p3m3 portfolio model

7/28/2019 P3M3 Portfolio Model

1/22

P3M3 Portolio Model

www.ogc.gov.uk

Procurement | Programmes & ProjectsPortolio, Programme and Project Management Maturity Model (P3M3)

Version 2.1


2/22

Portolio, Programme and Project Management Maturity Model (P3M3)2

P3M3 Portolio Model

3. Portolio Management Maturity Model

This model was created rom inormation gathered aspart o the Cabinet Oce and OGC research into theconcept o portolio management.

Defnition o portolio managementThe OGC denition o a portolio is the totalityo an organizations investment (or a segmentthereo) in the changes required to achieve itsstrategic objectives.

Portolio management describes the managemento an organizations portolio o business change

initiatives. It is a coordinated collection o strategicprocesses and decisions that together enable themost eective balance o organizational change andbusiness as usual. P3M3 views portolio managementas an important and active discipline, critical tothe success o achieving eective change inan organization.

Eective portolio management leads to processesand behaviours that enable successul delivery acrossan organizations entire change investment, and itensures that:

change initiatives address and achieve strategicobjectives

maximum business value is realized and at anearly stage

risks are managed

the total change investment is coherent, prioritizedand scrutinized

the broad allocation o skilled change resourcesis optimized

new initiatives can be evaluated against strategic

objectives, business value and current commitments

demands rom change initiatives on the operationalbusiness can be managed and coordinated at anorganizational level.

Organizations may choose to subdivide their portolioor manage only a portion o it. This is oten donein relation to a nancial portolio, a buildings andaccommodation portolio or an IT-enabled businesschange portolio, or example.

Characteristics o portolio managementGood portolio management will be expected to havethe ollowing characteristics.

Focus will be on leadership and alignment withorganizational strategy

Visions and blueprints will cover the entire,dened organization

Timescales or the portolio may be vague, fexibleand long term

Risk will be viewed rom a strategic perspective andin a business continuity context

Integrity o the entire business transormation ismanaged through programmes and projects andbusiness as usual

Benets orientation will be towards theorganizational benets that aect all areas andare linked to strategic organizational goals

Stakeholder engagement will have a strategic andexternal ocus

Governance requires the setting o policies

and standards

Quality will be viewed rom the perspective oportolio alignment and eectiveness

Planning will be viewed in the context o outcomedependency and confict resolution

A combination o programmes and projects andother business change activity is likely.

The management o internal elements o programmesor projects is not considered part o portoliomanagement.

Attributes o portolio managementThe ollowing sections set out the attributes oreach o the seven Process Perspectives within thePortolio Management Maturity Model, at each othe ve Maturity Levels, along with a descriptiono each attribute.

P3M3 is a Registered Trade Mark o the Oce o Government Commerce

The OGC logo is a Registered Trade Mark o the Oce o Government Commerce in the United Kingdom


3/22

Portolio, Programme and Project Management Maturity Model (P3M3) 3

P3M3 Portolio Model

PM3 - Management Control Level 1DescriptionThe organization recognizes the portolio but has

little or nothing in terms o documented processes orstandards or managing the portolio.

Specifc Attributes1. Portolio concept may be recognized at

departmental or divisional level but probablynot at organizational level, and likely to be littlesupporting denition/documentation

2. May be some management attention toportolio, but no recognizable process ordening and translating the organizationsstrategic objectives and policies into

dened initiatives3. Portolio management terminology may be used

but not consistently

Generic Attributes1. Training provision is uncoordinated, with little or

no knowledge sharing

2. Key individuals lack experience

3. No standard roles, and responsibilities are notdened or are generic

4. Some inormation available but is outdated,unstructured and dispersed

5. Limited, i any, ormal checking or review

6. Plans, i any, are conceptual or merely sequenceso events with rough timescales

7. Planning, i any, likely to be an initial activity withlittle maintenance o ownership or tracking

PM3 - Management Control Level 2DescriptionThere are pockets o portolio discipline within

individual departments, but this is based on keyindividuals rather than as part o a comprehensive andconsistent organization-wide approach.

Specifc Attributes1. Willingness or the organization to implement

new processes to support and enable portoliomanagement but not implemented consistently

2. Some recognition that departmental or divisionalportolios must t within the priorities andprocesses o an organizational portolio

3. Common vocabulary or portolio managementbeginning to evolve

4. May be specic guidelines on portoliomanagement in parts o the organization

Generic Attributes1. Localized inormation structures, with some

inormation sharing between teams

2. Focus on documentation during start-up anddenition, but not maintained over initiativeslie cycle

3. Limited localized inormation controls, with noormal release management arrangements

4. Local reviews, with some corrective actionsundertaken within the group

5. Generic training may be provided in keyconcepts, and there may be individualsundertaking qualication training

6. Local sharing o knowledge may exist butmostly ad hoc

7. Key individuals may have practical deliveryexperience and track record

8. Roles, responsibilities and competencies denedin some areas but not consistently acrossthe organization

9. Plans exist but are not underpinned by consistentdevelopment methodology, yet may still beeective locally

10. Planning seen as activity tracking rather thanproactive/orecasting

11. Estimation is more guesstimation and doesnot use standard techniques

PM3 - Management Control Level 3DescriptionPortolio management processes are centrally dened,documented and understood, as are roles andresponsibilities or delivery.

