Best Practices overview
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- Archibald Spencer Casey
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1 Best Practices overview Door de best practices theorie de praktijk weer zien vrij naar: door de bomen het bos weer zien PRINCE2, MSP, MoP, M_o_R, MoV & P3O are RegisteredTrade Marks of the Cabinet Office
2 Mark Kouwenhoven Trainer, coach en adviseur op het gebied van : Integraal projectmanagement (IPMA, PRINCE2, Projectmatig Werken, MSP) Organisatieverandering (Verantwoord professionaliseren en reorganiseren) Risicomanagement (Verbetering van Governance en besluitvorming) Toepassen van Best Practices (M_o_R, PRINCE2, P3O, MoP, MoV, MSP) Geaccrediteerde trainer Best Practices Ervaren Projectmanager en lijnmanager Begeleider en ontwikkelaar van Business Simulaties (PM, Risk Mgt, PMO) en Workshops (o.a. ABC of ICT, ABC of PM ) Ondernemer en oprichter van: nthen (nthen.nl) ATO M_o_R, PRINCE2, MoV, MoP, P3O, MsP ABC@Work (ABCatWORK.nl)
3 The Cabinet Office Guides (OGC/APMG) Glossary Guidance Models Portfolio, Programme and Project Management Maturity Model (P3M3 ) Management of Risk (M_o_R ) Management of Value (MoV ) Portfolio, Programme and Project Offices (P3O ) Portfolio management (MoP ) ITIL PRINCE2 Maturity Model (P2MM) Programme management (MSP ) Project management (PRINCE2 ) 2011 nthen! Crown Copyright Reproduced under licence from OGC. 3
4 PRINCE2
5 Structure of PRINCE2 Manage by Exception Learn from experience Progress Continued Business Justification Business Case Defined Roles & Responsibilities Change SU IP SB DP CS SB CS C P Organization MP MP Tailor to suit the project Risk Plans Quality Focus on Products Manage by Stage 5
6 Principles 1. Continued Business Justification 2. Learn from experience 3. Defined Roles and Responsibilities 4. Manage by Stage 5. Manage by Exception 6. Focus on Products 7. Tailor to suit the project environment 6
7 Themes English Business Case Organization Quality Plans Risk Change Progress Dutch Business Case Organisatie Kwaliteit Plannen Risico Wijziging Voortgang 7
8 Processes English Starting Up a project Initiating a Project Directing a Project Controlling a Stage Managing Product delivery managing Stage Boundaries Closing a Project Dutch Opstarten van een Project Initïeren van een Project Sturen van een Project Beheersen van een Fase Managen van Productoplevering Managen van een Faseovergang Afsluiten van een Project 8
9 PRINCE2 processes in time Pre-project Initiation stage Subsequent delivery stage(s) Final delivery stage Directing Directing a Project Managing SU IP SB Controlling a Stage SB CP Controlling a Stage Delivering Managing Product Delivery Managing Product Delivery Crown Copyright Reproduced under licence from OGC. 9
10 Managing Successful Programmes (MSP )
11 MSP Framework
12 MSP Principles 1. Remaining aligned with corporate strategy 2. Leading Change 3. Envisioning and communicating a better future 4. Focusing on the benefits and threats to them 5. Adding value 6. Designing and delivering a coherent capability 7. Learning from experience
13 MSP Governance Themes Programme Organization Vision Leadership and Stakeholder engagement Benefits Management Blueprint design and delivery Planning and Control The Business Case Risk and Issue Management Quality and Assurance Management
14 MSP Transformational Flow processes 1. Identifying a Programme 2. Defining a Programme 3. Managing the Tranches (implement Governance Strategies) 4. Delivering the Capability (managing Project delivery) 5. Realizing the Benefits (managing the transition) 6. Closing a Programme
15 Management of Portfolio (MoP TM )
16 Management of Portfolios: Purpose & Scope Purpose To provide practitioners with universally applicable principles and practices that will enable individuals and organizations (large or small) to successfully introduce or re-energize portfolio management approaches. Scope Portfolio management can be applied in a wide variety of situations: at an enterprise, departmental or functional level. The focus in MoP is on the organization s collective investment in programmes and projects (or change initiatives) that are focused on contributing to the achievement of strategic objectives and business priorities.
