3. Large & mature IT organization at Japan
HQ
Overall guidance from Japan HQ based on
Japanese culture
Full scope of business activities in Japan
(research, production, sales)
Architectures mostly based on experience
& culture in Japan
Cultural consistent environment
Small & relatively young structures in
‚overseas‘ (Europe, US)
Regional environment & dependencies
(Europe: multi-language, -culture, -
legislation)
Focus on sales activities ‘overseas’ drives
different IT support needs
‘Practical’ solutions with immediate quick
wins are preferred
Cultural diverse environment
Challenges for European affiliates of Japanese corporations lead to the
need of lean approaches and patience by trying to implement
Organizational Project Management
4. Organizational Project Management comprises Project, Program
and Portfolio Management. All three layers have to be approached
to enhance Project Management maturity within an organization.
Portfolios
Programs
Projects
Strategy
Project Management (PM):
Processes, Workproducts, Standards,
community - profession
Program Management (PgM):
Integration and Interfaces, benefits
realization, strategic functions
Project Portfolio Management (PPM):
Link to Business & Strategy, Populate
and Manage Portfolio
5. PM Tool
Project Staff Development:
Basic education, career development,
certification
At a specific organization, approaching organizational project
management started with Program Management, was followed by
implementation of a tool and then approached Project Management
Project Management Basics:
Standards, processes, templates
(workproducts), tools
Program Management System (PMS):
Integration and Interfaces, benefits realization,
strategic functions
Project Portfolio Management (PPM):
Link to Business, Populate and Manage
Portfolio
2002 2005
Tactical,
deliverables
Strategic,
benefits
2012?
Business
Transformation
Centre
6. AgilityEffectivenessEfficiencyWhat is it
about
Organization (CEO, COO)Strategic Objective Owner
(Business Exec Sponsor)
Program Manager or
Project Sponsor
Sponsor
Prioritization of Projects
& Management of
Resources
Value and Benefits
Interfaces
Integration
Scope and deliverablesFocus of
Mgmt
In periods, based on
management cycle
In stages/projects, based
on program plans
In phases, based on
milestones
Decision-
making
InfiniteTemporary, can be
stopped when objectives
are met
Finite, short termDuration
Permanently attempt to
reach the mission of the
organization
Achieve previously agreed
and defined strategic
objectives, business
results
Deliver previously
agreed and defined
workproducts
Objective
PortfolioProgramProject
„A Program is a group of projects managed in a coordinated way
to obtain benefits not available from managing them individually.
Many programs also include elements of ongoing operation.“
7. Selecting the right Program Manager is a critical success
factor. Research* indicates that even enhanced Project Management
Capabilities are not sufficient for Program Managers:
• Program management work encompasses and extends the agenda, horizon and
disciplines of project management
• Program work is seen as shaping, aligning, mediating, developing, nurturing, seizing
opportunities. From within a conception of successful Program Managers, Program work
shares many characteristic of strategy implementation and strategic management
• Success, or even excellence, in ‘project management’ is unlikely to be, on its own, a
relevant guide to prospective or potential performance in managing complex strategic
programs
Example 1: Attitude to Funding:
Project Mgr: Budget driven; manages allocated funds
Program Mgr: Creates funding from achievement – self financing
Example 2: Attitude to Scope:
Project Mgr: Defined at outset and fixed until changes authorized
Program Mgr: Shaped to meet emerging and changing business needs
* UNDERSTANDING AND ASSESSING PROGRAMME MANAGEMENT COMPETENCE.,
PMI Congress 2003 – Europe, Sergio Pellegrinelli et al.
8. (Multi)
Project Management
Server
Op‘s
Applic.
Mainten.
User
Help
DeskProject 4
.........Project 1
Operational Layer Functions
(Projects, Teams, Production)
Project 3
Project 5
Project 6
Project 2
Sponsors Stakeholders,
e.g. Users
Business
Steering
Committee
The way often seen to manage complex business initiatives
concentrates on Project Management, not Program Management
and leaves out the focus on Transition & delivering Business Results
Transition
Business
Results
Funding
10. How Strategic Layer Functions work: Business requests are
considered by SLF1 (business strategy), evaluated by SLF2
(architecture) and communicated thru SLF3 (Organ. Change Mgmt.)
SLF1
Business Evaluation
•Go/No Go Decision
Stakeholders
(Users, Management,
etc.)
Technical
Implementation
(Projects)
SLF 2
•Technical Evaluation
•Go/No Go Decision
SLF 3
•Information and
Communication
•Education
•Stakeholder Care
Business
(Process &
Transformation)
Owners
Business
Change
Implementation
Requests
Changes
Sponsor
go / nogo
Feedback loop
11. The Test & Transition Mgmt. (SLF 7) owns the end-to-end test
and transition processes. Architecture (SLF2) sets the
standards for the operational environment.
