Levels of Project Portfolio.pptx

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Levels of Project
Portfolio
RYAN S. LUNGCAY
http://www.maxwideman.com/guests/portfolio/fivelevels.htm
BSIT-BT 3-1 INTE-E1 IT Elective 1

Five Levels of Project Portfolio Management

Five Levels of Project Portfolio Management
Level 1 organizes the work into discrete projects and tracks costs and other resource usage at the project
level.
Level 2 replaces project-by-project decision making with the goal of identifying the best collection of projects to
be conducted within the resources available. At a minimum this requires aggregating project data into a central
database, assigning responsibilities for project portfolio management, and force-ranking projects.
Level 3, perhaps the most difficult for most organizations, requires developing metrics, models, and tools for
estimating the value to be derived from projects. Although interdependencies are still ignored, this allows
projects to be accurately ranked by "bang-for-the-buck" and provides a good approximation of the value-
maximizing project portfolio.
Level 4 improves the tools to correctly account for project risks and interdependencies, which allows the project
portfolio to be optimized, and finally,
Level 5 occurs when the organization has made project portfolio management a core competency and has put
processes in place for continuous learning and improvement.

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Chapter Four Defining the Project © 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill. Because learning changes everything.® Where We Are Now © McGraw Hill ‹#› 2 Learning Objectives 4-1 Identify key elements of a project scope statement and understand why a complete scope statement is critical to project success. 4-2 Describe the causes of scope creep and ways to manage it. 4-3 Understand why it is important to establish project priorities in terms of cost, time, and performance. 4-4 Demonstrate the importance of a work breakdown structure (WBS) to the management of projects and how it serves as a database for planning and control. 4-5 Demonstrate how the organization breakdown structure (OBS) establishes accountability to organization units. 4-6 Describe a process breakdown structure (PBS) and when to use it. 4-7 Create responsibility matrices for small projects. 4-8 Create a communication plan for a project. © McGraw Hill ‹#› Chapter Outline 4.1 Step 1: Defining the Project Scope 4.2 Step 2: Establishing Project Priorities 4.3 Step 3: Creating the Work Breakdown Structure 4.4 Step 4: Integrating the WBS with the Organization 4.5 Step 5: Coding the WBS for the Information System 4.6 Process Breakdown Structure 4.7 Responsibility Matrices 4.8 Project Communication Plan © McGraw Hill ‹#› Five General Steps for Collecting Project Information Step 1: Defining the Project Scope Step 2: Establishing Project Priorities Step 3: Creating the Work Breakdown Structure Step 4: Integrating the WBS with the Organization Step 5: Coding the WBS for the Information System © McGraw Hill ‹#› 4.1 Step 1: Defining the Project Scope Project Scope Defined Is a definition of the end result or mission of your project—a product or service for your client/customer. Defines the results to be achieved in specific, tangible, and measurable terms. Purposes of the Project Scope Statement To clearly define the deliverable(s) for the end user. To direct focus on the project purpose throughout the life of the project for the customer and project participants. To be published and used by the project owner and project participants for planning and measuring project success. © McGraw Hill ‹#› 6 Project Scope Checklist Project objective Product scope description Justification Deliverables Milestones Technical requirements Limits and exclusions Acceptance criteria © McGraw Hill ‹#› 7 Project Scope: Terms and Definitions Scope Statements Is a short, one- to two-page summary of key elements of the scope, followed by extended documentation of each element. Is also referred to as “statements of work (SOWs).” Project Charter Is a documentation that authorizes the project manager to initiate and lead the project. Often includes a brief scope description as well as such items as risk limits, business case, spending li.

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188 Chapter 6 Chapter 6 I keep six honest serving-men (they taught me all I knew); their names are What and Why and When and How and Where and Who.—Rudyard Kipling6.1 Developing the Project Network The project network is the tool used for planning, scheduling, and monitoring project progress. The network is developed from the information collected for the WBS and is a graphic flow chart of the project job plan. The network depicts the project activities that must be completed, the logical sequences, the interdependencies of the activities to be completed, and in most cases the times for the activities to start and finish along with the longest path(s) through the network—the critical path. The network is the framework for the project information system that will be used by the project managers to make decisions concerning project time, cost, and performance. Developing the project networks takes time for someone or some group to develop; therefore, they cost money! Are networks really worth the struggle? The answer is Projectnetworks6Managingrisk7Monitoringprogress13Teams11Outsourcing12Projectmanager10Strategy2Introduction1Organization3Scheduleresources & costs8Internationalprojects15Agile PM16Projectclosure14Estimate5Reducingduration9Deﬁneproject4 definitely yes, except in cases where the project is considered trivial or very short in duration.1 The network is easily understood by others because the network presents a graphic display of the flow and sequence of work through the project. Once the net-work is developed, it is very easy to modify or change when unexpected events occur as the project progresses. For example, if materials for an activity are delayed, the impact can be quickly assessed and the whole project revised in only a few minutes with the computer. These revisions can be communicated to all project participants quickly (for example, via e-mail or project website). The project network provides other invaluable information and insights. It provides the basis for scheduling labor and equipment. It enhances communication that melds all managers and groups together in meeting the time, cost, and performance objectives of the project. It provides an estimate of project duration rather than picking a project completion date from a hat or someone’s preferred date. The network gives the times when activities can start and finish and when they can be delayed. It provides the basis for budgeting the cash flow of the project. It identifies which activities are “critical” and, therefore, should not be delayed if the project is to be completed as planned. It highlights which activities to consider if the project needs to be compressed to meet a deadline. There are other reasons project networks are worth their weight in gold. Basically, project networks minimize surprises by getting the plan out early and allowing correc-tive feedback. A commonly heard statement from practitioners is that the project net-work represents three-quarters of ...

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