p3m - project, program, portfolio management framework

Project, Program, Portfolio

Management (P3M™)

Framework

Rob Buhrman, PMP, PgMP, CSM, ITIL

[email protected]

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Agenda

Problem Statement

Industry, Public Sector, and Inside the Organization

P3M Framework

Definition and Objectives

P3M Implementation Methodology

Assess, Recommend, Promote, Implement, Operate

Contact Info

Email, Blog, Bio

Definitions and Linkage

PM, PgM, PfM

Rob Buhrman, PMP, PgMP, CSM, ITIL [email protected]

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2010 UNITED STATES OFFICE

OF MANAGEMENT AND BUDGET

M-10-25

Too many Government IT

projects cost hundreds of

millions of dollars more than

they should, take years longer

than necessary to deploy, and

deliver technologies that are

obsolete by the time they are

completed.

Problem Statement Industry and Public Sector

2006 STANDISH GROUP CHAOS

REPORT

46% of application development

projects are “challenged,”

meaning they fail to deliver

results on-time, within budget,

or in scope.

2010 IT PROJECT SUCCESS

SURVEY

Traditional Projects: 47% are

successful, 36% are challenged,

and 17% are failures.

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Problem Statement

Lack of standardized project management

processes across the organization

Project Managers leverage various tools for

tracking projects

No consistent way of deciding how to

allocate investment resources

Project costs are tracked at various levels of

detail

No consistent way of monitoring and

controlling project performance

Inside the organization


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Definitions

Project Management (PM) – The application of knowledge, skills, tools

and techniques to project activities to meet project requirements.

Projects are temporary and create a certain product, service, or result.

Consequently, project management has a defined time period and results

that can be determined successful or unsuccessful.

Program Management (PgM) – The centralized management of a group of

related projects to obtain benefits and control not available from

managing them individually. Key themes include Benefits Management,

Stakeholder Management, Financial Management, and Program

Governance

Portfolio Management (PfM) – The centralized management of one or

more portfolios, which includes identifying, prioritizing, authorizing,

managing and controlling programs, projects, or other related work, to

achieve specific business objectives. Key themes include Strategic

Alignment, Value Management, Risk Management, Resource Management,

and Performance Management.


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Portfolio, Program, Project Linkage

Portfolio

Projects

Programs

Projects Projects

Executing the

"right" projects

Executing

projects "right"


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P3M Framework Definition and Key Objectives

Project, Program, Portfolio Management (P3M) Framework – A set of policies,

processes, tools, and governance models designed to support organizations in

achieving strategic and tactical benefits from their investments in projects,

programs, and portfolios.

P3M Objectives

• Transparency – Line of sight into decisions, performance, and benefits

• Accountability – Ownership and decision-making thresholds defined and

governed

• Compliance – Comply with organizational and public sector policies, regulations,

and guidelines

• Cost Savings – Eliminate wasteful spending, out-of-control execution, re-

invention, and disconnected operations

• Funds Optimization – Obtain optimal benefits for amount budgeted and

expended

• Benefits Realization – Achieve the intended benefits as described in the business

case


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P3M Framework Lifecycle

*PgM and PM lifecycles aligned with PMI


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P3M Framework Implementation Methodology

Supports continuous

improvement to meet

defined outcomes

Leverages industry

best practices and

public sector guidelines

Achieves

leadership and

stakeholder

buy-in and

ownership

Leverages best-in-

class people,

process, and

technology

Are we getting the benefits?

Are we doing the

right things?

Are we doing

them the right way?

Are we getting

them done well?

Assess

Recommend

Promote Implement

Operate


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P3M Framework Methodology

Assess

Recommend

Promote Implement

Operate

Develop a comprehensive view of the current state

Are my projects on time,

on schedule, and within scope?

Are they achieving planned

benefits?

Are we effectively communicating with

our stakeholders?

How are resources being

consumed? What are my

risks across the program?

Are we doing the right

things to be successful?

How can we improve?

How well defined

are our processes?

Are they being used

effectively?