Specifc Attributes

1. Portolio management recognized as beingExecutive Boards responsibility and a structure isin place to ensure delivery o portolio

2. Centrally dened, owned and managed processor translating policy and strategic priorities intoportolio initiatives, with redundant initiativeseliminated

3. Portolio management processes have speciedowners and there is evidence o an eectiveOrganization Portolio Oce

4. Overarching plan linking organizational strategic

plan to portolio initiative plans

5. Portolio has set policies, standards and methodson how initiatives will be delivered consistentlyand optimally


4/22


P3M3 Portolio Model

6. Organization Portolio Oce reports to ExecutiveBoard

7. Documentation explaining context, purpose and

expectations o portolio

8. Portolio has a dened perimeter, enablingdemarcation and understanding o what itcontains

Generic Attributes1. Inormation has a reresh cycle or is regularly

accessed

2. Organization-wide inormation standards oncondentiality, availability and integrity

3. Formal inormation release managementprocedures

4. Independent reviews take place

5. Scrutiny largely or compliance reasons,identiying ailures rather than opportunitiesor improvement

6. Plans developed to a central and consistentstandard that is output- or goal-based

7. Plan development takes into account a rangeo relevant actors

8. Evidence o eective estimating techniques

9. Dependencies are identied, tracked andmanaged eectively

10. Training is ocused on the organizationsapproaches and raising competence oindividuals in specic roles

11. Forums exist or sharing organizationalexperience to improve individual andorganizational perormance

12. Centrally managed role denitions andsets o competencies dened and used

to support appointments

PM3 - Management Control Level 4DescriptionPortolio management processes exist and are proven.Portolio management has established metrics againstwhich the strategic success o the organization can bemeasured.

Specifc Attributes1. Robust organizational ramework or categorizing

initiatives, measuring and monitoring

organizational perormance, and measuringcontribution rom portolio

2. Executive Board responsible or ensuring deliveryo portolio

3. High-level reports on key aspects o portoliomade available to Executive Board to supportinormed decision-making

4. Process in place or evaluating and handlingmajor changes within portolio

5. Continual assessment o organizationscapacity to manage initiatives, and oappropriate prioritization

6. High levels o operational engagement withdecision-making and direction o portolio

7. Decision-making based on maintainingalignment and balance within portolio,and its optimal conguration, to achievestrategic objectives

8. Initiative management process capabilitydetermined and used to establish suitableperormance goals, which are then monitored

9. Trend reporting on progress, actual andprojected cost, level o risk, and initiative andstakeholder condence, are routinely collected,reviewed by Executive Board and used ordecision-making

10. Quantitative and qualitative measures andlessons identied are routinely used to improveeectiveness o portolio management

Generic Attributes1. Inormation is current and extensively reerenced

or better decision-making

2. Trend analysis and measurement undertakenon perormance inormation to identiyimprovement opportunities

3. Knowledge management is a central unctionand is used to help improve perormanceand planning

4. Reviews ocus on opportunities to improve aswell as compliance

5. Plans kept up to date, with the applicationo sophisticated planning techniques andrecognition o interdependencies

6. Extensive training is provided, ocusingon personal development and perormanceimprovement

7. Evidence o interventions to avoid conficts andtake advantage o opportunities

8. Mentoring and individual development is used to

improve organizational perormance

9. Succession plans exist or key roles


5/22


P3M3 Portolio Model

PM3 - Management Control Level 5DescriptionPortolio management has well-dened controls

and behaviours that enable it to deliver the strategicobjectives o the organization through a variety oprocesses and tools. There is evidence o continualimprovement.

Specifc Attributes1. Portolio management processes proven

and optimized

2. Management control and reporting mechanismsare proactive and ocus on Key PerormanceIndicators aligned to the organizationsstrategic objectives

3. Portolio management can demonstrate thatits role in scrutinizing initiatives has resultedin some being stopped or reshaped to gainbetter alignment with other initiatives and tooptimize delivery

4. Evidence that lessons learned through portoliomanagement are disseminated widely

5. Management controls evaluated to ensure theyremain aligned to business needs

6. Business opportunities identied and potentialbenet o new technology to deliver successuloutcomes, and its impact, is determined

Generic Attributes1. Inormation is valued, with continual

maintenance and reerence

2. Evidence o extensive intelligence-gatheringprocesses, with inormation disseminatedthrough a variety o channels

3. Review and improvement is continual andproactive, with lessons being shared openly

4. Planning inherent in decision-making process,with adjustments and implications managedand deployed

5. Active management o interdependenciesbetween initiative plans and other business plans

6. Estimations are accurate and used eectively toensure delivery

7. High levels o competence embedded in all rolesand seen as part o career paths

8. Knowledge transer is an inherent behaviourwithin the organization

9. Skills embedded into organizational leadershipand management development programmes

PM3 - Benefts Management Level 1DescriptionThere is some recognition that initiatives may exist

within the organizational and divisional portolioto enable the achievement o benets or theorganization. However, there is no dened benetsrealization process.

