portfolio management andthe pmo-shelley gaddie

8/3/2019 Portfolio Management Andthe PMO-Shelley Gaddie

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Copyright 2006. Project Corps. All Rights Reserved.

Shelley GaddiePresidentProject CorpsOctober 12, 2006

v i s i o n ACCOMPLISHED

Organizing and Operating toDeliver Value

Portfolio Management andthe PMO


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The Strategic DeliverySystem



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StrategicManagement

ProjectPortfolio

Management

Initiate

Analyze

Design

Strategy

Goals

ObjectivesInternal

Assessment

ExternalAssessment

Initiatives

Approval

Prioritization

Lessons Learned

ProjectManagement

Business Case

Programs & Projects

Ongoing MetricsAnalysis

Build

Validate

Implement

SeniorSenior

LeadershipLeadership

ProjectProject

Portfolio GovernancePortfolio Governance

Project 1Project 1

Project 2Project 2

Project 3Project 3

Shifts for customer andmarket driven change.

Analysis against strategies,goals, objectives.

Prioritization, funding, andcapacity management.

Continuous processimprovement based upon

lessons learned.

Delivery as planned.

PMOPMO



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Initiate

Analyze

Design

Strategy

Goals

ObjectivesInternalAssessment

ExternalAssessment

Initiatives

Approval

Prioritization

Lessons Learned

Business Case

Programs & Projects

Ongoing Metrics

Analysis

Build

Validate

Implement

Project Metrics

Strategic ManagementIdentifies key initiatives, KPIs, and provides aframework for project prioritization.

Performance ManagementEstablishes accountability for financial

performance.Portfolio ManagementMonitors performance against strategic plan.

Incorporates continuous improvements.

Financial ManagementSupports project business case development.

Produces budgets and financial reports.

Tracks project and post-project performance.

Capacity ManagementEstablishes, manages and monitors capacity.

Project ManagementDelivers projects as planned.

Strategic&

PerformanceManagement

Portfolio,Financial

&Capacity

Management

ProjectManagement



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StrategicManagement

ProjectPortfolio

Management

Initiate

Analyze

Design

Strategy

Goals

ObjectivesInternal

Assessment

External

Assessment

Initiatives

Approval

Prioritization

Lessons Learned

ProjectManagement

Business Case

Programs & Projects

Ongoing MetricsAnalysis

Build

Validate

Implement

SeniorSenior


PMOPMO

Project 1Project 1

Project 2Project 2

Project 3Project 3





lessons learned.




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SeniorSenior


PMOPMO

Project 1Project 1

Project 2Project 2

Project 3Project 3





lessons learned.


Strategic Planning

Delineation of strategies and initiatives intoproject portfolio.

Performance ManagementOperational, e.g., balanced scorecard, and

individual performance measurement ofproject and post-project benefit realization.

Portfolio Management

Project portfolio governance, i.e.,

operations and reporting.

Financial Management

Integration of project portfolio financialmanagement, i.e., budgeting and reporting,into standard financial management

system.

Capacity ManagementMeasurement of capacity to fund anddeliver work and digest change.

Project ManagementStandards, training, and performance

monitoring.


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Two PMOs &Their Search for Value



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National BankDramatically Declining MarginsAggressive 2-Year Turnaround Plan

Eliminate RedundanciesCut CostsAdd Value

The Call to Action

Develop and execute a 1-yearturnaround plan to gain control ofthe enterprise project portfolioand demonstrate product andservice value.



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Global RetailerNew LeadershipAggressive 10-Year Expansion Plan

10% Annual Sales Growth4% Annual Store Growth8% Annual Customer Growth

The Call to Action

Develop a PMO business planthat delivers immediate and longterm value and directly supportsdelivery of the 10-Year ExpansionPlan.



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Level 5 Optimized

Level 1 Performed

Level 4 QuantitativelyManaged

Level 3 Defined

Level 2 Managed

Capability Maturity ModelIntegration (CMMI) is a processimprovement approach that

provides organizations with theessential elements of effectiveprocesses. It can be used toguide process improvementacross a project, a division, oran entire organization.



