P3M - Project, Program, Portfolio Management Framework

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
Helps achieve...
•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

1. Project, Program, Portfolio
Management (P3M™)
Framework
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]
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2. P3M
Framework

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]

3. P3M

Framework

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

4. P3M
Framework

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

5. P3M
Framework

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.

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

6. P3M
Framework

Portfolio, Program, Project Linkage Portfolio
Projects
Programs
Projects Projects
Executing the
"right" projects
Executing
projects "right"
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]

7. P3M
Framework

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







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

8. P3M
Framework

P3M Framework Lifecycle
*PgM and PM lifecycles aligned with PMI
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]

9. P3M
Framework

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

10. P3M
Framework

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

11. P3M
Framework

P3M Framework Methodology
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.
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]

12. P3M
Framework

P3M Framework Methodology
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
Outcome
Input
Adoption
Maturity
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
Output
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]

13. P3M
Framework

P3M Framework Methodology
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
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]

14. P3M
Framework

P3M Framework Methodology
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
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]

15. P3M
Framework

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 Year 2 Investment
Total Year 3 Investment
Total Year 4 Investment
Total Year 5 Investment
Total 5-Year Investment
Planview -OnsitePlanView -SaaS $0 $5,000,000 $10,000,000
Total Year 1 Investment
Total Year 2 Investment
Total Year 3 Investment
Total Year 4 Investment
Total Year 5 Investment
Total 5-Year Investment
Sikich (Assistance PSA) -Onsite Sikich (Assistance PSA) -SaaS $0 $2,000,000$4,000,000$6,000,000
Total Year 1 Investment
Total Year 2 Investment
Total Year 3 Investment
Total Year 4 Investment
Total Year 5 Investment
Total 5-Year Investment
Tenrox -OnsiteTenrox -SaaS $0 $400,000 $800,000 $1,200,000
Total Year 1 Investment
Total Year 2 Investment
Total Year 3 Investment
Total Year 4 Investment
Total Year 5 Investment
Total 5-Year Investment
Unanet -OnsiteUnanet -SaaS
Assess
Recommend
Promote Implement
Operate
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]

16. P3M
Framework

P3M Framework Methodology
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 Office
Executive 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
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]

17. P3M
Framework

P3M Framework Methodology
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 Deploy
Maintain/
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
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]

18. P3M
Framework

P3M Framework Methodology
Assess
Recommend
Promote Implement
Operate
Support operations, stakeholders, and governance
* Representative graphic from http://www.planview.com
Rob Buhrman, PMP, PgMP, CSM, ITIL
[email protected]

19. P3M
Framework

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.

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