Specifc Attributes1. Initiatives may identiy some business benet

generally

2. Any benets identied tend to be subjectiverather than objective

3. May be some statements on the purpose osome initiatives but not providing a clear view owhat success will look like









PM3 - Benefts Management Level 2DescriptionThe development o the investment cycle will increasethe awareness o the importance o identiyingbenets and subsequently tracking whether they have

been realized. However, the realization o benets isstill likely to be patchy, inconsistent and unmonitored.

Specifed Attributes1. Evidence o individuals or local unctions using

a process or dening business benets, butlittle ormal benets tracking, management orownership

2. Some initiatives will be expected to identiybenets and how to achieve them, but this isdeployed inconsistently

3. Likely to be overlap and double counting obenets between initiatives, with a poorlydened process to identiy these


6/22


P3M3 Portolio Model

4. Some alignment o identied benets to theorganizational objectives, but likely to beunquantied and patchy









8. Roles, responsibilities and competenciesdened in some areas but not consistentlyacross the organization




PM3 - Benefts Management Level 3DescriptionThere is a centrally managed ramework used or

dening and tracking the realization o portolio-levelbenets across the business operations.

Specifc Attributes1. Explicit statements on how benets enabled by

initiatives actually contribute to business valueand strategic objectives

2. Clear organizational policies relating to benetsmanagement deployed through initiatives (e.g.programme benets management strategies)

3. Business or service areas actively engaged in

dening and realizing benets4. May be an organizational design authority with

responsibility or benets across portolio

5. Benets are owned and the perormancemanagement process ensures their realization;ownership may be cascaded but with a clear trail

o accountability or benets realization6. Strategic benets ully documented with

clear links between initiatives and businesschange activities

7. Changes to individual initiatives are assessed orimpact on benets realization

8. Dened process or identiying and realizingopportunities

9. Process in place or validating the realization obenets and rening targets

10. Benets realization objectives linked tooperational business plans


accessed






7. Plan development takes into account a range orelevant actors





12. Centrally managed role denitions and setso competencies dened and used to supportappointments


7/22


P3M3 Portolio Model

PM3 - Benefts Management Level 4DescriptionThe benets realization and management process is

well established, measurable and is integrated intohow the organization manages itsel.

Specifc Attributes1. Benets realization and management process

well established across all initiatives, with outputsand benets actively measured, managed andowned, and an identied link between outcomesand the organizational perormance ramework

2. Clear accountability or benets realization isdened within portolio roles

3. There is a portolio o strategic benets that theportolio manages through prioritizationo initiatives

4. Dependencies between benets identiedand managed

5. Business areas perormance-managed todeliver benets

6. Perormance metrics tracked across the businessto measure improvements against baselinesand targets

7. Lessons rom benets realization perormance

embedded into expectations rom initiatives

8. Benets realization integrated into organizationalperormance management ramework

9. Benets measurement tracks positive andnegative eects on the business against a rangeo operational measures



2. Trend analysis and measurement undertaken

on perormance inormation to identiyimprovement opportunities




6. Extensive training is provided, ocusing onpersonal development and perormanceimprovement


8. Mentoring and individual development is used to

improve organizational perormance


PM3 - Benefts Management Level 5DescriptionBenets realization is integral to the development obusiness strategy decision-making. There is evidenceo continual improvement.

Specifc Attributes1. Benets realization and management process

exists and is embedded across the organization,with benets realization explicitly alignedto organizational perormance rameworkand outcomes

2. Measurement o benets realized inormsthe organizations strategic objectives andpriorities, enabling adjustments to strategywhere necessary

3. Benets realization and management process iscontinually improved based on lessons learnedand process metrics

4. Externally imposed organizational deliverytargets integrated into benets realization andmanagement process




3. Review and improvement is continual and

proactive, with lessons being shared openly4. Planning inherent in decision-making process,

with adjustments and implications managedand deployed







8/22


P3M3 Portolio Model

PM3 - Financial Management Level 1DescriptionPortolio oversight o the nancial aspects o

initiatives may be recognized but there is little or noorganizational investment control.

Specifc Attributes1. Investment requests oten included within

general budget rounds and not appraisedas investment opportunities against denedselection criteria

2. Funding approval or initiatives devolved tobudget centres, with little or no accountabilityoutside o budget holder

3. Some local nancial control processes butoten ailing to understand projected nancialoutcomes and resolve troubled initiatives

Generic Attributes1. Training provision is uncoordinated, with little

or no knowledge sharing







PM3 - Financial Management Level 2DescriptionThere are business cases being produced and some,usually departmental, structures to oversee investment

decisions. However, business cases are oten appraisedindependently o each other and real organizationalpriorities have not been established.

