Managing Project Portfolios, Programs & Multiple Projects

Transcription

1 Managing Project Portfolios, Programs & Multiple Projects Russell D. Archibald, FPMI, FAPM, PMP Archibald Associates

2 Outline of My Presentation 1. The Multi-Project Environment 2. Managing Project Portfolios 3. Managing Multi-Project Programs 4. Managing Multiple Smaller Projects 5. Multiproject Operations Planning & Control 6. Summary & Conclusions Russ Archibald 2

3 1. The Multiproject Environment In large organizations, projects must be managed at 3 or 4 levels: 1. Project portfolio level 2. Multi-project program level 3. Group of minor projects level 4. Individual major project level The first 3 of these are discussed here Russ Archibald 3

4 Multiproject Environment Characteristics No organization has totally unlimited resources Competition between and within projects for money, key resources, and management attention Dependencies between projects for the results being produced Russ Archibald 4

5 The Basic Multi-Project Management Objective The multi-project requirements and priorities must be brought together at appropriate levels in the organization The basic objective: To assure that all approved projects are completed to realize the maximum benefits for the entire organization Russ Archibald 5

6 Specific Multi-Project Objectives Complete all projects to meet strategic goals of the organization Set and manage project priorities for best resource allocation decisions Manage comparative risks proactively Russ Archibald 6

7 Specific Multi-Project Objectives (Cont d) Provide adequate resources for all projects while assuring their efficient use Integrate multi-project execution with other ongoing operations Develop organizational patterns and management processes for both multiproject and other operations Russ Archibald 7

8 2. Managing Project Portfolios Project portfolio management process Project Portfolio Steering Group Relationships between the Steering Group, Project Sponsors, PMO, and Project/Program Managers Russ Archibald 8

9 Project to Implement the Portfolio Management Process Management Project Scope: To design and implement a project portfolio management process The project team: Manager, Project Management Office (PMO) PMO staff plus internal/external consultants Selected project sponsors or other executives Russ Archibald 9

10 12 Step Portfolio Mgt. Process 1. Define project portfolios needed 2. Define project categories that exist within each portfolio 3. Place projects within categories and programs 4. Validate each project with organization s strategic objectives Russ Archibald 10

11 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 Russ Archibald 11

12 12 Step Process (Cont d) 9. Compare financial needs with availability 10. Decide how to respond to shortfalls 11. 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) Russ Archibald 12

13 Project Portfolio Steering Group Responsibilities Approve design and implementation of the PPM Process Actively participate in process operation Integrate strategic and project objectives Manage relative project priorities Approve new projects for inclusion Provide strategic direction to project sponsors Russ Archibald 13

14 Project Portfolio Steering Group Responsibilities (Cont d) Recommend to CEO the acquisition of additional financial and other resources when required to support portfolios Recommend needed improvements in the Project Portfolio Management Process Russ Archibald 14

15 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 Russ Archibald 15

16 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 Managers May act as Sponsor for such programs and projects Provide support and guidance on PM Russ Archibald 16

17 Relationships Between the Major Players (Cont d) Program and Project Managers: Receive strategic direction from Sponsors or the Manager of Project Management Receive operational support and professional guidance in planning and control from the PMO/Manager of Project Management Reflect strategic direction received in their program/project plans and schedules Convey impact of changes to their Sponsors and/or PMO/Manager of Project Management Russ Archibald 17

18 3. Managing Multi-Project Programs Program: Comprised of 2 or more projects that are interrelated in some fairly direct way Same product line Common strategic objective Results from one needed by another Could be considered a specific portfolio Russ Archibald 18

19 Program Versus Project Managers Similar responsibilities, broader scope Program Manager usually supervises 2 or more Project Managers Programs usually of longer duration than projects: Maintaining continuity of responsibility therefore more difficult Program Manager job is more permanent Russ Archibald 19

20 Program Life Cycles Comprised of several overlapping project life cycles Therefore program life cycle may not be well defined Projects are completed, new ones added to the program Russ Archibald 20

21 4. Managing Multiple Smaller Projects Many organizations have few major projects but many smaller ones Classic PM does not apply well to these One Project Manager may handle a number of smaller projects, or the Division General Manager may hold the project manager responsibility Russ Archibald 21

22 Multiple Major Versus Multiple Small Projects Project Manager Role Project Team Integrated Planning & Control Multiple Major Projects Project Manager Project Office plus functions Each project planned & controlled independently Multiple Small Projects Retained in line organization Usually in functional depts. All projects in one central system Russ Archibald 22

23 Benefits of Network-Based Systems Improved planning, scheduling, & resource forecasting Development of planning templates Re-scheduling with known priority rules Automation of schedules and forecasts Russ Archibald 23

24 Interdependencies Between and Within Projects 1. Result of action Logical dependencies/interface events 2. Common unit of resource Logical dependencies/interface events 3. Rate-of-use-of-common-resources Scheduling with resource leveling Russ Archibald 24

25 5. Multi-Project Operations Planning and Control At master plan and schedule level: Integrates and controls all contracts/projects For all functions: marketing, engineering, procurement, manufacturing, & installation For a product line or operating division Russ Archibald 25

26 Centralized Planning & Control Some companies use a central master planning/operations control function (discussed later) Contracts (projects) flow through functional departments & are planned and controlled centrally Russ Archibald 26

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28 Key Points: Operations Planning & Control Interfaces with functional systems at the master schedule level Avoids detail planned by each functional system Set of bridging networks links plans through key interface events Each contract/project has a network Russ Archibald 28

29 Key Points (Cont d) Contract/project network plan assembled from templates (fragnets) and modified as needed Milestone events included for tracking and management reporting Russ Archibald 29

30 6. Summary & Conclusions Projects must be managed at several levels: Project portfolio Multi-project program Group of small projects level Individual project level Portfolio project management links strategies to programs & projects Russ Archibald 30

31 6. Summary & Conclusions (Cont d) Multi-project objectives are different from individual project objectives Portfolio project management process must be well-designed & properly implemented Portfolio Steering Group, Project Sponsors, Manager of PM, and Program/Project Managers must work together Russ Archibald 31

32 6. Summary & Conclusions (Cont d) With multiple smaller projects the PM roles can be retained within the line organization Multi-project/contract Operations Planning and Control System can be the best solution Russ Archibald 32

33 6. Summary & Conclusions (Cont d) 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 Russ Archibald 33

34 Thank You For Listening Questions? Rebuttals? Contact the author: Russ Archibald 34