out of line with the planned delivery
o Commitment from stakeholders to the changes being presented, confirming the
long‐term success of the portfolio, programme, or project
o That all stakeholders are educated on the progress before, during, and after the
implementation or delivery of the project outputs and programme outcomes
o The promotion of key messages from the portfolio, programme, or project
o A demonstration of the commitment to meeting the requirements of the
portfolio, programme, or project sponsors
o True two‐way communication with stakeholders due to encouragement in
providing feedback
 Endorse opportunities to maximise the benefits acquired from the portfolio or
programme
 Organise stakeholder engagement and communication, ensuring effective timing and
interdependency management of communications
 Coordinate internal portfolio and programme communications
 Monitor the effectiveness of communications
 Handle press enquiries
 Establishing and sustaining any portfolio, programme, or project intranet site or
information portal
Information Management
Purpose
The purpose of this role is to act as the custodian and guardian of all master copies of the
portfolio, programme, or project’s information.
This role should ideally work closely with the security function or department in an
organisation in order to confirm that full information and physical security is considered
within a portfolio, programme, or project.
Responsibilities
 Making sure that significant information assets are under configuration management
and change control, sharing information within the project, programme, or portfolio
 Producing and operating libraries or other storage areas to store products and keep
reference materials up‐to‐date
 Developing and handling document control procedures to cover baseline
management, controlled issue of master documents, version control, document
history, and distribution lists
 Creating an identification scheme for all products, and assisting in the identification
of products
 Establishing and administering baselines
 Controlling the receipt, storage, and issue of all portfolio, programme, or project
products
 Keeping a record of all issued copies of products and informing holders of any
alterations to their copies
 Undertaking configuration audits and maintaining status information on all products
 Guaranteeing that supplier configuration items are under control by providing a
single point of entry entering, and exiting, the programme for such items
 Seeking out knowledge about how to access relevant information outside of the
programme office, other systems in the organisation, and internet resources
 Ensuring that procedures are put into place to handle the security and secrecy of
programme/project documentation or other assets
Consultancy and Performance Management

Purpose
The purpose of this role is to offer internal consultancy and expertise in PPM and
organisation processes, as well as the monitoring of certain programmes and projects.
The services provided are focused on sustaining a minimum set of standards and achieving
the target performance.
Post holders should seek to continually improve the performance of the portfolio,
programme, and projects within an organisation.
Responsibilities
 Making sure that their own procedures and templates are maintained in line with
industry best practice
 Setting up and maintaining a performance improvement plan
 Setting up and tracking portfolio, programme, or project metrics to monitor and
control performance
 Sharing lessons and formulating action plans
 Providing professional high‐level planning skills for programmes and projects
 Providing project assurance service to project and programme boards, either directly
or through the engagement of third‐parties
 Running facilitated workshops
 Undertaking mentoring or coaching of portfolio, programme, or project staff,
including programme and project sponsors/SROs
 Undertaking portfolio, programme, or project induction
 Creating case‐study material and feeding back to the COE
 Performing programme and project fast‐track, start‐up, and closure assistance
 Assisting in programme and project ‘rescues’ through hands‐on development and the
delivery of action plans
 Acting as a trainer in PPM for internal courses/workshops
 Acting as method specialist/experts in PPM
 Providing technical leadership, coaching, and mentoring in all PPM tool utilisation
 Providing consultancy‐style services to programme and project delivery teams at the
definition stage, as well as throughout the lifecycle
 Carrying out health checks on programmes and projects at any time during the
lifecycle
 Providing business performance monitoring and reporting
 Keeping abreast of, and evaluating the effectiveness of, new programme and project
management tools and techniques
 Providing performance deviation escalation management
Finance
Purpose
The purpose of the finance role is to create a professional finance function within the
portfolio, programme, or project to ensure the timely provision of funding and effective
financial control.
This may be a P3O® role, but is more likely to be embedded in the P3O® with formal line
management from the finance function.
Responsibilities
 Working with the chief finance function to assist the availability of suitably profiled
funding across financial periods
 Controlling budget allocations and estimates of future spending
 Evolving and sustaining the portfolio, programme, or project financial controls
 Revising and tracking portfolio, programme, or project costs and revenues
 Evaluating and collecting portfolio, programme, and project financial information
 Assisting in benefits profiling
 Handling invoicing and collection activities
 Arranging monthly financial reports for the portfolio, programme, or project manager
 Producing and maintaining financial models for the depreciation and amortisation of
programme and project costs
 Providing programme accountancy aid with:
o Development and refinement of programme and project business cases
o Creating and distributing financial reports
o Development and maintenance of the resource management plan
o Advice on cost control and opportunities for savings
o Adherence to accounting procedures
o Capitalisation of capital assets
Issue
Purpose
The purpose of this role is to take the lead in ensuring that the portfolio, programme, or
project has operative processes in place to recognise, monitor, and solve any issues.
Responsibilities
 Developing and executing the issue management strategy, making sure that the
commercial function leads on contractual issues
 Communicating the issues management strategy, and the benefits of following it, to
all personnel
 Forming and sustaining the portfolio, programme, or project issues register
 Registering issues for ensuing investigation and resolution, monitoring items
identified as requiring action, prompting timely actions, and reporting on whether
required actions have been carried out
 Making sure that all issues have a nominated owner
 Ensuring that the agreed responses to issues are planned, resourced, and applied
 Communicating with stakeholders, particularly those who are directly affected either
by the issue itself or by the response to the issue
 Assessing how effective any issue response has been
 Aiding in the regular monitoring and review of all issues
 Examining issue registers across the portfolio, programmes, and projects, regarding
issues and their handling
 Enabling cross‐programme/cross‐project impact analysis
 Escalating issues to a higher authority
 Liaising with the information role on configuration management
Change Control
Purpose
The purpose of this role is to take the lead in ensuring that the portfolio, programme, or
project has effective processes in place to identify, monitor, and resolve changes.
Responsibilities
 Developing and applying the change control process, making sure that the
commercial functions lead on contractual changes
 Clearly communicating the change control process and the benefits of following it, to
all personnel involved with the portfolio, programme, or project
 Creating and sustaining the portfolio, programme, or project change register
 Registering changes for subsequent investigation and resolution
 Making sure that all changes have a nominated owner
 Ensuring that all changes have appropriate impact analysis and are planned,
resourced, and implemented through formal configuration management
by the change itself or by the response to change
 Assisting in the regular monitoring and review of all changes
 Examining change registers across the portfolio or programme to look for common
themes and establishing consistent resolution procedures
 Forming and maintaining an efficient two‐way flow of information between the
portfolio, programmes, and their projects
 Escalating changes to a higher authority
 Liaising with the information role on configuration management
Planning and Estimating