Specifc Attributes1. Some business cases or some initiatives tested

against emerging organizational priorities andor organizational capacity and appetite or risk

2. Business cases or some initiatives based onsimple cost-benet analysis

3. May be some evidence o options appraisal

4. Provision o unding is local, and not through aconsistent and centrally managed process

5. Individual departments establishing structures tooversee and coordinate their initiatives, but little

evidence o initiatives being stopped due topoor perormance

6. Application o business case guidance varies

and is limited, and business case writing skillsare rudimentary

7. Focus on cost tracking rather than nancialmanagement

8. Business case production, procurement appraisaland investment control are restricted by theextent o individual competencies













PM3 - Financial Management Level 3DescriptionThere are established standards or the investmentmanagement process and the preparation o businesscases. Portolio investment costs are monitored andcontrolled.

Specifc Attributes1. Clear, documented and published investment lie

cycle addressing new ideas, easibility studies,trials, development and review


9/22


P3M3 Portolio Model

2. Investment management process and practicein place across organizational portolio, withinwhich departmental or specialist portolios t

3. Common investment management process andpractice within portolio or initiative approval,monitoring and delegation

4. Business and portolio planning cycles workconcurrently

5. Costs, expenditure and orecasts monitored atportolio level in accordance with organizationalguidelines and procedures

6. Dened interaces with other nancial unctionswithin the organization

7. Criteria within portolio or organizationalinvestment decision-making are clearand communicated

8. Portolio management process includes eectiveplanning o unding availability

9. Financial data in management reports integratedwith schedule data and including trends

10. Financial modelling o value or money, usingagreed and explicit techniques

Generic Attributes

1. Inormation has a reresh cycle or is regularlyaccessed











12. Centrally managed role denitions andsets o competencies dened and used tosupport appointments

PM3 - Financial Management Level 4DescriptionThe organization has eective and robust nancialcontrol o its investment decisions and the approvaland monitoring o initiatives. There is proactive,evidence-based management o the portolioinvestment unds and costs.

Specifc Attributes1. Funding or next stage o delivery released only i

initiative meets agreed perormance criteria

2. Formal review process ensuring that eachinitiatives actual nancial perormance andbenets are in line with expectations, withcorrective actions taken when required

3. Executive Board reassures itsel that there isnancial control across portolio

4. Investment management process ully integratedwith perormance management ramework

5. Investment decisions ensure that initiatives arenot started unless their contribution to theorganizational objectives and priorities is explicitand aligned

6. External nancial risks monitored and evaluatedas part o investment management processes

7. Analysis prior to investment decisions madethrough senior management-owned InvestmentBoard or other delegated expert body

8. Accurate nancial management inormationon initiative costs and benets is available,to acilitate proactive management o theorganizations total investment

9. Full integration between organizational andportolio nancial planning cycles

10. Financial oversight o portolio is organization-centric rather than programme- orproject-centric



2. Trend analysis and measurement undertakenon perormance inormation to identiy

improvement opportunities3. Knowledge management is a central unction

and is used to help improve perormanceand planning


10/22


P3M3 Portolio Model

4. Reviews ocus on opportunities to improveas well as compliance

5. Plans kept up to date, with the application

o sophisticated planning techniques andrecognition o interdependencies


7. Evidence o interventions to avoid confictsand take advantage o opportunities

8. Mentoring and individual development is usedto improve organizational perormance


PM3 - Financial Management Level 5DescriptionFinancial control o the portolio is an integral part othe organizations nancial control regime. There isevidence o continual improvement.

Specifc Attributes1. Executive Board manages investments by

unding only those initiatives with valid businesscases and which continue to pass ormal reviews

2. Investment decisions consider the organizationsentire portolio o initiatives and collectivebenets and priorities

3. There is a portolio o initiatives that balancesnancial risk

4. Portolio nancial decision-making is based onactual and orecast data rom its initiatives

5. The organization is able to fex its appetite ornancial risk to better align portolio to meetorganizational objectives

6. Appropriate nancial control embedded within

initiatives and integrated with organizationalnancial control







6. Estimations are accurate and used eectively to

ensure delivery




PM3 - Stakeholder Engagement Level 1Description

Stakeholder engagement and communication israrely used by portolios as an element o thedelivery toolkit.

Specifc Attributes1. Concept o stakeholder engagement may be

acknowledged but is undened

2. Portolio communicates with stakeholders on adhoc basis, relying on individuals within the teamtaking the initiative

3. No structured approach to stakeholdermanagement and communications


no knowledge-sharing







PM3 - Stakeholder Engagement Level 2DescriptionPortolios will be communicated to stakeholders,but this is linked more to the personal initiative oportolio managers than to a structured approachdeployed by the organization.


