Revolu'on  not  Evolu'on  -­‐    The  new  PMI  Standard  for    Por8olio  Management  

 

Steve  Butler  PMP  MBA  CITP  MBCS    

Head  of  Delivery,  PM-­‐Partners  Group    

How  is  a  Standard  different  (than  a  book  or  white  paper)?  

A  Standard  is…  §  Describes  “what”/descripEve  §  Process  Based  §  Inputs/TT/Outputs  (ITTO)  §  Examples  (not  comprehensive)  §  Wide  applicability  §  Industries,  Types,  Complexity,  

Size  §  Many/CollecEve  Point  of  View  §  Good/best  pracEce  

A  Standard  is  not…  §  Describe  “how”/prescripEve  §  Phases  or  Lifecycle  §  Detailed  steps  §  ‘Cradle  to  grave’  §  Story  or  case  study  §  Focused  §  Specific  industry,  type  

§  One  Point  of  View  §  Methodology/Framework  §  PRINCE2  §  Agile/Waterfall  

PMI  Global  Standards  -­‐  2012  Focus   Title  

 Founda'on  

 A  Guide  to  the  Project  Management  Body  of  Knowledge  (PMBOK®  Guide)—  Fourth  EdiEon  (Jan  2013)  The  Standard  for  Program  Management—Second  EdiEon  (Jan  2013)  The  Standard  for  Poraolio  Management—Second  EdiEon  (Jan  2013)  OrganizaEonal  Project  Management  Maturity  Model  (OPM3®)—Second  EdiEon  (Q4  2013)  PMI  Lexicon  of  Project  Management  Terms  (2012)  

Extensions  &  Frameworks   ConstrucEon  Extension  to  the  PMBOK®  Guide  Third  EdiEon  (2007)  Government  Extension  to  the  PMBOK®  Guide  Third  EdiEon  (2006)  Project  Management  Competency  Development  Framework—Second  EdiEon  (2007)  Sofware  Extension  to  the  PMBOK®  Guide  Fifh  EdiEon  (Q4  2013)    

Prac'ce  Standards   PracEce  Standard  for  Earned  Value  Management  –  Second  EdiEon    (2011)  PracEce  Standard  for  Project  ConfiguraEon  Management  (2007)  PracEce  Standard  for  Project  EsEmaEng  (2010)  PracEce  Standard  for  Project  Risk  Management  (2009)  PracEce  Standard  for  Scheduling  –  Second  EdiEon  (2011)    

PMI  Global  Standards  -­‐  2012  Focus   Title  

 Founda'on  

 A  Guide  to  the  Project  Management  Body  of  Knowledge  (PMBOK®  Guide)—  Fourth  Edi'on  (Jan  2013)  The  Standard  for  Program  Management—Second  Edi'on  (Jan  2013)  The  Standard  for  Por8olio  Management—Second  Edi'on  (Jan  2013)  Organiza'onal  Project  Management  Maturity  Model  (OPM3®)—Second  Edi'on  (Q4  2013)  PMI  Lexicon  of  Project  Management  Terms  (2012)  

Extensions  &  Frameworks   ConstrucEon  Extension  to  the  PMBOK®  Guide  Third  EdiEon  (2007)  Government  Extension  to  the  PMBOK®  Guide  Third  EdiEon  (2006)  Project  Management  Competency  Development  Framework—Second  EdiEon  (2007)  So[ware  Extension  to  the  PMBOK®  Guide  Fi[h  Edi'on  (Q4  2013)    

Prac'ce  Standards   PracEce  Standard  for  Earned  Value  Management  –  Second  EdiEon    (2011)  PracEce  Standard  for  Project  ConfiguraEon  Management  (2007)  PracEce  Standard  for  Project  EsEmaEng  (2010)  PracEce  Standard  for  Project  Risk  Management  (2009)  PracEce  Standard  for  Scheduling  –  Second  EdiEon  (2011)    

Benefits  of  Par'cipa'ng  in  Standardisa'on  Ac'vi'es  

 Thousands  of  volunteers  donate  their  Eme  to  parEcipate  in  standards  seing  acEviEes  for  many  reasons:  

§  Influence  §  Networking  §  Management  §  Industry  Leadership  

PfM3  Core  Commi^ee  Chair

Sth America

North America

Europe

Africa

PMI

Jen Skrabak MBA – (USA): Healthcare

Prof Yvan Petit - (Canada); Research, Mobile Comms, Education, Media Andy Anderson MA – (USA): Pharmaceuticals, Media, Consulting Gwen Whitman MBA (USA) – Finance, Education, Insurance Wendy Wiles (USA) – US Public Sector, Manufacturing

Steve Butler MBA (UK) – Finance, Automotive, Pharmaceuticals, Media

Clive Enoch PhD (South Africa) – Software, Insurance, Finance

Prof Farhad Abdollahyan (Brazil) – Education, Pharmaceuticals

Elaine Lazar MBA (USA) – Education (PMI Standards Specialist)

Mike Reed (USA) - Healthcare, Manufacturing, Finance

PfM3  Team  Vision  

Provide  a  Standard  that  is  innova've,  widely  recognized,  u'lized,  and  formalizes  the  poraolio  management  profession.  

