Date post: | 16-Apr-2017 |
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Leadership & Management |
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Strategic project oriented management – portfolio
managementRoadmap
Yury Moiseenko, Project manager, AwaraGert Hellevig, Partner, Awara
Project and Process oriented business• Process – company repeat the same activities with attending to do next
time a little bit better
• Project – project is always some unique combination of people, tools and technology with respective unique parameters: cost, time, scope, value.
Wave (process)-particular (project) duality in nature:
DifferencesFunction Process business Project business Resume
Finance – cost
Stable product with same parameter that mean need to control cost by product
Unique product each time with own parameters
Project is unique:• structure of cost always is
news
Finance – revenue
Stable product, not difficult for competitive comparable: so market price or cost+ pricing (if product is market leader)
Difficult to make competitive comparable from one side, another side client always have budget. You can not apply neither market price nor cost +.
Project has uncertainty:• difficult pricing and cash flow
management.
Sales There is intelligible market, company has share, and normal process of living in this share
Each case is own story unique combination of: tools, technology, subjective preferences, and standards
Project is cross discipline (function, technology):• Sales have multi decision
makers
Production Same operation each time with stable technology.
Technology and process should be adopted each time
Project is always about changes:• firefighting with architecture
issue rather then technology
HR Same team do the same job Each project has own team Project is temporary: • HR concentrate on forming
rather then on to keep norming
Conclusion of differences comparison
Project oriented business dictate to manage them with project oriented
approach
FUNCTION DEVELOMPENT AND CONSULTING (own Business case resolution) = People + Tools + Technics + Process
FUNCTION HR (own Business case resolution = People + Tools + Technics +
Process)
FUNCTION FINANCE (own Business case resolution) = People + Tools + Technics + Process
FUNCTION SALES (own Business case resolution) = People + Tools + Technics + Process
Project (Business case resolution) = Targets
(Time + Cost + Scope + Quality + Value + Risk)
Picture of project in functional oriented
environment.
Project (Business case resolution) = Targets (Time +
Cost + Scope + Quality + Value + Risk) / Resources (People +
Tools + Technics + Process and Functions:
DEVELOMPENT
HRFINANCE
SALES
Picture of project in project oriented
environment.
Project (Business case resolution) = Targets /
Resources (People + Tools + Technics + Process and
Functions:
DEVELOMPENT
HRFINANCE
SALES
Project (Business case resolution) = Targets /
Resources (People + Tools + Technics + Process and
Functions:
DEVELOMPENT
HRFINANCE
SALES
Program (business case) = Synergy of combined (Project 1 + Project 2) management
Target (value)
Program management
approach
Program (business case) = Project 1 + 2
Program (business case) = Project 1 + 2
Project (business case)
Project (business case)
FINANCE
SALES
HR
DEVELOMPENT
Portfolio management
approach
Portfolio (Strategic business case) = Synergy of Combination value (program and project levels)
and all functions
Source of Portfolio management
Operational level of project oriented
business
Program, project management
Strategic level of project oriented
business
Process approach
Traditional approach with project oriented business can cause empty areas management activities:
• Top to down relationship between business case on company level or product level to programs/project business case
• Bottom to up: how to secure that program and project value in-line with company value
Source of Portfolio management
Operational level of project oriented
business
Program, project management
Strategic level of project oriented
business Portfolio management as strategic approach to manage project oriented business
Portfolio management
Strategy as realistic and pragmatic tool in-line with value, principles and goals
Story:
• Some Frogs came to owl and complained – “we are so fed up that everybody try to eat us, can you suggest something”
• The Owl replied after thinking – “you should be as hedgehogs, they can roll up and defend themselves by their spears…”.
• The Frogs was very appreciated with the pice of advice…
• On the next day the Frogs again appeared to the Owl and asked – “Hello might Owl, you have so much wisdom, please tell us how can we turn to hedgehogs..”.
• The Owl then replied: “Hey - I am strategist! … now your question is about tactics...”
Portfolio management as strategic tool
Project oriented business
Project oriented approach for securing result case by case
Portfolio management for securing achievement of
strategic goals
ExampleLevel Content Example
Project Scope of work agreed under a contract if 3rd part, and particular delivery if own (1st part)
Phase/stage/sub-project/particular delivery of 3rd part of super project
Program All projects united by single customer
Depending on maximisation of synergy effect:• All projects for same Client,• All projects related to same site with
same start- and end dates• All 3rd part projects that binding drives by
1st part projectPortfolio Accentuated strategic
competence Depending on main competence:• If worksite: Helsinki, Espoo,• If type of delivery: Design, Development,
Building.• If sector then: Government, Commercial,
Internal
Portfolio management implementation roadmap - definition
3) Business case building for each portfolio and feasibility analysis - portfolio definition
1) Audit main value for client: current and desirable
1) Audit competences in technology: current and desirable
1) Audit competences in Industry and Business practices: Current and desirable
2) Building portfolios: current and desirables
PfM implementation – standardsPfM process: value,
resource, risk, communication
management
Business case validation rules
Criteria for project initiation and allocation to
portfolio
Criteria for resource allocation to portfolio
Determination
PfM implementation – go-live
Forming project and program related to criterias
Resource allocation to portfolios
Manager allocation to portfolios
PfM Go-live
Projects and program allocation to portfolios
Practical advantages of Portfolio management (PfM)
Project management / Operative routine (field, first line management) – PfM as continues business case validation and integrated resource management
Program management / Tactic operative routine (middle management) – PfM as integrated value management
Strategic implementation routine (top management) - PfM as Strategic business case management and run polices
Strategic definition (strategic management) – PfM as segmentation and diversification objects
Boston matrix application: Continues Portfolio and Project/Program business case validation
Minimization of unappropriated resource matching
Maximisation of synergy effect on client level
Benefits of PfM Ability to see strategic forest behind project trees
Project Program Portfolio0
1
2
3
4
5
Organisation project maturity level
Forming
Standartize
Measure
Control
Improve
PfM and OPM3