Managing Project Portfolios, Programs & Multiple Projectsrussarchibald.com/Managing_Proj_PortfoliosProg_IPMA_Moscow200… · 4. Managing Multiple Smaller Projects Many organizations

Managing Project Portfolios, Programs & Multiple Projects

Russell D. Archibald, FPMI, FAPM, PMPArchibald Associates

IPMA Congress Moscow 2003 Russ Archibald 2

Outline of My Presentation1. The Multi-Project Environment2. Managing Project Portfolios3. Managing Multi-Project Programs4. Managing Multiple Smaller Projects5. Multiproject Operations Planning &

Control6. Summary & Conclusions


1.The Multiproject Environment

In large organizations, projects must be managed at 3 or 4 levels:

1. Project portfolio level2. Multi-project program level3. ‘Group of minor projects’ level4. Individual major project level

The first 3 of these are discussed here


Multiproject Environment Characteristics

No organization has totally unlimited resources Competition between and within projects for money, key resources, and management attentionDependencies between projects for the results being produced


The Basic Multi-Project Management Objective

The multi-project requirements and priorities must be brought together at appropriate levels in the organizationThe basic objective:

To assure that all approved projects are completed to realize the maximum benefits for the entire organization


Specific Multi-Project Objectives

Complete all projects to meet strategic goals of the organizationSet and manage project priorities for best resource allocation decisionsManage comparative risks proactively


Specific Multi-Project Objectives (Cont’d)

Provide adequate resources for all projects while assuring their efficient useIntegrate multi-project execution with other ongoing operationsDevelop organizational patterns and management processes for both multi-project and other operations


2. Managing Project PortfoliosProject portfolio management process

Project Portfolio Steering Group

Relationships between the Steering Group, Project Sponsors, PMO, and Project/Program Managers


Project to Implement the Portfolio Management Process

Management Project Scope: To design and implement a project portfolio management processThe project team:

Manager, Project Management Office (PMO)PMO staff plus internal/external consultantsSelected project sponsors or other executives


12 Step Portfolio Mgt. Process1. Define project portfolios needed2. Define project categories that exist

within each portfolio3. Place projects within categories and

programs4. Validate each project with

organization’s strategic objectives


12 Step Process (Cont’d)

5. Prioritize projects within programs and portfolios

6. Develop Project Portfolio Master Schedule

7. Establish and maintain key resources data bank

8. Allocate available resources to programs and projects in portfolios


12 Step Process (Cont’d)

9. Compare financial needs with availability10. Decide how to respond to shortfalls11. Plan, authorize and manage each program

and project using the PM process designed for each project category

12. Periodically add or delete, re-prioritize, reallocate resources, & reschedule projects (steps 1 through 12)


Project Portfolio Steering Group Responsibilities

Approve design and implementation of the PPM ProcessActively participate in process operation

Integrate strategic and project objectivesManage relative project prioritiesApprove new projects for inclusionProvide strategic direction to project sponsors


Project Portfolio Steering Group Responsibilities (Cont’d)

Recommend to CEO the acquisition of additional financial and other resources when required to support portfoliosRecommend needed improvements in the Project Portfolio Management Process


Relationships Between the Major Players

Portfolio Steering Group:Give strategic direction on programs & projects to Program/Project Sponsors

Project Sponsors:Give strategic direction & other political, economic, marketing, and technological information to PMO Manager, & affected Program/Project & senior Functional Managers


Relationships Between the Major Players (Cont’d)

Manager of Project Management (PMO)Communicate strategic direction (priorities, resource decisions, other) to Managers of Programs/Projects without assigned Sponsors, together with affected senior Functional ManagersMay act as Sponsor for such programs and projectsProvide support and guidance on PM


Relationships Between the Major Players (Cont’d)

Program and Project Managers:Receive strategic direction from Sponsors or the Manager of Project ManagementReceive operational support and professional guidance in planning and control from the PMO/Manager of Project ManagementReflect strategic direction received in their program/project plans and schedulesConvey impact of changes to their Sponsors and/or PMO/Manager of Project Management


3. Managing Multi-Project Programs

Program: Comprised of 2 or more projects that are interrelated in some fairly direct way

Same product lineCommon strategic objectiveResults from one needed by another

Could be considered a specific portfolio


Program Versus Project Managers

Similar responsibilities, broader scopeProgram Manager usually supervises 2 or more Project ManagersPrograms usually of longer duration than projects:

Maintaining continuity of responsibility therefore more difficultProgram Manager job is more permanent


Program Life CyclesComprised of several overlapping project life cyclesTherefore program life cycle may not be well definedProjects are completed, new ones added to the program


4. Managing Multiple Smaller Projects

Many organizations have few major projects but many smaller onesClassic PM does not apply well to theseOne Project Manager may handle a number of smaller projects, or the Division General Manager may hold the project manager responsibility


Multiple Major VersusMultiple Small Projects

All projects in one central system

Each project planned & controlled independently

Integrated Planning & Control

Usually in functional depts.

Project Office plus functions

Project Team

Retained in line organization

Project ManagerProject Manager Role

Multiple Small Projects

Multiple Major Projects


Benefits of Network-Based Systems

Improved planning, scheduling, & resource forecastingDevelopment of planning templatesRe-scheduling with known priority rulesAutomation of schedules and forecasts


Interdependencies Between and Within Projects1. Result of action

Logical dependencies/interface events

2. Common unit of resourceLogical dependencies/interface events

3. Rate-of-use-of-common-resourcesScheduling with resource leveling


5. Multi-Project Operations Planning and Control

At master plan and schedule level:Integrates and controls all contracts/projectsFor all functions: marketing, engineering, procurement, manufacturing, & installationFor a product line or operating division


Centralized Planning & ControlSome companies use a central master planning/operations control function (discussed later)Contracts (projects) flow through functional departments & are planned and controlled centrally


Key Points:Operations Planning & Control

Interfaces with functional systems at the master schedule levelAvoids detail planned by each functional systemSet of bridging networks links plans through key interface eventsEach contract/project has a network


Key Points (Cont’d)

Contract/project network plan assembled from templates (fragnets) and modified as needed

Milestone events included for tracking and management reporting


6. Summary & ConclusionsProjects must be managed at several levels:

Project portfolioMulti-project programGroup of small projects levelIndividual project level

Portfolio project management links strategies to programs & projects


6. Summary & Conclusions (Cont’d)

Multi-project objectives are different from individual project objectivesPortfolio project management process must be well-designed & properly implementedPortfolio Steering Group, Project Sponsors, Manager of PM, and Program/Project Managers must work together



With multiple smaller projects the PM roles can be retained within the line organizationMulti-project/contract Operations Planning and Control System can be the best solution



Today’s complex organizations operating in this Internet Age must manage their projects at portfolio, program or multi-project levels — in addition to managing each project as appropriate with classic project management methods


Thank You For ListeningQuestions?

Rebuttals?

Contact the author:[email protected]

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Managing Project Portfolios, Programs & Multiple Projectsrussarchibald.com/Managing_Proj_PortfoliosProg_IPMA_Moscow200… · 4. Managing Multiple Smaller Projects Many organizations