Post on 22-Apr-2015
description
Stepping up to manage
programmes and portfolios Harold Petersen, Director Advisory
harold.petersen@uxcconsulting.com.au
How much of the investments in IT are wasted?
A recent study conducted by The Standish Group found
that only 32 percent of all IT projects succeeded while the
remainder (68 percent) were either challenged or failed.
Large projects/initiatives not only fail more often they
deliver less. According to a McKinsey/Oxford study half of
IT Change Initiatives with budgets of over $15 million
dollars run 45% over budget, are 7% behind schedule and
deliver 56% less functionality than predicted. That means
that:
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Why do projects and programmes fail?
3
Project Management silos
4
Align, control and optimise your portfolio of
initiatives, its deliverables outcomes and benefits
5
Agenda
o P3O - to optimise controls and capability uplift across the portfolio
o MSP - to align related projects and transformation mgt with strategy
o Applying P3O and MSP
6
Agenda
o P3O - to optimise controls and capability uplift across the portfolio
o MSP - to align related projects and transformation mgt with strategy
o Applying P3O and MSP
7
P3
Portfolio Management
Programme Management
Project Management
O
Office P3O® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries
The P3OSwirl logo® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries
This is a Value Added product which is outside the scope of HMSO Core Licence.
Sections of the P3O® Reference Manual have been reproduced under licence from OGC
© Lucid IT Pty Ltd, 2010 - All rights reserved 8
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P3O Manual
o Introduction
o Why have a P3O?
o What is a P3O model?
o How to implement or
o re-energize a P3O
o How to operate a P3O – tools and
techniques
o Appendices
o Glossary
o Index 9
“……a coordinated collection of strategic
processes and decisions that together enable the
most effective balance of organisational change
and business as usual/operations.”
© Crown Copyright 2008. Reproduced under Licence from OGC
10
Example portfolio
11
Example Prioritisation
Project Prioritisation Matrix
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
0 5 10 15 20 25 30
Complexity
Alig
nm
en
t w
ith
Str
ate
gy
Size of ‘bubble’ in this model
indicates the size of the
Investment. This could be
tailored to NPV, IRR, etc.
“Dogs”
“Hard-earned Value”
“Join the Queue”
“Low Hanging Fruit”
“No Go zone”
12
Portfolio Management Dashboard
# Projects at each stage: Not Started 3 Gate 1 2 Gate 2 2 Gate 3 1 Gate 4 2 Gate 5
# Projects at each status: Red 1 Amber 2 Green 7
Project Portfolio Investment Statistics
Total # Projects 10
Total $ Portfolio 6,345,000
Total Benefit of Portfolio 4,105,000
By Division
Division A
Total # Projects 4
Total $ Portfolio 3,000,000
Total Benefit of Portfolio 2,620,000
By Division
Division B
Total # Projects 4
Total $ Portfolio 3,250,000
Total Benefit of Portfolio 1,450,000
By Division
Division C
Total # Projects 2
Total $ Portfolio 95,000
Total Benefit of Portfolio 35,000
Project Name
Project Sponsor/
Project Manager
Approved
Budget $ Priority Category Ove
rall
Sch
ed
ule
Bu
dge
t
Ris
ks a
nd
Issu
es
Be
ne
fits
Pro
ject
Star
t D
ate
Cu
rre
nt
Stag
e
Gat
e
Ne
xt
Stag
e
Gat
e
Ne
xt G
ate
Du
e D
ate
Fore
cast
Pro
ject
End
Dat
e Project
Manager
Comments Mo
nth
1
2 3 4 5 6 7 8 9 10 11 12
Business Unit 1
Project 1 Executive A 2,000,000 1 Amber 1/01/2013 1/09/2013
Manager A
Project 2 Executive A 125,000 2 Green
Manager B
Project 3 Executive B 50,000 1 Green
Manager D
Business Unit 2
Project 4 Manager E 0 0 Green
Manager F
Project 5 Manager G 0 0 Green
Manager H
Project 6 Manager I 0 0 Green
Manager J
Corporate Programme 1
Project 7 0 0 0 Green
0
Project 8 0 0 0 Green
0
Project 9 0 Green
0
Business Unit 3
Project 10 0 0 Green
0
Project 10 0 0 Green
0
Etc 0 Green
Commercial
Strategic
Commercial BAU
Commercial BAU
0
0
Compliance
0
0
0
Category
Cost Reduction
Projects by Category
Compliance
Cost Reduction
Customer Experience
Revenue Growth
Acquisition
0
1
2
3
4
5
6
7
Large Medium Small
Amber
Green
Red# o
f P
roje
cts
Project Size
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Div A Div B Div C
Acquisition
Revenue Growth
Customer Experience
Cost Reduction
Compliance
Mature P3Os provide
o Governance – supporting governance through scrutiny
and challenge, ensuring return on investment through
effective management of delivery and risk.
o Transparency – relevant, accurate and timely
information to support decision-making
o Delivery support – ensuring programme, project
managers and operational business managers do things
right and do them well, reducing bureaucracy and
encouraging consistency
o Reusability – embedding industry and sector best
practice and sharing lessons learned
o Traceability – history and documentation.”
