Date post: | 05-Apr-2017 |
Category: |
Leadership & Management |
Upload: | kaali-dass-pmp-phd |
View: | 107 times |
Download: | 0 times |
Agenda
Project Portfolio Management Overview
meet strategic business objectives
identifying, prioritizing, authorizing, managing, and controlling
Portfolio Definition
Ref: www.pmi.org
Portfolio Management
Starts with many… projects are weeded out based on Strategic Alignment & business value
ApproveApprove ImplementImplementReviewReview PrioritizePrioritizeProposalProposalIdeasIdeas
Objectives
Oosthuizen, C., Grobbelaar, S. S., & Bam, W. (2016). Exploring The Link Between Ppm Implementation And Company Success In Achieving Strategic Goals: An Empirical Framework. South African Journal Of Industrial Engineering
Meet company’s objectives.
Eg: Return-on-investment, long-term profitability, market success, or other strategic
objectives.Maximize Value
Long-term and short-term projects
High-risk projects versus low-risk projects
Balancing of technologies, markets, project types, and product categories.Balance
Business’s strategy and the breakdown of spending across markets, areas, projects, and other categories that are directly tied to the organization's strategy.
Strategic Direction
Resource constraints; Project’s demand versus the readinessThe right number of projects
Benefits
Integrated Global View
Consistence Governance
Optimize Returns
Optimize Outcomes
Standards and Best Practices
Resource Management
Koh, A., & Crawford, L. (2012). Portfolio Management: The Australian Experience. Project Management Journal
Portfolio Planning Process
Source: Project Management by Eric W. Larson and Clifford F Gray
Portfolio Planning: A Framework
SWOT Analysis
(Internal / External)
Strategic Choices (Portfolio)
Strategy Implementation
Programs and Projects
Vision / Mission
Strategy Objectives
Str
ateg
y A
lign
men
tS
trat
egy
Alig
nm
ent
En
gag
em
ent &
C
om
mu
nicatio
nE
ng
age
men
t &
Co
mm
un
ication
Core Values & Mission
1
Vision, Mission, Goals, Objectives
Source: Lewis, J. P. (2007).Fundamentals of Project Management (pp. 44-55). American Management Association International. Tibergien, M. (2013). Vision, Mission, Goals, Objectives. Investment Advisor, 33(9), 59-60.
What you do & for Whom
Mission
Achieve Goals
StrategicObjectives
GoalsAchieve the Mission
Core Values
What your business want to become?
Vision
Example Mission Statements
Our mission is to serve as a center for research, scholarship, and creativity and to teach a diverse community of undergraduate, graduate, and professional students to become the next generation of leaders.
“leading change to improve society and to help solve the world’s greatest problems”
(www.unc.edu)
The mission of Harvard College is to educate the citizens and citizen-leaders for our society. We do this through our commitment to the transformative power of a liberal arts and sciences education.
(www.harvard.edu)
In collaboration with our colleagues across campus, we prepare students to succeed academically, professionally and personally, to embrace a commitment to lifelong learning, and to become informed, engaged, and productive citizens
(Division of Academic and Student Affairs )
(www.ncsu.edu)
Organization Structure
Definition: An Strategic Business Unit (SBU) is a product or Service, or line of related products or services, or mix of related products or services that meet a common market needs
Corporate Strategy
Strategic Business Unit 1
Business Strategy
Strategic Business Unit 2
Business Strategy
Finance Marketing WPR HRSales
Information Technology
SWOT Analysis
2
SWOT – Internal & External – A Sample
Adapted from Apollo Education Group, Inc. (2015). MarketLine Company Profile, 1-29.