11/22


P3M3 Portolio Model

Specifc Attributes1. Evidence may exist o more sophisticated

analysis and communications planning or

some portolios2. Most stakeholder analysis is basic and

inconsistent, limited to the issue o whatstakeholders are interested in

3. Portolios recognize stakeholder groupings butare limited to local knowledge

4. Some portolios have their own communicationsplans but they ocus on merely transmittinginormation

5. Outgoing communications channels romportolios are limited, with ocus on emailor websites

6. Some stakeholders advised or consulted, andeedback processed

7. Structured approach beginning to evolve,but based on good practice o one or twokey individuals




3. Limited localized inormation controls, withno ormal release management arrangements



6. Local sharing o knowledge may exist but

mostly ad hoc




10. Planning seen as activity tracking rather than

proactive/orecasting11. Estimation is more guesstimation and does

not use standard techniques

PM3 - Stakeholder Engagement Level 3DescriptionThere is a centrally managed and consistent approach

to stakeholder engagement and communications usedon the portolio(s).

Specifc Attributes1. Centrally dened and consistent approach,

and supporting process, or identiying andanalyzing stakeholders

2. Portolios consider stakeholder needsand stakeholders are actively involved indecision-making

3. Corporate communications (or equivalent)are involved in development o stakeholderengagement processes and procedures

4. Stakeholders have authority and clearly denedroles within portolios

5. Audit trails o communications maintained orall portolios

6. Communications channels vary and are usedto target and deliver messages eectively

7. Communications budget exists

8. Much o this approach is provided by theOrganization Portolio Oce


accessed

2. Organization-wide inormation standardson condentiality, availability and integrity



5. Scrutiny largely or compliance reasons,

identiying ailures rather than opportunitiesor improvement





10. Training is ocused on the organizations

approaches and raising competence oindividuals in specic roles


12/22


P3M3 Portolio Model


12. Centrally managed role denitions andsets o competencies dened and usedto support appointments

PM3 - Stakeholder Engagement Level 4DescriptionSophisticated techniques are used to analyze andengage the portolio stakeholder environmenteectively, and quantitative inormation is used tounderpin the assessment o eectiveness.

Specifc Attributes1. Sophisticated approach to analyzing,

segmenting and maintaining stakeholderperspective inormation

2. Extensive range o communications channels andtechniques used to deliver messages

3. Eectiveness o communications and stakeholderengagement is measured, and is high

4. Critical stakeholders embedded in decision-making process

5. Stakeholder reactions analyzed, and evidence

o proactive communications management toinfuence stakeholder attitudes and levels osupport

6. Programme leaders engaged with andsupporting communications activities

7. Stakeholder identication and analysis coversinternal and external groups, with inormationmaintained centrally

8. Portolios with high levels o market orcommunity consultation are commonlyat this level





4. Reviews ocus on opportunities to improve as

well as compliance


6. Extensive training is provided, ocusingon personal development and perormanceimprovement

7. Evidence o interventions to avoid confictsand take advantage o opportunities

8. Mentoring and individual development is usedto improve organizational perormance


PM3 - Stakeholder Engagement Level 5

DescriptionCommunications are being optimized rom extensiveknowledge o the stakeholder environment, to enablethe portolio(s) to achieve their objectives. There isevidence o continual improvement.

Specifc Attributes1. Stakeholder engagement embedded in the

organizations culture

2. Communications active, bi-directional andembedded in decision-making process

3. Stakeholders ully engaged in change process atall levels

4. Communications recognized by Executive Boardas a key leadership tool

5. Communications measured, relevant and trusted



2. Evidence o extensive intelligence-gatheringprocesses, with inormation disseminated

through a variety o channels3. Review and improvement is continual and

proactive, with lessons being shared openly







13/22


P3M3 Portolio Model


PM3 - Risk Management Level 1DescriptionThere is a growing recognition that risks need to bemanaged and that, at least or key business initiatives(e.g. cost saving or major site developments), they canthreaten success.

There may be evidence o risks being documented butlittle evidence o active management.

Specifc Attributes1. Risk analysis may be conducted early in

initiatives but is not maintained as a continualmanagement process

2. May be an inventory o organizational risks,but they may not be assessed or impact onschedule, cost and quality

3. Decision-making on risks tends to be initiative-ocused, considering impact on an individualinitiatives outputs rather than the wider impact

4. May be some identication o risk (probablyin dierent systems, such as spreadsheets,text documents, databases, etc.) and somequantication, but little actual management









PM3 - Risk Management Level 2DescriptionThere is generally a top-down approach to riskidentication, ocusing on major organizationalinitiatives, but some initiatives are increasinglycarrying out bottom-up risk identication. However,

these approaches are inconsistent, not particularlyinterrelated and oten do not address the actualmanagement o risks.

