Project Portfolio Management “Managing the right projects is as important as Managing the projects right ” By/ Mohamed Abdul Latif Ahmed, PMP, M.Sc. December 2009

Presentation Outlines What is Project Portfolio Management Project Management Vs. Portfolio Management Portfolio Management Processes, competencies and Methods Portfolio Risk Management Portfolio Level Reporting

What is Portfolio Management? A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programs in the portfolio may not necessarily be interdependent or directly related. Portfolio Programs Projects Projects PMBoK® Guide, 4th Edition, © PMI

The Project Pipeline (Without Portfolio Management) IDEAS PROJECT PIPELINE COMPLETED PROJECTS PROJECT FAILURES

The Project Pipeline (With Portfolio Management) IDEAS BUSINESS CASE FILTER BENEFITS FILTER VALUE FILTER PROJECT PIPELINE COMPLETED PROJECTS Portfolio Management Ex: using a PMO PROJECT FAILURES

Positioning Portfolio Management Vision Mission Organizational Strategy & Objectives High Level Operations Management Management of On-Going Operations (recurring activities) (producing value) Authorized Programs & Projects (projectized activities) (increasing value production capability) Project Portfolio Management

Why link portfolios to strategies? Maintaining portfolio alignment to organization’s strategic goals Allocating financial resources according to its priorities Allocating human resources according to its priorities Measuring project contributions to strategic goals Strategic risk management showing how projects risks will affect strategic goals

Relation btw. Project Management & Portfolio Management Strategies & Priorities Progressive Elaboration Portfolio Level Changes Governance Portfolio Level Project / Program Level Performance Reports Change Requests with impact on other components

Project Management Vs. Portfolio Management Strategic Tactical Tactical Tactical Practice Standard for Portfolio Management , 2nd Edition, © PMI

Project Management Vs. Portfolio Management Scope Projects Portfolios Defined Objectives, Scope progressively elaborated Business scope changing with changing strategic goals Strategic Tactical

Project Management Vs. Portfolio Management Change Projects Portfolios Changes expected, PM try to keep change controlled Continually monitor changes in the broad environment Strategic Tactical

Project Management Vs. Portfolio Management Planning Projects Portfolio Project plans are created with more details as the project progresses Create and maintain processes and communication plans relative to the aggregated portfolio Strategic Tactical

Project Management Vs. Portfolio Management Monitoring Projects Portfolio Monitor and control the work of producing the products and services that the project was undertaken to produce Monitor aggregate performance and value indicators Strategic Tactical

Project Management Vs. Portfolio Management Success Projects Portfolio Success is measured by achieving quality, schedule, budget constraints and a degree of customer satisfaction Success is measured in terms of achieving strategic objectives Strategic Tactical

Portfolio Management Processes Knowledge Area Aligning Process Group Monitoring & Controlling Process Group Portfolio Governance Identify Components Categorize Components Evaluate Components Select Components Prioritize Components Balance Portfolio Authorize Components Review and Report Portfolio Performance Monitor Business Strategy Changes Communicate Portfolio Adjustments Portfolio Risk Management Identify Portfolio Risks Analyze Portfolio Risks Develop Portfolio Risk Response Monitor and Control Portfolio Risks Practice Standard for Portfolio Management , 2nd Edition, © PMI

Competencies Required for a Portfolio Manager Strategic Alignment Portfolio Management Methods and Techniques (more on next slide) Program and Project Management Process Development and Continuous Improvement (TQM, Lean Six Sigma) General Business Skills (KPIs, Financial Management, Business cases) General Management Skills Stakeholder Management Risk and Opportunity Management

Portfolio Management Methods and Techniques (Elaborated) Project Selection Methods Decision Support tools and Models (ROI, IRR, etc) Prioritization Algorithms Capability and Capacity Modeling Project and Program Auditing Organizational and Portfolio Risk Management

Sample Tools: Portfolio Scoring Using Multi Criteria Practice Standard for Portfolio Management , 2nd Edition, © PMI

Sample Tools: Portfolio Balancing Using Indicators Practice Standard for Portfolio Management , 2nd Edition, © PMI

Portfolio Risk Management Portfolio risks are uncertain event (s) that may affect at least one strategic business objectives and may have impact on one or more success criteria of the portfolio Successful portfolio management develop a balanced portfolio considering the risk tolerance of the organization, and ensuring that projects and programs manage their risks pro-actively to protect the overall portfolio.

