Project, Program & Project Portfolio

Management
Methods, Process, Tools & Techniques
Anand Subramaniam
2
The ultimate leader is one who is willing to
develop people to the point that they
surpass him or her in knowledge and
ability.
- Fred A. Manske, Jr
3
Highlights
Project Management
Project Methodology
Program Management
Project / Program Office
Project Portfolio Management
Project Management
5
Why Projects fail?
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Reasons for Project Failure
Poor project
specification
Scope/objectives
unclear
Unrealistic timescales
Over-optimism
Under-resourcing
Lack of buy-in from
key players
Failure to manage
user expectations
Failure to manage
change
Inappropriate staff
Too much reliance on
one individual
7
Managing Projects - Do & Dont
Do
Get all stakeholders
to sign up to project
plan
Seek help if you need
it
Devote time to early
work
Dont
Overload people
Accept an
unreasonable
deadline without
challenging it
Assume others have
same priorities as you
Use tools and
procedures you dont
need
8
Criteria for Successful Project
Communication, Communication,
Communication
Time invested at start to understand purpose
and build relationships
A clearly defined scope
Realistic objectives
Commitment and buy-in from Project Board and
senior managers
Clearly defined roles and responsibilities
A motivated and valued Project Team
9
Traits of a Good Project Manager
Spends time upfront
understanding project and getting
commitment from stakeholders
Communicates with all
stakeholders openly and honestly
Explains and gets agreement from
people on what they need to do
and when
Listens
Understand scope and objectives
and keeps them in mind when
making decisions
Builds the team and makes the
most of members skills
Keeps Project Team involved and
motivated
Is prepared to take calculated
risks
Plans thoroughly keeps
workload, resources and
timescales in balance at all times
Is accountable for all aspects of
the project
Makes decisions based on the
information available
Puts the project before any other
allegiances
Is honest with themselves and
others
Uses common sense
Is a good negotiator
Anticipates, prioritises and
addresses potential and real
problems as soon as they become
apparent
10
Importance of Lessons Learned Report
Review lessons learned from previous
projects
Set up a Lessons Learned Log
Capture lessons learned throughout life of
project
Review Log at key points in project
Write lessons learned report
Share lessons and good practice
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Continuous Improvement
Build knowledge bases
Record lessons learned
Refer to case studies, websites
Learn from experience of others
Contribute to the body of knowledge
Learn from and build on own experience
Keep up-to-date with relevant publications
Join associations, support groups, committees
Project Methodology
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Benefits of having a Methodology
No Methodology Having a Defined Methodology
Projects tend to be developed to attract funds Projects are designed to solve problems
Projects have to fit a standardised set of outputs Projects develop local criteria and indicators to suit the local
situation and achieve excellence
Focus is on writing applications for funding Focus is on designing and making decisions before writing the
proposal
Stakeholders have not been active in designing
projects
Stakeholders help to define the problems and make decisions
about the solutions
Projects are driven by the funder or technical
supply
Projects are led by demand
Poor analysis of local situation Through stakeholders involvement, the local situation is well
understood
Activity focused Projects are designed through identifying objectives as solutions to
each problem
Impact cannot be verified Each objective has clear evidence indicators that can be verified
Short term vision The focus is always on the long-term and sustainable benefits
Projects tend to include many areas and become
complex and exclusive
Projects tend to be placed in an operational strategy and remain
focused on a single outcome
Inconsistent documentation All documents are standardised to improve consistency and content
14
PMBOK
The PMI Project Management Body of
Knowledge (PMBOK) is an inclusive term that
describes the sum of knowledge within the
profession of project management.
PMBOK includes knowledge of innovative and
advanced practices that are widely applied in all
fields of project management.
Project management is the application of
knowledge, skills, tools and techniques applied
to meet a projects requirements.
15
PRINCE2
PRINCE2 (PRojects IN Controlled
Environments) is a process-based
approach for project management
providing an easily tailored and scaleable
method for the management of all types of
projects.
The method is the de-facto standard for
project management in the UK and is
practiced worldwide.
