Post on 14-Dec-2015
PPM Definitions
The first is a direct quote from the PMI PMBOK – “ the selection and support of projects or program investments guided by the organization’s strategic plan and available resources.”
This involves a decision making process. The concept of being guided by the organization’s strategic plan and the available resources which means being very aware of the organization’s goals and objectives and also all types of resources that are available for projects.”
Second definition comes from the Managing Multiple Projects book published by the Center of Business Practices which defines PPM “as a process for ensuring the consistent selection, prioritization and planning of the right projects for the organization”. This particular definition begins to shed light on the different components of PPM – which include evaluation, selection, prioritization, budgeting and planning once again based on value and strategic fit with the organization.
PPM
It uses… An identification of Projects An evaluation of Projects A prioritization of Projects
So as to … Check if projects meet the Enterprise Strategic Goals and Objectives Optimize Resource allocation Provide different analysis (Cost and ROI analysis, Risk Analysis,
Strategic value analysis)
Which provides … Visibility Standardization Measurement Process Improvement
PM and PPM Value
Ability to Realize Business Value Potential75% 100%
66%
100%
0%
Portfolio Management
Project Management
50%Value Realized
Portfolio Management –
to identify and select the investments that will
maximize organizational value
Project Management -
to successfully deliver
the selected business
value opportunities
•Optimal integration of
portfolio and project level
capabilities allow
maximization of business
value
Ab
ilit
y t
o I
den
tify
Org
an
izati
on
al V
alu
e P
ote
nti
al
PPM Steps
1. Construire le Portfolio : Nouveaux Projets ou idées
2. Prioriser / Sélectionner
3. Planifier / Affecter
4. Mettre à jour et Piloter
5. Revues, Priorisation / Sélection
6.En attente ou arrêté ou clos
Construire le Portfolio
Standardiser la définition des projets Définir et mettre en œuvre des modèles de
fiches projets / idées (Project Charter) Définir les propriétés Définir les business drivers
Définir les processus de collecte des informations
Project Registry
Minimum information requirements for the Project Registry include Project Sponsor name Project Manager name Project priority ranking Target milestone schedule Resource requirements Identified domain within the
project portfolio
Prioriser / Sélectionner
Prioriser Définir les Business Drivers Valoriser les Business Drivers (Donner un poid à
chaque BD)
Evaluer la valeur stratégique de chaque projet
Sélectionner Définir les contraintes
Ressources (Compétences) Budget Techniques
Optimiser les ressources en respectant les contraintes
Business Driver
Strategic Goal:
Business Driver Name:
Retain existing clients Grow Customer Share of Wallet
Dedicate our resources to those market areas where we can maintain our existing client base and increase share of market of current clients
Business Driver Definition:
Sell additional products to existing clients
Maintain clients and remain competitive in existing markets
KPI’s:
• Client Satisfaction Rates• Client Retention Rates• Variance in % Market Share
• % Increase of Market Share• Increase in Revenue
Business Driver Name:
Business Driver Definition:
KPI’s:
Tan
gib l
e
Int
angi
b le
Typical Project Criteria
Strategic Proprietary Position - how easily copied Support of Core Competencies Brand Enhancement Commercial Market Impact Market Need Market Timing Technical Feasibility Complexity Financial Earned Commercial Value (ECV) Net Present Value (NPV) Internal Rate of Return (IRR) Return on Investment (ROI)
BD Priorisation
Indicates relative importance of Driver A vs. Driver B (row vs. column)
Compares the relative importance of Driver B vs. Driver C (row to column)
The Pairwise Comparison is a proven technique for deriving relative priorities or weights for Business Drivers through performing one-to-one comparisons.
Priorisation
High RiskHigh Risk
Low RiskLow Risk
Fort BénéficeFort BénéficeFaible bénéficeFaible bénéfice
CC
BB
EE
DD
GG
JJ
HH
KK
II
AA
FF
LL
NN
MM
OO
PP
RR
Example:Example: Size - Effort Size - Effort Color - Organization Color - Organization
1
Cost
L -
Pri
ori
ty -
H
Portfolio Analysis/Optimization
2 3
Optimization techniques allow organizations to select portfolios that will deliver the maximum strategic and financial value
Use charting techniques to analyze the portfolio
Optimize the portfolio under varying budgetary constraints
Break constraints and reach the Efficient Frontier
Sélectionner les bons projets
Requirements For PPM Success
Well defined enterprise goals and objectives Established and maturing PM processes Project reporting and analysis capabilities Integration of project (enterprise) resources Executive support of portfolio process Reevaluate Project Portfolio on a Regular
Basis As Project datas are changing quickly Market is changing quickly Enterprise Objectives can change
The Project Portfolio must be reviewed very often
Benefits Of Portfolio Management
Validate business strategy and align projects
Eliminate redundancies Improve resource utilization Improved schedule performance
and time-to-market
Reduced staff overload and attrition
Facilitate the process of adding, sorting, killing projects so as to meet the Enterprise Objectives
Consistent Progress Towards Best in Class
2001 2002 2003
25%
50%
75%
100%Effi
cie
ncy
41%
Prioritization Only
62%
Prioritization & Optimization 81%
Prioritization, Optimization & Adv Analytics
Alignment with Best Practice
Low
Medium
High
Annual Planning
89%
Prioritization, Optimization & Adv Analytics
2004