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Managing a Portfolio of Projects – A Playbook for Success

Managing a Portfolio of Projects – A Playbook for Success. Research Team 303 Implementation Session. RT 303 – Team Members. Baabak Ashuri , Georgia Tech Rob Bailey , Fluor Corporation Scott Bergoon , Hargrove Engineers + Constructors Fred Delie , Georgia-Pacific, LLC

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Managing a Portfolio of Projects – A Playbook for Success

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  1. Managing a Portfolio of Projects – A Playbook for Success Research Team 303 Implementation Session

  2. RT 303 – Team Members • Baabak Ashuri, Georgia Tech • Rob Bailey, Fluor Corporation • Scott Bergoon, Hargrove Engineers + Constructors • Fred Delie, Georgia-Pacific, LLC • James Dyer, WorleyParsons • Mohamed El-Mehalawi, Faithful+Gould • Roger Haynes, ConocoPhillips • Roger Holtzclaw, BP • Vincent Huang, Parsons • Rick Ikasalo, SABIC • Gary Lanier, URS Corporation • John Logan, Irving Oil, Ltd. • Sandra MacGillivray, Coreworx • Reza Masoumi, Northeastern University • Edward Minchin, University of Florida • Charlie O’Hanlon, Architect of the Capitol • Marie Robinson, Jacobs • Mohsen Shahandashti, Georgia Tech • Shaun Tatum, Southern Company • Ali Touran, Northeastern University • Davy Wilson, BP • Tim Wolf, Anheuser-Busch InBev

  3. Implementation Session Team Moderator Gary Lanier, URS Corporation Panel Baabak Ashuri, Georgia Tech Rick Ikasalo, SABIC James Dyer, WorleyParsons Vincent Huang, Parsons Roger Holtzclaw, BP Portfolio management Playbook

  4. Essential Question What practices, techniques, processes and technology are most effective for managing a portfolio of projects?

  5. What is a Portfolio of Projects? A group of related or unrelated projects and/or programs managed by a single individual - the portfolio manager

  6. Portfolio Formation Strategies

  7. What is a Portfolio of Projects? A group of related or unrelated projects and/or programs managed by a single individual - the portfolio manager

  8. Research Objectives • Understand the portfolio management problem, including its main differences with management of individual projects; • Identify and analyze techniques, technology, tools, metrics and processes recommended for portfolio management; and • Recommend practices to help improve overall portfolio management through a well-defined process that is repeatable across portfolios.

  9. Research - Methodology

  10. Research - Survey

  11. Research - Survey • Breakdown of portfolio sizes

  12. Research - Survey • Breakdown of portfolio budget ranges

  13. Research - Survey • Breakdown of portfolio project durations

  14. Research - Survey • How successful is Portfolio management in firms?

  15. Research - Survey • Areas where firms need to improve metrics

  16. Research – Interviews and Case Studies Interviews • Selection of 15 Interview Organizations • Interview questionnaires Case Studies • Selection of 6 Case Studies http://todaycut.com/

  17. Playbook Formation

  18. Playbook Validation “Overall the product is very good and beneficial.” “The guidebook contains a significant amount of valuable information.”

  19. Playbook Overview

  20. Portfolio Manager Role of the Portfolio Manager • Role • Attributes • Authority • Career Path

  21. Role of the Portfolio Manager Common Career Path Technical – Leadership – Management – Communications

  22. Portfolio Performance Recommended Process for Portfolio Performance Management • Key Results Areas • KPIs • Dashboard

  23. Recommended Process for Portfolio Performance Management Key Results Areas (KRAs): • Schedule • Cost / Cash Flow • Safety and Environment • Change Management/ Scope • Resource Allocation • Procurement and Supply-Chain Management • Quality • Risk Management • Client Satisfaction

  24. Recommended Process for Portfolio Performance Management Schedule – Key Performance Indicators (KPIs) include: • Number / Percent of Milestones Completed (or Missed) vs. Planned • Number / Percent of Projects on (or behind) Schedule • Total / Average Days ahead of (or behind) Schedule • Schedule Durations Compared to Benchmarks • Number / Percent of Projects with Schedule Durations Longer (or Shorter) than Benchmarks

