Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Portfolio, Project and Programme Management
1. Strategy delivery:
Portfolio, Programme and Project
Management (P3M)
1. Strategy Delivery Model
2. Portfolios
3. Project and Programme Delivery
4. Projects Database
5. Summary
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2. Strategy and P3M
The OGC Model
Strategy sets priorities for MMU – programmes
Strategy & projects should help to deliver this
Portfolio = a collection of programmes &
projects that makes sense strategically
Portfolio
Programme = a collection of projects
that together deliver specific
Programme strategic goals
Project = a temporary
organisation that delivers
Project specific outputs
The typical institutional situation
• No portfolios
• Projects and programmes are set-up and approved at different
levels
• There is no consistent standard for approval
• No one knows exactly how many programmes and projects are
going on
• Know one knows the extent to which benefits are delivered
It’s a bit of a mess!
Thursday, July 28, 2011 Strategy – Portfolio –Project 2
6. Why have Portfolios?
• In large organisations, there can be many programmes and
projects. Portfolios are a mechanism for managing them in
comprehensible and achievable “chunks”
• Portfolios help to make funding arrangements more manageable,
e.g. so much for capital investment, so much for business
change, so much for academic innovation
• Once portfolios have been established, and the funding for them
agreed, it is much easier to prioritise programmes and projects
within the portfolios
A key role of the Executive in deciding portfolio
content is to make room for speculative innovation –
the kind of programme that could potentially give us a
significant leap forward in the HEI sector
What Portfolios should we have?
This model shows
portfolios
Strategy partitioned in terms
of capital, business
improvement and
Portfolio R&D – there are
other viable models:
choose what’s best
Capital Business Innovation
for you
Programme Change
or something different?
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7. What goes in the Portfolios?
Proposals
Questions:
1.Who makes the
How does this fit our decisions?
Senior management
strategy? review inputs and agree
portfolio (Executive)
2. Should all programmes &
projects be decided at this
level?
No - differentiate between
strategic delivery (SD) and
business as usual (BAU). Use a
project assessment tool – this
could be tweaked for SD / BAU.
BAU projects can be decided
locally.
Portfolio
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8. How should Portfolios be
managed?
Objective 3
Objective 2
Objective 1
Strategic
Strategic
Strategic
1. Strategy
• Programme C
• Programme B
• Programme A
• Programme E
• Programme D
• Programme A
• Programme C
• Programme B
2. Portfolio
3. Programme Business Change Portfolio
ICT Strategy Group
4. Project
• Output from Executive = Portfolios
• Each portfolio shows mapping of programmes against
Strategic Objectives
• Portfolio management includes setting up programmes
and assigning them to oversight groups such as ICT
Strategy Group
Question:
• What oversight groups do we need for our different
portfolios?
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9. How should Portfolios be
monitored?
Business Change
delivers
Benefits
• Benefits Realisation Management techniques map the
connections between outcomes / business change and benefits
delivery
• This is monitored / managed at portfolio level (to check on
programme success)
• The project assessment framework provides consistency for the
projects monitoring process
• Carried out by Oversight Groups
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10. Strategy delivery:
Portfolio, Programme and Project
Management
3. Project and Programme Delivery
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11. Ensuring programme & project
consistency
“Top down” projects are to enable strategic delivery
“Bottom up” projects are proposals that arise from within
Directorates outside the top-down strategic process
How do we ensure that we manage all our programmes and
projects consistently?
Use a project assessment framework to decide whether “bottom
up” proposals are
• Business as usual projects (these can go forward as part
of the business unit’s decisions)
• Strategic projects (these must be referred to a relevant
oversight group for approval via the Executive)
Criteria Score 1 Score 2 Score 3 Score 4
Cost £
Timescale in months
£1,000-£10,000
1-6
£10,000 – £150,000
6 – 12
£150,000 – £500,000
12 – 18
>£500,000
>18
Business as usual Strategic
Contributing to other Direct contribution
Very minim al Direct co ntribution
Strategic priorities work that is linked to to mo re than o ne
dependency to a strategic target
a strategic target strategic target
Impact on Very minim al
Som e new business Significant re-
Major, e.g. 40
processes and structure of
organisational (cost/benefit o utso urcing, large
possibly so me re- processes and work
effectiveness analysis) scale restructuring
training areas
Som e links to other 35
Fundam ental to
wo rk that is Direct links to policy
External imperatives Very minimal links achievem ent of
delivering policy or or legislation
policy or legislation
legislatio n
Internal across m ore 30
Internal and within
Stakeholders than one business Mainly external Internal and external
single business area
area
No new co ntracts Single co ntract with Multiple contracts Contract(s) with new
Contract complexity
required known supplier with known suppliers suppliers(s) 25
Have done similar Have no t done
Have done this Have done this
Track record before, but not the anything like this
before many times before once or twice
sam e before
Risk
Links with o ther Links with o ther Other projects 20
Very minimal links
Dependencies projects but little projects upon which depend upon this
with other projects
impact this project depends project
Major im pact on
Minor im pact on
Very minim al im pact Minor im pact on academic service
Student impact
on students
student
academic services and/or student
15
administration
adm inistration
10
Project assessment framework 5
means that all projects are 0
0 5 10 15 20 25 30 35 40
Impact
scored using a standard and Not a project
consistent approach Small project
Medium project
Major project
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12. Managing programme & project
delivery
How do we ensure that we manage and monitor all our
programmes and projects consistently and effectively?
