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Best Practice User Group™ aims to be the off icial user group of choice for
programmes, projects and risks.
Our mission: to help users adopt, use, share and shape the application of
OGC PPM products.
PREPARED BY THE LEAD AUTHOR
CLUB
Best practice in a recession: luxury or necessity?
Overview
Session one Why use Best Practice in a recession?
Session two How do I embed Best Practice in a recession?
OGC Best Practice Portfolio
Characteristics
Best Practice Optimal use of
process, skills, tools, information
Proven Based on experience Structured thinking Avoids waste Enables prioritisation Provides governance
A Recession New funding is scarce Existing funding may
be withdrawn External factors
uncertain Sense of panic Sense of urgency The ‘wing it’ approach
can emerge
More costs less agility?
Best Practice Winging It
Optimal process (not too much, not too little)
No process
Adds some Project Management costs Adds Fire Fighting costs
Improves predictability Requires a leap of faith – trust me
Repeatable People dependent
Comparable projects/programmes enable informed decision making
Pet projects/programmes prevail
Ensures strategic alignment Silo decisions
Dependencies clear Subject to surprise
Change is controlled (not prevented) Change is normal (what baseline?)
Success can be measured Success defined retrospectively (I said you could trust me!)
Questions to ask?
Do senior management know… How each project contributes to strategic
objectives? The likelihood of achieving the expected benefits? The remaining cost of each project? The earliest and latest completion time for each
project? What’s our exposure to risk? What’s our resource capacity? The impact on the achievement of strategic
objectives if any single project was cancelled, deferred, slowed down or accelerated?
Portfolio appraisal - decisions
Existing projectsCancel
need to make safe and/or salvage work in progress
Suspend as above but leave in a
position such that it can easily be restarted
Carry on And keep monitoring
Accelerate for existing projects
yielding high returns at low cost
New projectsReject (never start)Defer (not now)Go (now)
Example portfolio appraisal
Cancel or SuspendDecisions
Reject or Defer Decision
Go Decisions
Accelerate Decision
Note: this is just one way of viewing a portfolio (diagram courtesy of ChangeDirector)
Informed decision making
Requires clear understanding of strategic objectives and
corporate priorities transparency of analysis confidence in forecasts timely, efficient and effective reporting Contribution of changes to strategy Team work
Best Practice project, programme and portfolio management enables this
Session one Why use Best Practice in a recession?
Session two How do I embed Best Practice in a recession?
Where to focus?
Corporate Strategy
Delivery mechanis
ms for change
Business-as-usual
environment
Programme Management
Project Management
PortfolioManagement
Where to focus?
Portfolio
The "Right" things to do? How are we doing?
ProgrammeOutcomesBenefits
Project
Deliverables
Processes?How do we do it?
Lets do it thesame way!
Capacity?
Can we do it?Can we adopt it?
DOING the RIGHT THINGS
DOING the THINGS RIGHT
effectiveness
efficiency
Manageme
nt Contr
ol
Benefits
Manageme
nt
Risk Manageme
nt
Finance
Manageme
nt
Stake-
holder
Manageme
nt
Oganisatio
n Governanc
e
ResourceManageme
nt
Level 5 Optimised
Level 4 Managed
Level 3 Defined
Level 2Repeatable
Level 1 Recognised
Manageme
nt Contr
ol
Benefits
Manageme
nt
Risk Manageme
nt
Finance
Manageme
nt
Stake-
holder
Manageme
nt
Oganisatio
n Governanc
e
ResourceManageme
nt
Level 5 Optimised
Level 4 Managed
Level 3 Defined
Level 2Repeatable
Level 1 Recognised
How P3M3 can help
Step 1Where are you today?
Step 2Where do you
want to be?
BaselineAssessment Step 3
How will you get there?
AppropriateCapabilities Step 4
How will you know?
ImprovementPlan
Metrics
Manageme
nt Contr
ol
Benefits
Manageme
nt
Risk Manageme
nt
Finance
Manageme
nt
Stake-
holder
Manageme
nt
Oganisatio
n Governanc
e
ResourceManageme
nt
Level 5 Optimised
Level 4 Managed
Level 3 Defined
Level 2Repeatable
Level 1 Recognised
P3M3 Maturity Levels
15Project Management Programme Management Portfolio Management
Level 5 - Optimised
Undertake continuous process improvement with proactive problem and technology management for projects in order to improve its ability to depict performance over time and optimize processes.
Undertake continuous process improvement with proactive problem and technology management for programmes in order to improve its ability to depict performance over time and optimize processes.
Undertake continuous process improvement with proactive problem and technology management for the portfolio in order to improve its ability to depict performance over time and optimize processes.
Level 4 - Managed
Obtain and retain specific measurements on its project management performance and run a quality management organization to better predict and control future performance.
Obtain and retain specific management metrics on its programme management performance and run a quality management organization to better predict and control future performance.
Obtain and retain specific management metrics on its whole portfolio of programmes and projects as a means of predicting future performance. The organization assesses its capacity to manage programmes and projects and prioritize them accordingly.
