Process or Technology? Which comes first when implementing Project Portfolio Management?

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1 Come see us at Booth #229 at ProjectWorld! Process or Technology? Which comes first when implementing Project Portfolio Management? Kiron D. Bondale Solution Q Inc. kbondale@solutionq.com

2 Agenda Project Portfolio Management (PPM) overview How should most PPM initiatives start? The three pillars of PPM What happens when you start with process? What happens when you start with technology? Recommendation How Eclipse supports PPM

3 Project Portfolio Management (PPM) Overview A strategic method of maximizing the value of an organization s project investments Principles of project portfolio management were derived from financial portfolio management Balancing risk against reward Optimizing bang for the buck PPM is about doing the right projects while Enterprise Project Management is about doing projects right

4 How should most PPM initiatives start? Where does it hurt? Identify project or resource management pain points Too many projects, not enough resources Every project is critical, which do we do first? Stealth & zombie projects Project failures A journey of a thousand miles PPM is a journey, not a destination Develop an improvement roadmap with short, medium & long term objectives Show me the money! Charter, budget & secure approval for the initiative

5 The three pillars of PPM Organization Executive sponsorship Do you have/need a PMO? Do you have/need a portfolio steering committee? Processes Project intake Portfolio evaluation Resource management Project management Technology Project repository Document/knowledge management system Resource pool Reporting engine Time entry system

6 What happens when you start with process? Common approach supported by most trade journals Effort is invested in creating or modifying PPM & PM Processes are deployed without underlying supporting technology

7 What happens when you start with process? Issues for project resources Time entry manual entry is prone to data error and noncompliance Progress reporting manually intensive completion of reports or time consumed in phone calls or messages Issues for project managers Significant effort spent on project administration (creating reports, compiling data, chasing team members for status or time updates) Issues for functional or resource managers Inability to visualize resource capacity & demand data results in poor resource allocation decisions

8 What happens when you start with process? Issues for PMOs Significant effort spent producing portfolio reports for different stakeholders which are out-of-date as soon as they are produced Significant effort spent developing and maintaining homegrown templates, systems & reports One firm had 50% of a skilled FTE dedicated to manual reporting Issues for executive management Decision-making based on information which might be incomplete or inaccurate Decision-making based on limited visibility into project portfolio and resource availability and allocation Lack of compliance with & reduction in benefits achieved from PPM

9 What happens when you start with technology? Issues with PPM tools that provide out-ofthe-box Processes need to be flexible to fit the culture and objectives for your organization one of key causes of PMO failures is lack of fit Impact: Staff struggle with change from familiar procedures to the new (often heavy ) procedures built into the tools

10 What happens when you start with technology? Issues with PPM tools that provide no builtin Lack of process only makes existing chaos worse - garbage in, garbage out If the data being presented to executive management is out of date or inconsistent, it is worse than if they are being presented with no data

11 Recommendation 1. Charter & plan the PPM initiative like any other strategic project 2. Define a value proposition-supported improvements roadmap 3. Secure funding for initial phase 4. Communicate the improvement roadmap to the organization

12 Recommendation 5. Define simple supported by key governance decisions What is a project? How are projects requested and approved? How are projects prioritized? What are criteria for project termination? What is expected for planning & tracking a project? Who can approve what types of decisions? 6. Develop & staff supporting organization structures Process owners Process controllers

13 Recommendation 7. Procure, install & configure supporting tools Resource pool Project portfolio Time entry Canned reports and support for ad hoc reporting capabilities 8. Define simple guidelines and standards for use of the tools How will % complete be reported on tasks? When does time entry have to be completed? When should a project s health stoplight be set to red?

14 Recommendation 9. Deploy the & tools at the same time Can you answer the what is in it for me question for all affected staff? 10. Monitor compliance, continue coaching, and fine tune the and tools 11. Once behavioral and procedural changes have been assimilated, kick off the next phase

15 A picture is worth a thousand words Motivation for change Gap assessment or needs analysis Define/modify Define/modify Define/modify Define short-term objectives Implement PPM tool to support Enhance PPM tool to support Enhance PPM tool to support Define governance model Implement Implement Implement Create PPM & PM capability roadmap Monitor & tune Monitor & tune Monitor & tune Ready for More? Ready for More? And so on...

16 Questions? Come see us at Booth #229 at ProjectWorld

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