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Level 5 - OptimizationContinuous Improvement Based uponCurrent Business Objectives

Level 4 Quantitatively Managed

Lifecycle Quantitative and Qualitative MetricsPredictable Performance

Level 3 DefinedStandard and Consistently Applied across EnterpriseProcesses Proactively Managed and Improved

Level 2 ManagedPlanned with Visibility to Status and Deliverables

Repeatable within Project, Group or Function

Level 1 Performed

Dependent on IndividualsAd Hoc with Unpredictable Results



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PerformedProject management processes are ad hoc.

Project results are unpredictable.Project success is dependent on heroics of individuals and teams.

ManagedRepeatable processes are practiced on a project level.

Project management process discipline is maintained through times of stress.Visibility to project status and delivery of work products at defined intervals.

Focus on Methodology & Processes

Driver: Project Delivery Predictability



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DefinedProject management processes are defined, understood, and consistently applied from an

organizational perspective.Project management processes are proactively managed and improved.

ManagedRepeatable processes are practiced on a project level.Project management process discipline is maintained through times of stress.Visibility to project status and delivery of work products at defined intervals.

Focus on Tools

Driver: On-time/On-budget Performance



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Quantitatively ManagedProject performance and product quality are quantitatively measured.

A repository of project and portfolio performance measures exists to support fact based decisionmaking.

DefinedProject management processes are defined, understood, and consistently applied from an organizationalperspective.Project management processes are proactively managed and improved.

Focus on PMO

Driver: Project Management Excellence



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OptimizationProject delivery, governance, and project portfolio performance continually improve through

quantitative measures and analysis based upon current business objectives.

Quantitatively ManagedProject performance and product quality are quantitatively measured.A repository of project and portfolio performance measures exists to support fact based decision making.

Focus on Governance

Driver: Strategic Value



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Level 1 Methodology & Processes

Level 5 - Optimization

Level 4 Governance

Level 3 PMO

Level 2 Tools



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The PM Value Framework



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Level 2

Internal

Tactical

Strategic

External

Level 1

Level 4Level 3



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Centralized

Knowledge

&

Metrics

Methodology&

Processes

Tools

Governance

Internal

Tactical

Strategic

External


PMO


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Tactical & Internal:

Standard project lifecycle andmanagement processes.

Tactical & External:Internal and external project scope,

schedule, budget and resourcemanagement supported by standardcommunications and reporting processes.

Strategic & Internal:Enterprise project reporting, monitoring,analysis and internal and externalbenchmarking and closed loopimprovement processes.

Strategic & External:Enterprise project portfolio quantitativeand qualitative analysis and closed loopbenefits realization processes.

MethodologyMethodology

&&

ProcessesProcesses

Strategic

Tactical

ExternalInternal



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ToolsTools

Strategic

Tactical

ExternalInternal

Tactical & Internal:Project schedule and managementtools and systems.

Tactical & External:

Scope, schedule, budget, resourcemanagement, communication andreporting tools and systems.

Strategic & Internal:Project portfolio management andoversight tools and systems.

Strategic & External:Portfolio performance measurement,benefits realization, andaccountability tools and systems.



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CentralizedCentralized

KnowledgeKnowledge

BaseBase

&&

MetricsMetrics

Strategic

Tactical

ExternalInternal

Tactical & Internal:Project management knowledgecenter, performance standards andmetrics.

Tactical & External:Communication for enterprise usewith centralized customer feedbackand lessons learned improvementand communications.

Strategic & Internal:Project portfolio managementknowledge center, performancestandards and metrics.

Strategic & External:Project portfolio performancestandards and metrics based uponbusiness plan and forecast.

Centralized Knowledge Base &

Metrics



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GovernanceGovernance

Strategic

Tactical

ExternalInternal

Tactical & Internal:Project deliverable and milestonebased governance.

Tactical & External:

Project governancecommunications, and reporting.

