1. What’s Next? PRINCE2 in the Wider Context

2. PRINCE2 – you are not alone…

3. Project Management (PRINCE2® and PRINCE2 Agile®)
The PPM Suite
Aligned to PRINCE2®, MSP®, and M_o_R® and brings together a set of principles, processes and techniques to help deliver projects or programmes through enablement, challenge and support structures
Management of Value (MoV®) focuses on function (what things we do) and drives to maximize value in line with Programme and Project objectives and key stakeholder requirements
MoP®
Portfolio management helps organizations make decisions about implementing the right changes to business as usual via projects and programmes
Portfolio management is not concerned with the detailed management of these projects and programmes; rather, it approaches the management of change projects and programmes from a strategic viewpoint
MSP®
Programme management is the action of carrying out the coordinated organization, direction and implementation of a dossier of projects and transformational activities (i.e. the programme) to achieve outcomes and realize benefits of strategic importance to the business
Project Management (PRINCE2® and PRINCE2 Agile®)
Project management is the action of creating one or more outputs that contribute to the outcomes in accordance with a specific business case
A particular project may or may not be part of a programme
P3O
P3O
Management of Risk (MoR®) is a route map for risk management. It can help organizations identify, assess and control risks and put in place effective frameworks for making informed decisions
P3O

4. Value - Perspective Matters
Balance between Stakeholders
Balance between benefits
and expenditure
Satisfaction of needs (benefits)
(monetary and non-monetary)
Use of resources (expenditure)
(money, people, time, energy,
and materials)
Balance between use of Resources
VALUE

5. We don’t use most of what we build/buy!
What do we Value?
25% of features are needed
75% of features are “nice to have”
80% of TCO of software is AFTER delivery
We don’t use most of what we build/buy!

6. Product Features: The Vital Few over the Trivial Many
Business Value:
Low
Very Low
80% of time Expended
20% of Value
80% of Value
The Trivial
Many
Business Value:
Very High
High
Medium
20% of time Expended
Insight
Vital Few
Things
Business Value:
Very High
High
Medium

7. PRINCE2 and PRINCE2 Agile - Principles
Assign clear roles
and responsibilities
and build a supportive culture
Tailor to suite
the environment
Focus on
Product
Manage
by Exception
Continued
business justification
Manage
by Stages
Stage 1
Stage 2
Stage 3
Stage 4
Learn from
experience
and improve

8. MoV - Principles Align with Organizational Objectives Tailor M_o_V
activity to suite
the subject environment
Focus on
functions and required outcomes
Assign clear roles
and responsibilities
and build a supportive culture
Apply M_o_V
throughout the
investment
Balance the
variables to
maximize value
Learn from
experience
and improve

9. MoP - Principles Senior management commitment Governance Alignment
Portfolio, Programme,
Project Office
Strategic
Alignment
Energized
Change Culture

10. MSP Principles Remaining aligned with corporate strategy
Envisioning and
communicating
a better future
Designing and
delivering a
coherent capability
Leading
change
Adding
value
Focusing on
benefits and
threats to them
Learn from
experience
and improve

11. MoR – Principles Align with Organizational Objectives Fits the context
Engage
Stakeholders
Provides clear
guidance
Informs
decision-making
Facilitates
continual
Improvement
Creates
supportive
culture
Achieves
measureable
value

12. P3O – Principles Govern Effectively Prioritize investment,
align and adjust
to business strategy
Hold people
to account
Invest in people
and process
Safeguard
Value
Track progress
through highlight and
exception-based reporting

13. P3O – Outcomes and Benefits
Defined
Executed

14. Cone of Uncertainty - Estimation
“The further a project progressed, the more accurate the estimates for the remaining effort and time became”
(Barry Boehm, “Software Engineering Economics“, 1981)
16x variance
NASA also came to the same conclusion…
that in the beginning of the project life cycle estimations have in general an uncertainty of factor 4
This means that the actual duration can be 4 times or 1/4th of the first estimations…
This is just for individual Projects, not the Projects that exist inside of Programmes, inside of Portfolios!

