PROJECT PORTFOLIO MANAGEMENT Concepts Généraux

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PROJECT PORTFOLIO MANAGEMENT Concepts Gnraux. PPM Definitions. The first is a direct quote from the PMI PMBOK the selection and support of projects or program investments guided by the organizations strategic plan and available resources . - PowerPoint PPT Presentation

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  • PROJECTPORTFOLIO MANAGEMENT

    Concepts Gnraux

  • PPM DefinitionsThe first is a direct quote from the PMI PMBOK the selection and support of projects or program investments guided by the organizations strategic plan and available resources. This involves a decision making process. The concept of being guided by the organizations strategic plan and the available resources which means being very aware of the organizations 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.

  • PPMIt usesAn identification of ProjectsAn evaluation of ProjectsA prioritization of Projects

    So as to Check if projects meet the Enterprise Strategic Goals and ObjectivesOptimize Resource allocationProvide different analysis (Cost and ROI analysis, Risk Analysis, Strategic value analysis)

    Which provides VisibilityStandardizationMeasurement Process Improvement

  • PM and PPM Value

    Ability to Realize Business Value Potential75%100%66%100%0%Portfolio ManagementProject Management50%Value RealizedPortfolio 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 valueAbility to Identify Organizational Value Potential

  • PPM Steps5. Revues, Priorisation / Slection6.En attente ou arrt ou clos

  • Construire le Portfolio Standardiser la dfinition des projetsDfinir et mettre en uvre des modles de fiches projets / ides (Project Charter)Dfinir les propritsDfinir les business drivers

    Dfinir les processus de collecte des informations

  • Project RegistryMinimum information requirements for the Project Registry includeProject Sponsor nameProject Manager nameProject priority rankingTarget milestone scheduleResource requirementsIdentified domain within the project portfolio

  • Prioriser / SlectionnerPrioriserDfinir les Business DriversValoriser les Business Drivers (Donner un poid chaque BD)

    Evaluer la valeur stratgique de chaque projet

    SlectionnerDfinir les contraintes Ressources (Comptences)BudgetTechniquesOptimiser les ressources en respectant les contraintes

  • Business DriverStrategic Goal:Business Driver Name:Retain existing clientsGrow Customer Share of WalletDedicate our resources to those market areas where we can maintain our existing client base and increase share of market of current clientsBusiness Driver Definition:Sell additional products to existing clientsMaintain clients and remain competitive in existing markets % Increase of Market Share Increase in Revenue

    Business Driver Name:Business Driver Definition:KPIs:

  • Tangible IntangibleTypical Project CriteriaStrategic 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 PriorisationIndicates 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.

  • PriorisationHigh RiskLow RiskFort BnficeFaible bnficeCBEDGJHKIAFLNMOQPRExample: Size - Effort Color - Organization

  • 1CostL - Priority - HPortfolio Analysis/Optimization23Optimization techniques allow organizations to select portfolios that will deliver the maximum strategic and financial valueUse charting techniques to analyze the portfolioOptimize the portfolio under varying budgetary constraintsBreak constraints and reach the Efficient FrontierSlectionner les bons projets

  • Requirements For PPM SuccessWell defined enterprise goals and objectivesEstablished and maturing PM processesProject reporting and analysis capabilitiesIntegration of project (enterprise) resourcesExecutive support of portfolio processReevaluate Project Portfolio on a Regular BasisAs Project datas are changing quickly Market is changing quicklyEnterprise Objectives can change The Project Portfolio must be reviewed very often

  • Benefits Of Portfolio ManagementValidate business strategy and align projectsEliminate redundanciesImprove resource utilizationImproved schedule performance and time-to-marketReduced staff overload and attritionFacilitate the process of adding, sorting, killing projects so as to meet the Enterprise Objectives

  • Consistent Progress Towards Best in Class20012002200325%50%75%100%Efficiency 41%Prioritization Only 62% Prioritization & Optimization 81%Prioritization, Optimization & Adv AnalyticsAlignment with Best PracticeLowMediumHighAnnual Planning 89%Prioritization, Optimization & Adv Analytics2004

    **The Power of the Project PortfolioMicrosoft Office EPM Solution Univesity Training*The Power of the Project PortfolioMicrosoft Office EPM Solution Univesity Training*The Power of the Project PortfolioMicrosoft Office EPM Solution Univesity Training**

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