1. development through partnership Infrastructure Delivery Management Toolkit: 2010 Edition Delivery Process 1: Portfolio Management Introduction Sonny Schmidt 1

2. Overview of Portfolio Management “Infrastructure networks,... represent a vast investment, made over many generations... that support the fabric of modern living in our communities. It is important that we employ the very best management skills and practices to ensure that related services are delivered economically and sustainably.” ( IIMM v3 2006) 2

3. Overview of Portfolio Management “Portfolio Management is concerned with doing the right work” (Standard for Portfolio Management 2006 - PMI) 3

4. Overview of Portfolio Management (PMI) 4

5. Statutory Requirements for Portfolio Management (1) PFMA Section 38 (1): –“.. evaluating all major capital projects..” –“..effective, efficient, economical and transparent use of resources..” –“.. safeguarding and maintenance..” Chapter 5 of Treasury Regulations: –Prepare and submit a strategic plan and APP for MTEF period annually 5

6. Statutory Requirements for Portfolio Management (2) GIAMA: –U-AMP: Reviewed, submitted annually Strategic needs assessment –C-AMP Reviewed, submitted annually Life cycle management plan for assets OHS: Operations and Maintenance requirements 6

7. Standards and Guidelines International Infrastructure Management Manual (IIMM) Standard for Portfolio Management (PMI) Standard for Programme Management (PMI) GIAMA Guides for Asset Management Plans 7

8. DP1: Portfolio Management DP1-1 Infrastructure PlanningDP1-2 Programme Management Develop U-AMP (including prioritised MTEF works list) Develop C-AMP (including work plans) Manage Implementation Develop/review IPMP DP2: Project Management DP2-1 Planning (Develop IPIP) DP2-2 Design DP2-3 WorksDP2-4 Close Out Package prep Package definitio n Works plannin g Design develop t. MFC Info Con/Del works Handovr works Project Close Out G3 G4G5G6(a)G6(b)G7G8 P C2 P C3 P C4 a P C5 P C4 b DP3: Operations & Maintenance DP3-1 Recognise & accept assets DP3-2 Mobilisation for Facilities Mgt DP3-3 Operations DP3-4 Maintenance DP3-5 Demobilise Facilities Mgt Prov Infr Strat G1(a) G2 G1(b) Dev Proc Strat P C1 PF1. 4 PF1. 3 PF2. 1 PF2. 2 PF2. 3 PF3PF4 PF5 PF1. 4 PF1. 3 PF2. 1 PF2. 2 PF2. 3 PF3PF4 PF5 PF1. 4 PF1. 3 PF2. 1 PF2. 2 PF2. 3 PF3PF4 PF5 T1T2 Update Asset Register G8 The IDMS

9. Portfolio Management Process 9

10. Components of Portfolio Management 10

12. 12 Portfolio Management Operation and Maintenance Management Project Management Feedback from Projects in Progress Feedback from Operations and Maintenance Handover of constructed, upgraded or rehabilitated asset

13. OAG: Asset Life Cycle (Asset Management Guidelines)

14. User and Custodian Portfolio Management Outputs User organisations Custodian organisations  U-AMP  Construction procurement strategy  IPMP  Organisation and Support plan  Monitoring reports  Recommended actions  C-AMP  Work Plans  Organisation and Support plan  Monitoring reports  Recommended actions 14

15. Benefits of Portfolio Management Strategic Alignment Improved Stakeholder Management Good Governance Legislative Compliance Consistent Reporting Improved Risk Management 15

16. Conclusion Portfolio Management is a continuous process Reports are snap shots at specific times Collaboration with custodian - develop Document work – institutionalisation, transfer lessons learned 16

17. 17 Thank you