What systems and

applications can we use to

manage our

program/projects in a

consistent, efficient manner?

Do we have the right

resources on this

effort? Are they

trained/certified?

Are we reducing

costs by

streamlining and

standardizing?

Resources

Stakeholders

Process

Technology Performance


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Assess

Recommend

Promote Implement

Operate

Leverage industry best practices and public sector guidelines

Industry Best Practices • Software Engineering Institute (SEI) / Capability Maturity Model Integrated (CMMI) – Is a model or collection

of “best practices” that organizations follow to dramatically improve the effectiveness, efficiency, and quality

of their product and service development work.

• Project Management Institute (PMI) – Serves practitioners and organizations with standards that describe

good practices, globally recognized credentials that certify project management expertise, and resources for

professional development, networking and community.

• IT Governance Institute – Helps enterprise leaders understand how effective governance can make IT

successful in supporting the enterprise's mission and goals.

• Knowledge Capital and Experience – Leverage external and internal experience assessing, implementing, and

operating PMOs providing best-in-class people, methodologies, and tools.

Public Sector Best Practices • United Statement Office of Management and Budget (OMB) Direction - OMB requires agency investment

submissions to be justified by rigid cost/benefit analyses. It further requires that full life cycle costing be

used; full funding for costs must be appropriated in advance; cost, schedule, and performance goals be clearly

identified, achievable, and measured using Earned Value Management (EVM); and, that risks be identified.

Recent guidance requires large IT projects to be implemented in 90 to 120 day increments to achieve benefits

sooner and reduce the risk of schedule and cost overruns.

• United States Government Accountability Office (GAO) IT Investment Management (ITIM) - The ITIM

framework is a maturity model composed of five progressive stages of maturity that an agency can achieve in

its IT investment management capabilities. For each maturity stage, the ITIM describes a set of critical

processes that must be in place for the agency to achieve that stage.


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Assess

Recommend

Promote Implement

Operate

Define current and desired level of P3M maturity

Level 1

Level 2

Initial/Ad hoc

· Aware of need for project structure and risks of poorly managed projects

· Use of project management techniques left to the individual

Visible But Reactive

· Management has gained and communicated an awareness of

the need for project management

· Organization is in the process of learning and repeating certain

techniques and methods from project-to-project as needed

Defined/Standardized

· Policy, process, and methodology formally established

and communicated for projects, programs, and portfolios

· Programs and projects defined with appropriate business

and technical objectives

· PMO chartered to support the framework

Measured and Managed

· Formal and standardized P3M metrics collected

to support the portfolio governance process

· Risks, outcomes, benefits, and business

strategy/mission value quantified and managed

Ou

tco

me

Inp

ut

Adoption

Mat

uri

ty

P3M Maturity Model

Level 3

Level 4

Predictive and Optimized

· Proven full life-cycle P3M framework is

implemented, enforced, and integrated into

organizational culture

· Predictive analytics used at all levels of

organization for transparency and accountability

· On-going program to institutionalize best

practices has been implemented

Level 5

Ou

tpu

t


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Assess

Recommend

Promote Implement

Operate

Develop an opportunity matrix and sequence plan

Opportunity Objective Outcome/Benefit Timeframe

Provide

consolidated

status and

financial

reporting

Develop and implement standard report

templates and provide procedures for their

use

Consistent information and ability to

rollup results from projects to

programs to portfolios

Short term

Establish a reports repository for historical

reporting and tracking

Ability to show trends which helps

focus on future improvements

Short term

Implement an automated reports

portal/dashboard for all stakeholders to

access and drill down on details

Less resource workload and easily

accessible by stakeholders

Long term

Improve the

ability for

projects to

deliver on

schedule and

on budget

while

meeting

requirements

Develop procedures for developing a project

schedule using WBS, dependencies, and

resources and require it for all projects

Standardized project schedules which

can be assessed using critical path

methods and can be viewed across

projects to see resource leveling

issues

Short term

Develop procedures and implement a an

integrated baseline review of all new

projects to assess schedule, cost (estimates),

technical, and resource risk

Best practice for preventing project

issues before the project begins

Mid-term

Implement an ANSI 748-b compliant earned

value management system (EVMS)