 

Key  Project  Objec'ves  

•  “Good practice”; most portfolios, most of the time.

. •  Target audience: portfolio management practitioners and other stakeholders of

the portfolio, program, and project management profession

•  Harmonized with other PMI foundational standards

•  Examine the process groups and processes to determine whether combining, deleting, or adding new processes would add clarity to the standard

•  Extend the standard to address principles, processes, and knowledge areas unique or relevant to portfolio management

•  Based on consensus input (Core Committee, Standards Program Working Session, Consensus Body, Exposure Draft)

A  Comprehensive  Approach  •  Deferred  Comments  from  Second  EdiEon  

•  Gartner  Research  Report  

•  Research  across  hundreds  of  poraolio  management  publicaEons  (books,  papers,  and  other  documents)  

•  Core  Comminee  and  Subteam  of  Poraolio  Management  experts  and  pracEEoners  across  industries  and  geographies  

•  Standards  Program  Working  Sessions/SME  Review/Exposure  MAG    

•  Research  Informed  Standards  Project  –    Market  Research  on  Poraolio  Management  

•  AlternaEve  approaches  to  poraolio  management  

•  Components  missing  from  the  PMI  Standard  

•  MoEvaEon  for  implementaEon  

Project  Timeline  &  Key  Deliverables  

Planning  

Ini<a<ng  

• Formally  ini<ate  project;  sign  charter  (Aug)  • Select  core  commiEee  (Sept)  • Select  sub-­‐team  commiEee  (Sept  –  Oct)  

• Propose  revised  KAs/PGs  Process  Map  • Conduct  Standards  Program  Working  Session  Review  &  Feedback  • Develop  KAs/PGs  content  –  CHP  3  (Processes)  as  standalone  document  (Oct-­‐Feb)  • Peer/Core  CommiEee  Review/Finaliza<on  (Mar)  

• Ini<al  draX/approach  to  Chapters  (April  )  • Integrate  KAs/PGs  into  chapter  content  (Mar-­‐  May)  • Finalize  Chapter  draXs  (Jun)  • Peer/Core  CommiEee  Review  of  Chapter  DraXs  (Jul)  

         Ini'ate      Aug  –  Sept  2010    

 Phase  I  Knowledge  Areas/Process  Group    Oct  2010  –    Feb  2011  

 Phase  II    Chapter    Development    Mar    –  Jul  2011  

• Final  Peer/Core  CommiEee  Review  (Aug-­‐Sept)  • Finalize  Standard  to  PMI  (incl  Diagrams,  Examples,  Graphics)  Sept  2011  

 Phase  III    Final  DraJ    Development    Aug  –  Sept    2011  

                                       Phase  IV        Final  Review        Publica'on    Oct  2011  –    Jan  2013        

• MAG  and  Consensus  Body  Review  • Public  Exposure  DraJ  Feb  14  2012  –  Mar  13  2012  • Final  Adjudica<on  July  2012  • Publica<on  Jan  2013  

DEC  31st  RELEASE  

Execu<ng  

Por8olio  Management  Context  

•  Projects  produce  deliverables  

•  Programs  output  benefits  so  as  to  sustain,  advance  or  achieve  organizaEonal  objecEves  

•  Poraolios  ensure  the  alignment  of  the  diverse  objecEves  and  inter-­‐dependence  of  programs,  projects,  and  other  work  to  

organizaEonal  strategic  goals  

–  Right  work,  Right  Eme,              Right  resources  

COPYRIGHT © PMI:- FROM THE STANDARD FOR PORTFOLIO MANAGEMENT 3RD EDITION

Core  Defini'ons  •  Por8olio  

–  collecEon  of  projects,  programs,  and  other  work  that  is  grouped  together  to  meet  organizaEonal  strategy  and  objecEves  

•  Por8olio  Management    –  interrelated  organizaEonal  processes  

by  which  an  organizaEon  prioriEzes,  selects,  and  allocates  its  limited  internal  resources  to  best  accomplish  organizaEonal  strategy  and  objecEves  

PORTFOLIO

SUB-PORTFOLIO PROJECTS PROGRAMS

PROGRAMS PROJECTS

PROJECTS

PROGRAMS PROJECTS

PROJECTS PROJECTS

SUB-PROGRAMS PROJECTS OTHER WORK

•  Por8olio  Manager  –  Focus  on  doing  the  right  work,  not  on  doing  the  work  right;  organizaEonal  scope  –  ConEnuous  monitoring  of  broader  internal  and  external  environment,  strategic  

changes,  and  aggregate  performance,  risk,  and  resource  allocaEon  

PfM3  -­‐  Process  Groups  and  KAs  Second Edition Third Edition

Process Groups (2)

•  Aligning (11)

•  Monitoring & Controlling (3)