Strengths
Location
Affordability
Faculty student ratio
Highly qualified Faculty
Honors Programs
Rank
Opportunities
Growing online learning IndustryGlobal MarketsIndustry Partnerships
Weakness
Adopting to Rapid Technology Changes
Understaffing / Underfunding
Lack of Infrastructure
Teaching next generation students / Millennials
Threats
Increasing international competition Losing key faculties Federal Funding / Support Compliance and Regulations, Higher Education
Opportunity Act, etc. Disruptors
In 10 years over 40% of the Fortune 500 will no longer be here… Fast Company, April 2011
In 10 years over 40% of the Fortune 500 will no longer be here… Fast Company, April 2011
Competitive Strategy: Porter Model
Source: Michael E. Porter, Competitive StrategyRef: Babson Olin School of Business Advertisement, Fast Company April 2011http://www.socialnomics.net/2012/01/04/39-social-media-statistics-to-start-2012/
Technology and Market Place
Changes
Technology and Market Place
Changes
OrganizationalAgility
OrganizationalAgility
Objectives & Choices3
SpecificS
MeasurableM
AchievableA
RealisticR
Time-basedT
Strategic Objectives (Sample)
Increased Collaboration with Students by employing advanced Collaboration / Communication Technologies to improve student engagement score by x%
Digitize to improve quality and learning outcomes by x%
Operational Excellence
(Increase Productivity x%, Reduce Cost x%)
Operational / Issue Metrics
Digitization / Automate End to End Process
Knowledgebase
Collaboration
Resource Optimization
Transform the Business (TTB) Grow the Business (GTB) Run the Business (RTB)
Enter New Market Segments to increase revenue by x%
Faster Time To Market by x%
Source: Gartner.com
Strategic Choices (Example)B
usi
nes
s • Offerings (Low Cost,
Differentiator,
Hybrid)
• Growth: (New Market, Vertical, Horizontal)
• Operational Excellence (Productivity, Cost Savings, etc.)
Tech
no
log
y • Build vs Buy
• Build and Buy
• Alliances
• New Technologies (Analytics, Mobile Cloud, SaaS, etc)
• Security
• Retire Old Technologies
Res
ou
rces • Training
• Skills Development
• New Skills
• Innovation
Strategy Implementation4
Leadership & Communication
Governance
Outcome Measurement
Continuous Improvement
Implementation Process
Leadership & Communication
Frequency: Quarterly & MonthlyMode: Key Meetings, in-Person, Intranet, EmailsWhat: Cascade leadership Mission and Strategy, Strategy Alignment, Goals, Lessons Learned, Success and Failures
Leadership Team
Portfolio Managers
Programs and Project Managers
Frequency: Yearly & QuarterlyMode: Key Meetings, In-Person, Town Hall, Intranet, etc.What: Mission , Strategy, and Alignment, Success & Failures
Frequency: Quarterly, Monthly, Weekly, DailyMode: In-Person, EmailsWhat: Project goals, Plan with Start and End Date, Resources, Time, Tasks, Scope, Risks, etc.
Governance Structure (Sample)
Portfolio Manager / PMO
Assemble, integrate, and coordinate the network of resources to deliver projects/ product development.
Ensures the availability of the right resource at the right place & Resource planning
When appropriate, escalates issues across organizational boundaries & Stakeholder management
Manage Risks
Benefits / Outcome realization
Leadership Team
Project Management Office(PMO)
Project 1 Project 2 Project 3 Project 4 Program 1
Project 1..n
What to MeasureDelivering Value
(Cost, Time, Scope, and
Benefit Realization - KPIs)
Manage RelationshipsManage Risks
Ref: http://www.pmi.org/learning/library/supersizing-pmo-performance-stakeholder-relationship-7640
StakeholdersStakeholders
When to Measure
For Program / Project Managers (Weekly / Daily):
Closely monitored, Detailed at Tasks, Resources, Scope, and Time
For SBU Leaders / Portfolio Managers (Quarterly / Monthly / Weekly):
High-Level, Summarized, Status, Risks, and Progress
For C-Level Leaders (Yearly / Quarterly / Adhoc):
Categorized by SBU, Investments, Outcomes, Status, Risks, etc.
