Porttfolio, programme & Project Office

Portfolio, Programme & Project Office

Organizations are recognizing the need to create Portfolio Offices that drive the alignment of initiatives with business strategy and successful delivery of the Programmes and Projects.

The PM Academy Portfolio, Programme and Project methodology is based on International best practice as defined by Project Management Body of Knowledge (PMBOK® Guide), PRINCE2®, AgilePM® and Managing Successful Programmes (MSP®) Our Portfolio Office is tailored to the client requirements. Our Portfolio Office as defined below can be summarized as:

  • Portfolio Office:
    Ensuring strategic alignment of the portfolio of programmes and projects. A Portfolio office advocates the concept of “Managing organizations by Project and Programme”.
  • Programme Office:
    Provides governance to the projects within the programme and focuses on continuous programme integration and benefits realization
  • Project Management:
    Establishing governance for individual projects and supports the Project Manager with the successful delivery of project output.

Step 1 The PM Academy Portfolio, Programme and Project Office Methodologies

The pace of business change continues to accelerate at an increasing rate. This results in enormous pressure on the organization to continue delivering business value in line with business expectations. Companies must maintain the ability to provide solutions to clients effectively, not only to grow its business, but to survive.

PM Academy has extensive experience in developing and implementing Project Offices that meet and exceed the needs of the organization and the specific project.

Portfolio Management

A Portfolio Office is established centrally to manage the investment process, strategic alignment, prioritization and selection, progress tracking and monitoring, optimization and benefits achieved by an organization’s projects and programmes on behalf of its senior management.

The objective of Portfolio management is that change initiatives that are being delivered (and those in the development pipeline) represent the optimum allocation of resources in the context of the organization’s strategic objectives, available resources, and risk or achievability.

The portfolio is must be sufficient to achieve the desired contribution to strategic objectives and all initiatives are necessary to achieve the desired contribution to strategic objectives. The selected change initiatives must be delivered effectively and cost efficiently and ensure all the potential benefits are realized.

Benefits of a sound Portfolio Management approach include:

Ensuring the programmes and projects undertaken are the right ones through greater financial benefits and measurable contribution to strategic objectives

Removal of redundant and duplicate initiatives.

Successful delivery at a collective level

More efficient resource utilization

Enhanced transparency, accountability and corporate governance and assurance on consistent and competent programme and project management.

Improved engagement and communication between relevant stakeholders in communicating strategic objectives, and the means by which they will be achieved

Improved awareness of aggregated risks and issues

Engage senior managers in debate on the contents of the portfolio

Improved cross-organizational collaboration in pursuit of shared goals

Effective implementation of programmes and projects via management of the project development pipeline, dependencies and constraints (including resources, skills, infrastructure, change appetite, etc.) and redirecting resources when programmes and projects do not deliver or are no longer making a sufficient strategic contribution.

That benefits realization is maximized via active approaches to exploitation of the capacity and capability created across the organization and shareholder return is optimized

That lessons learned are identified, disseminated and applied in the future

The purpose of the portfolio delivery cycle is to ensure the successful implementation of the planned change initiatives as agreed in the portfolio strategy and delivery plan, whilst also ensuring the portfolio adapts to changes in the strategic objectives, project and programme delivery, and lessons learned. Once agreed, the portfolio strategy and delivery plan form the baseline for what is to be delivered.

Understand Portfolio

Obtains a clear and transparent view of: what’s in the current portfolio and the project development pipeline; performance to date; and, looking forward – the forecast costs, benefits, and risks to delivery and benefits realization.

Categorize Portfolio

The purpose of the categorize practice is to make it easier for senior decision makers to understand the make up of their portfolio and thus to make decisions on balance and on the optimum use of available funding and other resources. It also:

Aids strategic alignment as the allocation of available resources to individual segments should reflect their relative priority.

Enables more effective management of portfolio delivery as a clear view is provided on the different types of changes without them getting lost in the detail of a large general portfolio.

