This document outlines a webinar on project portfolio management presented by Claude Maley. It includes information on the presentation objectives, the presenter's background, definitions of key terms, and the importance of aligning projects to organizational strategy and goals. Various aspects of project portfolio management such as project selection, governance, reporting, and organizational structure are also discussed.

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Project Portfolio Management
Claude Maley
The Webinar Will Start Shortly
Project Portfolio Management

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Project Portfolio Management
Housekeeping
• Slides will be available on our SlideShare page; the link will be emailed to you
• Recording of the webinar will be available to download; the link will be emailed
• Take the time to complete a post-webinar survey that will pop up at the end
• You can type your questions throughout the session
• Time will be allocated in the end for the speaker to address your questions

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Project Portfolio Management
Your Presenter
Claude Maley is Managing Director of Mit Consultants, a consultancy and
education practice servicing international clients in change management,
and Chairman of a business solutions company.
His functional management and consulting experience with major
corporations such as Alcatel, BP, Cadbury Schweppes, Cartier, Caterpillar,
Cisco, Ericsson, GE, Hewlett-Packard, IMS International, Motorola, Organon,
Overseas Containers Limited, Pechiney, Renault Automobile, Siemens to
name a few, has spanned more than 40 years in engineering, production and
manufacturing, distribution, transportation and marketing services sectors.

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Project Portfolio Management
1-4
Project Portfolio
Management
Designed & Created by
Ver. 2.1- 2015

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Project Portfolio Management
Webinar Objectives
1-5

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Project Portfolio Management
 Value Creation &
The Organisation's Strategic Intent
1-6
"BOTTOM LINE" IMPACT – VALUE CREATION
Constant state of Change
Iterative & Incremental in concert with Continuous Improvement,
Business Process Re-engineering and Enabling Technology
Change Management
Strategic
Transformational
Tactical
Operational
Achieving
Transformational
& Operational
Goals
Maintaining
Competitive
Advantage
Seeking Growth
& Opportunities
Sustaining Continuing
Operations

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Project Portfolio Management
 Organisation's ability to meet Market Requirements:
Key Areas for an Organisation's Competitiveness
1-7
Competition
Financial Constraints
The Market Place
Temporal Constraints
Economical
Globalisation
Political & Regulatory
External Influences
CHANGE is the only Certainty in a World of Uncertainty
Sustaining
Business OPERATIONS
and the constant need
for INNOVATION
And
CONTINUOUS
IMPROVEMENT
Making Strategic
Investments
Redefining
Organisational Structures
Empowering People
Enabling
Technology
Transforming Key
Processes into
Strategic Capabilities
Analysing & Reviewing
Market, Competition,
Services & Products
End-to-End Solutions
Within Time to Market
Constraints

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Project Portfolio Management
 "Are we Doing it Right?"
1-8
Are we doing it RIGHT ?
Right Market
Right Products
Right Organisation
Right Skills
Right Investments
Right Size
Perform Continuous
Analysis & Evaluation of
BUSINESS PROCESS MODELS
What are the Opportunities:
 New Market
 New Product/Service
 Alliances
o Key Business Concerns :
o ARE WE DOING THE RIGHT THING?
o ARE WE DOING THE THING RIGHT?
What are the Operational Issues:
 Waste
 Heavy Process Points
 Costly Steps
 Low Quality
 Inadequate Response

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Project Portfolio Management
 Strategic Goals
1-9
Organisations initiate Strategy Formulation by specifying their
Mission, Goals, and Objectives & setting the Long-Term direction
and scope for the whole Organisation
Performance of SWOT
analysis to select Appropriate
Strategies, based upon:
 Organisational Change Impact
 Formal & Informal
Organisational Structures
 Organisation "Culture"
 Appropriate approach to
Implement the Strategy
Strategic Business
Objectives
are Goals deemed
most Important to the
Current and Future Health
of an Organisation

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Project Portfolio Management
 Business Alignment and Business Benefits
Project Portfolio Management is the Key Approach
to Accomplish Strategic Business Goals
1-10
Projects are Managed to Create Value
for the Organisation,
the Market and the Community

