Project Portfolio Management: New Opportunities for Project Managers & Business Analysts

1. P C O AEWS M E Plan Organize Execute Monitor Control Project Management Consulting Project Portfolio Management: New Opportunities for Project Managers & Business Analysts SITEBC Knowledge Development Seminar Vancouver, BC, January 10, 2009 R. Max Wideman, P.Eng FCSCE, FEIC, FICE, FPMI AEW Services 2216 West 21st Avenue Vancouver, BC V6L 1J5 Phone/FAX 604-731-0569 Web site: http://www.maxwideman.com

2. Key Presentation Points • I believe that Project Portfolio Management (PPM) • Is a major future career opportunity • For Project Managers and Business Analysts • Is not an "extension of project management" • And pretending it is so, will not make it so • Instead, it is a whole new discipline • That will come to recognition in the next five years • And for which PMs & BAs are eminently suited • The time to plan your career for it • Is now

3. Recent Consulting Example:Enterprise Project Management Office • Principle goals of EPMO at Ontario Lottery & Gaming • Survey and understand "corporate projects" • Improve project management processes & practices • Including skill sets, reporting consistency & success • Facilitate PPM prioritization & strategic focus • Support effective allocation of capital • Expected program duration • 4 to 5 years • Basis of system development • All available information sources • Including extensive reference to my web site at: www.maxwideman.com

4. But first, what exactly is . . . • A Project Portfolio Management System (PPMS) • Especially, an Enterprise-wide one ? • I suggest that an E-PPMS is • A methodical approach to managing a portfolio of corporate programs, projects and initiatives of whatever type • Designed to ensure that the available resources are all used effectively and efficiently • Such that the resulting products realize measurable benefits for the organization, consistent with corporate strategy, and • A system that ensures the most value for least risk for the invested resources • Allowing corporate strategy to be communicated throughout the organization • Enabling only those projects that support the strategy • And feeding back benefit realization data to enable continuous improvement

5. START Phase Gate Control Point Phase Gate Control Point Phase Gate Control Point END Fundamental E-PPMS Requirement • A "gated" project life span for all projects • Is essential for performing E-PPM responsibilities

6. Concept of Success • What is the true meaning of PPM "success" • Not just "On time, within budget" • Not just product delivered (at any time or cost) • Not just delivered to scope and quality • Nor even delivered to "customer satisfaction" • The purpose of an E-PPMS • And hence the real measure of E-PPM success • Is this: • Are the projects making money for the organization?!! • (Or, in the case of government: Providing better service)

7. Corporate Management Perspective • What corporate management needs to know • Where are corporate resources being consumed • And is that arrangement optimized? • Are project objectives still in alignment • Or have the corporate goals, objectives changed? • Or the corporate vision and priorities changed? • What performance results are being obtained? • Indeed, are planned benefits actually being realized?

8. The extent of the problem • To answer these corporate management questions • Tracking must continue through the product life cycle • Not just through the project life span • There must be feedback to the planning process • Hence a "total system" is required

9. The ideal PPM System • A total PPM system should consist of • A need and opportunity collection system • With findings reported as a Business Case (justified) • A selection process • To limit projects to available resources (no overload) • And weed out inappropriate projects • A prioritization process • To get them done in the right order (smooth sailing) • A people resource planning process • To ensure the availability of the right skills (competence) • A product creation process (project management) • A feedback mechanism • For "continuous improvement" (proof of value)

10. E-PPMS example • As applied to our OLG-EPMO client, the system looks like this

11. The "People Problem" - 1 • In practical terms • Modern organizations consist of three parts • Corporate Governance • Top executives responsible for vision and success/failure decisions relating to long term survival/prosperity and operational efficiency • Project management • Project people dedicated to the narrow focus of producing new product results to keep the organization at the forefront of its industry • Operations management • Business-as-usual people responsible for maintaining services and/or product output • An E-PPM office must deal with all three !

12. The "People Problem" - 2 • All three organizational groups • Have a different focus • Involve different skills, training and experience • Hold different attitudes • In short, the people are different • Which is why people moved from one group are not always comfortable and successful in another • Have different priorities

13. Executive Sponsorship - 1 • Assuming • The right collection and number of projects have been selected • There is a critical link required • To connect individual projects to the corporate strategy • There is also a critical link required • To connect the benefits realized to the new product • And back to the product's original Business Case • A key position is • An "Executive Sponsor" • Who is a member of the corporate governance group

14. Executive Sponsorship - 2 • Executive Sponsor's essential responsibilities • Owns the project's Business Case • That justifies the project on the basis of expected benefits • Ensures relevant metrics are established & used • Ensures benefits are actually harvested • Question • Who should be responsible for the cost of gathering and analyzing benefit data and feeding it back to executive management ? • I suggest all of these are the responsibility of Corporate management

15. Conclusion • I believe that Project Portfolio Management (PPM) • Is a major future career opportunity • For Project Managers and Business Analysts • Is not an "extension of project management" • And pretending it is so, will not make it so • Instead, it is a whole new discipline • That will come to recognition in the next five years • And for which PMs are eminently suited • But, the time to plan your career for it • Is now