Strategic & Internal:Project portfolio governance.

Strategic & External:Project portfolio lifecycleperformance governance.



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Value equalsenterprise wide

improvement basedupon internal and

externalbenchmarking.

Value equals

simplicity, ease ofapplication,

scalability and validbusiness cases.

Value equalsshared information

for improvedmanagement,efficiency and

increased control.

Value equalsalignment with

current businessgoals and closed

loop benefitrealization.

Internal

Tactical

Strategic

External



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The PM ValueFramework Applied



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Mission

Strategic:

Demonstrate bottom line

valueRealign and reorganize

Drive the 2-year turnaround

Control the project portfolio

Tactical:Demonstrate customersatisfaction

Scale products and services

Eliminate multiple PMOs



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Defined

Performed Managed

Quantitatively

Managed

MethodologyMethodology&&

ProcessesProcesses

Defined

Performed Managed

Quantitatively

Managed

PMOPMO

Defined

Performed Managed

Quantitatively

Managed


Defined

Performed Managed

Quantitatively

Managed

ToolsTools

Tactical

Internal External

Strategic PMO

Dabbling and spread too thin.

Work and value not visible.

Methodology & Processes

Usability and scalability issues.

No authority or accountability.

ToolsLimited practical applicability.

Reporting at the expense ofinformation.

GovernanceProject level only.

Inconsistent



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Defined

Performed Managed

Quantitatively

Managed


ProcessesProcesses

Defined

Performed Managed

Quantitatively

Managed

PMOPMO

Defined

Performed Managed

Quantitatively

Managed


Defined

Performed Managed

Quantitatively

Managed

ToolsTools

Tactical

Internal External

Strategic PMO

Report to member of ELTShift to strategic role and redefinebreadth of products and services.Close departmental PMOs, reorganizeand improve skills.

Methodology & ProcessesSimplify and scale.Clarify roles, responsibilities andaccountability.

ToolsIdentify, redesign and integrate existingsystems.

Redesign reporting systems.

GovernanceEstablish an integrated enterprisegovernance system and supportingprocesses.



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Mission

Strategic

Organize and operate forhighest value

Benchmark for best practices

Organize for high performance

Tactical:

Drive the delivery of currentinitiatives

24 ongoing

16 new



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Defined

Performed Managed

Quantitatively

Managed


ProcessesProcesses

Defined

Performed Managed

Quantitatively

ManagedCentralizedCentralized

Knowledge BaseKnowledge Base

&&

MetricsMetrics

Defined

Performed Managed

Quantitatively

Managed


Defined

Performed Managed

Quantitatively

Managed

ToolsTools

Tactical

Internal External

Strategic PMO

Strategic value defined:Role and responsibilities.Products and services.

A comprehensive matrixed staffingplan.

Methodology & ProcessesSimple and scalable.Built to deliver, report, measure andgovern through post-project life.Leverage and integrate the six keyPM value processes.

Tools

More than a PPM system - Acomplex integrated system of toolssupporting the six key PM valueprocesses.

Governance

Driven by governance of thebusiness plan.



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Project management is one discipline amongmany required to deliver strategic value.

A philosophical and operational partnership withfinance is key.

Project management must anchor in theenterprise business plan.



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Project management must operate and executeat both the tactical and strategic level.

Project management must embrace and lead thecharge for post project benefit measurement andaccountability.

Project management must assess and delivervalue based upon our organization s selfidentified delivery and performance weaknesses.



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Defined

Performed Managed

Quantitatively

Managed


ProcessesProcesses

Defined

Performed Managed

Quantitatively

ManagedCentralizedCentralized

Knowledge BaseKnowledge Base

&&

MetricsMetrics

Defined

Performed Managed

Quantitatively

Managed


Defined

Performed Managed

Quantitatively

Managed

ToolsTools

Tactical

Internal External

Strategic



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Portfolio Management & ThePMO

Questions & Answers

Shelley GaddiePresidentProject CorpsOctober 12, 2006

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