Process Groups (3)

•  Defining (8)

•  Aligning (6)

•  Authorizing & Controlling (2)

Knowledge Areas (2)

•  Portfolio Governance

•  Portfolio Risk Management

Knowledge Areas (5)

•  Portfolio Strategic Management

•  Portfolio Governance Management

•  Portfolio Performance Management

•  Portfolio Communications Management

•  Portfolio Risk Management

Italics  are  what  is  new  for  PFM3  

PfM3  Process  Map  Knowledge  Areas  

Process  Groups  

Defining  Process  Group   Aligning  Process  Group   Authorizing  and  Controlling  Process  Group  

Por8olio  Strategic  Management  

4.1  Develop  Poraolio  Strategic  Plan  

4.4  Manage  Strategic  Change      

4.2  Develop  Poraolio  Charter          

4.3  Define  Poraolio  Roadmap          

Por8olio  Governance  Management  

5.1  Develop  Poraolio  Management  Plan   5.3  OpEmize  Poraolio   5.4  Authorize  Poraolio  

5.2  Define  Poraolio       5.5  Provide  Poraolio  Oversight  

Por8olio  Performance  Management  

6.1  Develop  Poraolio  Performance  Management  Plan  

6.2  Manage  Supply  and  Demand      

    6.3  Manage  Poraolio  Value      

Por8olio  Communica'on  Management  

7.1  Develop  Poraolio  CommunicaEon  Plan  

7.2  Manage  Poraolio  InformaEon      

Por8olio    Risk  Management  

8.1  Develop  Poraolio  Risk  Management  Plan   8.2  Manage  Poraolio  Risks      

PfM3  Process  Map  Knowledge  Areas  

Process  Groups  

Defining  Process  Group   Aligning  Process  Group   Authorizing  and  Controlling  Process  Group  

Por8olio  Strategic  Management  

4.1  Develop  Poraolio  Strategic  Plan  

4.4  Manage  Strategic  Change      

4.2  Develop  Poraolio  Charter          

4.3  Define  Poraolio  Roadmap          

Por8olio  Governance  Management  

5.1  Develop  Poraolio  Management  Plan   5.3  OpEmize  Poraolio   5.4  Authorize  Poraolio  

5.2  Define  Poraolio       5.5  Provide  Poraolio  Oversight  

Por8olio  Performance  Management  

6.1  Develop  Poraolio  Performance  Management  Plan  

6.2  Manage  Supply  and  Demand      

    6.3  Manage  Poraolio  Value      

Por8olio  Communica'on  Management  

7.1  Develop  Poraolio  CommunicaEon  Plan  

7.2  Manage  Poraolio  InformaEon      

Por8olio    Risk  Management  

8.1  Develop  Poraolio  Risk  Management  Plan   8.2  Manage  Poraolio  Risks      

PfM3  Process  Groups  

Defining    Process  Group  

Determines  how  strategic  objecEves  will  be  implemented  in  a  poraolio  and  defines  and  authorizes  a  poraolio  or  sub-­‐poraolio;  develops  the  poraolio  management  plan    

Aligning    Process  Group  

Determines  how  the  poraolio  will  be  aligned  to  the  strategic  plan  by  opEmizing,  determining  value,  developing  risk  responses,  and  distribuEng  poraolio  informaEon    

Authorizing  and  Controlling    Process  Group  

Determines  how  to  monitor  strategic  changes;  tracks  and  reviews  performance  indicators  for  alignment;  authorize  poraolio  and  verifies  values  to  the  organizaEon  from  the  poraolio    

PfM3  Knowledge  Areas  

Strategic  Management  

Align  to  the  strategic  objecEves  by  validaEng  the  strategic  plan,  and  defining  the  poraolio  structure  and  roadmap    

Governance  Management  

Develop  the  poraolio  management  plan;  define,  opEmize  and  authorize  poraolio    

Performance  Management  

Determine  performance  management  plan,  including  determining  poraolio  value,  financial  management,  and  balancing  supply/demand  resource  and  capability    

Communica'on  Management  

Ensure  Emely  and  appropriate  generaEon,  collecEon,  distribuEon,  storage,  retrieval,  and  ulEmate  disposiEon  of  poraolio  informaEon    

Risk  Management   Conduct  risk  management  planning,  idenEficaEon,  analysis,  response  planning,  and  monitoring  and  controlling  on  a  poraolio    

What  does  all  this  mean  for  me?  

§  PMBOK®  Guide,  Program  and  Por^olio  standards  now  all  fully  updated  with  current  best  prac<ce  (OPM3®  -­‐-­‐Third  Edi<on  to  follow  in  mid  2013)  

§  All  three  core  Standards  are  now  harmonized    

§  Real  business  value  in  implemen<ng  end  to  end  PMI  standards      

§  Common  language  with  the  newly-­‐released  PMI  Lexicon  of  Project  Management  Terms  (PMI.org)        

§   ……WILL  MY  PMP  &  PgMP  STILL  BE  VALID??  

Questions