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How to Effectively Build A Project Schedule
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Written by Dr. Andrew Makar
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Wednesday, 22 July 2009 14:20 |
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The roots of a portfolio management process model can be found in W. Edwards Deming’s quality management cycle of Plan, Do, Check and Act. In the 1950s, Deming proposed a process model where business processes are reviewed continually to identify improvements. The Plan phase designed new or revised existing processes to improve business results. The Do phase implements the process improvement plan and measures the results. The Check phase reviews the results and reports the status to the management team. The Act phase determines the changes needed to improve the process.
Deming’s model can be reordered and aligned to a portfolio management process model. Instead of following a Plan-Do-Check-Act process, a Plan-Act-Do-Check model can be adopted. With any portfolio, portfolio planning is required to organize the work within a portfolio. Prioritization is needed to focus on the critical projects within a cycle plan. Project execution occurs and ideally delivers the business results. Finally, the monitor phase inspects the project portfolio and the inspection results filter into the next portfolio planning iteration. Figure 1 aligns a modified Deming model to primary portfolio management processes.
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Modified Deming
Cycle
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Primary Portfolio Management Processes
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Plan
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Portfolio Planning
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Act
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Portfolio Prioritization
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Do
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Portfolio Execution
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Check
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Portfolio Monitoring
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Figure 1: Modified Deming Model and Primary Portfolio Mgmt Processes
These portfolio management processes represent primary portfolio management processes that are typically found in a portfolio management process. Although these processes represent the core portfolio management processes, a successful portfolio management solution includes four layers of processes: primary, support, organization and technology architecture processes.
Portfolio Management Framework
Portfolio management processes can be separated into four layers. The primary processes layer includes the key processes required to analyze, plan and prioritize a portfolio of applications, projects and programs. The support layer provides the key management processes to ensure successful execution across technology, project management, risk management and financial management. These processes are further supported by an organization layer that utilizes common metrics, techniques and terminology across the organization. Finally, the architecture layer describes the software tools required to adequately support portfolio management. The figure below illustrates the four layers.
Figure 2 Portfolio Management Framework
A brief description of each process layers is described below. Subsequent articles will provide a detailed overview of each process layer.
Primary Process Layer
- Portfolio Planning: Identifies opportunities and develops the initial business case for candidate projects
- Portfolio Prioritization: Prioritizes the candidate list of programs and projects to provide business value
- Portfolio Execution: Selected programs and projects are executed and the application portfolio is updated to reflect the ongoing efforts. The execution phase is governed by the organization’s software development lifecycle and supporting project management processes
- Portfolio Monitoring: Includes current-state assessment of existing IT applications, projects and programs within the portfolio. Application and project/program data is reviewed to identify opportunities to eliminate redundant solutions, fix process gaps and improve application health.
Support Process Layer
Technology Architecture Management: In mature IT organizations, IT standards are adopted and patterns form to provide a common blueprint for application infrastructure. The architecture management process compares the current architecture standards to the portfolio’s underlying architecture and identifies compliance gaps.
- Project Management: All aspects of the Initiate, Plan, Execute, Control and Close processes are used to project execution phase
- Risk Management: The Risk Management process is conducted at different points in the portfolio management process. Initial and current risk assessments are performed as projects move from portfolio planning to portfolio execution.
- Financial Management: Supports all four primary processes as the total cost of ownership for each opportunity is evaluated, prioritized and executed across the portfolio.
Organization Context Layer
- Metrics, Methodology, Terminology: Describes the common language, definitions, metrics, measurements and approaches to integrating the primary and support processes. Across the enterprise, portfolio managers need to follow a common methodology using common terms and measuring progress with consistent metrics.
Architecture Context Layer
The architecture layer describes the software tools used to support portfolio management. It is difficult to effectively identify, analyze and summarize the results of the portfolio management processes without a supporting information infrastructure. For small portfolios, Excel spreadsheets and desktop databases are sufficient for planning. As organizations grow, business intelligence and data warehousing tools can be effectively used to answer multiple facets of the portfolio management questions. Packaged portfolio management tools also help organization manage the assets in the IT portfolio.
As organization’s implement a portfolio management process, portfolio managers are encouraged to review this model to ensure the primary processes are supported with support processes and include both organizational context and IT architectures. The next few articles will take a closer look at the different layers in the portfolio management model and describe its application.
