Dr. Alan C. Maltz Howe School of Technology Management Stevens Institute of Technology Mgt Project Portfolio Management and the PMO Module 7 – PPM Implementation 1 © Alan C. Maltz, Ph.D, 2014

ORG.DYNAMICS RESOURCE MANAGEMENT PORTFOLIO OPTIMIZATION PROJECT PRIORITIZATION INTEGRATED VALUATION RISK ANALYSIS Portfolio Management – building sequential blocks of integrated disciplines for successful implementation.. 2 © Alan C. Maltz, Ph.D, 2014

INDIVIDUAL Individual differences, mental ability, and personality Learning, perception, and attribution Attitudes, values, and ethics Individual decision-making and creativity Foundation concepts of motivation Motivational methods and programs THE ORGANIZATIONAL SYSTEM & THE GLOBAL ENVIRONMENT THE ORGANIZATIONAL SYSTEM & THE GLOBAL ENVIRONMENT Organizational structure and design Organizational culture Organizational change and knowledge management Cultural diversity and international organizational behavior GROUP & INTERPERSONAL RELATIONS GROUP & INTERPERSONAL RELATIONS Interpersonal communication Group dynamics Teams and teamwork Leadership in organizations Power, politics, and influence Conflict, stress, and well-being Organizational dynamics and PPM… 3 © Alan C. Maltz, Ph.D, 2014

CENTRALIZED ORGANIZATION DE-CENTRALIZED ORGANIZATION Enterprise headquartersLocal headquarters Concentrated knowledge and power Distributed knowledge and power Primary responsibility for decision- making known Primary responsibility for decision- making unclear Executive sponsors more visible across the enterprise in their championship of staffing functions Executive sponsors more visible locally in their championship of staffing functions Organization tends to be rigid and based on enterprise protocols Organization tends to be flexible and based on local protocols Standards, processes, methodologies, and tools tend to be harmonized across the enterprise Standards, processes, methodologies, and tools tend to be idiosyncratic to the local unit Organizational structures – impact on PPM.. 4 © Alan C. Maltz, Ph.D, 2014

BASIS OF ORGANIZATIONAL STRUCTURES – Influence culture and politics and can help or hinder the successful implementation of Program & Portfolio Management and PMO Functional Each unit or department has different activities and responsibilities:  Orients workers toward a specific set of activities creating very skilled functional experts  De-emphasizes exchange of ideas and cooperation between departments often creating silos Product A manager is placed in charge of and has responsibility for a product or product line:  Places responsibility for a product or product line with managers  Managers may not be given sufficient authority to carry out responsibilities; spend more time coordinating activities and insufficient time planning Organizational structures – Pros & Cons.. 5 © Alan C. Maltz, Ph.D, 2014

Portfolio process relationships… 6 © Alan C. Maltz, Ph.D, 2014 Senior management Project teams Portfolio management process Project Planning & Management Process Business strategies and goals - Process definition - Process feedback - Capacity planning - Life cycle management Functional Organizations Systems Development Process Workforce planning strategies - Objectives - Resource authorization - Project priorities - Parameter validation - Process inspection - Resource requirements - Skills requirements - Functional process requirements (deliverables by function by phase) - Resources - Resource capacity forecasts - Proposals - Plans - Scope - Schedule - Resources - Status (Rajegopal, McGuin et al. 2007)

Where to deploy PPM? 7 © Alan C. Maltz, Ph.D, 2014

8 Readiness assessment –Executive sponsorship –Culture and organization structure –Project management and business process –Metric and performance criteria –Organizational support –PPM staff and experts –Technology Where to deploy PPM?

9 © Alan C. Maltz, Ph.D, 2014 Building PPM leadership through executive sponsorship Organizing the PPM team –Accountable for the management of the entire portfolio process –Acts as the main intersection point between strategic decision making level and operational level Creating the PPM team

10 © Alan C. Maltz, Ph.D, 2014 PPMT sponsor: Executive sponsor PPMT leader Functional advocate Project advocate PMO Typical roles within PPM team

11 © Alan C. Maltz, Ph.D, 2014 Determining the framework processes to be implemented Validating framework process with the PPM sponsor Documenting and communicating framework processes Establishing the PPM framework

12 © Alan C. Maltz, Ph.D, 2014 The importance of organizational culture Embedding PPM capability through a sound change management plan Sustaining PPM capability through a knowledge management strategy Project benefits management as an enabler for embedding PPM capability PPM process sustainability and support Embedding the PPM culture and capabilities

Create a work breakdown structure for implementing PPM 13 © Alan C. Maltz, Ph.D, 2014 Class Exercise

14 © Alan C. Maltz, Ph.D, 2014 Alan C. Maltz, Ph.D. Howe School of Technology Management Stevens Institute of Technology Castle Point on the Hudson Hoboken, NJ Phone: +1 (561) Thank You - Questions?