Purpose
The purpose of the planning and estimating role is to take charge in facilitating the
development and maintenance of the portfolio, programme, or project plan and
dependency logs.
Responsibilities
 Outlining planning standards for portfolio, programmes, or projects to enable ease of
roll‐up of milestone data and dependencies
 Facilitating the design, development, and ownership of the portfolio, programme, or
project plan
 Sustaining and updating the plans, advising on missed forecasted milestones, missed
dependencies, and impact assessment
 Maintaining and updating resource plans, advising on resource clashes and
shortcomings
 Making sure all product‐based plans include activities, time, and resource estimates
for risk mitigation
 Ensuring quality review activities and associated time have been allocated accurately
 Investigating interfaces and dependencies between projects, recommending
appropriate actions where anomalies exist or in any areas of concern
 Undertaking the tracking and maintenance of dependencies
 Creating and operating mechanisms to track portfolio, programme, or project
delivery against the plan
 Recognising and reporting deviations and trigger reports where appropriate
 Reviewing plans against the business‐as‐usual plans to ensure change can be adopted
effectively
 Providing estimating support to the portfolio, programmes, or projects
 Defining and managing time‐recording processes
 Making sure that impending policies or strategy changes are evaluated for their
influence on the portfolio, programme, or project plans or dependencies
Planning and Estimating