17 Portfolio management model: the principles, cycles, practices and relevant techniques
18 The Portfolio Definition & Delivery practices
19 Benefits of Portfolio Management 1. More of the right programmes and projects being undertaken in terms of: greater financial benefits and measurable contribution to strategic objectives. 2. Removal of redundant & duplicate initiatives. 3. More effective implementation of programmes and projects via management of the project development pipeline, dependencies, and constraints (including resources, skills, infrastructure, change appetite, etc) and redirecting resources when programmes and projects do not deliver or are no longer making a sufficient strategic contribution. 4. More efficient resource utilization. 5. Greater benefits realization via active approaches to exploitation of the capacity and capability created across the organization, capturing and disseminating lessons learnt.
20 Differences between portfolios, programmes and projects Programmes and projects are temporary organizational structures, the portfolio is permanent; Programmes focused on delivery of outcomes/benefits and Projects are primarily focused on delivery outputs/products. Portfolio is focused on the overall contribution of these outcomes, benefits and outputs to strategic objectives; Project and programme management seeks to ensure successful delivery at the individual level, project or programme. Portfolio management is concerned with: ensuring the right programmes and projects are undertaken in the context of the organization s strategic objectives; successful delivery at a collective level; that benefits realization is maximised; and that lessons learned are identified, disseminated and applied in the future.
21 Management of Risk (M_o_R )
22 The Benefits of Risk Management Provides more informed decision-making capability Improves the decision-making process Improves ability to respond to change Helping the organisation to fulfil policies or legal requirements Improves the organisation s quality of services Increases revenue and/or reduces costs, while maintaining quality 2011 nthen! 22
23 The Benefits of Risk Management Fewer sudden shocks and unwelcome surprises More efficient use of resources Reduced waste and fraud, and better value for money Better service delivery Reduction in management time spent fire-fighting Better management of contingent and maintenance activities Lower cost of capital Improved innovation Increased likelihood of change initiatives being achieved More focus internally on doing the right things properly More focus externally to shape effective strategies 2011 nthen! 23
24 The 7 +1 M_o_R Principles Aligns with objectives Fits the context Engages stakeholders Provides clear guidance Informs decision-making Facilitates continual improvement Creates a supportive culture Achieves measurable value 2011 nthen! 24
25 M_o_R Procesmodel nthen copyright 2012
26 M_o_R Framework nthen copyright 2012
27 Fits the context of M_o_R Where & When to apply risk management Long-term B u Strategic s i n e s Mediumterm Programme s C Project h a Short-term n g Operational e Long term goals, sets the context for decisions at other levels. Risks may not become apparent until well into the future, therefore should be reviewed on a regular basis. Programmes and projects bring about business change. Decisions relating to medium-term goals are narrower in scope than strategic ones, particularly in terms of timeframe and financial responsibilities. Emphasis is on short-term goals to ensure ongoing continuity of business services Decisions about risk at this level must also support the achievement of long- and medium-term goals. Crown Copyright 2010 Reproduced under licence from OGC nthen! 27
28 Inter-relationships perspectives Change management objectives Day-to-day management objectives Strategic risks Programme risks Operational risks Project risks Crown Copyright 2010 Reproduced under licence from OGC nthen! 28
29 P3O is a Registered Trade Mark of the Office of Government Commerce. Crown Copyright Reproduced under Licence from OGC
30 Decision enabling/delivery support model May be a single permanent office, e.g. Portfolio Office (strategically focused) Strategy or Business Planning Unit Centre of Excellence Enterprise/Corporate Programme Office May be through a linked set of offices e.g. portfolio Office programme offices project offices permanent or temporary mix of central & localised services
31 Focus on change Establish structures for programme/project selection Ensure alignment with strategic objectives/targets Assess organisational capability/capacity/maturity Allocate appropriate resources to programmes/projects Ensure scrutiny & challenge Identify/manage dependencies between programmes & projects Resolve resourcing conflicts Assist identification of threats/opportunities & evaluation of aggregate risks
32 Monitor progress & ensure successful delivery of programmes & projects Adopt value management Assess organisational capability/capacity/maturity Ensure portfolio balance to minimise disruption to BAU Achieve VFM savings & efficiency gains from programmes & project rationalisation Link benefits of change to the performance management structure Ensure investment in R& D activities for long-term organisation survival Crown Copyright Reproduced under Licence from OGC
33 Improves Organisational accountability Decision-making Transparency Visibility Identifies, understands, & manages multiple & crosscutting risks & issues Crown Copyright Reproduced under Licence from OGC Protects revenue & spend Enhances Value-for- Money Facilitates change more effectively & efficiently Improves organisational programme & project delivery Protects reputation & stakeholder confidence
34 Business change strategy Are we doing the right things? Validation Business change value Are we getting the business benefits? Business change governance Business change design Are we doing things the right way? Verification Business change delivery Are we getting things done well?
