Program and Portfolio Management Basics

Program and Portfolio Management
Basics (this is a brief from the full
presentation)
Spyros Ktenas MBA, BSc(IT), PMI PfMP, PRINCE2, PMI ACP, ITIL. M_o_R
http://open-works.org/profiles/spyros-ktenas
Available at http://TheProjectLeaders.Org
Some of the content is acquired/based to the PMI Program and Portfolio
Management and is used for educational purposes.
PMI, PMBoK are Registered Trademarks of Project Management Institute.
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Spyros Ktenas - http://open-works.org/profiles/spyros-ktenas
WORKSHOP OBJECTIVES
 To provide basic knowledge around Program and
Portfolio Management
 To provide knowledge useful for real life conditions
 To develop related skills
 Networking
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BASIC PROGRAM MANAGEMENT CONCEPTS
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WHAT IS A PROGRAM
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 A program is a group of related projects managed in a
coordinated way to obtain benefits and control not
available from managing them individually. Programs
may include elements of related work (e.g., ongoing
operations) outside the scope of the discrete projects in
a program.
BasicProgramManagementConcepts

PROJECT, PROGRAM, PORTFOLIO
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Portfolio
Program
Project
Project
Project
Project
Sub-portfolio
Program
Project

RELATIONSHIPS AMONG PORTFOLIOS, PROGRAMS, AND PROJECTS
- 1
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 The relationship among portfolios, programs, and projects is
such that a portfolio refers to a collection of projects,
programs, subportfolios, and operations grouped together in
order to facilitate the effective management of that work to
meet strategic business objectives.
 Programs are grouped within a portfolio and are comprised of
subprograms, projects, or operations that are managed in a
coordinated fashion in support of the portfolio.
 Individual projects that are either within or outside of a
program are still considered to be part of a portfolio.
 Although the projects or programs within the portfolio may
not necessarily be interdependent or directly related, they
are linked to the organization's strategic plan by means of the
organization's portfolio.

RELATIONSHIPS AMONG PORTFOLIOS, PROGRAMS, AND PROJECTS
- 2
7
 All portfolio components of a portfolio should exhibit certain
common features as follows:
 Be representative of investments made or planned by the organization;
 Be aligned with the organization's goals and objectives;
 Typically have some common features that permit the organization to
group them for effective management;
 Have the ability to be quantifiable and, therefore, can be measured, ranked,
and prioritized; and
 Share and compete for organizational resources.

BENEFITS
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 Programs and projects deliver benefits to organizations
by enhancing current or developing new capabilities for
the organization to use.
A benefit is an outcome of actions and behaviors that
provides utility to stakeholders.

THEMES OF PROGRAM MANAGEMENT
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 Organizations initiate programs to deliver benefits and accomplish
agreed-upon outcomes that often affect the entire organization.
The organization of the program takes this into account and
balances stakeholder expectations, requirements, resources, and
timing conflicts across competing projects. Throughout its life cycle,
an effective program encompasses many areas, however there are
three broad management themes that are key to the success of a
program:
 Benefits management
 Program stakeholder management
 Program governance

PROGRAM LIFE CYCLE - 1
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 Phase One: Pre-Program Set Up
The primary objective of the Pre-Program Set Up phase is to establish
a firm foundation of support and approval for the program.
 Phase Two: Program Set Up
At this stage, the program has passed the first phase and has received
"approval in principle" from a selection committee to proceed to
program set up. A program manager has been identified and the key
input into this phase - a charter defining high-level scope, objectives,
visions, and constraints-has been generated.

PROGRAM LIFE CYCLE - 2
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 Phase Three: Establish Program Management and Technical Infrastructure
The purpose of this phase is to establish an infrastructure that will support the program
and its constituent projects as they deliver the expected benefits for the program. Once
the program has passed the second phase-gate review (G2), the program manager has a
mandate to execute the program as defined by its roadmap, subject to organizational
boundaries beyond which the program manager would need to reaffirm - realign the
program.
 Phase Four: Deliver the Benefits
The purpose of this phase is to initiate the component projects of the program and
coordinate the deliverables to create the incremental benefits.
 Phase Five: Close the Program
The purpose of this phase is to execute a controlled closedown of the program. All
program work is completed and benefits are accruing. The activities in this phase lead to
the shut down of the program organization and infrastructure as well as the transition
of artifacts, benefits monitoring, and on-going operations to other groups.

PROGRAM MANAGEMENT PROCESSES - 1
12
 The five Program Management Process Groups are:
 Initiating Process Group. Defines and authorizes the program or a project within
the program and produces the program benefits statement and benefits
realization plan for the program.
 Planning Process Group. Plans the best alternative courses of action to deliver
the benefits and scope that the program was undertaken to address.
 Executing Process Group. Integrates projects, people, and other resources to
carry out the plan for the program and deliver the program's benefits.
 Monitoring and Controlling Process Group. Requires that the program and its
component projects be monitored against the benefit delivery expectations and
that their progress be regularly measured, to identify variances from the
program management plan. This Process Group also coordinates corrective
actions to be taken, when necessary, to achieve program benefits.
 Closing Process Group. Formalizes acceptance of a product, service, or benefit/
result; brings the program or program component (e.g., project) to an orderly
end.