Purpose
The purpose of this role is to take responsibility for facilitating the development and
maintenance of the portfolio, programme, or project plan and dependency logs.
Responsibilities
 Describing planning standards for portfolio, programmes, or projects to enable ease
of roll‐up of milestone data and dependencies
 Assisting in the design, development, and ownership of the portfolio, programme, or
project plan, making sure that all milestones and internal and external dependencies
are recognised, recorded, and observed
 Sustaining and updating plans, advising on missed forecasted milestones, and impact
assessment
 Maintaining and updating resource plans, and advising on resource clashes and
shortcomings
 Ensuring all product‐based plans include activities, time, and resource estimates for
risk mitigation
 Making sure quality review activities and associated time have been allocated
accurately
 Evaluating interfaces and dependencies between projects, and recommending
appropriate actions where anomalies exist, or where there are areas of concern
 Undertaking the tracking and maintenance of dependencies
 Establishing and operating mechanisms to compare the portfolio, programme, or
project delivery against the plan
 Detecting and reporting deviations and trigger exception reports when appropriate
 Revising plans against business‐as‐usual plans to ensure change can be adopted
effectively
 Providing estimating support to the portfolio, programmes, or projects
 Defining and managing time‐recording processes
 Ensuring impending policy of strategy changes are assessed for their impact on the
portfolio, programme, or project plans
Quality Assurance
Purpose
The purpose of the quality assurance role is to lead the work to ensure that any new
products or services delivered by the portfolio, programme, or project are fit for purpose
and capable of delivering the benefits required by the organisation board.
Responsibilities:
 Ensuring compliance with any applicable organisational, national, and international
standards and legislation
 Bringing together portfolio, programme, or project staff of different disciplines and
drive the group to plan, formulate, and agree a comprehensive quality management
strategy and quality management plan
 Creating consistent quality practices and standards
 Making sure tests and procedures are properly understood, carried out and assessed,
and product modifications are investigated if necessary
 Working with the finance manager/analyst to ensure the portfolio, programme, or
project complies with audit requirements
 Developing bespoke processes, and standards and templates for quality management
 Coordinating quality reviews of portfolio, programme, or project documents and
deliverables
 Providing health checks
 Providing direction on quality criteria, reviewers, and sign‐off authority to ensure
cross‐portfolio or cross‐programme reliability
 Working with commercial/purchasing staff to ensure an effective interface with
suppliers’ quality systems and oversee the quality review process for contractual
supplier deliverables
 Liaising with COE or other bodies to arrange stage‐gated reviews
 Coordinating gated reviews and stage reviews, and ensuring all information is
available in a timely manner and a quality format
Resource Management
Purpose
The purpose of the resource management role is to ensure that current and future
programmes and projects are equipped with enough human resources of the right skills, at
the right time they are required.
Responsibilities
 Providing a capacity planning and resource tracking service across a portfolio or
programmes
 Capturing the resource requirements of the portfolio, programme, or project and the
P3O® itself
 Forecasting future resource needs, based on portfolio/programme/project plans,
close liaison with the relevant managers, and wider business plans
 Providing a view of commitments on other programmes/projects and/or on
business‐as‐usual activities that will influence the ability of a portfolio, programme,
or project to deliver
 Deciding on the best source for the required resources, depending on the long‐term
requirements of a particular skill and its likely availability
 Planning and initiating the acquisition of the essential staff, in terms of both skill
content and quantity, ensuring they are in place at the time needed
 Observing the deployment of staff, arranging new postings in advance of assignments
ending, to meet staff development needs, and to maintain a good match of skill to
role
 Working with human resources and line management to facilitate succession
planning, including knowledge management and leavers’ process as required
 Sustaining a database of resources, for people and their skills/attributes, location,
availability, contact details, and lead responsibility for the resource
 Taking an active role in the training and development of portfolio, programme, or
project staff to increase the available skills capability and capacity within the business
 Revising the provision of skills audits to regulate whether the proposed
programme/project staff have the required skills to deliver their role on the
programme or project
 Establishing formal mentoring and coaching guidelines and mechanisms
 Providing ‘help squads’ – supplementary skills to fill shortfalls within the portfolio,
programme, or project
 Handling consultants’ and interims’ contractual status, closely monitoring use of
externals to ensure ongoing value for money
 Managing resource planning, data collection, and PPM skills development
Risk
Purpose
The purpose of this role is to take the lead in making sure that the portfolio, programme, or
project has effective processes in place to identify and monitor risks, has access to reliable
and up‐to‐date information about risks, and uses the appropriate controls and actions to
deal with risks.
Responsibilities
 Creating a risk management strategy for the P3O® in accordance with the corporate
risk management policy
 Forming and maintaining the portfolio, programme, or project risk register
 Supporting the identification and ongoing management of risks by running risk
workshops and risk‐review workshops
 Making sure that all risks have a nominated owner
 Ensuring all project risks that have wider programme implications are escalated and
dealt with at programme level
 Providing cost estimates for all outstanding risks and making sure that risk mitigation
costs do not exceed risk occurrence costs
by the risk itself or by the risk responses
 Evaluating how effective any response actions have been and whether the risks
identified have actually materialised, including the realisation of opportunities
 Reviewing all risks on a constructive, ‘no blame’ basis
 Establishing and sustaining an efficient two‐way flow of information between the
portfolio, programmes, and their projects regarding risk handling
 Examining risk registers across the portfolio or programme
 Establishing consistent mitigation and contingency plans for risks that should be
tackled across the portfolio or programme
 Supporting the sharing of risk registers with the supplier community
 Assessing and monitoring the effectiveness of risk processes and refining it as
necessary
Reporting
Purpose
The purpose of the reporting role is to provide a reporting service to the portfolio,
programme, or project.
Responsibilities
 Providing consistent reports to boards, including a commentary on performance,
coordinating upward aggregation of data/information, and reports
 Making sure the reports are reliable through consistent traffic lights
 Recognising and reporting abnormalities and trigger exception reports when
appropriate
 Developing procedures to fulfil the internal reporting needs of the programme,
including the development and production of any contractual reports
 Making sure that reporting deadlines are achieved
 Ensuring that the reporting process is robust, exception‐based, and flexible enough
to meet the changing needs of the programme or project
 Creating a weekly/monthly reporting calendar with reminders to information
contributors
 Implementing and managing the weekly and monthly reporting cycle, chasing
information as required and challenging the quality of the component data
 Building and sustaining an information base of trend data for the programme or
project reporting
Secretariat/Administrator
Purpose
The purpose of this role is to provide portfolio, programme, or project administrative
support and a secretariat function for the relevant boards.
Responsibilities
 Sustaining knowledge/reference libraries/repositories in relation to governance
boards
 Supporting facilities requirements as far as possible, matching supply to demand
 Assisting the resource management role with the acquisition of resources by
maintaining relationships with external organisations that can supply them
 Supporting the quality assurance role by liaising with the COE or other bodies to
assemble health checks, audits, third‐party reviews, and stage‐gated reviews
 Forming a help desk for enquiries/issues/problems
 Assisting in administrative support to the P3O®, including workshop/meeting
administration and the establishment and maintenance of the filing system
 Providing logistical support for training courses
 Providing administrative support for other non‐PPM activities
Tools Expert
Purpose
The purpose of the tools expert role is to provide expertise in the software tools to support
the change environment.
This provides support to the PPM community to configure software, or to provide training
and coaching in its use.
Responsibilities
 Inspecting the market to source tools
 Liaising with tools vendors regarding requirements specifications
 Liaising with tools vendors regarding implementation plans and training
 Carrying out internal mentoring/coaching in tools
 Advising new programmes and projects on the appropriate use of tools
Case Study: Skipton Building Society