Specifc Attributes1. Some initiatives manage risks, but risk decision-

making may not consider wider outcome,

ocusing on threats to initiative rather thanto portolio as a whole and the realization ostrategic objectives

2. Some initiatives analyze risk in terms oprobability, impact (on schedule, cost and qualityo deliverables) and timing

3. Some proactive management o risk, withmitigation plans in place, but such plans are rareand probably ununded

4. Focus on risk tracking rather than riskmanagement

5. No escalation procedures or risk mitigation topass to more senior management

6. May be some eective ownership o risks andrisk actions

7. Top-down (sometimes knee-jerk) approachto risk identication unconnected with bottom-up approach within initiatives, oten causingduplication o eort, competing teams, non-optimal resource allocation, and consequentlyineective management o organizational risk




3. Limited localized inormation controls, withno ormal release management arrangements






9. Plans exist but are not underpinned by consistent

development methodology, yet may still beeective locally


14/22


P3M3 Portolio Model


11. Estimation is more guesstimation and does

not use standard techniques

PM3 - Risk Management Level 3DescriptionPortolio risks are identied and quantied, andresponse plans are developed and unded. Riskmanagement across the portolio(s) is based on acommon, centrally managed process.

Specifc Attributes1. Portolio management has dened a risk

management process and a riskmanagement policy

2. All initiatives comply with portolio riskmanagement process and riskmanagement policy

3. Portolio processes aggregate risks and externalactors are identied and managed centrally (e.g.delivery chain and likely demands/impacts onoperational business)

4. Portolio risk management integrated withorganizational risk management approach

5. Eorts to manage risks are appropriate to theirsignicance and priority

6. There is a risk manager or individual withresponsibility and time or the management orisks within portolio

7. Risks are owned and actively managed bynominated individuals

8. Robust risk management includes: identicationo strategic, delivery (programme/project) andoperational threats/opportunities; consistentanalysis o risk in terms o probability, impact (on

schedule, cost and quality o deliverables) andproximity (timing); response plan production andunding; and continual review by knowledgeableexperts, risk owners and senior managers


accessed


3. Formal inormation release management

procedures4. Independent reviews take place








12. Centrally managed role denitions andsets o competencies dened and usedto support appointments

PM3 - Risk Management Level 4DescriptionThe organizations appetite or risk, and the balanceo threats and opportunities across the portolio,

are continually reviewed and managed. Seniormanagement owns and oversees risk managementacross the portolio.

Specifc Attributes1. Portolio risk management embedded within

organizational reporting, governance andmanagement structures

2. Portolio risks periodically re-assessed byExecutive Board to ascertain threats to, andopportunities or, achieving organizationalobjectives

3. Focus o risk management is on aggregation andbalance o risk across portolios initiatives

4. Executive Board oversees major threats andopportunities, and their response management,and takes accountability or the managemento risk

5. Portolio management identies commonrisks across whole portolio (which may not bevisible to individual initiatives) and balances theorganizations overall exposure to risk

6. Decision-making based on outputs o techniquesor assessing risks, including risk modelling andsimulations


15/22


P3M3 Portolio Model

7. Risk analysis conducted rom a number operspectives, including strategic, operational,commercial and internal to the initiative

8. Appropriate reerence to risk specialists andothers where appropriate (e.g. businesscontinuity, security, incident management,health and saety, environment, procurement)

9. Clear accountability and ownership o risks andevidence o appropriate actions being taken



2. Trend analysis and measurement undertaken

on perormance inormation to identiyimprovement opportunities






8. Mentoring and individual development is used toimprove organizational perormance


PM3 - Risk Management Level 5Description

Risk management is embedded in the culture o theorganization and underpins all decision-making withinthe portolio(s).

There is evidence o continual improvement.

Specifc Attributes1. Eective organizational risk management

ramework with which portolio interactseectively

2. Formal portolio gate reviews used to proactivelyassess and manage investment risk and make

decisions based on their impact on portolio3. Organizational risk management process

and outcomes continually reviewed toensure eectiveness o the process and theorganizational risk management ramework

4. Adequate resources and unding provided orrisk management improvement activities

5. Risk management illustrates a proven and

balanced approach to opportunities and threatsacross portolio

6. Risk management underpins decision-makingprocess throughout portolio








7. High levels o competence embedded in all roles

and seen as part o career paths



PM3 - Organizational Governance Level 1DescriptionThe organization has some inconsistent andinormal attempts to align individual initiatives toorganizational objectives, and there is an ad hoc,

inconsistent and ineective oversight o initiatives.

Specifc Attributes1. May be a recognition that initiatives t within an

organizational portolio, but at best this link willbe notional

2. Initiatives may have been dened but there isonly notional alignment with organizationalobjectives and priorities






16/22


P3M3 Portolio Model





PM3 - Organizational Governance Level 2DescriptionThere are some attempts to recognize the portolio oinitiatives, but there is still little overall leadership anddirection or the process.

Initiatives may be initiated and run without ull regardto the organizational goals, priorities and targets.