New New
New BAU
Proposed Strategic Proposed
strategic dept/fac
proposal
project project
proposal proposal
Reviewed Reviewed
Faculty /
by
Executive by by
dept
Director-
Executive ate
dept/fac
mgmt
Project Central Project
Assessed to
Assessed using
Added to Added using
Assessment Projects Assessment
project assessment
project assessment
central central
Framework Database Framework
framework
database framework
database
Assigned
Oversight
oversight Type type?
Type ==Business as
Strategic
Group
group Usual
Business
as usual
Set up
Prog / Set up
Project
prog/proj
Project project
Board
Board
Board Board
Benefits Realisation Management
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13. Managing programme & project
delivery: central database
Why have a single central database of all programmes Central
Projects
and projects? Database
1. allows better strategic decisions – e.g. you can see if
similar programmes / projects already exist
2. allows better resource management – e.g. you can see where
resources are currently being directed
3. allows for benefits tracking across the whole portfolio,
including BAU and Strategic
4. allows assessment of risk between as well as within projects –
e.g. delivery timing causing resource peaks
5. allows estimation of project costs overall going forward, thus
aiding financial planning
Doesn’t having to report to a central database just duplicate
the work of boards, etc.?
In a sense there is duplication, but the database will only require
summary information about programmes and projects that should
already be easily available and thus not cause too much effort to
produce:
• Name of project / programme
• Sponsor
• Programme / project manager
• Status (proposal, planning, on hold, underway, complete)
• Size (from project assessment framework)
• Start & estimated end dates
• Key milestones
• Estimated cost
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14. Strategy delivery:
Portfolio, Programme and Project
Management (P3M)
4. Projects Database
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15. Getting project management right
Project Assessment Framework:
• Provides a standard for programme and project 40
35
scoping 30
25
Risk
20
• Provides a decision making tool 15
10
• Indicates “size” of project allowing approach 5
0
0 5 10 15 20 25 30 35 40
to be tailored appropriately
Impact
Not a project
Small project
Medium project
Major project
Programme and Project Boards:
• Need to have the “right level” of sponsorship
EQAL
and membership Programme Board
Programme Manager Change Manager
• Board members must: Strand 1 Strand 2a Strand 2b Strand 3a Strand 3b Strand 4
• understand their roles and responsibilities Cu rricu lum Assessment Academic VLE Trainin g PARM review
Review Records database Portal EQAL leads AME review
man agement Timetables Mobile access On line training Th resh old
• provide appropriate commitment SIPs/Hu b
Regu lations
AME
Studen t
en gagement
Podcastin g
Talis Aspire
stan dards
Project Managers:
• Need appropriate skills and training (not
just PRINCE2)
• Need appropriate time and resource
Tools and Templates:
• Project Manager User Group now established
• Currently reviewing proposed standard
templates and toolkits 3 9 10 11
1 [0] 2 [5]
[15] [195] [205] [210]
• Templates applied as appropriate 4
[20]
5
[35]
6
[45]
7
[48]
8
[58]
Put milk in cup [5]
to project size
Overall approach needs corporate approval and buy-in
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16. Who does what?
Project Boards:
• Check output meets requirements
• Hand over to (programme) change management
• Check that outcomes are delivered
The project assessment framework provides
consistency for the projects monitoring process
Programme Boards:
• Responsible for ensuring project outcomes
are embedded as business change
• Benefits Realisation Management techniques
support this
Oversight Groups:
• Benefits Realisation Management techniques
map the connections between outcomes /
business change and benefits delivery
• This is monitored / managed at portfolio
level (to check on programme success)
Executive:
• Benefits Realisation Management techniques
map the connections between benefits
and strategic objectives
• This is monitored / managed at senior
management level (to check on portfolio
success)
Thursday, July 28, 2011 Strategy – Portfolio –Project 16
18. Strategy delivery model summary
• Top down model – new programmes and projects emerge
as part of Executive strategy review
• Tiered model – each tier operates at a different level of
operations:
• L1 = strategic (Executive)
• L2 = strategy enabler (Oversight Groups)
• L3 = benefits management (Programme Boards)
• L4 = delivery (Projects)
• Project assessment framework ensures consistency in
terms of project definition
• Assessment framework also allows for bottom up proposals
to be reviewed consistent with overall framework
• The model provides for both implementation and
monitoring
• Benefits Realisation management provides framework for
both implementing the delivery model and measuring
success
In terms of organisational maturity for portfolio,
programme & project management, if you fully implement
and embed this model you would be at level 4 of the 5-
level OCG P3M3 Maturity Model1
1 See http://www.p3m3-officialsite.com/P3M3Model/P3M3Model.asp
Thursday, July 28, 2011 Strategy – Portfolio –Project 18