Level 3 - Defined
Have its own centrally controlled project processes with individual projects being able to flex within these processes to suit the particular project.
Have its own centrally controlled programme processes with individual programmes being able to flex within these processes to suit the particular programme.
Have its own portfolio management process and centrally controlled programme and project processes with individual programmes and projects being able to flex within these processes to suit particular programmes and/or projects.
Level 2 - Repeatable
Ensure that each project is run with its own processes and procedures to a minimum specified standard. (There may be limited consistency or coordination between projects).
Ensure that each programme is run with its own processes and procedures to a minimum specified standard. (There may be limited consistency or coordination between programmes).
Ensure that each programme and/or project in its portfolio is run with its own processes and procedures to a minimum specified standard. (There may be limited consistency or coordination).
Level 1 - Aware
Recognize projects and run them differently from ongoing business. (Projects may be running informally with no standard processes or tracking system).
Recognize programmes and run them differently from projects. (Programmes may be running informally with no standard processes or tracking system).
Have an Executive Board that recognizes programmes and projects and maintains an informal list of investments in programmes and projects, without perhaps a formal tracking mechanism and documented process.
Project Management Programme Management Portfolio ManagementLevel 5 - Optimised
Undertake continuous process improvement with proactive problem and technology management for projects in order to improve its ability to depict performance over time and optimize processes.
Undertake continuous process improvement with proactive problem and technology management for programmes in order to improve its ability to depict performance over time and optimize processes.
Undertake continuous process improvement with proactive problem and technology management for the portfolio in order to improve its ability to depict performance over time and optimize processes.
Level 4 - Managed
Obtain and retain specific measurements on its project management performance and run a quality management organization to better predict and control future performance.
Obtain and retain specific management metrics on its programme management performance and run a quality management organization to better predict and control future performance.
Obtain and retain specific management metrics on its whole portfolio of programmes and projects as a means of predicting future performance. The organization assesses its capacity to manage programmes and projects and prioritize them accordingly.
Level 3 - Defined
Have its own centrally controlled project processes with individual projects being able to flex within these processes to suit the particular project.
Have its own centrally controlled programme processes with individual programmes being able to flex within these processes to suit the particular programme.
Have its own portfolio management process and centrally controlled programme and project processes with individual programmes and projects being able to flex within these processes to suit particular programmes and/or projects.
Level 2 - Repeatable
Ensure that each project is run with its own processes and procedures to a minimum specified standard. (There may be limited consistency or coordination between projects).
Ensure that each programme is run with its own processes and procedures to a minimum specified standard. (There may be limited consistency or coordination between programmes).
Ensure that each programme and/or project in its portfolio is run with its own processes and procedures to a minimum specified standard. (There may be limited consistency or coordination).
Level 1 - Aware
Recognize projects and run them differently from ongoing business. (Projects may be running informally with no standard processes or tracking system).
Recognize programmes and run them differently from projects. (Programmes may be running informally with no standard processes or tracking system).
Have an Executive Board that recognizes programmes and projects and maintains an informal list of investments in programmes and projects, without perhaps a formal tracking mechanism and documented process.
P3M3 Maturity Levels
16
(Chaotic, Ad Hoc, Heroic)The starting point for use of a new process
(Process discipline)The process is used repeatedly- Documenting current practices
(Embedded)The process is defined/confirmed as a standard business process
- Documenting desired practices / Designing processes.
(Quantified)Process management and measurement takes place
(Process Improvement)Deliberate optimisation/improvement
85%
9%
4%
2%
Example P3M3 dashboard
PjM3 specific Attributes
Management Control
Benefits
Management
Risk
Management
Finance
Management
Stake-holder Management
Oganisationa
l Governance
ResourceManagement
Level 5 Optimised
Level 4 Managed M H
Level 3 Defined H H M M M H M
Level 2Repeatable H H M H L M H
Level 1 Aware M H H M M H H
Key:
H/M/L designates confidence
Red = no evidence of key practicesAmber = some evidence key practicesGreen = most key practices in placeWhite = out of scope
Tips for ‘low cost’ activities
Understand the environment Current strategy Current threats and opportunities - risk assessment Current capability - use a P3M3 self-assessment or facilitated self-assessment Define the portfolio – It’s always important, now it is also urgent
Do the right things - Get a list of projects/programmes Evaluate strategic alignment and status Look for unhinged projects/programmes Look for duplication and opportunities to pool initiatives
Do those things right - Avoid ‘silver bullet’ solutions. Best practice requires a blend of capability in People Process Technology Information
Share successes Establish a community of practiceBut, remember…
Success = quality of (people, processes, technology, information) x the level of adoption
Where to find Best Practice guidance?
www.best-management-practice.com
Contributors
Craig Kilford Portfolio Management Guide author [email protected] www.cansoti.com
Andy Murray PRINCE2 2009 lead author [email protected] www.outperform.co.uk
Rod Sowden MSP 2007 lead author [email protected] www.aspireeurope.com
Sue Vowler P3O lead author [email protected] www.project-angels.co.uk