Summary
Skipton Building Society is the fourth largest building society in the UK, with assets of about
£14.6 billion, 840,000 members, and 1,200 employees. At the beginning of 2010, after
incurring losses in the core business following the market crash in 2008, it faced a
substantial challenge in returning the business to profitability while meeting the
expectations of its board and the Financial Services Authority (FSA).
A review in March 2010 highlighted the need to consider some 80 plus ‘necessary’ projects,
yet the organisation did not have the processes and capability in place to prioritise
resources, or deliver them.
Between April and September 2010, a portfolio and project investment governance
framework and portfolio office were implemented to enable Skipton Building Society to
validate, prioritise, and deliver the necessary business changes with the resources available,
at an acceptable risk. This work used various aspects of the Portfolio, Programme, and
Project Offices (P3O®) guidance, which is part of the Best Management Practice portfolio,
adapted to Skipton Building Society’s needs.
Defining the governance framework first, followed by setting up the portfolio office while
engaging the senior executive team in a top‐down approach worked well. Establishing the
transformation (portfolio) board early created a demand for set up and operation of the
portfolio office services. Nine months after set up, the portfolio office and transformation
board were both working well. However, some challenges remained, notably resource
management, integrating the IT shared services organisation into the process and
integration with the corporate planning process.
Background
 The company was created on 1 May 1853 as the Skipton and District Permanent
Benefit Building Society
 Today, Skipton Building Society is the fourth largest building society in the UK, with
assets of about £14.6 billion, 840,000 members, and 1,200 employees. The building
society has a group structure comprising the core business and a number of
subsidiaries that are run independently; notable among these are Homeloan
Management Ltd (HML) and Connells
 As a building society, several factors make the organisation different from a bank:
o The management must do what is best for its members (customers), who are in
effect the shareholders
o It must lend for mortgages and be largely funded through retail deposits
 Following the market crash in 2008, the core business suffered losses in 2009, only
making a profit because of the contribution from its subsidiaries
 In February 2010, Skipton Building Society had to lay off staff for the first time to
reduce costs and faced significant challenges in restoring the profitability of the core
business, while meeting greater demands for reporting, controls, and performance
from FSA
 Before 2008 – Project management resources and capability were based within the IT
organisation
 2008 – The business projects team was set up, which includes project managers,
business analysts, and project support functions
 2009 – IT‐based project managers were transferred to the business projects team. The
team expands to five project managers, two project support staff, and five business
analysts
 2009 – Project methodology based on PRINCE2® defined and signed‐off:
o Scarborough Building Society merger project completed
o Chesham Building Society merger project completed
 February 2010 – Reorganisation leads to disbanding of project office functions within
business projects team
The Challenge
In March 2010, senior management recognised that there were significant challenges
ahead, which would require a transformational change within Skipton Building Society,
alongside the delivery of a significant number of projects to meet the expectations of the
board and external regulators (FSA). A review of the project landscape undertaken by
internal staff and external consultants identified the following issues:
 Eighty‐plus possible ‘necessary’ projects outlined by management, including a critical
‘profit improvement plan’
 Planning processes were not sufficient to enable comprehensive prioritisation,
approval, on‐going control of the portfolio, nor delivery of the benefits for each
programme/project. Projects were initiated by individual managers, with
prioritisation based on ‘who shouts loudest’
 Programmes/projects were not being tracked for costs or realisation of benefits
 Project sponsors ‘sponsored’, but project managers ‘owned’, projects
 No accountability for outcomes or benefits
 ‘Business projects’ were viewed as ‘IT based’, and hence often the ‘responsibility’ of
IT to deliver
 Delivering change was viewed as ‘project delivery’; that is, delivery of an IT system or
other output
The challenge was then to enable the organisation to validate, prioritise, and deliver the
necessary business changes with the resources available, at an acceptable risk. Key to
meeting this challenge was establishing a governance framework for the business change
portfolio and a portfolio office to support it.
Governance Framework
Working with the senior management team, we agreed the need to drive change from the
top of the organisation and to incorporate governance of business change within the
overall corporate governance framework. In this respect, the P3O® ‘run the business,
change the business’ concept was helpful in understanding the need.
It was agreed at the outset in April 2010 that the scope of any governance framework
would exclude subsidiaries as these operate independently (except where they require core
Skipton Building Society or group resources).
Thus, the transformation board was established to be ‘accountable for the selection,
prioritisation, and authorisation of all Project Investments within the Skipton Building
Society’. The transformation board reports into the senior management committee, which
comprises the senior executive management team chaired by the chief executive. The
transformation board sits alongside the management boards responsible for operational
management of the business. The portfolio office reports to the chair of the transformation
board, who is the transformation director.
Alongside the transformation director, the membership of the transformation board
consists of the group finance director (an executive director) with the company secretary as
second representative for the central functions; the head of the retail board with the head
of mortgage operations as a second representative for the retail board; and the chief
information officer to represent IT.
Terms of reference for the transformation board were defined, agreed by the
transformation board, and then approved by the chief executive. These were published
alongside other corporate governance information under the auspices of the company
secretary.
In addition, we defined a five‐gate investment management process, whereby the
transformation board at each gate, with resources (people and funding), would authorise
project investments allocated to the next gate. The details of this process are a tailored
version of PRINCE2. The transformation board has the ability to reassess and authorise the
continuation of, or stop, a project at each gate. Submissions to the transformation board at
each gate are appropriate evolutions of an investment case, increasing in detail to gate C
and then focusing on outcomes and benefits at gates D and E.
Within this process, the transformation board is the escalation point for any issues that
cannot be resolved by individual business owners and project boards, and the
transformation board, in turn, escalates issues to the senior management committee.
The portfolio office supports and facilitates this governance framework, with the head of
the portfolio office filling the role of secretary to the transformation board.
Portfolio Office
Building on the existing business projects team, the portfolio office was established to
explicitly support the governance framework. Therefore, its functions follow directly from
those required by the governance framework.
In P3O® terms, we followed the ‘organisation portfolio office’ model with additional
elements. As per the governance framework, the portfolio office does not directly cover
subsidiary companies, which are run as independent businesses, but do sometimes use
Skipton Building Society resources.
Due to the size of the organisation (circa 1000 staff within the main office), and the
relatively low level of maturity with respect to programme and project management, we
