1. Project Portfolio Management (PPM)
Microsoft Office
Project Portfolio Server
Ann-Charlotte Arrhenius

2. UMT have a Proven Track Record
UMT, established in 1989, specializes in project portfolio management, and deploys the most sophisticated software tools available today.
With offices in New York and London, UMT’s consulting services enable companies to manage their project portfolios throughout their lifecycle. Our software was recently sold to Microsoft to be added onto the Enterprise Project Management Solution.
We have implemented PPM solutions in over 50 clients within Fortune 1000 type companies. Our solution enables companies to Create, Select, Plan and Manage their project portfolios at all levels.
As the pioneers and thought leaders of this area we believe we are genuinely the best at what we do, which is making your strategy work effectively.
Voted World #1 in the 2004 MetaSpectrum Review of PPM
Portfolio Management Overview
16 April 2017

3. Programs and Initiatives
Project Portfolio Management
Real-time Executive Decision Support
Portfolio Management
Alignment with Business Objectives
Corporate Strategy
Investment, Resource and Prioritization Decisions
PMO / Enterprise Resource Management
Integrated Portfolio of Managed Projects
Integrated Delivery Framework
Programs and Initiatives
Consistent, Repeatable Project Delivery
Project Management
Projects
Portfolio Management Overview
16 April 2017

4. Select & Deliver the Right Investments…
Portfolio Management enables organizations identify and select the investments that will maximise Business Value
100%
50 %
Value Lost
Portfolio
Management
Project Management ensures organizations to successfully deliver the investments and realise the Business Value
Project
Management
66%
Select the Right Projects
50%
Value Realized
Portfolio Management enables organizations to identify Business Value
Project Management helps organizations to execute and realize the Business Value
Both Disciplines combined allow organizations to Select & Deliver the Right Investments
Organizations need to ensure they skilled in both Disciplines 0%
75%
100%
Deliver the Projects Successfully
Portfolio Management Overview
16 April 2017

5. To Be Successful Organizations Require Both Disciplines
PORTFOLIO MGT,
Process Definition
Governance
Benefits Forecasting
Prioritization / Valuation
Portfolio Optimization
Adv Portfolio Analytics
Capacity Planning
PPM answers the following questions: 
Have I selected the right investments?
Do the investments align with the strategic objectives?
Do I have sufficient resources to deliver the selected investments?
Will the investments be delivered on time and within budget?
Are my investments delivering the forecasted benefits? 
PROJECT MGT.
Project Planning
Cost Management
Resource Management
Time Reporting
Change Management
Issue Management
Status Reporting
Earned Value Analysis   
Portfolio Reporting
Benefits Realization
Portfolio Management Overview
16 April 2017

6.      What is Project Portfolio Management (PPM)?
“Alignment is the essence of management” Fred Smith, Chairman Federal Express 
Management Discipline – improves alignment between strategy planning and business/IT; strengthens governance; improves project definition, portfolio selection, resource planning and executive reporting
Comprehensive Project Inventory – develops and captures new, ongoing and carryover work centrally to provide transparency around how key Business Drivers are supported and how resources ($/FTE) are dispersed
Transparent & Actionable Decisioning Framework – provides ongoing and actionable portfolio analysis and reports to the decision-makers to enable improved investment viability and accountability
PPM is:
a management discipline that helps organizations achieve maximum project portfolio value through the continuous process of evaluating and managing projects against key performance metrics and strategic business objectives.   
Workflow With Roles & Responsibilities – provides clearly defined roles and responsibilities throughout the process and Governance framework
Analytical software toolset – leverages toolsets to capture project inventory and to ensure optimal, consistent and fact-based portfolio selection and planning decisions by simultaneously evaluating and comparing competing project ideas and resource needs (e.g., what-if, sensitivity analysis, optimization, etc.) 
Portfolio Management Overview
16 April 2017