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Project Portfolio Management
Tactics
The Projects to launch to fulfil the Strategy
 From Strategic Vision to Projects
1-11
StrategyApproach
Mission
Qualitative Statement describing the
Organisation's Purpose
Strategy
Organisation's Road Map to achieve Business Objectives
Vision
Global Macro picture of
where an Organisation
wants to be
Concept
Planning &
Execution
Objectives
Quantitative description of the desired Accomplishments

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Project Portfolio Management
For each
Identified PROJECT
• Map against Strategy
• Establish Ownership &
Operational Costs
• Define Revenue/Benefits
• Determine Overall Life
Cycle Benefits
 Determining Strategic Direction and Financial
Justifications for Projects
1-12
Tactics
The Projects to launch to fulfil the Strategy
Strategy
Organisation's Road Map to achieve Business Objectives
Defining the Case
 Definition of Success Criteria (KPI's)
 Prioritisation of Benefits
 Rank Benefits
 Primary benefits
 Secondary benefits:
 Benefits Strategy
Concept
Business
Benefits

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Project Portfolio Management
 Program/Project Strategy and Portfolio Management
From Strategic Vision to Projects
1-13
StrategyPortfolio
Portfolio Management
Objectives & Strategy
Tactics
Vision & Mission
Planning &
Execution
Concept
Planning &
Execution
Concept
Planning &
Execution
Concept

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Project Portfolio Management
 Project Portfolio Management Vision
1-14
* PMI Standard for Portfolio Management
 In alignment with the organizational vision
 Supportive of the strategy and objectives of
the organization
 Reflects the organization’s cultural values
 Meaningful and valid to stakeholders

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Project Portfolio Management
 Defining Scope and Extent of the Project Portfolio:
Definitions
1-15

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Project Portfolio Management
 Goals of Project Portfolio Management
for Business Alignment
1-16
A Project Portfolio will reflect the
Organisation's Strategic Intent
Alignment of Projects
to the
Overall Business Strategy
is continuously Reviewed
The Project Portfolio will set:
• Priorities
• Investment Decisions
• Resources Allocation
Projects are Quantified by :
• Value to the Business
• Business Drivers
• Measurable Deliverables
• Rank and Priority

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Project Portfolio Management
 Focus of Project Portfolio Management
to Achieve Business Benefits
1-17
Aligned to the
Political, Economic, Social,
Technological & Environmental Realities
Adds Value to the Organisation
based upon robust Business Cases
Fulfils and Manages
Stakeholder Expectations
Ensures Corporate Wide Communication
Is Financially Viable and Delivers Returns
Dynamic and Responsive to Changes
Maintains Alignment to overall Strategy

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Project Portfolio Management
 Defining Strategic Programs/Projects for
Project Portfolio Management
1-18
Corporate
Strategy
Initiatives
CAPEX
Total Funding & Resources
Operations
OPEX
Client/Customer
Offerings
Project A
Project B
Project C Project n
. . .
Challenges
• Assessing Projects
• Selecting Projects
• Stopping/ending Projects
• “Skunk works” Projects
Benefits
• Improved productivity
• Greater economic value
• Faster time-to-market
• Improved staff morale
• Increased shareholder value
• Enhanced organisational learning

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Project Portfolio Management
 Steering Strategic Programs/Projects in a
Project Funnel Process
1-19
Transformational
Operational
Market Data
Corporate KPI's
Strategic Drivers
Assess Evaluate Plan Implement Deliver
Establish Balance
between :
Transformational
and Operational Needs
Seek Consistency
and Alignment to
Corporate KPI's
Align Funding to
Priorities
Balance Needs to
Organisational
Capacity
Apply Rigour in
Selection Criteria
Support the
Process
Decision
Point
Management Approval