This article was written by Andy Makar and originally published on Gantthead.com
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Written by Dr. Andrew Makar
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Wednesday, 22 July 2009 14:16 |
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The IT portfolio management process is a method of rationalizing an organization’s suite of IT applications to meet business needs. IT portfolio managers analyze existing applications, current and future projects to identify gaps and improvement opportunities within an organization’s IT portfolio. On a cyclical basis, an IT organization is allocated funding to address these opportunities in addition to ongoing maintenance, operations and support.
According to a 2002 META Group report, IT organizations are often challenged to “operate as a business investment center” for their company. Adopting this viewpoint requires portfolio managers to focus on the mix of applications and deliver the best value to their business partners at a cost-effective price. Managing an IT portfolio increases the need to understand the overall portfolio health in terms of individual project status, financial impact, risks, rewards and the state of the IT architecture for all the projects in the portfolio. Understanding the health of the underlying IT architecture is just as important as understanding the status of the applications and projects supporting an organization’s business process.
In recent years, software vendors and IT consulting organizations have launched new engagement efforts to assist organizations with the IT portfolio management processes. Marketing presentations filled with colorful bubble charts and project scorecards can often motivate IT organizations to purchase the tool and choose to apply the processes supported by the tool. Implementing a tool without defining the process always carries inherent risk. Organizations are complex with their own custom business rules and organizational acronyms and jargon. Prior to selecting a tool, the organization should examine their current and future state portfolio management processes.
The next few articles will highlight the goals and benefits of portfolio management and to outline a flexible portfolio management process framework. The framework allows organizations to develop their own processes and apply supportive tools and techniques as applicable.
Portfolio Management Goals
A 2002 survey conducted by META Group, Inc. identified a variety of portfolio goals across IT organizations using portfolio management solutions. The organizational goals included:
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Create single source of all existing IT assets, initiatives and potential investment opportunities
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Provide visibility of IT projects and relative value to senior management instead of an independent review
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Identify the best mix of projects faster to enable business processes
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Facilitate executive decision making
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Manage organizational budgets and prioritize projects relative to the overall IT budget
Portfolio management processes exist to provide organizations with better insight to the ongoing spend and future investment in IT products and services. Gaining insight into a portfolio’s program, projects and applications enable the portfolio manager to align IT assets with the IT strategy. From the CIO to the project manager, all stakeholders need to understand the projects within the portfolio and how they align with IT strategy.
Executives have a broad, high-level view to the programs and projects supporting business processes. Department managers need to know the current project and application health in their department level portfolios. Project managers also need a single method to report status of the projects in the portfolio instead of generating different status reports for the same project.
Well-implemented portfolio management processes allow stakeholders at all levels of the organization to view the portfolio data and make strategic and tactical decisions. According to Pacific Edge, an IT portfolio management tool provider, the goal of IT portfolio management “is nothing more or less than the art and science of achieving the best value for a company’s IT investments”.
Portfolio Management Benefits
The META Group survey also identified several benefits from implementing portfolio management processes, including:
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Executives have centralized information that improves their understanding of the assets within their portfolio
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Managers closely monitor costs
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Redundant projects are identified and project scope is modified to combine with other related initiatives.
A project manager with Schlumberger Limited, a global oil field and technology services company, summarized the project manager’s viewpoint of the benefits of a portfolio management solution: “At least I don’t have to do 16 different status reports every month on my project anymore.”
Integrating portfolio management processes with day-to-day project management activities increases communication without the burden of completing another status report. Implementing a portfolio management process also allows IT organizations to make data-driven decisions by comparing each projects relative cost and business value as a whole rather than considering each project independently.
Similar to stock portfolio analysis, IT portfolio management requires measuring risk and reward with the yearly IT budget. Adopting a portfolio management process allows IT managers to cancel or defer projects if a project investment if struggling or providing low return to the business organization. Portfolio management processes allow management to view all the assets in their portfolio and make the best decisions based on all of the information instead of basing their decision on a portion of information.
Understanding these goals and benefits of a portfolio management process will help managers understand their needs before jumping into a system implementation. Once portfolio managers understand the different processes within portfolio management, a specific tool can be selected to meet the IT portfolio management needs. The next few articles will provide an overview of a IT portfolio management process framework.