Prioritize Portfolio

The purpose of the prioritize practice is to help senior management and the portfolio governance body answer the following questions – subject to consideration of an appropriate balance between risk and return:

Which initiatives should the organization invest in

What are the most important initiatives and

What initiatives must be resourced above all others

Balance Portfolio

The purpose of the balance practice is to ensure that the resulting portfolio [from the prioritize practice] is balanced in terms of factors such as:

Timing;

Coverage of all strategic objectives;

Impact across the business;

Stage of initiative development;

Overall risk and return profile; and

Available resources.

Plan Portfolio

The purpose of the plan practice is to collate information from the portfolio definition cycle and create a portfolio strategy and delivery plan, which will be approved by the portfolio direction group/investment committee

The purpose of the management control practice is to ensure that progress, at an individual and portfolio level, is regularly monitored against this baseline. This helps to ensure that delivery stays on track and that the portfolio remains strategically aligned

Management Control

Once agreed, the portfolio strategy and delivery plan form the baseline for what is to be delivered.

The purpose of the management control practice is to ensure that progress, at an individual and portfolio level, is regularly monitored against this baseline. This helps to ensure that delivery stays on track and that the portfolio remains strategically aligned.

Benefits Management

The purpose of the benefits management practice is to clearly identify and manage the benefits being realized from the portfolio, so helping to ensure the best use of available resources and that the contribution to operational performance and strategic objectives is maximized.

Financial Management

The purpose of the financial management practice is to ensure that the portfolio management processes and decisions are aligned to the financial management cycle and that financial considerations form a key element in all decisions regarding the commencement and on-going viability of change initiatives, both at an individual and at a collective level.

Risk Management

The purpose of the risk management practice is to ensure consistent and effective management of the portfolio’s exposure to risk at both individual and collective level. This is crucial to the successful delivery of change initiatives, to delivery of the portfolio as a whole, and ultimately the achievement of the organization’s strategic objectives.

Stakeholder Engagement

The purpose of the stakeholder engagement practice is to provide a coordinated approach to stakeholder engagement and communication and so ensure that:

The needs of the portfolio’s customers (both internal and external stakeholders) are identified and managed appropriately.

Stakeholder support for the portfolio is achieved by effective consultation and involvement in the definition and delivery of the portfolio.

Organizational Governance

The purpose of the organizational governance practice is to ensure clarity about what decisions are made, where and when, and what criteria are used.

Resource Management

At some level the amount of resources available to deliver change initiatives is constrained. The purpose of the resource management practice is to put in place mechanisms to understand and manage the amount of resources available and required and so enable:

More informed decisions to be made concerning the initiation and scheduling of initiatives to match resource availability.

More efficient and effective use of available resources – less ‘down time’, improved balance between internal and external people, and limited resources allocated to initiatives in priority order.

Improved delivery since initiatives will be less likely to be held up by temporary resource shortages or bottlenecks.

Improved realization of benefits as the scale and timing of business change required is proactively managed to ensure it is achievable.

Programme Management

A programme is a temporary, flexible organization created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organization’s strategic objectives.

Benefits of a sound Programme Management approach include:

Utilize best practice in programme management to successfully deliver transformational change.

Carry out the coordinated organization, direction and implementation of a dossier of projects and transformation activities to achieve outcomes and realize benefits of strategic importance to the business.

Manage the transition of the solutions developed and delivered by projects into the organization’s operations, whilst maintaining performance and effectiveness.

Encourage realistic expectations of the organizational capacity and ability to change.

Lead business transformation accommodating high levels of complexity, ambiguity and risk.

Align corporate strategy, delivery mechanisms for change and the business-as-usual environment.

Continually monitor progress, assess performance and realize benefits.

Apply a common framework of understanding for all programmes.

Add value by focusing on benefits.

Encourage feedback in order to refine future strategies based on evidence from programmes.