incorporated project delivery resources (project managers and business analysts) within the
structure.
In addition, as Skipton Building Society had a particular issue with large volumes of
smallscale changes to core operational systems, a specific change request management
function was incorporated into the structure. Effectively, this provides a permanent project
management/support capability for dealing with on‐going change requests within the single
portfolio office structure.
Project support and resourcing were essentially existing functions within the previous
business projects team. Investment management, performance management, and portfolio
reporting functions had to be built from scratch, along with the change request
management capability.
The implementation of the portfolio office was carried out in a series of tranches, or stages
in line with P3O® guidance. However, it is based on a mix of priorities for the portfolio
office and the ability to recruit and develop the staff. The initial focus was on getting
control of inflight projects and enabling the transformation board to start assessing the
most urgent new projects.
One of the key issues in setting up a portfolio office is the resourcing of the portfolio office
itself and assessing the necessary mix of roles, capabilities, and capacity. Our approach was
based on assessing the functions, the volume of work, and capabilities available, in line with
the approach outlined in the P3O® guidance.
Of these, the head of the portfolio office and investment manager roles were the most
significant. The scope of the head of portfolio office role dictated the use of external
consulting and interim staff to drive forward, although the support and engagement of the
incumbent head of business projects was critical in the transition. For the investment
manager role, we were able to recruit internally for a finance manager who already had
experience of building business cases for corporate acquisitions and disposals. This internal
recruitment was then provided with some coaching support from an external consultant on
the full scope of the role.
External consultants, transitioning to internal staff, and new recruits through coaching and
mentoring over a three to six month period.
Comments on P3O®
The P3O® guidance says ‘P3O® provides a decision‐enabling/delivery‐support model for all
business change within an organisation’. As such, it provides a wealth of detail on the
possible benefits of setting up a P3O®, including organisational models, steps to carry out,
and things to do to set up and establish the necessary infrastructure. Making the most of all
this guidance, however, does require you to have a clear idea of what you are trying to
achieve.
In our case, the driver was straightforward: in order to make the governance framework
function, and for senior management to be able to make the required decisions with regard
to the business change portfolio, a portfolio office was a necessity. The consequences of
not having one were obvious from the review in March 2010.
While there was discussion about ‘building the business case for P3O®’, it is not clear
whether one can do this if building the P3O® is itself providing the tools to build business
cases. Whenever we considered this question, it seemed like we would simply end up going
in circles in a chicken and egg situation.
P3O® defines a number of roles around analysis, benefits, commercial, and financial
aspects. We combined these within the investment manager role. We created a link to the
finance function by transferring someone from finance into the role, but their direct
reporting line is to the head of the portfolio office and hence the transformation board.
We fully defines the governance structure, processes, and templates (for example,
investment case, risk tracking, etc.) before investing in any integrated tools. Once these had
been defined, implementing a tool accelerated the acceptance and engagement of staff in
the process. Indeed, being able to produce up‐to‐minute reports accelerated the pull for
data from the transformation board.
Two other aspects that are not mentioned, particularly in the guidance, but were relevant
was risk management, and assurance. With reference to risk management, we worked with
the operational risk function within Skipton Building Society to integrate
portfolio/programme/project risk management with their processes and tools. With regard
to portfolio/programme/project assurance, we engaged with the internal audit function in
a similar way to operational risk.
Other Best Management Practice Guidance
This case study focuses on the set up of the Skipton Building Society business change
governance framework and portfolio office, and hence P3O®. However, P3O® was not used
in isolation. The full set of activities undertaken at Skipton Building Society to address the
project‐related issues faced in March 2010 covered all aspects of project governance and
delivery, so PRINCE2, Managing Successful Programmes (MSP®), and the newly released
Management of Portfolios (MoP®) guidance were all relevant.
What Worked Well
 Starting with an assessment of the project investment, the landscape within Skipton
Building Society enabled the identification of gaps and weaknesses, which were
addressed as part of the design and implementation
 The top‐down approach: previous efforts to set up P3O® structures had been driven
by bottom‐up and did not succeed, whereas working with the senior executive team
in terms of their requirements helped set up success
 Defining the governance framework first drove the requirements for the portfolio
office and eased the definition and implementation of services, roles, processes, and
tools required
 Setting up the transformation (portfolio) board early on and driving decisions created
a pull on portfolio office services
 Having the project delivery resources within the portfolio office eased the transition
to new methods of working
 Defining governance processes and templates (Word/Excel/PowerPoint) for key
documents eased the selection and implementation of an integrated tool to support
governance
 In turn, implementing a tool that directly supported the governance process eased
acceptance and transition to the new processes and ensured a single source of
project investment data. With further work, this tool now incorporates all project
costs, resources and project information required to represent the portfolio
 Recruiting the investment manager from within finance helped with building links
between the portfolio office and finance
 Supplementing internal resources with experienced external consultant/interim
resources to provide coaching and support accelerated implementation Challenges
 Resource management and tracking. Across the organisation, there was a mix of no
tracking, with spreadsheets or systems being used to track time for different
purposes. A common spreadsheet was developed to capture project effort but this
was not successful and different approaches are being used for different resource
groups
 A lack of previous exposure to structured approaches concerning business change
required more effort and attention throughout the organisation to embed the
changes. While project managers, or others with at least a working familiarity of
PRINCE2®/MSP® and related standards, easily adapted to the governance process
requirements, those without such exposure found it harder to adapt
 Senior managers and executives required more support in understanding and
exercising their roles on project boards or as business owners (senior responsible
owners) than expected. Coaching helped but more formal workshops/training would
have been better
 Lack of a process and structure around strategic planning and the development of
articulated strategic objectives hampered portfolio governance. In retrospect, this
should have been addressed in parallel with the governance framework
 Multiple sponsors at executive level. While the engagement of senior executives was
very positive, having two formal sponsors with different expectations created
challenges in agreeing particular issues
Remaining Challenges/Questions
 How to best integrate the IT shared services organisation that supports multiple
subsidiaries? At the moment, they have to work with each subsidiary’s portfolio
process
 How to handle resource management going forward? The initial approach involves
multiple tools (i.e. a single process/tool has not been mandated)
 How to best integrate the portfolio office with the corporate planning process?
Glossary of Terms and Definitions