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Other Methodologies
Agile
SDM
Lean
Six Sigma
Kepner Tregoe
Lean Six Sigma
Theory of Constraints (TOC)
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PMBOK vs. PRINCE2
PMBOK PRINCE2
Comprehensive Focuses on key risk areas only;
does not claim to be complete
Largely descriptive,
prescriptive on a high level
Highly prescriptive, especially on
Process Structure, but adaptable
to any size project
Core and facilitating
processes; need to be scaled
to needs of project
All processes should be
considered; also need to be
scaled
Customer requirements driven Business case driven
Sponsor and stakeholders Clear project ownership and
direction by senior management
US/International Standard UK Standard
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PMBOK vs. PRINCE2 - Components
PMBOK Knowledge Area PRINCE2 Components
Integration Combined Processes,
Components, Change Control
Scope, Time, Cost Plans, Business Case
Quality Quality, Configuration
Management
Risk Risk
Communications Controls
Human Resources Organisation (limited)
Procurement Need to create procurement
products
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PMBOK vs. PRINCE2 - Match
PMBOK P2: Project Level P2: Stage Level
(phase-by-phase)
Initiating Starting Up; Directing Managing Stage
Boundaries; Directing
Planning Initiating, Planning Managing Stage
Boundaries; Planning
Executing/
Controlling
[managed on a stage
by-stage basis]
Controlling a Stage;
Managing Product
Delivery; Directing
Closing Closing A Project Managing Stage
Boundaries
Program Management
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What is Program Management?
The orchestration of a portfolio of
projects effecting organisational
change to deliver business benefits of
strategic importance
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Why Program Management?
Good management control of costs
The wider context of risks is better understood
The gap between strategies and projects is filled
Co-ordination and control of the complex range of activities
Projects are prioritised and integrated to manage resources
better
Effective management of the Business Case to achieve the
vision
Formal process for identifying, managing, realising and
measuring benefits
A management framework that focuses on business change
objectives
Clear responsibilities for preparing for implementing business
change
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Project vs. Program Management
Area Project Management Program Management
Focus Single objective Business strategy
Scope Narrow Wide-ranging, cross-
functional
Benefits Determined in advance
Accrue after completion
Used to make decisions
Accrue during the programme
Deliverables Few, clearly defined Many , many initially
undefined
Timescale Clearly defined Loosely defined
Change To be avoided Regarded as inevitable
Success
Factors
Time, budget, specification Mission, cash-flow, ROI
Plan Specific, detailed, bounded High-level and evolving
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Change Management - Blueprint
Data required
Business models of the new functions,
processes and operations
Organisation structure, staffing levels,
roles, and skill requirements
Information systems, tools, equipment and
buildings
Costs, performance and service levels for
support of future operations
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Benefit Definitions
Depends on other activities outside the control of
the programme
Business / operations areas expected to be
affected
Projected changes from the current business
operations
current measures of the business operations
and the target for improvement (e.g. financial
savings or improved throughput)
When the benefit is expected to be realised
Financial & non financial value of the benefit
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Risk Hierarchy
Strategic - Other programmes, other initiatives,
inter-programme dependencies, political pressures
Program - Changing objectives, program definition,
management skills, inter-project dependencies
Project - Project risks, third party
Operational - Transfer of deliverables to operations,
acceptability within business operations,
acceptability to stakeholders
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Program Stakeholders
Third-party suppliers
Regulatory bodies
The program management team
The governing body of the program
People creating the programs deliverables
Providers of support for the program's deliverables
All business areas impacted by the program, both during the
program or after its completion
Providers of support to the program's activities in areas outside the
Program Manager's control
Custodians of standards and policies relating to the program's
activities
Providers / supporters of the technical infrastructure used by the
program
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Program - Key Roles
Change Agents
Quality Manager
Governing Body
Program Sponsor
Program Manager
Technical Authority
Business Planners
Project Managers
Business Change Managers
Program Management / Support Office
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Program vs. Project Manager
Program Manager
Plans program-level activities and
schedule of projects
Defines TOR for projects
Starts, stops and monitors
progress of constituent projects
Manages program level risks and
issues. Delegates risks to projects
Sets policies and procedures for
projects
Resolves resource conflicts
Determines program standards
Project Manager
Plans a project given the
dependencies and interfaces
defined by the Program Manager
Works within the defined TOR
Runs a project, reporting to the
Program Manager
Manages project risks and issues,
escalating to the Program
Manager wherever necessary
Runs project according to policies
and procedures
Uses assigned resources
Delivers products to the defined
standards
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Program Manager Competencies
Strong leadership and management skills
Effective interpersonal and communications skills
Ability to create a sense of community
Ability to find ways of solving and pre-empting problems
Marketing and communication skills to sell the program into the
business areas
Good knowledge of techniques for planning, monitoring and
controlling programmes
Knowledge of project management approaches
Good knowledge of budgeting and resource allocation procedures
Knowledge of business change techniques, e.g. BPR
Knowledge of benefits identification and management techniques
Project / Program Office -
Questionnaire
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Project Management Office
How do you keep costs down?