Programme Vision

A Vision is a picture of a better future that will be delivered by the programme. The Vision Statement encapsulates the vision and is used to communicate a high-level impression of the desired future ‘to-be’ state. The vision should describe a clear statement of end goal of the programme, any imposed constraints, context for the programme and project teams and relevant information to help set expectations and context within the broader business context the information to support the justification for change.

Programme Organization

For a programme to be successful we need to have: clearly defined roles, clear accountabilities and responsibilities for each role Management structures and reporting arrangements

These roles may include: The Sponsoring group, Programme board, Senior responsible owner (SRO), Programme manager, Business change manager(s) (BCMs) and Programme office.

Benefits and Business Case Management

The Programme Business Case and resultant benefits anticipated must be alignment with corporate strategy and objectives. Benefits management include: Benefits categorization, Benefits management cycle, Optimization and identification of other benefits and Benefits management throughout the delivery of programmes.

The Programme Business Case is used to validate the initiation of the programme and the ongoing viability of the programme. It answers the question: “Is the investment in this programme still worth it?” It consolidates the following information: Value of benefits, Risks to achieving the benefits, Costs of delivering the blueprint and Timescales for achievement.

Blueprint Design and Delivery

The Blueprint is a model of the future organization, including its working practices and processes, the information it requires and the technology that supports its operations. It is also called the Target Operating Model. The Blueprint provides a usable basis for modeling benefits and designing the Projects Dossier. The Blueprint drives specification and ensuring coherence of the entire future state, and the solution set that will underpin it.

Planning and Control

Planning and Control is key to successful programme delivery. Planning and Control are distinctly separate concepts and activities. Programme Planning requires: Processing large amounts of information, Extensive consultation, Building the plan(s). Programme Planning is typically: Iterative, includes many unknowns and includes many conflicts and ambiguity.

Control monitors actual progress against the Programme Plan. It is exercised throughout the programme, and specifically at control points such as programme tranches.

Risk Management

Effective Risk management is crucial to project success. A risk is an uncertain event or set of events which, should it occur, will have an effect on the achievement of objectives. A risk can be either a threat, (i.e. an uncertain event that could have a negative impact on objectives or benefits), or an opportunity, (i.e. an uncertain event that could have a favourable impact on objectives or benefits). A risk is measured by a combination of the probability of a perceived threat or opportunity occurring, and the magnitude of its impact on objectives.

Issue and Configuration Management

An issue is an event that has happened, was not planned and requires management action.

The aim of programme risk and issue management is to support better decision-making through a good understanding of risks and issues and their likely impact.

Configuration management is the technical and administrative activities concerned with the creation, maintenance and controlled change of configuration throughout the life of a product. A Configuration Item may be an asset that is subject to configuration management. The asset may be a component of a product, a product, or a set of products in a release

An Issue may have an impact on the programme objectives or configuration management. To this extent, Issues and Configuration Management are closely aligned.

Procurement and Contract

Procurement and Contract Management Includes the processes necessary to purchase or acquire products, services, or results needed from outside the project teams. The organization can be either the buyer or seller of the products, services, or results of a project.

Contract management includes change control processes required to develop and administer contracts or purchase orders issued by authorized project team members. It controls any contract issued by an outside organization (the buyer) that is acquiring deliverables from the project from the performing organization (the seller), and administering contractual obligations placed on the project team by the contract

Safety Health and Environment

Programme Safety and Health Management processes include all activities of the projects and the performing organization which determine safety policies, objectives, and, responsibilities so the project is planned and executed in a manner that prevents accidents, which cause, or have the potential to cause, personal injury, fatalities, or property damage.

Programme environmental management processes include all the activities of the projects and the performing organization, which determine environmental policies, objectives, and, responsibilities, the purpose of which is to minimize the impact on the surrounding environment and natural resources and to operate within the limits stated in legal permits.

Programme Organization

For a programme to be successful we need to have: clearly defined roles, clear accountabilities and responsibilities for each role Management structures and reporting arrangements

These roles may include: The Sponsoring group, Programme board, Senior responsible owner (SRO), Programme manager, Business change manager(s) (BCMs) and Programme office.

