The Project Management Process - Week 2
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A discussion about project portfolio management, and how to choose projects for your portfolio.
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The Project Management Process - Week 2
- 1. Project Management 2. Portfolio Management
- 2. Week 2
- 3. Project selection and portfolio management
- 4. Project selection and portfolio management
- 5. Project selection and portfolio management What are the inputs that cause the project process to begin?
- 17. Strategy 2 Strategy 1 Strategy 3 Strategy 4 Organisation Mission Money Customers Efficiency and Effectiveness Adaptability
- 18. 5 Forces analysis Supplier power Customer power Threat of New Entrants Substitutes Intensity of competition Michael Porter’s ‘5 Forces’ – 1980’s
- 19. business model template VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS INFRASTRUCTURE CUSTOMER OFFER FINANCE Osterwalder’s Business Model framework 2006 http://business-model-design.blogspot.com
- 20. Process efficiency Scorecard Customer satisfaction Financial Learning and innovation Balanced Scorecard Kaplan & Norton (1994?) HBR
- 21. Kaplan & Norton (1998?) HBR http://www.visual-literacy.org/periodic_table/pix/strategy-bsc-map.png Strategy Map
- 22. Strategy 2 Strategy 1 Strategy 3 Strategy 4 Organisation Mission Money Customers Efficiency and Effectiveness Adaptability
- 24. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals
- 25. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals
- 26. SWOT Analysis
- 28. S T W O
- 29. S T W O Positive Negative
- 30. S T W O Internal External
- 31. S T W O Internal External Positive Negative
- 32. S T W O Internal External Positive Negative
- 33. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals
- 34. http://en.wikipedia.org/wiki/SMART_(project_management) Time-bound T Relevant R Achievable A Measurable M Specific S
- 35. http://en.wikipedia.org/wiki/SMART_(project_management) Recorded, Rewarding, Reviewed [8] R [1] Exciting, Evaluated, Ethical E [1] Time framed [2] , Timed, Time-based, Timeboxed, Timely [6] [5] , Timebound, Time-Specific, Timetabled, Trackable Time-bound T Realistic [2] , Results/Results-focused/Results-oriented [6] , Resourced [7] , Rewarding [3] Relevant R Agreed, Attainable [6] , Assignable [2] , Appropriate, Actionable, Action-oriented [3] Achievable A Meaningful [3] , Motivational [3] , Manageable Measurable M Significant [3] , Stretching [3] , Simple Specific S Minor Terms Major Term Letter
- 37. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals
- 39. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals
- 40. Organisation Mission Money Customers Efficiency and Effectiveness Adaptability Strategy 2 Strategy 1 Strategy 3 Strategy 4
- 41. Set (SMART) Goals Review Mission Develop Strategies Implement Strategies through projects Align Strategies to goals
- 42. Organisation Mission Money Customers Efficiency and Effectiveness Adaptability projects projects projects projects Strategy 2 Strategy 1 Strategy 3 Strategy 4
- 44. Figure 2.1 Strategic Management Process (Gray & Larson, 2006, p25)
- 45. projects
- 46. projects projects projects projects
- 47. projects projects projects projects projects projects projects projects projects projects projects projects
- 49. Programme OPM3 Portfolio Projects
- 50. Projects Programme Portfolio Project Programme Project Project Projects Project Project Projects Project Project Projects
- 51. One Portfolio or Several? Categories Approaches to project portfolio management
- 52. One Portfolio or Several?
- 53. Categories Venture: Projects that transform the business Growth: Projects that grow revenue or market share Core: Projects that help run the business
- 57. Different views from senior management on what (and how) should be done
- 58. Competition (& effective utilisation) for resources
- 60. Figure 2.8 Sample project portfolio approach (Schwalbe, 2005, p51)
- 61. Figure 1.5 Project management compared to project portfolio management (Schwalbe, 2005, p15)
- 62. Money Customers Efficiency and Effectiveness Adaptability projects projects projects projects projects programme projects projects projects projects programme projects Strategy 2 Strategy 1 Strategy 3 Strategy 4 Organisation Mission Programme projects projects programme
- 63. Short term Mid term Long term projects projects projects projects projects projects projects projects projects projects projects projects Strategy 2 Strategy 1 Strategy 3 Strategy 4 Organisation Mission projects projects projects projects
- 65. projects projects projects projects projects projects projects projects projects projects projects projects Strategy 2 Strategy 1 Strategy 3 Strategy 4 Organisation Mission projects projects projects projects
- 68. Figure 2.1 Pyramid for the Project Selection Process (Schwalbe, 2005, p35)
- 71. Most business units have a strategic plan
- 72. Which SHOULD align with the organisation’s strategic plan Which SHOULD align with the organisation’s strategic plan
- 75. Project Initiation forms Figure 2.4B Risk Analysis (Gray & Larson, 2006, p39) Figure 2.4A Major Project Proposal (Gray & Larson, 2006, p38)
- 76. Project Initiation forms Figure 2.4B Risk Analysis (Gray & Larson, 2006, p39) Figure 2.4A Major Project Proposal (Gray & Larson, 2006, p38)
- 78. Not all project proposals make it to initiation
- 84. Financial Analysis $$$ Net Present Value Payback model Return on Investment (there are more)
- 85. Financial Analysis $$$ Net Present Value Payback model Return on Investment (there are more)
- 89. Non-financial Analysis $$$ Weighted scoring model Balanced Scorecard
- 92. Applying a selection model
- 97. Table 3.4 Sample business case (Schwalbe, 2005, pp74-76) Example business case
- 99. Figure 2.3 The Process for Developing a Business Case (Marchewka, 2003, p34)
- 100. Project Success
- 104. 53% Challenged 16% Success 31% Critical Failures 1994 51% Challenged 34% Success 15% Critical Failures 2002
- 105. 1994 2005 Wasted money as a share of total project spend Billions of dollars
- 106. What happened?
- 109. Better Selection Portfolio Mgt Strategic Alignment More recently