How do you eliminate redundancy?
How do you ensure cross-functional
alignment?
What is the impact of change?
How can you leverage your existing
investments in information and IT?
33
Program Management Office
Can you estimate the business value of programs ?
How do you plan and manage the investments and deliver the
business benefits?
How can you gauge under / over performance of programs?
How do you link business case to business strategy?
How can you effectively use business cases for executive
decision making?
How can you assess the actually achievement to the
anticipated business value?
How can you scope the complexity of the programs initiated?
How can you estimate the transformation change and the
change management strategy for business improvement
programs?
How can you stop programs for underperformance or for not
supporting the business strategy anymore?
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Transformation Change
How do you define and manage strategic
business change?
How do you maximise the value in investments
in business change?
How to create blueprints for change in the
business and its IT resource?
How to deliver and maintain information system
solutions?
How to deliver change - on time, on budget, to
defined requirements?
Project Portfolio Management
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What is PPM?
Align Plan Execute Measure
Ongoing Re-calibration
Core Operating Processes (Prioritisation, Governance, Monitoring, Resources)
Project
Approvals,
Completions &
Cancelations
Work Output &
Performance
Trends
Continuous
Improvement
Recommendation
Net Value
Contribution
Optimal
Resource / $$
Utilisation
Balance Risk
Vs. Value
Focus on
Value
Regulatory
Compliance
Changing
Priorities
Project
Changes
Corporate
Strategy
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Symptoms calling for PPM
Symptom
s
Teams overworked /
under appreciated
Project benefits not
captured or tracked
Rework and out of
control costs with
3rd party vendors
No prioritisation
process for
business requests
Seek accurate
estimates based on
firms history &
lessons learned
No tracking
or
accountabilit
y for project
success
Frequent change of
status of projects
(active on-hold
priority on-hold)
Intense competition
internally with regard
to financing / staffing
projects
Too many
small
projects
underway
Excessive
project
delays due
to lack of
resources
Many projects are not
adding strategic value
to the organisation
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PPM - Benefits
Benefits
Improves communication and supports
agreement on project goals
Justifies killing projects that do not
support organisation strategy
Links project selection to
strategic metrics
Builds discipline into
project selection process
Provides executive
oversight of the firm
GRB & PMO jointly
execute PPM Processes
Allocates
resources to
projects that
align with
strategic
direction
Prioritises project
proposals across a
common set of
criteria, rather than on
politics or emotion
Balances risk across
all projects
Provides the structure/process
for project portfolio governance &
avoids duplication / waste
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PPM - Goals
Helps the organisation to make the best use of its resources
Enables the removal of low value projects from the portfolio
Ensures that all new and existing projects are aligned with the organisations
mission, goals and objectives
Produces and maintains a comprehensive listing of all projects which the
organisation is undertaking
Develops a bigger picture view and a deep understanding of the project
collection as a whole
Creates an objective methodology for identifying, ranking, prioritising and
selecting new projects
Ensures that a healthy balance across different types of projects with different
cost, schedule, complexity and risk profiles is maintained
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Project Portfolio Management (PPM)
Are you doing the right things?
Are you doing them the right way?
Are you getting them done well?
Are you getting the benefits?
How are (or will) the benefits be delivered?
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PPM (Contd.)
How do you ensure that the investments are aligned with the
key business objectives?
How do you find the most efficient ways to realise the
strategic goals?
How do you check the right balance of investments across the
portfolio?
How do you realise the predicted benefits of these efforts?
How do you assess programs and projects in the portfolio
and to say 'No' and 'Stop?
How do you provide information to make better decisions?
How do you align actions to strategy and increase success on
strategic initiatives?
How do you minimise risk, manage workload, decrease time
to delivery, decrease costs and to increase value delivered?
42
PPM (Contd.)
How do you create an Inventory of current
programs and projects?
How do you apply categorisation to understand
the different kinds of initiative in the portfolio?
How do you apply evaluation criteria which
enables reliable selection of high value / low risk
initiatives?
How do you create visualisation of the Portfolio
to support executive decision making?
How do you define and create the capability /
Maturity level target and develop a "roadmap" of
how to get there in a realistic timeframe?
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You can tell whether a man is clever by his
answers. You can tell whether a man is
wise by his questions.
- Naguib Mahfouz
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Good Luck
http://www.linkedin.com/in/anandsubramaniam