Archibald Keynote DYNAMICS PM 2010

8/9/2019 Archibald Keynote DYNAMICS PM 2010

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Russell D. ArchibaldPhD (Hon), MSc, Fellow P MI , Honorary Fellow APM / IPM A, PMP

Archiba ld Associates

The Interfaces Between

Strategic Management of an Enterprise

andProject Portfolio Management Within the Enterprise


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Presentation Outline1. Strategic Growth

Management

2. Project PortfolioManagement/PPM

3. Interfaces Between StrategicManagement & PPM

4. Conclusions


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1. Strategic Growth Management Well-managed enterprises today utilize integrated

strategic growth management processesto define,approve and control their current and future growth plans

and the actions principally the execution of portfolios of

programs and projects -- needed to achieve their agreed

strategic objectives.

Strategic management is the art and science offormulating, implementing and evaluating cross-functional

decisions that will enable an organization to achieve its

objectives (Strategic Management Wikipedia 2010.).


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The Strategic Growth Management Process


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Who Is Responsible for StrategicManagement Plans, Decisions &

Processes? Presidents, Secretaries General, Ministers,

Chief Executive Officers/CEOs

Other Senior Corporate Executives

Directors & Managers of subsidiary business units,

major operating departments, product lines and

geographic units-- These are the Strategy Managers of the

organization does not usually includeProject Managers or Strategic Planners.


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Defining Project Categories Project Categories

Many principles of PM apply to all projects

But One Size Project Life Cycle System does not fit all!

Projects are categorized in different ways for

different purposes Strategically: Market share, strategic intent

Operationally: ) end product, or

Educationally and training: ) industry, or Career development: ) technology

Two basic project types: STRATEGIC DEVELOPMENT

and COMMERCIAL DELIVERY projects


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Project Categories Based on End Results1.Aerospace/Defense

2.Business &

OrganizationalChange

3.Communication

Systems

4.Events

5.Facilities

6.Information

Systems/IT

7.InternationalDevelopment

8.Media &

Entertainment

9.Product/Service

Development

10. Research & Dev.


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Commercial Delivery Projects Many organizations create and deliver CommercialDelivery Projects as an on-going part of theirestablished business. These are obviously DELIVERYprojects, not STRATEGIC DEVELOPMENT projects.

These delivery projects produce and deliver undercontract well-known results or products with littleor no innovation that fit well-known and well-established strategic objectives of the organizations.

Such commercial projects may be completely

managed as a single Commercial Project Portfolio bya Project Management Office with responsibility forall six of the Strategic PM processes unlike allother strategic development projects as discussed inthe remainder of this presentation.


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Defining Strategic DevelopmentProjectPortfolios

PMIs Standard for Portfolio Management recommends one

portfolio for an organization with sub-portfolios if needed

A more practical approach:

Per Combe & Givens (1999):

Value-creating: Strategic or enterprise projects

Operational: Projects that make the organizational more efficient

Compliance: Must-do projects required to maintain regulatorycompliance

Other portfolio possibilities:

New product (or service), product line extension, IT or ICT, capital

facilities, major facilities maintenance, R & D, other


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Project Portfolio Management Project Portfolio Management is

fundamentally the integration of thestrategic project management processes with

the operational project managementprocesses

Project Portfolio Management provides thebridge between these two aspects of project

management But who holds responsibility for

STRATEGICALLY managing projectportfolios?


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3. Interfaces Between Strategic & ProjectPortfolio Management

The Five Phases of the StrategicGrowth Management Process

1. Describe 2. Conclude 3. Commit

4. Create Action Plans (Projects) and

5. Integrate With Operations:

Using the Six Strategic ProjectManagement Processes:

1. Select and approve new projects andprograms

2. Validate each new project andprogram

3. Prioritize all validated projects andprograms within portfolios

4. Allocate key resources to eachportfolio and each project andprogram

5. Establish the masterschedule for each projectportfolio - (PMO responsibility)

6. Cancel or change the scopewhen such actions are requiredor justified.

Then manage each project andprogram using allappropriate OperationalProject Managementprocesses and tools.


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The PPM Evaluation Cycle Report progress on each project and program

within each portfolio as specified by the

organizations PM procedures

Portfolio Level Review Criteria:

How often?

Comparative evaluation of projects?

What criteria are used to re-prioritize, re-allocate

resources, change scope or kill projects?

Who makes the strategic decisions?


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Managing the Project PortfolioManagement Processes

The PPM Process usually operates on a quarterly, semi-annual, or annual

cycle, at least in concert with an annual strategic review and revision cycle

for the entire organization. The STRATEGY MANAGERS are responsible for overall management of the

PPM process for Strategic Development projects AND the related strategic

decisions.

The appropriate PMO should be responsible for Strategic PM process No. 5,

Establish the master schedule for each project portfolio. Strategy Managers

must approve this Master Schedule.

PMOs may facilitate operation of the PPM process but the resulting

strategic decisions are the responsibility of the strategy managers and not

individual program or project managers except for Commercial project

portfolios.


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Defining Responsibilities ofKey People

For each of the 5 Strategic Management Phases,

each of the 6 Strategic Project Management Phases,and for each project portfolio:

Identify key:

Strategy Managers

Strategic Planners

PMO Managers Program and Project Managers

Define their responsibilities

See example Responsibility Assignment Matrix in the paper

(also the 14 references given there)


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4. Conclusions1. The Strategy Managers within an organization are responsible for 1) creating and

executing the growth strategies for the organization, 2) project selection,prioritization, and provision of funds and other resources for their execution, and3) strategic direction of all project portfolios required to achieve the approvedstrategic objectives.

2. Five of the six identified strategic project management processes are theresponsibility of the organizations Strategic Managers and not its project orprogram managers. The one strategic PM process that is the responsibility of thePM experts but with the final approval of the Strategy Managers is to establish theMaster Schedule for each Project Portfolio.

3. Project management knowledge, experience, and expertise are usually developedand retained within an appropriate number of Project Management Offices/PMOs,depending on the size and complexity of the organization and also on the projectand program categories that exist within the organization.


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Thanks for your attention!To download my references in this paper

Go towww.russarchibald.com

Then

And scroll down to the title and date

[email protected]

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Archibald Keynote DYNAMICS PM 2010