35 Management of Value (MoV ) TM
36 What is MoV? MoV Maximises value in line with Programme and Project objectives and key stakeholder requirements Not simply minimising costs or maximising benefits Eight key benefits: Efficiency and productivity goes up Helps define needs Supports decision making Encourages innovation Helps balance operating expenditures versus investments Helps measure and audit Helps to engage stakeholders Promotes sustainable decision making by addressing monetary and non-monetary factors 36
37 What is MoV (2) MoV is about balancing variables to maximise value Reconciling the needs and views of different stakeholders to maximise overall benefits by brokering a consensus on their differing expectations to deliver what they need. Balancing the use of resources to reflect their availability and the organisations priorities by re-distributing across the different value drivers to reflect their relative importance. Balancing the overall benefits realised with the use of resources by optimising the value for money ratio Balance between Benefits & Expenditure Balance between stakeholders VALUE Satisfaction of needs (Monetary and non monetary) Use of resources (Money, people, time, energy & materials) Balance between use of resources 37
38 Why use MoV? To enhance competitiveness, productivity and profitability Maximising return on investments Making optimum use of resources Providing value for money for customers Streamlining production and improving delivery of services Eliminating wasteful practices MoV also provides a way to Deliver cost savings with minimum impact on essential quality of products and services Cut non essential projects or services 38
39 When should it be used? Quantum More opportunities early in project lifecycle Cost of change Resistance to change Potential to add value Start up Initiate project Delivery stages In service Time 39
40 MoV Principles 1. Align with organisation s objectives 2. Focus on functions and required outcomes 3. Balance the variables to maximise value 4. Apply throughout the investment decision 5. Tailor to suit the subject 6. Learn from experience and improve performance 7. Assign clear roles and responsibilities and build a supportive culture 40
41 MoV Processes 1. Frame the programme or project 2. Gather information 3. Analyse information 4. Process information 5. Evaluate and select 6. Develop Value Improving Proposals 7. Implement and share outputs 41
42 Best Practice family in perspective nthen copyright 2012
43 Best Practices shared Principles Align with organizational objectives Roles & Responsibilities / Governance / decision-making Learn from experience / facilitates continual improvement Supportive Culture / energized change culture Tailor to suit / Fits the context Add value / maximise value Apply focus
44 Best Practices Themes PRINCE2 MSP MOP (delivery practices) P3O (roles/services) BC BC Benefit Mgt Vison Benefit Mgt Financial Mgt Benefits Finance Org Org Leadership + stakeholders Org governance Stakeholder Comm + Stakeholders Commercial Q Q + Assur Mgt Risk Risk Mgt + Change Issue Mgt Progress Blueprint design + delivery Mgt control Cons + Perform Mgt Monitoring + Review Reporting Plans Planning + Control Resource Mgt Planning Resource Mgt Quality Risk Mgt Risk Information Mgt Change + Issue
45 Best Practices Procesess PRINCE2 MSP MOP definiton practices MoV SU ID a Progr Understand Frame the Progr/proj IP Def a Progr Categorize Gather info CS ManageTranches Prioritize Analyze info MP Delver Capabillitiy Balance Process info SB Realize Benefits Plan Evaluate + select CP Closing a P Develop valueimproving proposals DP (part of the proces) Implement + share outputs
46 Best Practices Roles PRINCE2 MSP MOP P3O Executive Sro Sr Resp Owner Portfolio Directing group P3O Sponsor Sr User BCM Bus Change Mgr Potfolio Progress Group Sr Supplier Portfolio Director PM Progr Mgt Portfolio Manager Head of P3O TM Proj Mgrs / Line Mgrs Portfolio benefits Manager Head of Progr/Proj Office Project Support Progr Support Project Assurance Progr Assurancce Progr Accountant Benefit Realization Mgr PMO Specialist Portfolio analist
47 ?? QUESTIONS?? nthen copyright 2012
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