This article was written by Andy Makar and originally published on Gantthead.com
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Written by Dr. Andrew Makar
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Wednesday, 22 July 2009 14:06 |
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An assignment in a PMO can offer project managers experience in program-level risk and change management, expand their awareness of business issues and develop leadership skills. It can also offer the opportunity to become part of the solution to project management processes in need of fixing.
In a project manager’s career path, determining whether an assignment in a project management office is the right choice can be a difficult decision. Associate project managers often start in a PMO to gain exposure to project management. Seasoned project managers join a PMO to provide direction and help raise the level of project management maturity in the organization. Other project managers avoid PMO assignments entirely. The decision to join a PMO depends on a variety of pros and cons. Here are six good reasons to accept a PMO assignment or pursue an opportunity to join one.
1. Improve program management skills
A PMO assignment will provide a project manager with visibility to multiple projects that require program-level issue, risk, change and integration management. The challenges experienced at the PMO level are different than the challenges at the project management level. Joining a PMO will help the project manager become a better program manager through the experience. Ideally, aspiring program managers should join a program level PMO and apply the lessons learned and PMO processes to future programs. Assigning a program manager who has the relationship management experience and the core project management mechanics is a benefit to any program.
2. Increase visibility across the portfolio
Working in a PMO at any level of the organization will provide greater visibility to the projects in the program, portfolio and organization. Gaining insight into how multiple projects provide value to a corporate initiative expands the project manager’s business acumen. When managing a single project, the project manager’s opportunity to learn about a project’s business benefit is limited to the project. At the PMO level, the project manager will see multiple initiatives and understand how they all contribute to an organizational goal. Project managers will also gain the opportunity to develop portfolio management and governance skills as multiple projects are executed, monitor, and controlled across the portfolio.
3. Improve the process and methodology
Working in a PMO provides the opportunity to focus on project management process improvements and methodology adjustments. Project managers are often asked to follow a prescribed methodology that has inefficiencies and is ripe with process improvement opportunities. Since project managers are focused on project delivery, implementing process improvements for the greater project management community is not as feasible. When working in a PMO, the project manager has an excellent opportunity to provide feedback and apply past experience to improve the project management process.
4. Develop mentoring and coaching skills
A key function of an effective PMO is training and consulting other project managers on project and program management techniques. Working within a PMO can position the project manager as the expert in specific project management functions like schedule development or risk management. Other project managers can learn from the experience and leverage the PMO to improve novice project manager skill sets. Program managers can also benefit from PMO experts to help structure a program for success. If you are a skilled project manager, working in the PMO will demonstrate your ability to share your knowledge and help others develop. Coaching and counseling employees on skill development is a key management function.
5. Learn the organization's staff and back-office functions
Every project manager should have exposure to the financial, portfolio, and resource management processes required to govern major programs and organizational PMOs. Initiating and executing a project provides a silo view of how work is conducted in the organization. Working in a PMO role provides exposure to all the back office functions that support the different projects in the portfolio.
Working in a PMO will also provide new opportunities to learn how a project portfolio is governed. PMO managers may gain exposure to portfolio management tools like Clarity, Microsoft Project Server, Pacific Edge, and other portfolio management tools. Typically, project managers may interact with these tools from a schedule management or cost management viewpoint. If the PMO is responsible for managing the portfolio, exposure to these tools will be valuable in future leadership positions. Executives need to know how their projects are performing to effectively manage the organization. Understanding how to leverage portfolio management tools and processes further develops these skill sets.
6. Develop peer influence techniques
As a project manager, your sphere of influence and authority is limited to a specific project. As a program manager, the authority is limited to the scope of the program, however, the need for peer influence increases. Working in a PMO will help the project manager develop peer influence and gain buy-in to help manage specific deliverables where other organizations have no incentive to assist the program.
Escalating to senior management is not always productive and the ability to negotiate and help others prioritize to meet program or organizational goals is a much-needed skill in both existing and aspiring program managers. As project managers rise along their career path, the need for peer influence becomes more important.
These are six good reasons why novice and experienced project managers alike should consider an assignment in a PMO. There are others. But it is important to realize that transitioning from a project delivery role to a PMO role requires a change in mindset — direct project management is not the core focus. That can make for a positive, exciting career move, but it doesn’t always.