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Project Portfolio Management
 Project Selection Funnel
1-20
 Stage 1: Pre-Survey Business Analysis
 Stage 2: Business Processes Identified
with Key Metrics
 Stage 3: Assess Projects for Benefits
 Stage 4: Prioritise Projects and ensure
Organisational Buy-In
Selection & Priority is
Business Driven
Requires
Quantitative & Qualitative
Criteria
Fit to
Strategy
Go & NoGo
Criteria
Common
Reporting &
Analysis
Prioritisation
Criteria
Combined
Capacity
Planning

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Project Portfolio Management
 Project Portfolio Management Cycle
1-21
Initiatives
CAPEX
Operations
OPEX
Client/Customer
Offerings
USE a
Formal Cycle
and Initiate
the Process
Project Goals to
Business Value
Confirm
Portfolio Project
Selection
Criteria
Determine
on Portfolio
Reporting
Agree
Roles &
Responsibilities
Establish
Refresh
Portfolio
Project
Selection
Update
Portfolio
Manage
Portfolio

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Project Portfolio Management
 Establishing Strategic Intent for Program/Projects
1-22
The Strategic intent determines the resources that should
be allocated to the Programmes/Projects in the Portfolio
The Strategic Intent is mapped onto a set of projects
and programmes, including their resource allocations
Each Programme/Project then corresponds to a subset
of the overall Strategic Intent, which it will deliver by
means of the allocated resources
Each project is defined by its contribution
to the portfolio's strategic intent

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Project Portfolio Management
 Project Portfolio Selection
Screening Potential Project Candidates
1-23
 Portfolio Committee
 Portfolio Management Team
 Project Sponsor
 Project Manager
Projects are
Assessed and
Challenged
to ensure their
contribution to
Business Value
Assumptions are
Validated or
Infirmed
Reviewers
request lacking or
omitted
Information
Selected Projects
raise the levels of
Commitment
Project Manager
to demonstrate an
Entrepreneurial
Approach

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Project Portfolio Management
 Project Portfolio Governance Approval, Sign-off and
Launches
1-24
Final Approval on Project Selection
• Management Sign Off
• Project Charter
Prioritise Project
• Ascribe a RANK
• Assign Key Resources
Document Key Project Drivers
• Business Goals
• Decision Points
• Assumptions
• Risks
Approve Project Funding
• Release Initial Funds
• Determine Management Reserve and
Variance Range
Refresh
Portfolio
Project
Selection
Update
Portfolio
Manage
Portfolio

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Project Portfolio Management
 Project Portfolio optimisation -
Capacity Planning, Schedule Optimisation
Consolidate Project Data into the Portfolio
Develop Individual
Project Plans
• Organisation
• WBS and
Schedule/Cost
Charts
Aggregate Project
Plans
• Establish Portfolio
Time Frame
• Develop Resource
Charts
• Determine
Cumulative Project
Costs
Rearrange Project
Priorities
• According to
Business Goals
• Establish Modified
Project Schedules
Re-Approve Project
Portfolio Contents
• Finalise Funding
• Secure
Management Sign
Off
Capacity planning is the evaluation of the
RESOURCE capacity needed by the Organisation to
meet demands for its Projects

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Project Portfolio Management
 Portfolio Project Screening – A Continuous Process
Major Decision Points at the GATES
1-26
Assess Evaluate Plan Implement Deliver
Assessment of Project
according to Evolving
Business Value
Appraisal of Business
& Market Factors
Review of Project Progress
and Compliance to Objectives
Changes in Priorities
Risk Re-Assessment
Benefit
Management
1-26

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Project Portfolio Management
 Project Portfolio Reporting
Evaluation of the Portfolio to Expectations
1-27
• Are Strategic Intents Unchanged?
• Are Projects in Alignment?
• Are Project Budgets within Range?
• Are Operational Benefits in Limits?
• Are Project Schedules within Range?
• Are Technical Issues Addressed?
• Are Project Risks Managed Suitably?
• Are Organisational Risks Assessed?
• Are Internal/External Constraints &
Interfaces Handled Appropriately
Health
Risks
Constraints &
Dependencies
Strategic
Alignment
Value
Portfolio Manager
Collects, Collates & Reports
1-27