Specifc Attributes1. May be local governance developed or specialist

or departmental portolios but inconsistentacross the organization

2. Some key organizational priorities establishedbut wider strategic objectives and priorities orportolio are unclear and not communicated

3. Initiatives ocused on achieving tactical orlocalized objectives rather than strategicobjectives

4. Some areas undertaking process improvement

5. Dicult to establish rationale on which initiativesare unded or approved



2. Focus on documentation during start-up anddenition, but not maintained over initiatives

lie cycle3. Limited localized inormation controls, with no

ormal release management arrangements









PM3 - Organizational Governance Level 3DescriptionCentrally dened organizational controls are appliedconsistently to the portolio(s), with decision-makingstructures in place and linked to organizationalgovernance.

Specifc Attributes1. The organization has established documented

policies, standards, processes and governanceor change investments, and has developed anExecutive Board-owned structure to overseeportolio perormance

2. Clear, dened vision or organizational change,with senior management demonstratingcommitment to it

3. Portolio is well dened and aligned withstrategic objectives and priorities

4. Clear governance structure ensuring that allinitiatives are evaluated, prioritized and approvedbased on strategic objectives, and business casesare continually reviewed or validity and viability

5. Organization Portolio Oce monitorseectiveness o governance and stakeholderengagement or all initiatives

6. Legislative and regulatory requirementsincorporated into portolio management decisionand controls processes

7. Governance controls integrated into portoliocontrols

8. Business perormance inormation acquired andreviewed by Organization Portolio Oce

9. Process ownership is clear and related decision-making responsibilities are clearly dened

Generic Attributes



17/22


P3M3 Portolio Model


3. Formal inormation release management

procedures




7. Plan development takes into account a range orelevant actors





12. Centrally managed role denitions and setso competencies dened and used to support

appointments

PM3 - Organizational Governance Level 4DescriptionAll initiatives are integrated into an achievable andgoverned portolio, which is aligned to strategicobjectives and priorities. The portolio containsrelevant inormation on initiatives (e.g. perormancemeasures, quality attributes and asset managementdata) to support Executive Board decisions.

Specifc Attributes

1. Executive Board shows longevity o commitmentto value o portolio management and viewsportolio as strategic vehicle or change

2. Portolio ormally reviewed periodically (at leastannually) to test or continued relevance oportolio as a whole and initiatives within it

3. Executive Board intervenes to ensure thatportolio remains aligned to organizationsobjectives

4. Within portolio governance arrangementseach initiative is tested and prioritized or

achievability, impact on strategic objectivesand relative benets

5. All initiatives analyzed to identiy commoncauses o ailure, high risk, high cost, etc., sothat lessons identied can be applied to rening

processes, improving perormance and savingcost and time

6. Portolio governance decision-making process isauditable and clear

7. Active searching or improvement in howportolio integrates with organizationalgovernance

8. Clear auditable relationship between strategicobjectives and portolio activities

9. Organizational and portolio leadershipare aligned

10. Analysis and modelling o impact o changeon sustainability o business perormanceduring transition

11. Business processes modelled and activelymanaged using a structured approach

12. Executive Board accountable or decisions tostop or go with change transitions

13. Senior management ascertain the extent oimprovement to assets












18/22


P3M3 Portolio Model

PM3 - Organizational Governance Level 5DescriptionThe portolio is managed to ensure that it remains

aligned to support the organizations strategicobjectives. The portolio management process isoptimized to ensure that it is suciently dynamicand agile to cater or changes in business directionand priorities.


Specifc Attributes1. Governance o investment management has

moved rom a programme/project-centricprocess to organization-centric

2. Portolio realigned to meet changingcircumstances, priorities, drivers and unding,with resources re-allocated accordingly

3. The organization has eective and robustgovernance or managing change

4. Prioritization within portolio based on priority ostrategic objectives

5. Executive Board has clear accountability orstability o the organization and activelymanages portolio to ensure sustainability andrealization o strategic objectives

6. Organization proactively enables, supports andachieves business process improvement

7. Quantitatively measurable goals or processimprovement, with perormance againstthem tracked

8. Business perormance management iseective and seamlessly incorporates processimprovements and benets enabled by initiatives


maintenance and reerence2. Evidence o extensive intelligence-gathering

processes, with inormation disseminatedthrough a variety o channels






8. Knowledge transer is an inherent behaviour

within the organization


PM3 - Resource Management Level 1DescriptionPortolio resource requirements are recognized butnot systematically managed. Resource allocation is adhoc, with little, i any, proling o resources to meetthe resource requirements o specic initiatives.

