Tools and Techniques for Project Portfolio Management. Jon Lewis - Director, Ninth Wave

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1 Tools and Techniques for Project Portfolio Management Jon Lewis - Director, Ninth Wave

2 2 Tools and Techniques for Project Portfolio Management Agenda To discuss a number techniques for Project Portfolio Management: Achieving strategic alignment Evaluating what if scenarios Resourcing the projects portfolio To explain how Ninth Wave works to deliver these for our customers, and explore and discuss the key issues.

3 3 Tools and Techniques for Project Portfolio Management CHANGING PRIORITIES IDEAS AGREED STRATEGIC PRIORITIES PROPOSED PROJECTS PORTFOLIOS AGREED PROJECTS PORTFOLIO CHANGING RESOURCES RESOURCES AVAILABLE

4 4 Tools and Techniques for Project Portfolio Management Strategic Alignment The alignment of project activity to support the organisation s strategy. To achieve this strategic alignment we need to know: the elements of the strategy what importance (weight) each element has what projects we might do which elements of the strategy each project supports what each project will cost to deliver what limits there are on expenditure (budgets) Some of these elements may not be fixed and we may wish to look at alternative scenarios. There may be different views on the importance of different elements of the strategy across the organisation we ll need to achieve a consolidated view.

5 5 Tools and Techniques for Project Portfolio Management Strategic Alignment Issues in achieving strategic alignment: Unable to agree clear strategic priorities Strategic priorities change too often Priorities are agreed in departmental silos It may be hard to align projects to strategy Too many projects are mandatory What other issues have you encountered?

6 6 Tools and Techniques for Project Portfolio Management Strategic Alignment Pairwise comparison of strategic drivers: Technique used to determine the ranking and weighting of a set of strategic drivers. Different rankings and weights may be created to reflect different scenarios.

7 7 Tools and Techniques for Project Portfolio Management Strategic Alignment Questionnaire based analysis and scoring of Projects: Provides an objective and auditable analysis of the importance of a given project to the achievement of a given strategic objective.

8 8 Tools and Techniques for Project Portfolio Management What if? Scenarios Issues in evaluating What if? scenarios: These could arise at any time There may be multiple scenarios They may involve changing existing projects, or adding new projects They may involve changes to resources, either human or financial We ll need to evaluate the different scenarios rapidly What other scenarios have you encountered?

9 9 Tools and Techniques for Project Portfolio Management What if? Scenarios Evaluate scenarios against specific strategic drivers and capital and different revenue and capital expenditure limits:

10 10 Tools and Techniques for Project Portfolio Management What if? Scenarios The Efficient Frontier: Calculates the cost and benefit for every possible combination of projects in a portfolio and shows the best value portfolios for a given cost the efficient frontier.

11 11 Tools and Techniques for Project Portfolio Management Portfolio Resource Management Strategic Alignment will have determined which projects we wish to do and with which priority, allowing for budgetary constraints. We can now evaluate our ability to deliver these projects given the resources available to our organisation. These resources may: be internal or external belong to different departments have different skills have a specific level of availability for project work be unable to do project work at certain times of the year There may be options or plans to grow or downsize specific teams and these should be considered.

12 12 Tools and Techniques for Project Portfolio Management Portfolio Resource Management Issues with applying resource pools to project portfolios: We need an accurate high level view of the resources available We need an accurate high level view of existing commitments We need an accurate high level view of possible commitments We may be looking at different project scenarios and different resourcing scenarios Bottleneck resources we should focus on these What other issues have you encountered?

13 13 Tools and Techniques for Project Portfolio Management Portfolio Resource Management Estimate project resource demands: The SmartCore API to PRICE Systems TruePlanning software can be used to calculate the effort and cost of developing different types of application using different development languages.

14 14 Tools and Techniques for Project Portfolio Management Portfolio Resource Management Evaluate scenarios against the resource and skills pool:

15 15 Tools and Techniques for Project Portfolio Management Portfolio Resource Management Managing the pipeline of demand: FUTURE Possible work No resource Work planned Possible work Virtual resource Resource (type) requested Possible work Virtual resource Possible work Virtual resource Definite work Virtual resource Work approved Definite work Potential resource Resource offered Definite work Definite resource Resource agreed NOW Definite work Definite resource

16 16 Tools and Techniques for Project Portfolio Management Portfolio Resource Management Monitor the availability of teams and individual resources:

17 17 Tools and Techniques for Project Portfolio Management Ninth Wave and SmartCore Ninth Wave is an independent UK-based software and services firm established in 1995 Our main software product is SmartCore, a proven web-based management support tool The product has been developed from practical experience of project and programme management SmartCore is unique - it is entirely configurable via the web browser to meet a wide range of organisational and individual information needs.

18 18 Tools and Techniques for Project Portfolio Management SmartCore - Major Functional Components Strategic Alignment Portfolio Management Governance/ Change Management Budgets & Financial Management Programme & Project Management Resource Management Risk & Issue Management Workflow & Business Rules Timesheets Benefits Management Document Management Dashboards & Reporting

19 19 Tools and Techniques for Project Portfolio Management SmartCore Customers:

20 20 Tools and Techniques for Project Portfolio Management SmartCore Project Portfolio Management from Ninth Wave

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