Aggregated risk
The overall level of risk to the programme when all the risks are viewed as a totality rather
than individually. This could include the outputs of particular scenarios or risk
combinations.
Assurance
All the systematic actions necessary to provide confidence that the target (system, process,
organisation, programme, project, outcome, benefit, capability, product output,
deliverable) is appropriate. Appropriateness might be defined subjectively or objectively in
different circumstances. The implication is that assurance will have a level of independence
from that which is being assured.
Benefit
The measurable improvement resulting from an outcome perceived as an advantage by one
or more stakeholders.
Centre of Excellence (COE)
A coordinating function for all or part of P3RM ensuring change is delivered consistently
and well, through standard processes and competent staff. It may provide standards,
consistency of methods and processes, knowledge management, assurance, and training. It
may also provide strategic oversight, scrutiny, and challenge across an organisation’s
portfolio of programmes and projects. It may be a function within a wider scope of P3O® or
may be the only function of a P3O®. This function provides a focal point for driving the
implementation of improvements to increase the organisation’s capability and capacity in
programme and project delivery.
Chief Executive Officer (CEO)
Describes the role in a commercial organisation with the highest level of authority for the
total management of the business.
Chief Financial Officer (CFO)
management of the financial risks, planning, and reporting for a business. This role will
generally report to the CEO.
Chief Information Officer (CIO)
management of Information Technology for the business. This role will generally report to
the CEO but may also report to the CFO in smaller organisations.
Chief Operating Officer (COO)
development, design, management, and improvement of the open systems that create and
deliver the organisation’s products and/or services. This role will generally report to the
CEO.
Cost centre
An accounting term used to describe a division, business unit or part of an organisation that
does not directly contribute to achieving profit for a company. It indirectly contributes to
the organisation by providing a service or support function to profit‐making parts of the
organisation.
Design Authority
A role or function (permanent, temporary, or virtual) that provides expert specialist advice
or owns some corporate function, service, standard, or strategy that will be affected, or a
major programme outcome or change that needs to be controlled. This could be an IT or
property infrastructure design, or a major service contract; it could also be a business
process model or the programme or corporate Blueprint. The Design Authority provides
expertise and guidance on a specific area to ensure there is appropriate alignment and
control when changes are being planned and implemented. At a programme level, this role
may advise or own the Business Blueprint management on behalf of the programme
manager. At the enterprise level, this role may manage the Enterprise Architecture of the
organisation.
Dis‐benefit
An outcome perceived as negative by one or more stakeholders. Dis‐benefits are actual
consequences of an activity, whereas a risk has some uncertainty about whether it will
materialise
End Project Report
A report given by the project manager to the Project Board that confirms the handover of
all products and provides an updated Business Case and an assessment of how well the
project has done against its Project Initiation Document.
Enterprise Project (or P3RM) Management (EPM)
A term usually referred to by software vendors in relation to software (i.e. EPM tools) that
assists an organisation manage across multiple projects and programme delivery using a
common resource pool through to strategic analysis of investment through portfolio
management. This term does not reflect the actual offerings of the tools in that they
generally can support at portfolio, programme, and project (P3RM) level.
Expert Reference Group
A team of subject matter experts that can be used in a P3RM organisation to provide input,
advice, and challenge to the role accountable for an output or outcome to ensure that it
reflects the wider experience rather than an individual’s perspective only. It is important to
note that the role accountable for the output or outcome maintains the final decision and
should not treat an Expert Reference Group as a committee. An Expert Reference Group
may be drawn together at points in time or may be fully allocated to a project or
programme.
Full‐time equivalent (FTE)
A technique used to measure human resource involvement in a project, programme, or
operational activities. It is generally required where human resources are allocated across
multiple roles (e.g. 70% allocated to a project and 30% allocated to business operations). An
FTE of 1 means that a person or the sum of all people’s effort is 100% allocated to an
activity, based on the number of working hours available, treatment of overtime, and other
parameters.
Gated Review
Structured reviews of a project, programme, or portfolio as part of formal governance
arrangements that are carried out at key decision points in the lifecycle to ensure that the
decision to invest as per agreed Business Cases and plans remains valid.
Governance (business change)
Encompasses the structures, accountabilities and policies, standards, and process for
decision‐making within an organisation for business change to answer the key strategic
questions of ‘Are we doing the right things?’, ‘Are we doing them the right way?’, ‘Are we
getting them done well?’ and ‘Are we getting the benefits?’
Health check
A health check is a quality tool that provides a snapshot of the status of a project,
programme, or the portfolio. The purpose of a health check is to gain an objective
assessment of how well the project, programme, or portfolio is performing relative to its
objectives and any relevant processes or standards. A health check differs from a Gated
Review in that it is a tool used for assurance purposes by the P3O® to inform specific
actions
or capability maturity development plans, whereas a Gated Review is part of formal
governance arrangements.
Hub and Spoke
A term to describe a system of organisational design for P3O® where there is a centralized
office (the hub) connected to a number of smaller decentralised offices (the spokes) each
with a sub‐set of the centralised office’s business objectives, functions and services. All
information and processes (connections) are arranged so that they move along spokes to
the hub at the centre. A Hub and Spoke model provides the benefit of scalability for large
organisations and supports business ownership by maintaining a level of decentralisation.
Information Hub