How to Measure (KPIs, Status, Outcomes)
Green, 5
Yellow, 7
Red, 3
02468
# of Projects
# of Projects
0
20
40
60
# of Resouces
# of Resouces
0
100
200
300
400
Budget Actual
300 280
120
3 2
1
SBU1 SBU2 SBU3
By SBUs
Investment Value # of Projects
300 280
120
3 2
1
RTB GTB TTB
RTB – GTB - TTB
Investment Value # of Projects
Projects and status across organizationRed = Needs Attention, Yellow = Manageable, Green = Under
control
Resource Utilization
Budget Plan and Actual
Number of Projects across organization
Projects and value by Run, Improve, and Grow Projects and value by SBUs
< Continually Measure, Learn, & Improve >
Planning Timeline & Review (Example for a Financial Year from Oct to Sep)
Oct – Dec 2016Q1-FY17
Jan – Mar 2017Q2-FY17
Apr – Jun 2017Q3-FY17
Jul – Sep 2017Q4-FY17
Oct – Dec 2017Oct – Dec 2016
Q1
Year X-1Portfolio Planning
1-2 Months
Q1 Review
Year x+1Portfolio Planning
1-2 Months
Year XProject Execution
Monitoring and Control
Q2 Review Q3 Review Q4 ReviewYear End Review
Planning
Funding ApprovalCommunication
Resource Allocation
Challenges
Challenges
Project level activities Projects lack proper implementation Project Level
Too many weak projects are approved; resources, value, and priority not properly considered
Portfolio Level
Methods and evaluation tools to aid planning and management are inadequate
Competencies and Methods
Link to strategy and strategic criteria not clearly definedLink To Strategy
Resources are not allocated effectively; lack of consideration of smaller projects
Resource Management
The flow of information is inadequateand lacks usefulness
Information Management
Oosthuizen, C., Grobbelaar, S. S., & Bam, W. (2016). Exploring The Link Between Ppm Implementation And Company Success In Achieving Strategic Goals: An Empirical Framework. South African Journal Of Industrial Engineering
Key Factors for Success
Culture & Leadership
“Culture and leadership are two sides of the same
coin and one cannot understand one without
the other”
Dr. Edgar Schein
“Culture and leadership are two sides of the same
coin and one cannot understand one without
the other”
Dr. Edgar Schein
Market /Compete
Getting Job Done, Meeting Goals, Competitive
Market /Compete
Getting Job Done, Meeting Goals, Competitive
Hierarchy / Control
Formalized Structure Governance, Formal Rules, Stability
Hierarchy / Control
Formalized Structure Governance, Formal Rules, Stability
Adhocracy / Create
Entrepreneurial place, Take Risks, Innovation, Growth
Adhocracy / Create
Entrepreneurial place, Take Risks, Innovation, Growth
Clan / Collaborate
Extended Family, Loyalty and Tradition, High Cohesion and Morale
Clan / Collaborate
Extended Family, Loyalty and Tradition, High Cohesion and Morale
Ref: Engelen, A., Flatten, T. C., Thalmann, J., & Brettel, M. (2014). The Effect of Organizational Culture on Entrepreneurial Orientation:
A Comparison between Germany and Thailand. Journal Of Small Business Management.
Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework, by: Kim S. Cameron; Robert E. Quinn
Strategic Alignment
Vision Mission
Goals Values
Ref: Leadership Conversations: Challenging High Potential Managers to Become Great Leaders, Alan B, Richard S & Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, Rajendra, S., Jagdish, S, David, W
Have a clear communication strategy
Create Awareness and Socialize Strategy and Goals across organization
Frequency of communication
Multiple modes of communication. Eg. Email, WebEx, Video, In-Person, etc.
Customize content based on various stakeholder groups, needs, and interest
Communication
Transparent Project selection and approval process
Identify Key Performance Indicators (Socialize and Buy-in)
Technology and Tools to capture KPIs
Program and Project Process Maturity and Excellence
Standards and Best Practices
Continuous Improvement
Measure, Govern, and Improve
Summary
PPM Framework
&
Process
Strategic Alignment
Culture
&
Leadership
Communication
Governance
&
Measurement
Continuous Improvement
Questions?
https://www.linkedin.com/in/kaalidass