Ability to monitor, control, and

forecast scope, schedule, and cost

variance early in the project lifecycle

Long-term


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Assess

Recommend

Promote Implement

Operate

Communicate the benefits of P3M to leadership and stakeholders

Buy-in

[Sustained Usage of P3M Framework]

Participation

[ Leverage P3M Artifacts]

Commitment

[Stated Desire for Improvement]

Awareness

[Recognition of the Problem]

Sustained

communications

to leadership and

stakeholders

selling the value

of P3M


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P3M Framework Methodology Perform market research and alternatives analysis

$0 $500,000 $1,000,000 $1,500,000 $2,000,000

Total Year 1 Investment





Total 5-Year Investment

Planview - Onsite PlanView - SaaS

$0 $5,000,000 $10,000,000







Sikich (Assistance PSA) - Onsite Sikich (Assistance PSA) - SaaS

$0 $2,000,000 $4,000,000 $6,000,000







Tenrox - Onsite Tenrox - SaaS

$0 $400,000 $800,000 $1,200,000







Unanet - Onsite Unanet - SaaS

Assess

Recommend

Promote Implement

Operate


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Assess

Recommend

Promote Implement

Operate

Stand up organization structure and charter governance bodies

Board of Directors/

Oversight Agency

C-Suite/

Office of the Director

Line of Business/

Program OfficeExecutive Steering

Committee

Investment Review

Board

Program/Project

Advisory Board

InitiativeInitiative

Initiative

Initiative

Strategic Initiatives

Program

Management

Office (PMO)

Strategic

Alignment

Business

Alignment

Benefits

Alignment

Program/Projects

Portfolio

Vision/

Mission


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Assess

Recommend

Promote Implement

Operate

Achieve small successes first, then increase complexity, risk, & benefits

- Charter

- Market

research

- Alternatives

- Business case

- Acquisition

Communication and Change Management

Successfully

Migrate to

the To-Be

Vision and

Realize Key

Benefits that

Achieve the

Business

Strategy

Program Management

Initiate Plan Execute, Monitor, and Control

Transformation

Define

Application

Process/

Workflow

Define

Configuration

Values

Develop UAT

Test

Scenarios/

Scripts

Develop and

Execute

Training

Iterations

Implementation

Requirements

Iterations

BuildDesign Test DeployMaintain/

Operate

Closeout

Iterations

Execute Communication and Change Management

- Inventory projects, resources,

skills

- Develop policies, standards,

procedures, templates

- Analyze and plan for data clean

up and conversion

Iterations

- Identify Stakeholders and

Communications Plan

- Develop Comm and CM Plans


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Assess

Recommend

Promote Implement

Operate

Support operations, stakeholders, and governance

* Representative graphic from http://www.planview.com


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Contact Information

Robert M. Buhrman, PMP, PgMP, CSM, ITIL

[email protected]

Mr. Buhrman has over 16 years experience in IT and management consulting in both the

commercial and public sector. He was most recently the program manager for a large business

management improvement program, helping to transform a $800 million fee-for-service

Federal program into a best-in-class service delivery organization. He has led several

implementations of performance and project management solutions providing key insights and

improvement to customers’ business. Mr. Buhrman also has experience supporting

organizations with their migration to modernized systems including PMO and acquisition

support tasks. In addition, he has experience performing assessments of project performance

including the areas of planning, quality, and process assessments.

Mr. Buhrman’s implementation experience spans the full systems development lifecycle,

including planning, requirements, design, development/configuration, testing, training,

deployment, sustainment, and project management activities in support of enterprise resource

planning (ERP), commercial off-the-shelf (COTS), and custom-built enterprise solutions. He also

recently led a project management team supporting Agile development.

Mr. Buhrman is one of a small number of Project Management Institute (PMI) certified Program

Management Professionals (PgMP)® worldwide. He also is a certified Project Management

Professional (PMP)® since 2005 and a certified ScrumMaster® since 2011.


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