PORTFOLIO MANAGEMENT BASICS
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WHAT IS A PORTFOLIO - 1
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 A portfolio is a component collection of programs,
projects, or operations managed as a group to achieve 1
strategic objectives. The portfolio components may not
necessarily be interdependent or have related
objectives. The portfolio components are quantifiable,
that is, they can be measured, ranked, and prioritized.
 A portfolio exists to achieve one or more organizational
strategies and objectives and may consist of a set of
past, current, and planned or future portfolio
components. Portfolios and programs have the potential
to be longer term with new projects rotating into the
portfolios or programs, unlike projects that have a
defined beginning and end.
PortfolioManagementBasics

WHAT IS A PORTFOLIO - 2
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 An organization may have more than one portfolio, each addressing
unique organizational strategies and objectives. Proposed initiatives
are structured as portfolios and components are identified,
evaluated, selected, and authorized. In addition, portfolios may
contain subportfolios.
 At any given moment, a portfolio represents a view of its selected
portfolio components and reflects the organizational strategy and
objectives; even when specific projects or programs within the
portfolio are not necessarily interdependent or have related
objectives.
 If a portfolio is not aligned to its organizational strategy, the
organization should reasonably question why the work is being
undertaken. Therefore, a portfolio should be a representation of an
organization's intent, direction, and progress.

PORTFOLIO MANAGEMENT AND ORGANIZATIONAL STRATEGY - 1
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 Organizations are concerned that they possess an effective
structure for management that will lead to the longevity and
success of the organization. An organizational strategy is in part a
plan of goals, policies, and actions that provide the overall direction
and focus of the organization.
 Portfolio management is an integral part of the organization's
overall strategic plan. Organizational governance occurs at different
decision-making levels of the organization to support specific goals,
objectives, and strategies defined through the organization's
strategic planning process.
 Portfolio management ensures that an organization is able to
leverage its project selection and execution success and support a
strong and profitable organization within a competitive and rapidly
changing organization environment. Portfolio management,
program management, and project management are disciplines for
managing the capability to deliver value.

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 Portfolio management ensures that an organization is able to
leverage its project selection and execution success and support a
strong and profitable organization within a competitive and rapidly
changing organization environment.
 Portfolio management, program management, and project
management are disciplines for managing the capability to deliver
value.

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 An organization establishes goals that will move it towards its
vision. These goals will have objectives that are measures of goal
achievement. Strategies are developed for how the goals will be
achieved. These strategies direct the execution of work intended to
achieve the goals. For the purposes of this standard, organizational
strategy is a plan that describes how the organization's strengths
and core competencies will be used to:
 Manage resources effectively
 Manage stakeholder value
 Capitalize on opportunities
 Minimize the impact of threats
 Respond to changes in the market, legal, and regulatory environments
 Reinforce focus on critical operational activities.

THE ORGANIZATIONAL CONTEXT OF PORTFOLIO MANAGEMENT
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Organizational Resources
The ultimate goal of linking
portfolio management with
organizational strategy is
to establish a balanced,
executable plan that will
help the organization
achieve its goals.

ROLE OF THE PORTFOLIO MANAGER - 1
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 Portfolio managers are responsible for the execution of the portfolio
management process. Where program and project managers focus on
"doing work right," portfolio managers focus on "doing the right work."
 Portfolio managers receive information on portfolio component
performance and progress, and they convey to the portfolio management
governing body how the portfolio components as a whole are aligned with
the strategic goals, then provide appropriate recommendations or options
for action.
 They also ensure that timetables for portfolio management processes are
maintained and followed and that the managers of portfolio components
(projects, programs, and operations) receive and provide the information
required under the portfolio management processes.
 They are the primary conduit between managers of portfolio components
and portfolio stakeholders.
 The portfolio manager may be an individual, a group, or a governing body,
and is responsible for establishing, monitoring, and managing all assigned
portfolios.

3 PORTFOLIO MANAGEMENT PROCESSES GROUPS
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 Defining Process Group
The Defining Process Group consists of those processes performed to
establish how the organizational strategy and objectives will be implemented
in a portfolio; determines the portfolio strategic plan; determines the
portfolio structure and roadmap; defines and authorizes a portfolio or
subportfolio; and develops the portfolio management plan and subsidiary
plans.
 Aligning Process Group
The Aligning Process Group consists of processes to manage and optimize the
portfolio. This group determines how portfolio components will be
categorized, evaluated, selected for inclusion, modification, or elimination,
and managed in the portfolio.
 Authorizing and Controlling Process Group
The Authorizing and Controlling Process Group consists of the processes for
determining how to authorize the portfolio and provides ongoing portfolio
oversight.

5 PORTFOLIO KNOWLEDGE AREAS
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 Portfolio Strategic Management
 Portfolio Governance Management
 Portfolio Performance Management
 Portfolio Communication Management
 Portfolio Risk Management

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Thank You!
(this is a brief from the full presentation)

Program and Portfolio Management Basics

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