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Example High Level P3O Model
Organisation Portfolio Office
(permanent)
Hub Portfolio / Programme
Office (permanent)
Hub Portfolio / Programme
Office (permanent)
Programme Office
(temporary)
Project Office
(temporary)
Centre of Excellence
•Standards •Skills/training •Assurance •Knowledge Mgmt
© Crown copyright 2008 Reproduced under licence from OGC
15
Measures of an effective PMO o Overall programme and project success rates in relation to capital cost,
duration, operating cost and benefits realisation for each portfolio
o Improved portfolio balance – in terms of overall risk, programme and project
lifecycles, strategic alignment and investment type
o Enhanced contribution to strategic objectives.
o Reduction in programmes and projects started for the wrong reasons –
number of projects stopped
o Predictability of delivery – % increase in number of programmes and
projects delivering to time and scope
o Predictability of cost – % decrease in cost overruns on programmes and
projects
o Reduction in overall resource costs to deliver portfolio
o Skill level assessments and job satisfaction scores
16
Agenda
o P3O - to optimise controls and capability uplift across the portfolio
o MSP - to align related projects and transformation mgt with strategy
o Applying P3O and MSP
17
The MSP manual o Introduction and programme
management principles
o The governance themes
o The transformational flow
o Appendices
o Programme information
o Adopting MSP
o Programme Office
o Health checks
o Glossary
o Index © Crown copyright 2011 Reproduced under licence from the Cabinet Office
18
“………temporary, flexible organisations created to
co-ordinate, direct and oversee the implementation
of a set of related projects and activities in order
to deliver outcomes and benefits related to the
organisation’s strategic objectives.”
© Crown Copyright 2008. Reproduced under Licence from OGC
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Example: ITIL/ITSM Implementation
Programme
Problem
Management
Problem
Management
Change Management
SD/Incident Management
Service Catalogue Management
Tools Implementation & Alignment
Time
Programme Management
Service Asset and Configuration Management
Release and Deployment
Management
Organisational/Cultural ChangeStructural
Alignment
Request Fulfillment
Event
Management
Event
Management
Knowledge Management
Service Level Management
Stra
tegy
Operations
Transition
Design Availability
Management
Capacity
Management
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A programme vision and coherent target
capability
Target (post program) Capability / Blueprint :
Processes within <organisation> to enable the capability Organisation, people, culture aspects Tools/Technology/Infrastructure/Facilities Information Streams Operational performance of the capability Service portfolio and ‘customers’
Policy & Strategic
Objectives - 1 -
Policy & Strategic
Objectives - 2 -
Policy & Strategic
Objectives - n -
Pro
gra
m V
ision
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A programme is a multi year transformation
to establish a blueprint
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Benefits Map
Strategic Objectives
Objective 1
Objective ..
Objective 2
Objective q
Capability
Capability 1
Capability 2
Capability 3
Capability ..
Capability o
Project Deliverables
Project 1
Project n
Project …
Project 3
Project 2
Project 4
Project 5
Benefits
Benefit 1
Benefit 2
Benefit 2
Benefit ..
Benefit P
Agenda
o P3O - to optimise controls and capability uplift across the portfolio
o MSP - to align related projects and transformation mgt with strategy
o Applying P3O and MSP
24
Example P3M3 assessment
012345
ManagementControl
BenefitsManagement
FinancialManagement
RiskManagement
StakeholderManagement
OrganisationalGovernance
ResourceManagement
Portfolio Management Target
Maturity
25
Applying P3O and MSP
P3M3 Assessments
Project/Program
Health Checks Accreditation Training
Awareness/Overviews
Envision P3R
Health Checks,
Governance
CSI
Design and Plan a
P3O or Programme
Transform the
PMO/P3O
Initiate Programmes
26
Stepping up to manage
programmes and portfolios Harold Petersen, Director Advisory
harold.petersen@uxcconsulting.com.au
Thank You!