1

PM Footprints – Project Portfolio

Management

Niladri Mallick Choudhuri

16 January 2014

2 Presentation Title

Agenda

Project Portfolio Management

Definition

Portfolio – Program - Project

Portfolio Management and Corporate Governance

Portfolio Management, Strategy and Operations

Portfolio Management Strategy

Portfolio Management Model

Portfolio Management Process

3

SPPM Workshop - Definition

What is Portfolio?

As per PMI – A Portfolio is a collection of Projects or Programs and other work that

are grouped together to facilitate effective management of that work to meet

strategic business objectives. The Projects or Programs of the Portfolio may not

necessarily be interdependent or directly related. These components of a Portfolio

are quantifiable; that is, they can be measured, ranked and prioritized.

As per OGC – An organization’s portfolio is the totality of its investment (or

segment thereof) in the changes required to achieve its strategic objectives.

What is a Portfolio Management

As per PMI – Portfolio Management is the coordinated management of Portfolio

Components to achieve specific organizational objectives.

As per OGC – Portfolio Management is a coordinated collection of strategic

processes and decisions that together enable the most effective balance of

organizational change and BAU.

4

Portfolio – Program – Project

Project B

Project C

Project D

Project A

Program 1

Program 2

Strategy

Project E

Project: A project is a temporary endeavour

undertaken to create a unique product or service.

Projects are temporary (characterized by a definite

beginning and a definite end) and unique (the

product or service is different in some distinguishing

way from all other products or services).

Source: Project Management Institute

Program: A set of projects

that have a common objective

and interdependencies that

need to be managed. A set of interrelated and inter-

dependent projects.

Source: Project Management Institute

Portfolio: Overall collection of the organization’s grouping of high-level initiatives and their respective projects. Source: Gartner

Business Strategy: The approach or line to take, designed to achieve a long-term aim. Strategies can exist at different levels in an organization

Portfolio

5

Portfolio Management and Corporate Governance

Relationships among Portfolio Management and Organizational Governance:

Organizational Governance

Strategic Planning

Management of

Operations

Management by Projects

Portfolio Management

Program Management

Project Management

Process Tools and

Metrics

6

Portfolio Management, Strategy and Operations

Relationships among Portfolio and Strategy

The ultimate goal of linking Portfolio management with organizational strategy is to establish a

balanced, executable plan that will help the organization to achieve its goals. The impact of the

portfolio plan upon strategy is attained by the five areas:

Maintain Portfolio Alignment

Allocating Financial Resources

Allocating Human Resources

Measuring component contributions

Strategic Risk Management

Relationship between Portfolio Management and Operations

The day to day functioning of the organization will continue. Portfolio management will impact

multiple functional units in the organization. There may be operational budget constraints

affected by portfolio or vice versa.

7

Portfolio Management, Strategy The framework supports the execution of strategy and drives the alignment between strategy,

operations, and risks

2. Translate the

Strategy

5 Monitor & Learn

1. Develop the

Strategy

4 Plan

Operations

6 Test & Adapt 3. Align the

Organization

Risk

Process

Execution

Strategic Plan

Operating/Financial

Plan

Governance & Risk Management

C

h

a

n

g

e

M

a

n

a

g

e

m

e

n

t

L

e

a

r

e

r

s

h

i

p

f

o

r

E

x

e

c

u

t

i

o

n

Project & Portfolio Management

8

Project Portfolio Management Detailed Model

Unapproved

Cancelled In-Progress Projects

On-Hold Projects

Portfolio Screening

New Projects

Project Scoring

Portfolio Ranking Portfolio

Simulation Out of Capacity

Complete

A N N U A L

Quarterly

Monthly

Portfolio Monitor

Pre-Assessment

Approved and

not Resourced

Strategic Planning

Project Management

Business Unit Planning

Project Portfolio

Management

Post Audit

In-Progress Projects

On-Hold Projects

Screened

Approved

Unapproved

9

Portfolio Management Process

Portfolio Management Process can be divided in two parts:

As per OGC

Portfolio Definition Processes

Portfolio Delivery Processes

As per PMI

Aligning Process Group

Monitoring and Controlling Process Group

10

Portfolio Management Process

Portfolio Definition Processes

Understand

Categorize

Prioritize

Balance

Plan

Portfolio Delivery Processes

Management Control

Benefits Management

Financial Management

Risk Management

Stakeholder Engagement

Organizational Governance

Resource Management

11

Portfolio Management Process

Aligning Process Group

Identify Components

Categorize Components

Evaluate Components

Select Components

Identify Portfolio Risk

Analyze Portfolio Risk

Prioritize Components

Develop Portfolio Risk Response

Balance Portfolio

Communicate Portfolio Adjustments

Authorize Components

12

Portfolio Management Process

Monitoring and Controlling Process Group Management Control

Monitor and Control Portfolio Risks

Review and Report Portfolio Performance

Monitor Business Strategy Changes