Project Management

There is a real business risk should projects fail, this could result in:

Litigation

Loss of planned and future revenue

Reputational and credibility risks

Our research on project failure in the South African environment concluded that more than:

50% of projects fail

10% of projects are terminated

40% of projects are implemented, although some do not fully realize the benefits

Benefits of a sound Project Management approach include:

It embodies established and proven best practice and governance for project management

It can be applied to any type of project – and can easily be implemented alongside specialist, industry-specific models (‘engineering models’ or ‘development lifecycle’s)

Therefore provides a common vocabulary for all project participants – promoting effective communication

Explicit recognition of project responsibilities – so that participants understand each other’s roles and needs. There is a defined structure for accountability, delegation, authority and communication

Its product focus clarifies (for all parties) what a project will deliver, why, when, by whom and for whom

Plans are carefully designed to meet the needs of the different levels in the management team, improving communication and control

It is based on a ‘management by exception’ framework, providing for the efficient and economic use of project management time

Ensures that participants focus on the viability of the project in relation to its Business Case objectives – rather than simply seeing the completion of the project as an end in itself

It defines a thorough but economical structure of reports

It ensures that stakeholders (including sponsors and resource providers) are properly represented in planning and decision-making

Adopting a method promotes learning and continual improvement in organizations

Promotes consistency of project work and the ability to reuse project assets; it also facilitates staff mobility and reduces the impact of personnel changes/handovers

An invaluable diagnostic tool, facilitating the assurance and assessment of project work, troubleshooting and audits

Integration Management

Project Integration Management includes the processes and activities to identify, define, combine, unify, and coordinate the various project management activities. In the project management context, integration includes characteristics of unification, consolidation, communication, and integrative actions that are crucial to controlled project execution through completion, successfully managing stakeholder expectations, and meeting requirements.

Business Case and Benefits Management

The purpose of the Business Case is to establish mechanisms to judge whether the project is (and remains) desirable, viable and achievable as a means to support decision-making in its (continued) investment.

Benefits management aims to identify the benefits, select objective measures that reliably prove the benefits, collect the baseline measures (from which the improvements will be quantified) and decide how, when and by whom the benefit measures will be collected.

Scope Management

Includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Managing the project scope is primarily concerned with defining and controlling the project scope, product scope and scope baselines.

Time Management

Includes the processes required to manage the timely completion of the project. Responsibility Assignments, project schedule development and maintenance of the schedule baseline form part of time management.

Cost Management

Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.

Quality Management

Includes the processes and activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken

Project Quality Management uses policies and procedures to implement, within the project’s context, the organization’s quality management system and, as appropriate, it supports continuous process improvement activities as undertaken on behalf of the performing organization. Project Quality Management works to ensure that the project requirements, including product requirements, are met and validated.

Risk, Issue and Configuration Management

Risk is “An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives”. The objectives of project risk management are to increase the likelihood and impact of positive events, and decrease the likelihood and impact of negative events in the project

An issue will have may have an impact on the project objectives. An issue can be defined as a Request For Change, Off-Specification or problem and concern. Configuration management is the technical and administrative activity concerned with the creation, maintenance and controlled change of configuration throughout the life of a product. All project and project management deliverables are subject to change.

Issue and configuration management ensure that all issues and changes which may affect the project’s agreed baselines are identified, assessed and either approved, rejected or deferred. Issue and change control procedures need to be integrated with the configuration management system used by the project.

Human Resources Management

Human Resource Management includes team environment, geographical locations of team members, communications among stakeholders, internal and external politics, cultural issues, organizational uniqueness, professional and ethical behaviour and others factors that may alter project performance.

Includes the processes that organize, manage, and lead the project team. The project team (project staff) is comprised of the people with assigned roles and responsibilities for completing the project. Project team members may have varied skill sets, may be assigned full or part-time, and may be added or removed from the team as the project progresses.