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Project Portfolio Management
Project Portfolio Management:
Major Responsibility Areas
1-28
Determining a
viable Project
Mix, capable of
meeting
Organisational
Goals
Balancing the
Project Portfolio
to ensure
Current & New
Opportunities
are Beneficial
Monitoring and
Reporting on
the
Performance of
Projects in the
Portfolio
Analysing
Project Portfolio
Performance &
engaging on
Continuous
ImprovementProviding
Recommendations to
Decision Makers

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Project Portfolio Management
 Multiple Project Portfolios in the Organisation
1-29
Business
Unit
Business
Unit
Support
Unit
Support
Unit
Programmes
& Projects
Programmes
& Projects
Programmes
& Projects
Programmes
& Projects
Organisation's
Executive VPs
Project
Portfolio
Team
Organisational
Unit
Organisational
Unit
Organisational
Unit
Organisational
Unit
Organisation's
Line Reporting
Project
Portfolio
Coordination
Corporate
Portfolio
Unit
Portfolio
Unit
Portfolio
Unit
Portfolio
Unit
Portfolio

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Project Portfolio Management
 Operating in a Combined PPM/PMO Structure:
Organisational Structure – Major Options
1-30
Project Management
Office
Business
Strategy
Project Portfolio
Management
Demand
Management
Project & Programme
Management
Centre of Excellence
Business
Strategy
Project Portfolio
Management
Demand
Management
Project & Programme
Management
Project Management
Office

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Project Portfolio Management
 Instituting the Project Portfolio Management System
1-31
Confirm Business Strategy, Drivers
and Business Value
 Determine Portfolio Project
Selection Criteria
 Agree on Portfolio Reporting
 Select Project(s) for Portfolio
using :
Economic & Financial Criterion
Balanced Scorecard
Risk Ranking
 Rank Selected Projects
 Document Key Project Drivers
Business Goals
Assumptions
Risks
 Approve Project Funding &
Release Initial Funds
Refresh
Portfolio
Project
Selection
Update
Portfolio
Manage
Portfolio

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Project Portfolio Management
 Operating in a Combined PPM/PMO Structure:
Functional Focus in the Organisation
1-32
PPM - Supporting the Organisation's
Strategic & Operational Goals
Investment
Management
Demand
Management
Resource
Management
Benefits
Management
Risk
Management
Value
Management
Management
of Programmes
Management
of Projects
Expectations
& Scope
Management
Monitoring,
Control
& Reporting
Execution &
Implementation
Engineering
& Planning
PMO - Supporting the Organisation's
Programme & Project Discipline
Processes,
Standards and
Methodologies
Project
Support
Competence
& Skill
Development

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Project Portfolio Management
 Project Portfolio Manager:
Scope and Range of Roles & Responsibilities
The Portfolio Manager, typically a senior manager,
or senior management team, is responsible for monitoring
assigned portfolios, by:
1-33
Source: PMI® - Project Management Institute, Inc.,
Playing a key role in project
prioritisation, ensuring there is a
balance of components, and that
they align with strategic goals
Providing key stakeholders with
timely assessment of portfolio and
component performance, as well as
early identification of (and
intervention into) portfolio-level
issues impacting performance
Measuring the value to the
organisation through investment
instruments, such as return on
investment (ROI), net present value
(NPV), payback period (PP), etc.

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Project Portfolio Management
 Extent of PPM Governance
1-34
Selecting Projects and
Programmes to deliver the
required results
Ensuring Projects are
aligned with Evolving
Organisational Objectives
Defining
appropriate
Governance
processes to
support the
achievement of
the
Organisation’s
Strategy
Planning the
organisation’s Project
work-load on an on-going
basis
Negotiating Resource and
Capacity issues and
resolving problems at the
Organisational level
Organisations are Effective in their Project and Portfolio Management
by defining and improving the processes within the PPM domain,
especially concerning the Resource and Capacity Management
& the prioritisation of Programmes & Projects in the Portfolio

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Project Portfolio Management
 Achieve the Organisation's Business Goals with
Project Portfolio Management
1-35

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Project Portfolio Management
1-361-36