Specifc Attributes1. Individual initiatives identiy and source their

own resources, creating a high risk o theorganization over-committing key resources

2. Little or no coordination o resources acrossdierent initiatives, and limited alignment toorganizational objectives and priorities, leadingto resource conficts

3. Resource acquisition is ad hoc anduncoordinated

Generic Attributes1. Training provision is uncoordinated, with little

or no knowledge sharing





6. Plans, i any, are conceptual or merely sequences

o events with rough timescales7. Planning, i any, likely to be an initial activity with

little maintenance o ownership or tracking

PM3 - Resource Management Level 2DescriptionThe organization has started to develop portolioresource management processes and improve theidentication and allocation o resources to specicinitiatives. However, this is likely to be reliant on keyindividuals and does not assess the impact o resourceallocation against the strategic objectives

and priorities.


19/22


P3M3 Portolio Model

Specifc Attributes1. Resources deployed within specialist

or departmental portolios, with limited

consideration o the wider organizationalportolio

2. Some specialist or departmental portolioshave dened methods o resource acquisitionbut these are likely to dier and be appliedinconsistently

3. Limited assessment o impact on other initiativesor operational areas when allocating resources

4. Pockets o good resource managementprocesses but likely to be limited to specicinitiatives or departments

5. Problems o not managing resources acrossportolio are beginning to be understood andsolutions starting to be developed in isolatedinitiatives or departments








7. Key individuals may have practical delivery

experience and track record8. Roles, responsibilities and competencies

dened in some areas but not consistentlyacross the organization




PM3 - Resource Management Level 3DescriptionThe portolio resource management process is

centrally dened within the organization. Initiativeresource needs are evaluated, enabling theorganization to target and increase the developmento resources to meet strategic objectives and priorities.

Specifc Attributes1. Policies, processes and tools in place describing

how portolio resources are acquired, managed,deployed and accounted or, and enablingtheir acquisition

2. The organization identies and builds therequired capability o its resources and the

realistic capacity needed to support its initiatives3. The organization has a portolio resource pool

used by initiatives to identiy sta (including romthe operational business) with the appropriateskill sets

4. Portolio resource management process buildson that within initiatives by ensuring thatresource allocation takes cognizance o strategicobjectives and priorities

5. Organization Portolio Oce tracks portolioresource utilization

6. Mechanisms in place or acquisition oportolio resources and exploitation o supplychain opportunities

7. Consistent approach to procuremento resources within portolio

8. Supply chain recognized as part o resource pool

9. Career path or portolio sta dened, clearand implemented

Generic Attributes








20/22


P3M3 Portolio Model






12. Centrally managed role denitions andsets o competencies dened and used

to support appointments

PM3 - Resource Management Level 4DescriptionThe organization has established eective capacityand capability strategies and processes or obtaining,allocating and adjusting resource levels (includingpeople, unding, estate and tools) in line withmedium- and long-term investment plans.

Specifc Attributes1. Practices and processes o the organization

support portolio management and theacquisition, allocation and ecient managemento resources across departmental and unctionalboundaries

2. Utilization o the organizations resource poolmonitored in order to plan, manage and meet itsresourcing needs across all initiatives

3. Priority o initiatives within portolio inormsdecisions on resource allocation

4. Portolio resource management integratesoperational and portolio resource needs

5. Return to business as usual arrangements orsta seconded to programmes and/or projectsare implemented and eective

6. Potential resource conficts across initiativesresolved on the basis o strategic priorities, levelso risk and extent o benets to be realized

7. Perormance assessment o resources basedon initiative delivery rather than individual orteam perormance

8. Continual engagement with supply chain

to optimize deployment o internal andexternal resources











PM3 - Resource Management Level 5DescriptionPortolio management drives the planning,development and allocation o initiatives to optimizethe eective use o resources in achieving the strategicobjectives and priorities. There is an organization-wideresource management policy and strategy or the useo internal and external resources.


Specifc Attributes1. Impact o portolio on strategic planning and

its implementation on uture resource capacitydemands and capability requirements areunderstood and managed

2. Optimal usage o organizational resources canbe demonstrated

3. Portolio resource management processescontinually improved based on lessons learnedand key perormance measures

4. Resource allocation to and rom initiativesintimately aligned with achieving strategicobjectives and priorities

5. Perormance metrics evident to assess resourcecontribution to organizational perormanceramework (or scorecard)


21/22


P3M3 Portolio Model












22/22

CP0256

OGC 1 Horse Guards Road,London SW1A 2HQ

About OGCThe Oce o Government

Commerce is an independentoce o HM Treasury.

The OGC logo is a registeredtrademark o the Oce oGovernment Commerce

in the United Kingdom andother countries.

OGC Service DeskOGC customers can contact

the central OGC Service Deskabout all aspects oOGC business.

The Service Desk will alsochannel queries to the

appropriate second-linesupport. We look orwardto hearing rom you.

You can contact the ServiceDesk 8am 6pm Monday

to Friday:

T: 0845 000 4999E: [email protected]

Press enquiriesT: 020 7271 1318F: 020 7271 1345

Thi i C i ht l dd d d t hi h

Feedback concerning the model should be sent to

[email protected]

Feedback concerning the sel-assessment should be sent [email protected]

p3m3 portfolio model

Documents