Enterprise Project Portfolio Management (EPPM) Sherief El Abd PROMASTAR , CAP, AEP Primavera Professional Services Consultant 21

Oracle Industry Presence Leadership Oracle Industry Presence

Leadership in Oil & Gas: All Major Oil Sectors More than 200 upstream companies run Oracle Applications Top 5 of 5 for Oil Field Service, Drilling and Equipment Providers run Oracle This list is available upon request for the second and fourth bullet points. It includes all Oracle offerings (db, apps, etc.). More than 200 Downstream companies run Oracle Applications 49 of top 50 Energy companies run Oracle Applications

Enterprise Project Portfolio Management (EPPM) Value Enterprise Project Portfolio Management (EPPM)

Oracle Enterprise Project Portfolio Management Portfolio Management & Optimization Demand Management “What if” Analyses Portfolio Prioritization Corporate Alignment Program and Project Management Project Scheduling Project Costing & Billing Earned Value Management Contract Management Resource Management Resource Supply & Demand Capacity Planning Contractor Management Services Billing Risk Management Modeling Risk Analysis Risk Reporting 25

P6 Different User Levels: The right tools for the right roles Level 4 Users Administrators PMO Planners & Schedulers Level 3 Users Executives Project Managers Resource P6 Different User Levels: The right tools for the right roles Level 2 Users Project Participants Stakeholders Level 1 Users Job Site Resources Construct Plans Allocate Resources Develop Schedules & Milestones See Project Status Assign Resources Report Time & Progress Configure System Manage Users & Permissions Program Managers Resource Managers Project Managers

Oracle Application Integration Architecture AIA Process Integration Packs Accelerates Time to Value Order to Cash Design to Release Bill Cust. MDM Prod. Others… Oracle to SAP AIA Process Integration Packs Pre-built Composite Application Processes 5 Core Differentiators Business Process Driven Approach Pre-defined Integration Flows and Artifacts Extensible One to Many Framework Configurable Fully Supported by Oracle Faster Implementations Reduced Risk Lower Integration Costs 27

Integrating with Existing Business Systems Technical Overview of Primavera Integration Paths P6 Web Services Approach Integrating with Existing Business Systems From enterprise resource planning (ERP) systems to financial systems to desktop productivity tools such as Microsoft Outlook and Microsoft Excel. Primavera Web Services enables a complete, enterprise wide integration strategy that will help you reach your business objectives.

Technical Overview of Primavera Integration Paths ERD Approach

Technical Overview of Primavera Integration Paths Inspire Approach A sample view of the Primavera Inspire for SAP-facilitated bidirectional data flow between Primavera and SAP solutions. When data is entered into either system, the other system is updated. The graphic assumes both SAP Plant Maintenance and Project System solutions are integrated with Primavera solutions.

Oracle Enterprise Project & Portfolio Management Customer Centric Leadership Strategy Thought Leadership: Enterprise vision reflects customer usage and future directions PPM Leadership: Accelerating sales momentum; cross-industry penetration; inclusion in large corporate deals Product Leadership: Full-featured, comprehensive offering delivering value across the spectrum Technology Leadership: Complete, Open, Integrated

Oracle Enterprise Project Portfolio Management A Visible Difference Before Point systems for ERP, Project Mgmt, HCM Squandered resources Lack of cost transparency Inconsistent delivery and project quality Slow reaction time No accountability After Accurate and enterprise-wide visibility Locate and capitalize on talent Financial governance and compliance Real-time program and project management Full life-cycle, risk analytics Single source of record

Oracle for the Oil & Gas Lifecycle 6 Operate & Maintain Business Development 1 Work Order 5 Project Close-Out Project Leads Design Approval Change Order Oracle Solutions for the full lifecycle (speaker: see attached X-Plane diagram for details 2 Plan, Design, and Procure 3 Project Execution Budget & Forecast Forecast & Actuals 4 Business Management

Thank You Welcoming your Contacts to: www.promastar.com asaleh@promastar.com selabd@promastar.com www.promastar.com

Questions?