Project Portfolio Management: How to Design, Build and Manage a Project Portfolio
As organizations reach higher levels of maturity in managing projects individually, they shift their focus to manage them collectively as project portfolios using project portfolio management (PPM) process. This transition seems to occur when the organization “how to” methodology to design, build, and manage a portfolio.
Duration
2-4 days
Who Should Attend
- Portfolio Managers, Program Managers, and Project Managers
- Managers responsible for evaluation, selection, and termination of projects
- PMO staff responsible for initiating or streamlining portfolio management processes
- Decision makers involved in authorizing projects or phases of projects
- Project Management Professionals (PMP®s)
- Program Management Professionals (PgMP®s)
- Other relevant managers and executives
What You Will Learn
- Illustrate the role of a project portfolio in translating strategy into desired results.
- Delineate an overall project portfolio management (PPM) methodology.
- Align projects with organizational goals and strategy.
- Discuss the key design requirements of a portfolio.
- Present quantitative techniques to assess a project for its own merit as well as its relative merit against other projects.
- Illustrate the use of weighted scoring models to quantify intangible benefits of projects.
- Evaluate decision techniques that clarify choices involving both threats and opportunities.
- Identify, analyze, and manage portfolio risks.
- Apply various techniques to prioritize projects.
- Build a business case for a project.
- Delineate criteria to determine when a project no longer serves its purpose and needs to be terminated.
- Discuss practical challenges and how to overcome them in executing PPM.
- Present a practical methodology to create and manage a project portfolio that will maximize business value and return on investment.
Outline
Portfolio Management Basics
- Definitions: Project, Program and Portfolio
- Differences between a Project, Program and a Portfolio
- Portfolio Triple Constraint
- Why Project Portfolio Management?
- PPM Discipline Today
- Practical Challenges in executing PPM
PPM Methodology
- Funnel & Filters®: A Portfolio Model
- Project Portfolio vs. Financial Portfolio
- PPM Methodology: Phases and Processes
Portfolio Foundation
- Organizational Strategic Framewok
- Balanced Scorecard
- Portfolio Infrastructure
- Portfolio Governance
- Portfolio Team Roles & Responsibilities
Portfolio Design
- Portfolio Benchmarks
- “Entry and Exit” Criteria for Portfolio
- Discount Rates
- Portfolio Contingencies
- Portfolio Design Requirements
- Portfolio Balance
Portfolio Construction
- Portfolio Construction
- Portfolio Calibration
- Portfolio Construction Processes
Portfolio Maintenance & Control
- Creating a Steady State Portfolio
- Identification and Categorization of New Projects
- Assessment and Selection of New Projects
- Project Business Plan
- Why Terminate a Project?
- Sunk Cost Fallacy & Dilemma
- Project Categorization Balancing
- Portfolio Triple Constraint Balancing
- Portfolio Assessment
Project Prioritization Tools
- Efficient Frontier
- Weighted Scoring Models
- Forced Ranking
- Paired Comparison
Project Assessment Tools
- Cost of Capital
- Benefit/Cost Analysis
- Net Present Value
- Payback Period
- Return on Investment
- Measuring Non-financial Benefits
- Semi-quantitative Methods
Data Visualization Tools
- Radar Charts
- Bubble Diagrams
- Dashboards
- Scorecards
Portfolio Measurements & Metrics
- Success Measurements
- Outcome & Performance Measures
- Portfolio Metrics
- Project Metrics
Portfolio Risk Management
- Uncertainty vs. Risk
- Portfolio Risks
- Decision Trees
- Monte-Carlo Simulation
- Sensitivity Analysis
- Real Options Analysis