Communications Management

Includes the processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and the ultimate disposition of project information.

Effective communication creates a bridge between diverse stakeholders who may have different cultural and organizational backgrounds, different levels of expertise, and different perspectives and interests, which impact or have an influence upon the project execution or outcome

Stakeholder Management

Includes the processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution.

Stakeholder management also focuses on continuous communication with stakeholders to understand their needs and expectations, addressing issues as they occur, managing conflicting interests and fostering appropriate stakeholder engagement in project decisions and activities. Stakeholder satisfaction should be managed as a key project objective.

Procurement and Contract Management

Includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team. The organization can be either the buyer or seller of the products, services, or results of a project.

Contract management includes change control processes required to develop and administer contracts or purchase orders issued by authorized project team members. It controls any contract issued by an outside organization (the buyer) that is acquiring deliverables from the project from the performing organization (the seller), and administering contractual obligations placed on the project team by the contract

Safety Health and Environment Management

Project Safety and Health Management processes include all activities of the project management and the performing organization which determine safety policies, objectives, and, responsibilities so the project is planned and executed in a manner that prevents accidents, which cause, or have the potential to cause, personal injury, fatalities, or property damage.

Project environmental management processes include all the activities of the project management and the performing organization, which determine environmental policies, objectives, and, responsibilities, the purpose of which is to minimize the impact on the surrounding environment and natural resources and to operate within the limits stated in legal permits.

Step 1 Implementation

We strongly recommended that the establishment of governance be treated as a project to demonstrate the value of sound project management and business analysis best practices. We use our PPPOFFICE METHODOLOGY to implement the Portfolio, Programme and Project Offices:

Pre-project – Confirm Scope and Contract

Final agreement on the overall project scope and approach will be confirmed with management. The contractual obligations and pricing will be confirmed and signed by both parties.

We confirm and finalize the Portfolio, Programme and Project Office Scope and the:

Execution Approach

Project Structure

Reporting Requirements

Timelines for Implementation

Implementation delivery contracts are prepared and signed by both parties

Conduct Maturity Assessment

We advocate conducting a Maturity Assessment prior to the implementation of a Portfolio, Programme or Project Office using our PPINSIGHT Methodology.

This approach provides us with a baseline of current Project Management best practices in use and the desired state of Project Management institutionalization.

Assessment can either be based on the Project Management Body of Knowledge (PMBOK® Guide) or PRINCE2®. An Assessment Plan is articulated and all documentation is signed-off by the client and PM Academy.

The Maturity Assessment may be used as a snapshot or as a comprehensive maturity assessment.

A Project Charter / Project Initiation Document is produced detailing the scope of the contract.

We compile a draft Portfolio, Programme and Project Management Report and Recommendations. The report is discussed with the client to confirm relevance, accuracy and agreement on the road forward. The draft report includes an implementation plan and a prioritized list of actions to ensure a quick start to implementation.

Establish Governance

Based on the agreed timeline, our team will engage with stakeholders to develop the governance (Policy, Process, Procedures and Templates) tailored to the client environment. The governance will take cognizance of the recommendations made in this report.

Roll-out Governance and conduct Training

During this stage we will rollout the newly established governance and train all identified stakeholders. We recommend using pilot projects and programmes to validate the efficiency and effectiveness of the methodologies.

Fine Tune Governance

This step will be partially executed in parallel with the previous step to ensure the client receives the value from the investment in portfolio, programme and project practices as soon as possible. The main deliverables are:

Incorporating lessons learned in the methodologies

Continuous alignment of new requirements

On-going mentoring and Coaching

Handover and Closure

The established Portfolio, Programme or Project Office and Governance is formally handed over to the client Portfolio, Programme or Project Management Staff and acceptance certificates are signed. The assignment is formally closed.

Alternatively, PM Academy may operate the Portfolio, Programme or Project Office on behalf of the client.

The main deliverables are:

Handover of deliverables

Signing of acceptance certificates


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