The centralised element of the Hub and Spoke model for P3O® in terms of information
flows (see Hub and Spoke definition). It supports highlight and exception‐based reporting
for projects, programmes and/or portfolios by amalgamating information with the process
and information owned by the central office as the Information Hub. Information
Technology Infrastructure Library (ITIL) A set of guides on the management and provision of
operational IT services.
Informed customer
An individual, team, or group with functional responsibility within an organisation for
ensuring that spend on IS/IT or other procurement is directed to best effect, i.e. that the
business is receiving value for money and continues to achieve the most beneficial
outcome. The term is often used in relation to the outsourcing of IT/IS. Sometimes also
called ‘Intelligent customer’.
Key Performance Indicator (KPI)
Metric (either financial or non‐financial) that is used to set and measure progress towards
strategic objectives for an organisation.
Management Board
Generic term used to describe either project Management Boards, programme
Management Boards or Portfolio management boards, or any combination based on the
P3O® context.
Management Dashboard
A technique to represent vast amounts of decision‐support information at an amalgamated
level using tabular and graphic representation such as graphs and traffic lights.
Managing Successful Programmes (MSP)
An OGC publication/method representing proven programme management good practice
in successfully delivering transformational change, drawn from the experiences of both
public and private sector organisations.
Mandate
Information created externally to a project or programme that forms the terms of
reference and is used to start up a PRINCE2® project or identify an MSP® programme. A
Mandate may be initiated through an unstructured approach, or it may be derived from
strategic planning, business planning or portfolio management processes.
Matrix management
A type of organisational management in which human resources with similar skills are
pooled together for the assignment of work to other parts of an organisation. In this
approach, there is a separation between line management and line of authority in that a
person may report to several project, programme, or business managers to undertake
multiple work assignments at different times but have a line of authority to a different
manager altogether.
Organisation Portfolio Office
A type of P3O® model that is designed to centrally manage the investment process,
strategic alignment, prioritisation and selection, progress tracking and monitoring,
optimisation, and benefits achieved by an organisation’s projects and programmes on
behalf of its senior management.
P3M3
OGC’s Portfolio, Programme, and Project Management Maturity Model.
P3O® Sponsor
A senior manager with appropriate authority who champions the establishment and
evolving operation of the P3O®. They will ideally be a member of the main board.
P3RM
An acronym to describe portfolio, programme, project, and risk management together.
Peer review
Specific review of a project or any of its products where personnel from within the
organisation and/or from other organisations carry out an independent assessment of the
project. Peer reviews can be done at any point within a project but are often used at
stageend points.
PESTLE
Acronym for ‘Political, Economic, Social, Technological, Legal, and Environment’ and is a
technique used generally in organisational change management to undertake an
environmental scan at a strategic level.
Pet project
A project that is championed by an executive in an organisation that may be aligned to an
individual goal or goal for a specific part of the business, but not aligned to the strategic
imperatives of the organisation as a whole.
Portfolio, Programme, and Project Offices (P3O®)
The decision enabling and support business model for all business change within an
organisation. This will include single or multiple physical or virtual structures, i.e. offices
(permanent and/or temporary), providing a mix of central and localised functions and
services, integration with governance arrangements and the wider business, such as other
corporate support functions.
PRINCE2®
A method that supports some selected aspects of project management. The acronym
stands for PRojects IN Controlled Environments.
Programme Brief
A statement that describes the specific objectives, required benefits, potential risks, outline
costs, timescales, and potentially options for delivery for a programme.
Project Brief
A statement that describes the purpose, cost, time and performance requirements/
constraints for a project.
Project Executive
The individual who is ultimately responsible for a project. Their role is to ensure that the
project is focused throughout its lifecycle on achieving its objectives and delivering a
product that will achieve the forecast benefits.
Project Initiation Document (PID)
A logical document that brings together the key information needed to start a project on a
sound basis and to convey that information to all concerned with the project.
Resource
An organisation’s physical or virtual entities (human or other) that are of limited availability
and can be used to undertake operations or business change.
Risk potential assessment (RPA)
A standard set of high‐level criteria against which the intrinsic characteristics and degree of
difficulty of a proposed project are assessed. Used in the UK public sector to assess the
criticality of projects and so determine the level of OGC Gateway Review required.
Scale of risk
A standard technique for estimating the probability and impact of a risk across an
organisation, portfolio, programme, or project. This may be provided as part of a risk
management standard (external) or a Risk Management Strategy or Policy.
Senior Responsible Owner (SRO)
The single individual with overall responsibility for ensuring that a project or programme
meets its objectives and delivers the projected benefits.
Swimlane
A method for documenting business process flows that separates each process step into a
row (or lane) of accountability for individual roles or groups.
SWOT
Acronym for ‘Strengths, Weaknesses, Opportunities, and Threats’. An analysis technique to
determine favourable and unfavourable factors in relation to business change or current
state.
Taxonomy
A classification of things, or the principles underlying such a classification. The term may be
applied to relationship schemes such as parent–child hierarchies and network structures. A
taxonomy might also be a simple organisation of kinds of things into groups, or even an
alphabetical list.
Zero‐based Cost Centre
Similar to a cost centre, except that the division, business unit, or part of the organisation
cross‐charges other parts of the organisation for some or all of its services or activities to
achieve a spend of zero when its costs and income from cross charging are added up.