  25. Recommended Process for Portfolio Performance Management Data Collection and Evaluation • Portfolio Manager will need to establish the data collection process • Common format for collecting data • Software solutions (spreadsheets, databases, Enterprise Systems) • Data interpretation trends and comparison • Report or dashboard • Traffic lights • Scalability • Audience

  26. Recommended Process for Portfolio Performance Management Monitoring and Controlling • Process periodically evaluated to ensure Stakeholder requirements are met • Minor adjustments may be necessary to produce more meaningful results • Wholesale changes may be required for major changes such as new or different business drivers

  27. Portfolio Practices Recommended Practices • Six areas identified, • Resource Management • Risk Management • Financial Management • Lessons Learned • Change Management • Front End Planning • Existing practices and techniques at the project but not portfolio level • Resource • Risk • Financial Portfolio management Playbook • Lessons Learned • Change • FEP

  28. Recommended Practice – Resource Management • “Sharing” – workforce, schedule, budget, procurement strategy • Majority of data related to workforce • Recommendations • Resource planning and ongoing forecasting process • Allow portfolio manager appropriate resource allocation authority • Develop metrics to measure resource management performance • Consider use of appropriate software

  29. Recommended Practice – Risk Management • Individual project risks can impact other projects • Most of the project risk management techniques can be applied at the portfolio level • Recommendations • Consistent portfolio risk practice • Portfolio level risk breakdown structure (RBS) • Identify portfolio risk manager • Perform risk assessment at portfolio level

  30. Recommended Practice – Risk Management

  31. Recommended Practice – Financial Management • Roll up budgets and report at the portfolio level • Activity planning process • Contingency and cash flow • Recommendations • Portfolio budget allocation authority • Contingency at the portfolio level if possible • Manage Cash Flow at the portfolio level • Develop cost performance metrics and dashboards

  32. Recommended Practice – Lessons Learned • Successful companies use formal lessons learned process • Lesson learned from projects should be integrated into portfolio management process • Recommendations • Systematic collection of project lessons learned • Analysis of lessons learned • Implementation of lessons learned documentation and communication • Identify lessons learned champion

  33. Recommended Practice – Change Management • Common among all companies but lack of consistency • Project changes can create chain reaction on other projects • Recommendations • Consistent procedure and process • Opportunity to automate the process • Introduce change metrics for measurement • Inter-project impact analysis on changes

  34. Recommended Practice – Front End Planning • One of the most widely used CII best practices • Front end planning toolkit • PDRI • Alignment thermometer • Recommendations • Rely on front end planning tools during portfolio formation • Standardization of the front end planning process • Benchmark front end planning metrics across the portfolio

  35. Playbook Appendix: Example – Portfolio Management in Action • Owner organization • Multiple portfolios – total value of several billion dollars • Assumes KRAs determined & KPIs established • Portfolios formed based on geographical regions

  36. Playbook Appendix: Example – Portfolio Management in Action Analytics, Reporting Key Components Necessary for Effective Portfolio Management Data Collection and Management Standardized Processes and Tools Standards and Guidelines

  37. Playbook Appendix: Example – Portfolio Management in Action An effective portfolio performance management strategy: • Ensures portfolios align with the organization’s strategic direction • Enables benchmarking of performance • Supports continuous improvement in project and portfolio delivery • Allows for development of best practices for portfolio performance management

  38. Playbook Appendix: Example – Portfolio Management in Action Data Collection and Management: • Single, robust database • Shared website – portal and single access point • Project level – performance trends • Portfolio level – resource management and portfolio performance

  39. Playbook Appendix: Project Dashboard Executive summary Cost Schedule

  40. Playbook Appendix: Project Dashboard

  41. Playbook Appendix: Project Dashboard

  42. Playbook Appendix: Portfolio Dashboard

  43. Playbook Appendix: Portfolio Dashboard

  44. Playbook Appendix: Portfolio Dashboard

  45. Playbook Appendix: Portfolio Dashboard

  46. Playbook Appendix: Portfolio Dashboard

  47. Playbook Appendix: Next Steps—Data Visualization

  48. Managing a Portfolio of Projects – A Playbook for Success Questions/Comments? Portfolio management Playbook

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