This article was written by Andy Makar and originally published at http://www.projectsatwork.com
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Written by Dr. Andrew Makar
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Wednesday, 22 July 2009 14:02 |
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The project management office (PMO) often emerges as a construct to manage the project portfolio as a company’s project management maturity increases. The PMO may sit at different levels in the organization and provide a variety of functions to a program, organization, or an enterprise. Before organizations implement a PMO, they should understand the different types of PMOs available and the functions they support.
PMOs can be found at different levels of an organization including enterprisewide, organization-level or program-level PMOs. The enterprise level PMO has a strategic focus and its scope encompasses across all the projects in the corporate portfolio. Depending on the governance requirements, all projects may report into the enterprise PMO, or only select programs or projects may report directly to the enterprise PMO. Independent of portfolio reviews, the enterprise PMO is a top-down organization that defines the project management standards, tools, and techniques other organizations should follow.
An organization- or department-level PMO focuses on the specific projects executing within the organization and implements the standards, tools and techniques prescribed by the enterprise PMO. Depending on the project size, complexity and organizational impact, department-level projects may be reviewed by the enterprise PMO for improved communication and support.
A program-level PMO provides the administrative and project management support to projects within the program. Its scope and influence is limited to the program since its authority is an extension of the program manager’s authority. A program level PMO can be considered the “arms and legs” of the program management function that drives program delivery.
The scope and authority will vary depending on the hierarchy of an enterprise, organization-level or project PMO. However, each PMO can provide several key functions to support the portfolio. These functions range from the classic project management processes found in the PMBOK to the administrative tasks sometimes bestowed upon business planners or staff generalist positions.
Governance: The PMO’s governance function plays an important role by providing decision support for project sponsors, decision makers, and stakeholders involved in the program, organization and enterprise. Documenting governance decisions and tracking action items for future governance sessions provides the administrative support needed for effective decisionmaking.
Performance Management: The performance management function integrates project level status reporting and generates the program level status for executive reviews. The PMO investigates specific performance issues and communicates early warning signs of troubled projects. The PMO also enforces consistent performance reporting guidelines so each project reports project performance consistently.
Schedule Management: The schedule management function assists the program by identifying project level milestones and integrating them into an overall program level plan. The program level plan is a summarized view of critical program milestones. If the program is leveraging tools such as Microsoft Project Server or CA Clarity, the PMO may integrate the detailed project schedules into a detailed program schedule. The PMO also monitors schedule variances and recommends corrective action.
Financial Management: Tracking actual spend and forecasting future costs while navigating a company’s internal billing and reconciliation procedures can often be a full time role within the PMO. Reporting cost variances and adjusting program forecasts based on change control is a critical function for fiscal success.
Risk, Issue and Scope Management: The processes of risk management, issue management and scope management apply to programs as well as individual projects. The PMO supports individual projects by identifying and evaluating risk, issues and change requests to a program. The PMO manages the specific reviews and documents key decisions. Projects are organized within a program due to synergies gained from working as an integrated set of activities. The key processes of risk, issue and scope management also need to be integrated for mutual benefit.
Resource Management: Resource allocation and resource capacity needs to be managed across the program for effective utilization. Depending on how well resources are allocated, different projects may have additional resource capacity and skills that can be shared across the program. By establishing a resource management model and tracking utilization, programs can make better decisions for project prioritization. The key to an effective resource management model is the quality and reliability of the underlying data. The PMO manages the data collection and reporting process.
Quality Management: The PMO provides quality management by providing expertise in quality control, quality assurance, coordinating quality inspections, and process coaching. This function is often perceived as administrative overhead and intrusive to individual projects, however, it is a critical function for consistent delivery. The PMO should inspect project level deliverables and more importantly provide coaching to project teams requiring additional project management support.
Communications Management: Every project and program requires a communications plan. Although the target audience and frequency may vary at the program and project levels, the PMO creates the overall program communication standards for projects to follow. The PMO will also assist the program manager in developing necessary communications to program stakeholders.
Supplier Management: The PMO supports supplier management by monitoring the various suppliers providing services to the program and notifying the program manager of supplier performance issues. Supplier performance scorecards are integrated through the PMO and individual suppliers work with the PMO to understand performance-reporting standards.
These functions are specific to project management delivery; however, additional administrative functions such as document management and facility management may be supported. The scope of functions provided depends on the form and needs within the program, organization or enterprise. Once a company determines the form of PMO needed, they can use these functions as a PMO checklist to develop the project office.