Production / Operations
100% SLA
End2end
Test
Test
GoLive
Prep
After
GoLive
Support
Imple
ment
Hand
over
Project(s)
Design Stabilization
SLF 7
Production/
Maintenance
Require
ments
SLF 2
Transition(s)
Businessvalue
12. Project Management Leadership
Exchange 2004
12
BTC: Business Transformation Center, represents business,
owns PPM decisions and process
CCC: Customer Competence Center, part of IT Organization
Supported by the processes and structures of
PPM: Project Portfolio Management, Prioritizes business initiatives
PMS: Program Management System, Manages business initiatives
BTC CCC
PMS
PPM
Implementation of a Business Transformation Centre (BTC)
leads to improved interfaces between business and IT and is a
first step to ownership of Portfolio Management
Business
IT
SLF1
Business
Strategy
13. Active and
Proposed
Work
Approved
Portfolio
Prioritization
Business
Decision
Criteria
Control work
Collect
Assess
Manage
Project Portfolio
Management System
(PPMS)
Regular
Reports
Reviews
Benefits
Realization /
Portfolio Health
Reallocate Resources
Adjust Priorities
Remove Completed Projects
Cancel Projects
Business
Strategy &
Objectives
ProposeStrategychange
Funding /
Sponsors
Resource
capacity
Project Portfolio Management can be seen as a repetitive sequence of
activities and decisions to ensure that the right work is selected,
executed and monitored and delivering the benefits as promised.
14. Active and
Proposed
Work
Approved
Portfolio
Prioritization
Business
Decision
Criteria
Control work
Collect
Assess
Manage
Project Portfolio
Management System
(PPMS)
Regular
Reports
Reviews
Benefits
Realization /
Portfolio Health
Reallocate Resources
Adjust Priorities
Remove Completed Projects
Cancel Projects
Business
Strategy &
Objectives
ProposeStrategychange
Funding /
Sponsors
Resource
capacity
To start a beneficial Portfolio Management cycle, business objectives
have to be formulated and transformed into business decision criteria
used to select & prioritize the portfolio of projects to be executed
15. Active and
Proposed
Work
Approved
Portfolio
Prioritization
Business
Decision
Criteria
Control work
Collect
Assess
Manage
Project Portfolio
Management System
(PPMS)
Regular
Reports
Reviews
Benefits
Realization /
Portfolio Health
Reallocate Resources
Adjust Priorities
Remove Completed Projects
Cancel Projects
Business
Strategy &
Objectives
ProposeStrategychange
Funding /
Sponsors
Resource
capacity
The components of the approved project portfolio will be monitored
regularly by the means of a Project Portfolio Management System
(PPMS)
16. Active and
Proposed
Work
Approved
Portfolio
Prioritization
Business
Decision
Criteria
Control work
Collect
Assess
Manage
Project Portfolio
Management System
(PPMS)
Regular
Reports
Reviews
Benefits
Realization /
Portfolio Health
Reallocate Resources
Adjust Priorities
Remove Completed Projects
Cancel Projects
Business
Strategy &
Objectives
ProposeStrategychange
Funding /
Sponsors
Resource
capacity
Regular reviews of benefits realization status and portfolio health may
lead to proposed changes to the strategy, and will result in
adjustments to the project portfolio.
17. • Used to drive project (scope, design, etc)
• Started in Analysis Phase, addressed
throughout all phases of the project
• Used to engage executives throughout
project and to secure support
• Flexible, on-going and accurate
• All benefits owned, measured and tracked
• Business can point to project benefits
and have measurements to show benefit
recognition
• Project Justification
• Completed in Analysis Phase and put in
binder (then on a shelf collecting dust!)
• Executive support of benefit case to
secure funding of project
• Static; a point in time
• Benefits generally not measured
• Management left wondering what they
received for their money and where
the expected benefits went
Benefits
Realisation
Business
Case
Benefits Realization (BR) takes the Business Case to the next
dimension by specifying objectives to a stage of granularity, assigning
(business) owners and creating a BR track
18. PM Tool
Project Staff Development:
Basic education, career development,
certification
All three layers of Organizational Project Management are addressed
in parallel while recognizing where they depend on each other.
Project Management Basics:
Standards, processes, templates
(workproducts), tools
Project Portfolio Management (PPM):
Link to Business, Populate and Manage
Portfolio
2002 2005
Tactical,
deliverables
Strategic,
benefits
2012?
Business
Transformation
Centre
Program Management System (PMS):
Integration and Interfaces, benefits realization,
strategic functions
19. Takeaways
• Organizational PM maturity requires improvements in all 3 layers of
strategic PM: Project, Program and Portfolio Management
• Each of these layers may be started in parallel, but they depend on
each other if further developed
• Quick wins for Project, Program and Portfolio Management should be
put in the context of Organizational PM to prepare presentation of a full
concept for achieving OPM maturity
• Business benefit realization is a major contribution of fully
implemented Project Portfolio Management
• Portfolio Management provides a strong linkage to business strategy
and objectives by selecting the right work to do and by monitoring if
benefits are realized