15. I guess we will need a change request…
Forecasting
There IS a straight line to where we are going?
You need this estimated by WHEN?
I guess we will need a change request…

16. The Typical Planning View: Output-focused
Input
Activity
Output
Right order, and the wrong starting place
Resources
How, Who
What
Let’s create a WBS!

17. Predicting the Future…Hurricane Trajectory
Range of Possible Futures

18. Execution involves constant choice-making
Which choice do I make?
Execution involves constant choice-making

19. Predicting…Alternative Futures Trajectory
The future is not certain or predictable - there are a range of possible futures
Nearer-term outcomes are more certain, and further out, less certain
While some organizations might want to bet on a particular track of change (current choice), they need to know they are doing just that, and that a range of futures is still possible…until you stop creating them
The most likely future will include parts of each scenario
Desired

20. Backcasting Define from here… Start execution from here
Insight
Define from here…
Possible Future State
Expressed as Outcomes
Intermediate Outcome
Intermediate Outcome
Intermediate Outcome
Refine and adapt
by making choices
through here…
Intermediate Outcome
Start execution from here

21. Outcomes Happen – whether planned or not!X
The PMs Delusion
Tangible
(code, process, facilities, etc.)
Surprise!

22. Hmm….this means something!
Forecasting Cone
Backcasting Cone
Emergence
Happens!

23. Portfolio, Programme, and Project Management(P3M)

24. P3M + Product/Service = P4M
Project
Programme
Portfolio
Product
Service
Product

25. Key Messages of PPM
Takes a Strategic Change Investment Perspective – “see the whole”
Focuses on Value, Outcomes, and Benefits – understand WHY before focusing on WHAT or HOW
Governed through Principles-based Action – Informed decisions
Has defined processes – HOW we do things
Has clear Roles and Responsibilities – WHO does WHAT
Can be tailored to your context – WHERE it happens matters
Emphasises learning from experience and continuously improving – EVALUATE and ADJUST because EMERGENCE happens
Stop! When it stops making sense…Business Justification

26. PPM and the GC Project Management Framework Stage Gate
Project Types (IT-enabled (full/lite), Real Property)
Project Size
Full: Requires TBS approval (New > $1M or maintenance >$2M)
Lite: New (does not meet above), Maintenance (> $1M and < $2M)
Stage Gate
TBS guideline has 7 gates, Departments vary (some have 5)
Mostly used as an Investment decision-making framework
Gate 1—Strategic assessment and concept
Gate 2—Project approach
Gate 3—Business case and general readiness
Gate 4—Project charter / project management plan (PMP)
Gate 5—Detailed project plan and functional specifications
Gate 6—Construction complete and deployment readiness
Gate 7—Post-implementation review
# of Gates depends on size, perceived risk, and complexity

27. most successful when conducted early”
PPM and the GC
Outcomes – TBS is beginning to place a renewed emphasis on investment proposals linking outcomes and benefits to why projects should be done, and hence why the investments should be made (
“Outcome Management can be applied to an initiative at various stages of the initiative’s lifecycle –
most successful when conducted early”
“used to, among other things, articulate the value of the initiative and develop a comprehensive business or value case”
“It also forces the identification of intermediate outcomes that serve as milestones or leading indicators towards attaining the outcomes and to permit tracking of progress towards the final outcomes.”

29. What can we do as Leaders?
Envision a better future enabled through Strategic Change designed to create Value
Have Commitment to clear Objectives supported by Strategy to achieve desired Outcomes
Have a focus on Capability that Informs decision-making (or choice-making)
Recognize that context matters, so we will Tailor it to ours
Track Measureable Benefits with appropriate Governance of each Investment
Manage Product development by Stage as long as there is Justification to continue
Provide Guidance by helping everyone to Learn, Improve, and Adjust based on what emerges
Engage and Invest in People to Create a Supportive Culture