2. Purpose
•Defineprojects and project management
•Determine business value of projects
•Conceptualize projects as part of a portfolio
•Evaluate the portfolio approach to projects
•Develop strategies to measure and assess project value
3. Agenda
• Project Management Overview
• Introduction to BusinessValue
• Selecting Projects
• Portfolio Approach
• PPM Process
• Migrating to PPM
• Application to the PM
4. Agenda
• Project Management Overview
• Introduction to BusinessValue
• Selecting Projects
• Portfolio Approach
• PPM Process
• Migrating to PPM
• Application to the PM
5. Definitions of Project Management
• "...a complex, non-routine, one-time effort limited by
time, budget, resources, and performance specifications
designed to meet customer needs
(Gray & Larson, 2008)
• "...a temporary endeavor undertaken to create a unique
product, service, or result.“ (PMI, 2008)
One-Time
6. Project Characteristics
Kerzner, 2009
Specific Objective with
Defined Specifications
Defined Start
and End Dates
Funding Limitations
Consume Human and
Nonhuman Resources
Multiple Disciplines
14. Example – New Project
• Purpose: Deploy a new information system to manage product inventory
• Scope:
• Track product inventory as it is used
• Real-time inventory reporting
• “Wouldn’t it be cool if we could also keep track of the different types of
inventory we used”
• Budget:
• 1 pen/pencil, 1 sheet of paper, 1 developer
• Schedule:
• 45 seconds
15. Project Charter
• Purpose: Deploy a new information system to manage product
inventory
• Goal: Reduce production time by 25%
16. Agenda
• Project Management Overview
• Introduction to BusinessValue
• Selecting Projects
• Portfolio Approach
• PPM Process
• Migrating to PPM
• Application to the PM
18. BusinessValue?
•What organizational benefits are created and realized
from the project?
•Operational
• New or improved functionality
•Strategic
• Quantifiable organizational-level benefits
31. Project Portfolio Management
• Goal:
• Determine and deliver the mix of potential projects that will
result in the best utilization of human and cash resources and
maximize long-range growth and return on investment for the
firm.
Levine, 2005
A
B
Y
S
A
H
J
W
B
Align = 9
Value = 8
Align = 3
Value = 10
32. Project B
Project Governance
Project I
Project M
Project R
Project X
ProjectT
Project L
Project Q
Project P
ProjectY
Project D
ProjectA
Project N
Project J
PMO
33. Project Portfolio Governance
Executive Management
Portfolio
ProjectY Program
Project R
Project X
Project C
Project G
Portfolio
Program
ProjectA
Project Q
Project H
Project J Program
Project K
Project B
Project S
47. Tips for PPM
1. Start at theTop
2. Avoid the Big Bang
3. Develop a Governance
Process
4. Use a Proven PPMTool
5. Forgive Human Errors but
not Process Errors
6. Use theTool in your
Operations Reviews
7. Use Executive Dashboards
8. Be Open to Project Failures
9. Anticipate Business
Opportunities & Constraints
10. RememberWho the Boss is
ganntthead.com
49. Formalized PM & PPM Practices
• Organizations with stable PPM practices see 64% of projects meet targeted ROI
(17% more than highly variable PPM practices)
• Formalization at both the project and portfolio levels results in higher
performance than formalization at just one level
• Formalization provides transparency that leads to improved allocation of
resources and an overall cooperation between projects
PM Network Survey, 2012 &Teller,Unger, Kock & Gemunden, 2012
64%
51. Agenda
• Project Management Overview
• Introduction to BusinessValue
• Selecting Projects
• Portfolio Approach
• PPM Process
• Migrating to PPM
• Application to the PM
52. What does this mean to me?
My
Project
Business Strategies
53. What does this mean to me?
My
Project
Project
J
Project
C
Project
Q
Project
X
Project
P
Project
N
My
Project
Project
G
Value
Functionality BudgetSchedule
Business
Strategies
54. EnsuringValue
•Develop a ProjectValue Chain
(Think Critical Path)
•IncludeValue in Risk Management Strategy
•EvaluateValue Performance Frequently
•Target Metric for Change Management
56. References
• Brewer, J. L., & Dittman, K. C. (2010). Methods of IT project management. Boston, MA: Prentice Hall.
• Gale, S. (2011). Failure rates finally drop. PM Network, 25(8), 10-11.
• Gray, C.F., & Larson, E.W. (2008). Project management:The managerial process (4th ed.). Boston, MA: McGraw Hill.
• Lovelady, R., & Anderson, A. (2006). Psst:Want to take a risk? In G. Richardson & C. Butler (Eds.), Readings in
information technology project management (pp. 166-171). Boston, MA:Thomson/CourseTechnology.
• Pearlson, K.E. & Saunders, C.S. (2010). Managing and using information systems:A strategic approach (4th ed.).
Hoboken, NJ:Wiley.
• Project Management Institute (2008). A guide to the project management body of knowledge (4th ed.). Newtown
Square: PA: Author.
• Project Management Institute (2012).The power of portfolio management. PM Network, 26(6), 14-15.
• Teller, J., Unger, B.N., Kock, A., & Gemunden, H.G. (2012). Formalization of project portfolio management:The
moderating role of project portfolio complexity.The International Journal of Project Management, 30(5), 596-607.
doi:10.1016/j.ijproman.2012.01.020.
• Whitten, J.L., & Bentley, L.D. (2007). Systems analysis and design methods (7th ed.). Boston, MA: McGrawHill /Irwin.
57. Posted Presentations
• My Presentations
• http://faculty.css.edu/bolson1/presentations.html
• Topic 1: TheValue of Project Management
• http://faculty.css.edu/bolson1/presentations/ValueofPM.pdf
• Topic 2: 10 Ways to IncreaseYour Project’s Success
• http://faculty.css.edu/bolson1/presentations/ProjectSuccess.pdf
• http://faculty.css.edu/bolson1/presentations/ProjectSuccess2.pdf
• Topic 3: Maximizing the Impact ofYour Projects
• http://faculty.css.edu/bolson1/presentations/ProjectImpact.pdf
Hinweis der Redaktion
Project management is used to bridge the gap between functional units and layers of management.
1989 Construction begins1990 Feasibility study found the baggage handling system was not feasbible1991 United Airlines contracted with BAE Systems to construct automated system for their concourse1991 DIA requests for full system resulted in only three bids; all rejected1992 DIA recruited BAE to build complete system1992 Budget cuts, expanded system for larger luggage (skis), changes to scope, etc.1993 Target missed, again, again, etc.1994 DIA demo disaster with BAE approval (smashed totes, clothes torn out, etc)1995 Airport opened without complete automated systemFinding: don’t let the system become the critical path16 months late at $1.1M per day (maintenance and lost revenue)