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Key Functional Areas of P3O®

1. Strategic planning or portfolio support – It focuses on supporting senior

1. Organisation Portfolio Office Model – A single, permanent organisation

3. The Organisation Portfolio Office Model is…

4. A programme’s lifecycle is comprised of…

Business change governance support and enablement

Investment for the P3O®

A highly respected, charismatic, Allows for a structure and focus for

A portfolio office that is staffed Allows for decision‐making at senior

An establishes Lessons are shared ‘in context’ – of

A blueprint for the P3O® that is The ability to empathise with

An example of a P3O® model hub portfolio offices temporary programme

Those involved in delivering change (mainly

A single point of ownership by a

Standards are continually The sharing of best practice and a

Permanent vs Temporary Offices

High‐level functions and services of a P3O® model

 Strategy development and management, including business planning

 Who makes the decision and when

Sizing and Tailoring of the P3O® Model

% programme office staff 10 7 6 5 4 3 3

An adjustment to these numbers will be required for these situations:

FTEs per functional area for a P3O® sizing model

Additional Considerations for a Temporary Programme or Project Office

Implementation Lifecycle for a permanent P3O® Model

 Are the existing P3O®s doing the right thing?

P3O® Value Matrix

Agreeing the Vision

Develop, Model, and Validate the Benefits

 Increased cost savings

Value focus to all activities

Temporary Programme or Project Office

In organisations without an Organisation Portfolio Office or Centre of Excellence, the set‐up

Key areas of focus for a temporary programme or project office

Closing and Recycling the temporary office

How to Operate a P3O®

 Within corporate or P3O® standards and policies

Benefits of Tools and Techniques

Critical Success Factors

Maximise successful programme and project delivery through incremental

 The disadvantages/problems of ‘big bang’ project implementation equally apply to

An example of strategic alignment and risk level diagram

Assurance, Gated Reviews, and Health Checks

Exercise: Match up the techniques and their objectives

Head of P3O® (Permanent Office)

Head of Temporary Office

Communications and Stakeholder Engagement

Consultancy and Performance Management

Planning and Estimating

Planning and Estimating

Case Study: Skipton Building Society

Glossary of Terms and Definitions

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