How did Archer and Ghasemzadeh define Project Portfolio?
“A project portfolio is a group of projects that are carried out under the sponsorship and/or management of a particular organization. These projects must compete for scarce resources (people, finances, time, etc.) available from the sponsor, since there are usually not enough resources to carry out every proposed project.“
How did the PMI define Project Portfolio?
A portfolio is a component collection of programs, projects, or operations managed as a group to achieve strategic objectives. [...] A portfolio exists to achieve one or more organizational strategies and objectives and may consist of a set of past, current, and planned or future portfolio components. Portfolios and programs have the potential to be longer term with new projects rotating into the portfolios or programs, unlike projects that have a defined beginning and end. An organization may have more than one portfolio, each addressing unique organizational strategies and objectives.
How did the PMI define Project Portfolio Management?
Project portfolio management — or simply portfolio management — is defined as the centralized management of one or more portfolios that enable executive management to meet organizational goals and objectives through efficient decision making on portfolios, projects, programs and operations.
How did Thiry define Project Portfolio Management?
[Project Portfolio management is the] process of analyzing and allocating organizational resources to programmes and projects across the organization on an ongoing basis to achieve corporate objectives and maximize value for the stakeholders.
How did Cooper & Edgett define Project Portfolio Management?
Portfolio management is a dynamic decision making process whereby a list of active projects in the business is constantly updated and revised. New projects are evaluated, selected, and prioritized, existing projects might be accelerated, killed or de-prioritized and resources are allocated and reallocated to the active projects.The decision process is characterized by uncertain and changing information, dynamic opportunities, multiple goals and strategic considerations, interdependencies among the projects and multiple decision makers and locations.
What are the objectives of project portfolio management?
Maximize Value of Portfolio
Balance of Projects
Strategic Alignment of Projects
There may be conflicts and trade-offs between these three objectives! Portfolio success must therefore be multi-dimensional.
The ultimate objective of project portfolio management is the implementation of the corporate strategy!
What are reasons for organizations to practive portfolio management?
Customer satisfaction
Cost reduction
Revenue growth
Improved ROI
Improved development costs
Regulatory compliance
Innovation
Internal knowledge sharing
Employee Satisfaction
Share of market
Sustainability
Supplier relations
What is a programme?
A programme is a set of interrelated projects and organizational change processes designed to achieve a strategic goal and an expected benefit for the organization.
How can program management be defined?
Program management is a „temporary management task that involves the planning, overarching management and controlling of a defined number of related projects that serve a common, overarching goal”.
How can portfolio and programe be differentiated?
A programme includes projects with a common (overall) objective
A portfolio contains projects that share common resources
What is multi-project management?
We define multi-project management as the holistic management of a project landscape through coordinated interaction of: strategies, structures, processes, methods, organizational players and cultures to achieve performance targets of relevant stakeholders.
Illustrate the multi-project management pyramid!
What is the situational environment for single project management?
Single project situation
What is the situational environment for multi-project management?
Multi-project situation
What is the planning situation for single project management?
Bottom-up view
What is the planning situation for multi-project management?
Top-down view
What is the temporal orientation for single project management?
Temporary task
What is the temporal orientation for multi-project management?
Permanent task
What is the control orientation for single project management?
Focus on performance, schedules and costs
What is the control orientation for multi-project management?
Focus on costs / benefits
What is the success factor for single project management?
Project success
What is the success factor for multi-project management?
Organizational success
What is the goal orientation for single project management?
Efficiency (“Do things right”)
What is the goal orientation for multi-project management?
Effectiveness (“Do the right things”)
What does project portfolio management contain?
▪ Creating the prerequisites for functioning project management
▪ Responsible: Managers
▪ Focus on processes between projects
▪ (Re-)prioritization of the project landscape
▪ Identification of “strategic” resources
▪ Controlling the achievement of objectives
What does program management contain?
▪ Grouping of projects with an overarching goal or of projects that together provide more benefits than stand-alone projects
▪ Coordinating instrument
▪ Utilization of total project budget / capacities
▪ Risk management
What does project management contain?
▪ Planning and controlling of individual projects with regard to defined KPIs
▪ Responsible: Project manager
▪ Focus on processes for individual projects
Illustrate the contents of project portfolio management!
What are the main tasks of project portfolio management?
Alignment, planning, steering and adjustment
What are the individual tasks of project portfolio management?
▪ Selection and initiation of projects necessary for business success
▪ Visualization of dependencies between projects
▪ Recognizing conflicts of objectives between projects
▪ Systematic use of synergies between projects
▪ Regular coordination of the goals, deadlines and costs of the projects in the portfolio
▪ Prioritisation between projects in case of bottlenecks
▪ Communicate the impact of changes in one project on other projects
▪ Conscious termination of projects that do not promise success
▪ Transfer of experience gained in projects
▪ Completion and comparative evaluation of projects
▪ Consistent securing of benefits of the project results
Illustrate the ideal sequence of the PPM as a funnel!
What are common problems in the PPM process!
Ideas are not identified or forgotten
Poor decision transparency
Projects do not follow the official decision path
Synergies are not discovered
Submarine projects
Ad-hoc newly launched projects
Unexpected project termination / lack of resources
Projects in the fast lane
Project benefits are not realized
What are key problems in the PPM process?
(1) Lack of clarity of objectives and decisions
(2) Lack of transparency about the portfolio
(3) Lack of agility and effectiveness
Illustrate the aspects that determine MPM quality!
What is allocation quality?
Fast, reliable, accurate and accepted resource allocation
What is cooperation quality?
Common goals
Mutual assistance
Open communication
Constructive conflict resolution
What is termination quality?
Rapid and consistent project cancellations
What is decision quality?
Transparent and well communicated decisions
What is information quality?
Transparent project requirements & capacities
Available, reliable, current & accurate information on projects and resources
What is the significance of MPM quality?
The significance of MPM quality can be empirically proven: Strong evidence for causality & validation of MPM quality as early warning indicator for portfolio success!
What are the components of the multi-project Management Performance Index (MPI) according to the MPM benchmarking studies?
MPM quality
Portfolio success
Business Success
What is MPM success as part of the MPI?
MPM quality describes the quality of the interaction processes between the involved actors.
Cooperation quality
Information quality
Decision-making quality
Allocation quality
Termination quality
What is portfolio success as part of the MPI?
Portfolio success measures theimmediate success of the portfolio.
Strategic fit
Use of synergies
Portfolio balance
Average Project success
What is business success as part of the MPI?
Business success measures the realized benefit for the company/ business unit.
Avg. Economic success of project results
Economic success of the business unit
Future orientation
Speed-to-market
Illustrate the success factors resulting from the MPM benchmarking studies!
What is the goal “Maximize Value of Portfolio”?
Allocate resources so as to maximize the portfolio in terms of some business objective, e.g., expected net present return on net assets.
What is the goal “Balance of Projects”?
Restrict Portfolio Risk: Achieve desired balamce of projects im terms of incremental vs. radical projects, long vs. short term, or high vs. low risk, across markets, technologies…
What is the goal “Strategic Alignment of Projects”?
Ensure that breakdown of spending truly reflects innovation strategy - that all projects are “on-strategy”. Link the portfolio to strategic objectives.
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