Managing Programmes & Portfolios is a lot more complex and involved than managing projects and Programmes.
It can best be described as “the corporate, strategic-level process for Coordinating successful delivery across an organisations entire set of programmes and projects”; and requires strategic knowledge, taking a wider, corporate view of the projects being delivered.
Portfolio Management is more about business value, meeting strategic objectives and typically requires significant capital investment, changes to the way business is conducted and management of resources across the whole of the business.
A programme is a group of interrelated projects...
A programme is a group of interrelated projects that deliver value on their own, but deliver increased value if delivered together. If other unrelated projects are thrown in to the mix, this forms a Portfolio of work that needs to be properly managed and controlled through clear, consistent governance, rigorous management of risk and changes to management, effective engagement of stakeholders and the supply chain.
Just like investment portfolios, Project Portfolio Management is about deciding which is the best project to invest, and how to make the success of the return more certain (less risky), ending in tracking the actual return performance (or benefits). A Portfolio Manager will constantly review the risk and reasons for the investment; so that should the business reason or market of opportunity disappear during implementation of the project; he/she can make the decision to halt the project midway, rather than carry on spending the budget delivering a solution which may no longer be required.
Some of the major tasks involved with Portfolio Management include:
- Strategic Alignment
- Prioritisation – matching investments to objectives
- Resource and Demand Management
- Procurement Strategy
- Portfolio Office (PMO)
- Balancing risk against performance
- Regular monitoring of the planning and execution of the optimal selected projects
- Evaluating the performance of portfolio and various ways for improving it
Portfolio Management Office
Similar to, and often confused for, the Project Management Office, the Portfolio Management Office supports the Portfolio Manager and Executive Boards to monitor and manage the pipeline of in delivery and potential projects and their alignment to the organisation’s Strategy. Its function is to realise the best value proposition in delivering change.
The Portfolio PMO, just like the Project PMO, undertakes the following tasks, although on more strategic job:
- Providing governance and leadership
- Aligning project delivery with strategic business goals and priorities
- Allocating Roles and Responsibilities
- Being consistent in the management and oversight of the portfolio
- Reporting / Dashboards
At Innovatio Systems, we can help set up and run your Portfolio Management Office.
- Shaping and defining the programmes to meet strategic objectives & agreed budgets
- Setting up an appropriate Governance, Communications & Reporting – keeping information flowing and ensuring stakeholders know what, why and how projects are being delivered.
- Providing direction, taking accountability and building strong relationships with stakeholders in order to ensure successful delivery
- Setting up a PMO to mange and control the Portfolio/Programme.
PMO Set up
This starts with an assessment of the current environment, the organisation’s culture and operations and the existing (if any) PMO. We would then collaboratively identify issues and challenges and develop an agreed set of PMO functions and services:
- Establish a PMO charter
- Set up and manage Governance and standards
- Defining and applying good practice standards
- Embedding methodology, processes and tools
- Project planning
- Resource planning & management
- Budget and cost control
- Risk, issues, assumptions and dependency (RAID) management
- putting in place a programme of training, mentoring and education for your staff
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