When organizations first establish a PMO, it should have a PMO development plan. Each of these processes can appear as high-level tasks in the development plan to ensure the PMO is delivering all its functions. Organizations may prioritize specific functions depending on need and project management maturity; however, fully functioning PMOs have established processes that integrate and roll up through the program, organization and enterprise.
This article was written by Andy Makar and was originally published at Projects@Work
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Written by Dr. Andrew Makar
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Wednesday, 22 July 2009 13:58 |
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Does your project management methodology hinder rather than enable project delivery? At first glance, this question may offend rather than provoke critical thought. After all, a PM methodology is supposed to ensure work is completed using a disciplined, proven set of processes to ensure consistent and reliable project results.
If a PM methodology is supposed to enable project delivery, why are PMs bogged down with documentation for every single step, process and procedure in the methodology? It can often feel like the PM is spending more effort managing the administrative documentation instead of managing the day to day risks, issues and schedule delays.
As project managers, I’m sure all of you have seen various methodologies to initiate, plan, execute, control and close your projects. I’ve had the pleasure of managing a variety of projects in different Fortune 500 manufacturing firms. Each firm had a different methodology tailored to their organization, although they all had a foundation from the PMBOK. In order to complete the planning phase in one organization, the project manager was required to complete 16 documents. In another organization, the planning phase required 25 documents. It makes you wonder if delivering the project is an exercise in filling out paperwork or actually delivering the project scope for the business partner.
The purpose of this article isn’t to call for a reform to PM methodologies and project administration. There will always be a critical set of documents required to manage any project such as the project schedule, issue log, risk log, change register and of course status reports. Project administration is part of the job; however, the goal in streamlining a methodology is not to remove administrative tasks but to optimize the administrative tasks and reduce non-value add documentation.
A candidate for PM methodology optimization is the project management plan. Pull out your PMBOK book and you’ll recall the project management plan is the formal, approved plan to manage project execution. Although often used interchangeably, the project plan is not the project schedule--rather it is a comprehensive document that describes how the project will be managed and supporting processes within the project.
The Institute for Electrical and Electronics Engineering (IEEE) has published a standard for a software project management plans (IEEE 1058) that identifies key sections for any project management plan. The standard includes process sections for the project organization, managerial processes and technical processes. The processes for risk management, issue management, change management, quality management and additional project management processes are often documented in the software management plan.
In some methodologies, project plan development is non-existent and substituted for the norms and standards found in the organization. In other organizations, a project plan template is used and project managers are required to complete the document during the project planning phase. As project managers move to new projects, an entirely new project management plan needs to be completed. Depending on the scope, the project management plan can easily span 15-20 pages describing the project management processes.
There is a significant opportunity for optimization by reducing the amount of administration required by project manager and the project management plan. Instead of creating a new project management plan, the PMO should consider owning the project management plan document and provide a template that requires minimal customization by the project manager.
If the PMO wants to ensure consistent processes are implemented, a standard project management plan should be developed that contains the processes and tools used to document risks, issues, change requests, quality management and configuration management. Project management processes are often supported by a suite of tools to capture risks, identify issues and facilitate change requests. Instead of having the project manager reiterate the process steps in the project management plan, a better optimized solution already includes these steps in the document and allows the project to customize.
If an organization uses Microsoft Sharepoint or EMC’s ERoom to store project documents for configuration management, the project management plan should already document the process for checking and checking out the documents. The project manager simply needs to provide the location in the configuration repository. If an organization uses project portfolio management tools like CA Clarity, Primavera or MS-Project Portfolio Server, the project management plan should already state the expectation that project managers use these tools to store risks, publish project schedules and document change requests.
Some areas will require specific project manager involvement including the project schedule, key milestones, resource training and communication plans. The effort to provide this information is greatly reduced since the bulk of the document is already completed.
The benefit of this approach is the document is already written for consistency and the project manager simply needs to follow the process rather than repeating how issue or change management will be supported in the project. The project manager can modify sections of the project plan while still remaining consistent with the PMO processes and tools used to control and execute the project.
An effective PMO will look to optimize the project management methodology and enable their project managers with tools and templates that meet project management standards but also reduce the administrative burden. Adopting this viewpoint also encourages the PMO to be less administrative and more collaborative to project execution and delivery. Instead of producing another template that project managers need to fill out, the PMO is enabling the project managers to overcome the project administration hurdle. The project management plan is just one document that can be a candidate for optimization. I’ve got another 15 to go…
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