2. Project, Programme and Portfolio Management Flashcards
Define the term Project.
Unique, transient endeavours, undertaken to bring about change and achieve planned objectives.
Success if it achieves objectives according to its acceptance criteria, within an agreed timescale and budget.
Usually use capital expenditure to acquire, upgrade and maintain assets, services, products and capabilities.
Need to take into account the ultimate requirements for decommissioning and disposal.
Some multiple projects running in parallel, or related, provide support or build additional capabilities. These multiple projects require priority with schedule deployment, or the availability of key resources, skills or individuals.
Project delivery
Project Delivery constrained - to obtain the value required it has to be:
Delivered within a certain time
For the required budget
Specification, quality and performance characteristics sufficient for output users to gain the benefits required.
The output value MUSt be greater than the investment required to deliver the project’s output.
Projects triple constraints
Time
Cost
Quality
BAU
Business as usual.
The difference between a Project and BAU
BAU: day to day running, Steady State.
Projects: deliver outputs and require appropriate structures, management and controls.
Project v BAU
purpose
Project: To achieve objectives then terminate
BAU: sustain organisation to achieve business purposes and goals.
Project v BAU
Timescale
Project: Limited, pre-defined start and end points.
BAU: ongoing without defined endpoint.
Project v BAU:
Outcome
Project: unique product or service
BAU: repetitive, non-unique product, service or result.
Project v BAU:
People
Project: Temporary teams formed across org. Boundaries, May not be aligned with business structure.
Project v BAU:
Management
Project: manager appointed for project duration, May not have direct line authority over teams.
BAU: long-term management with direct line authority.
Project’s objectives
Deliver outputs.
Build a process or service that can be used by BAU team.
BAU objectives
Uses products of projects to realise benefits.
Project Management
The application of processes, methods, skills, knowledge and experience to achieve project objectives within the agreed parameters.
Difference between Project Manager and Manager
PM’s final delivery is constrained by time. Wide range of skills including technical, people management and business awareness.
Management is an ongoing process.
Key purpose of PM
Change poses difficulties for organisations due to complex relationships within the organisation. Structured projects bring about changes enabling organisations to adapt, improve and grow.
Project work represents investment in development, enhancement and improvement.
Programme Management: Programmes are defined as
Unique, transient, strategic endeavours undertaken to achieve beneficial change.
Incorporating a group of related projects and BAU (steady state) activities.
Programs
Programs typically combine new deployment with some BAU (steady state) elements. They use capital expenditure to acquire assets, services, products and capability alongside meeting operating expenses incurred by BAU services.
Programs deliver change, typically incorporating the full utilisation of benefits to satisfy the business case.
A Programs success is measured by the realisation of the expected benefits involving the use of capabilities or facilities created by the program for BAU.
Portfolios
Portfolios are used to select, prioritise and control an organisations, programs, and projects, in line with its strategic objectives and capacity to deliver.
Their goal is to balance, the implementation of change initiatives and maintenance of BAU, while optimising return on investment.
Projects can be
Either part of a program, part of a portfolio or standalone.
Standalone projects are managed independently by the host organisation of an existing program or portfolio.
Portfolios
Portfolios are used to structure investments.
What business questions do portfolios address?
Are the projects and programs delivering strategic objectives, subject to risk, resource constraints and affordability?
Is the organisation delivering them effectively and effectively?
Are the full potential benefits from the investment being realised?
Portfolios are particularly concerned with interdependencies between projects and programs in terms of:
Scarce or limited resources
Risk/return balance within the portfolio
Alignment with the strategic intent and main priorities
Timing
Bottleneck capacity
Managing structured portfolios involves
Constant review of the balance of investment and benefit, creating and closing projects as required.
OKRs
Objectives and Key Results
