Follow
Publications: 42 | Followers: 0

Overview of Portfolio Management Process - Amphora Editions

Publish on Category: Birds 0

Introduction to Project Portfolio Management
By Tim WashingtonSeptember 13th, 2011
“While project management and program management have traditionally focused on‘doing work right,’portfolio management is concerned with‘doing the right work.’”-Project Management Institute
Doing Right Work
What is“Project Portfolio Management”?
Project portfolio management is a blend of management disciplines that combines:
Management Disciplines
1) Abusiness managementfocus to ensure that all projects and programs align with the portfolio strategy.2) Ageneral managementfocus for managing an organization's resources and risks.3) Aproject managementfocus for reviewing, assessing, and managing projects and programs to ensure they are meeting or exceeding their planned contribution to the portfolio.
“Portfolio management is an approach toachieving strategic goalsby: selecting, prioritizing, assessing, and managing projects, programs, and other related work based upon their alignment and contribution to the organization’s strategies and objectives.”-Project Management Institute
PMI Quote
“Portfolio management is the strategy-based, prioritized set of all projects and programs in an organizationreconciled to the resourcesavailable to accomplish them.”-Stanford Advanced Project Management
Stanford Quote
“The concept of project portfolio management refers to organizations managing their composite groups of projects with thesame rigor, balance, executive leadership, and decision-making involvementas the company’s financial portfolio. Portfolio Management is an ongoing process that includes decision-making, prioritization, review, realignment, and reprioritization.”-Renee Sommer
Financial Portfolio Quote
The Purpose of Portfolio Management
Execute StrategyMaximize Organizational ValueEnhance Decision MakingManage Organizational Change
Higher return on project investmentsLower organizational riskGreater confidence of meeting customercommitmentsBalanced project portfolio workloadShorter project cycle timesIncreased project throughput
PPM Goals
Portfolio Management Benefits:
At the highest level, Project Portfolio Management has four basic components:
All the steps necessary to construct an optimal portfolio given current limitations and constraints.
Higher portfolio maturity translates into a greater realization of the benefits of project portfolio management.
Selected projects must align with the business strategy and meet other important criteria. The result: the portfolio will contain a higher percentage of winning projects.
During the execution of an optimized portfolio, the aggregate project benefits (portfolio value) must be protected. This occurs by monitoring projects, assessing portfolio health, and managing portfolio risk.
The Goal:Maximize Value to the Organization
Select the RightProjects
Optimize thePortfolio
Mature thePortfolio Processes
Protect thePortfolio’s Value
PORTFOLIO GOVERNANCE(Strategic Direction)
A good governance structure is central to making PPM work.
Select the RightProjects
Optimize thePortfolio
Protect thePortfolio’s Value
Mature thePortfolio Processes
“Portfolio management without governance is an empty concept.”
Portfolio governance answers three main questions:
Management Disciplines
1)Whattype of portfolio decisions need to be made?2)Whomakes the portfolio decisions?3)Howandwhenare the decisions made?
Proposed Projects“Project Parking Lot”
START
ProjectComplete?
YES
NO
IMPROVE PROCESSESVALIDATE BENEFITS
PORTFOLIO LIFECYCLE
Portfolio Management Team Activities
Legend:
CAPACITY PLANNINGPRIORITIZATIONPORTFOLIO BALANCINGPROJECT SEQUENCING
PROJECT MONITORINGPORTFOLIO ASSESSMENTPORTFOLIO RISK MGT
Optimize the Portfolio
Select the Right Projects
Safeguard the Portfolio’s Value
Mature PortfolioProcesses
Funded Projects
OPPORTUNITY MGTEVALAUTIONSELECTION
Several resources have been used in preparation of this presentation, but the following sources are quoted in this presentation:Project Management InstituteStanford Advanced Project ManagementIBMReneeSommerquoted inProject Portfolio Managementby James S.Pennypackerand Lowell DyeRobert Cooperof Product Development InstituteJeanetteCabanis-Brewin, PM SolutionsGaylord Wahl, Point B ConsultingProject Portfolio Management Maturity Modelby James S.Pennypacker
Sources

0

Embed

Share

Upload

Make amazing presentation for free
Overview of Portfolio Management Process - Amphora Editions