Management of Project Portfolios (EPM) Ravi Shankar

Transcription

1 Management of Project Portfolios (EPM) Ravi Shankar

2 Agenda Why Pursue EPM Strategy? Portfolio Management Framework and processes Benefits of Portfolio Management Office Templates Software Tools Ravi Shankar 2

3 Why Pursue EPM Strategy? Enterprise agility is a must because external factors are more impactful External technology and business factors are forcing the organisation to better work as one large team Ravi Shankar 3

4 Why Pursue EPM Strategy? Ravi Shankar 4

5 Why Pursue EPM Strategy? Compression of product/service lifecycle and resources availability Competition is increasing Margins are shrinking Supplier Pricing is less stable Customer buying behaviour changing rapidly Technology is changing rapidly Shareholder sentiments is not always based on business fundamentals Customer retention is a growing concern Social network sentiment can shift overnight Ravi Shankar 5

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7 What Portfolio Office should do? Collaborate with various departments/functions Management Board Finance Strategic Planning HR IT Centre of Excellence Procurement/ Commercial Portfolio Office Business Architecture Team Communications Performance Management PPM Community Real Estate Services Ravi Shankar 7

8 Senior Management commitment Management is to demonstrate a commitment to change Active engagement in decision-making process of portfolios Prioritize projects and programmes Ravi Shankar 8

9 Portfolio Governance Portfolio governance structure should reflect the wider organizational governance framework i.e. single or multilevel portfolio governance Clear defined roles and responsibilities Ravi Shankar 9

10 How Portfolio should align to Strategy? Projects need to align to Organisational strategy Strategy Strategic Objective Strategic Objective Strategic Objective Benefit Benefit Benefit Benefit Benefit Benefit Project/ Programme Project/ Programme Project/ Programme Project/ Programme Project/ Programme Portfolio Project/ Programme No benefit linked Project/ Programme Benefit Ravi Shankar 10

11 How Portfolio office will be successful? Success can be realized if people work as a team Behaviours reflective of success of organisations, not silos Senior Management Commitment Energized Change Culture A mutual and shared desire to succeed Effective Governance Ravi Shankar 11

12 Understand the current and new portfolio Review and assess existing and new projects and programmes Strategic fit Business impact Benefits Risks Projects/ Programmes Performance to date Resources required Costs Dependencies Provides clear view of the portfolio and its programmes and projects Ravi Shankar 12

13 Categorize the projects/programmes Provides clear view how the projects/programmes are grouped Ravi Shankar 13

14 Prioritize: Sample Portfolio Analysis Decision-Support Graph Project Benefit versus Planned End Date with investment $200 Project 4 Investment >$1,000,000 $175 Project 2 Project 3 $200,000 - $1,000,000 $150 <$200,000 Benefits ($) $125 $100 Project 7 Project 8 Project 10 $75 Project 12 Project 1 Project 11 $50 Project 5 Project 6 Project 9 $25 $M Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Planned End Date Ravi Shankar 14

15 Balance the portfolio Balance the portfolio in terms of timing, impact across the business, stage of initiative development, overall risks, available resources, and immediate benefits Ravi Shankar 15

16 Select projects based on risks, benefits and budget High Reject Level Of Risk Medium 1 3 Consider Low Medium High Benefits Return Ravi Shankar 16

17 Portfolio 3 Year Plan Ravi Shankar 17

18 Portfolio Dashboard Ravi Shankar 18

19 Benefits of Portfolio Office Cost savings or revenue gains Decommission applications that wouldn t align organisation strategy Resources and skills are optimally utilized Helps management to take quick decisions on current and future projects/programmes Separate wheat from chaff i.e. separate prioritised projects from total projects Ravi Shankar 19

20 Templates/Reports for Portfolio Management Office Business case template Portfolio Progress Report Investment Appraisal template Portfolio dashboard delivery assessment Portfolio framework Benefit Management framework Benefit Management Plan Financial Management plan Risk Management Dependency Management Stakeholder Engagement Resource Management Organisational Governance Ravi Shankar 20

21 EPPM Software Tools There are more than 100 software tools in the market, some of them are as follows: Oracle Primavera IBM Rational CA Clarity Compuware Changepoint HP PPM Centre SAP Portfolio and Project Management Ravi Shankar 21

22 If you have any questions or comments, please send an to Ravi Shankar 22