7. Overview
Reasons for project failure are plentiful; emphasis on execution failure and / or lack of project management capabilities
Is this the only - or even the primary - dimension to reduce value of the project portfolio?
This presentation suggests that when selecting projects, it is essential to take a portfolio view, rather than a project by project view
It will discuss how effective selection techniques can be applied in practice
When it comes to PWP, most of the discussions and analyses focus on the operational parameters of project failure – ie. Failure to achieve on time, on budget, on scope success. The rational behind this goes: if we analyse all the reasons for PWP, and come up with proper mitigation plans, we will be able to increase the probability of of success.
I would like to add another dimension to this analsyis. Which I believe is not sufficiently addressed.
What if, after all the anlaysis, the project is OTOBOS, but does not deliver the required results? What if its contribution to the company’s strategy is minimal, or non-existent?
Very little discussion is focused on a question that might be obvious, however is rarely addressed at the project level –
is the project the right project, to begin with?
Is the combination of projects the optimal one to deliver our strategy?
In this presentation we will review a method for creating scenarios that allow us to not only select the optimal group of projects, but also to understand the implications that each scenario has on the delivery of the strategy.
Portfolio Management Overview
16 April 2017

8. Benefits of a Portfolio Management Approach: Confidence, Transparency and Flexibility
Key Benefits
Creates a common currency for comparing investments and making better-informed decisions
Ensures decisions made according to supportable data, not politics or ‘noise’
Reduces senior management time spent on decision-making
Reduces overall spend by eliminating low value investments
Uses a benefits-led approach to delivering strategic projects
Enables greater focus on high-value initiatives
Promotes organisational agility through modelling of ‘what-ifs’ and other detailed scenario analysis
Specific Examples
“..we saved $5 to 10mm (out of a budget of £50mm) in the first year alone, on projects that would have gone through automatically before” – Paul Bateman, Director of Enterprise Governance, Axa Financial
“UMT’s solution led our Senior Executive Team to increase the budget to allow additional projects to be funded, based on their proven strategic value” – Frank LaRocca, CIO Keyspan Energy
“Capable of solving exceptional business problems” – MIT Sloan Review, May 2004
Portfolio Management Overview
16 April 2017

9. Portfolio Value = Value Potential x Ability to Realize
Success Comes With Iteration & Increasing Sophistication Moving Up The Portfolio Maturity Curve
Enterprise
PPM is optimized across the enterprise with a focus on continuous risk mitigation and value creation
Project portfolio performance and risk data is understood and can be compared at the individual, cross-LOB, and enterprise levels
Senior leadership is able to leverage PPM analysis when allocating funds to various portfolios
Ability to measure and benchmark entire portfolio lifecycle
PPM Maturity Stages
Cross
Portfolio
PPM is adopted and used consistently across multiple organizations and portfolios
Portfolio Analysts can compare and leverage portfolio analysis information across multiple departments
Consistent measures enable cross portfolio analysis, selection, planning and management that supports predictive modeling and internal / external benchmarking
Portfolio Value = Value Potential x Ability to Realize
Project
Portfolio
Portfolio analysis is repeatable, predictable, and consistently used to evaluate and optimize project portfolio selection
Portfolio Management teams are able to understand, analyze, & recommend optimal portfolio bundles and schedules to technology and business partners
Value to Organization
Project
Inventory
Processes are defined & documented, and most projects are aligned to Business Driver
All projects are consistently captured in a project inventory
Ad hoc
No Portfolio Inventory or Process
-“Just Do It/FIFO”
-Success is random
-Poor transparency
Stages of Excellence
Basic
World-Class
Crawl Walk Run
Portfolio Management Overview
16 April 2017

10. New / Enhanced Applications
Portfolio Mgmt: Synergies Between APM & PPM
The Task of Continuously Renewing the Company Assets Capabilities is the Greatest Challenge Facing any CEO and CIO
Application
Analysis &
Renewal
Strategy
Operations &
Maintenance
Portfolio
Management
Valuation &
Selection
Execution
Project
New Project Requests
New / Enhanced Applications
Business Strategy
IT Strategy
Current
Investments
New
Portfolio Management Overview
16 April 2017

11. Create Select Plan Manage Portfolio Prioritization & Optimization
Ensure the selected project portfolio aligns with the organization’s strategic priorities
Create
Select
Plan
Manage
The next slides provide an overview of the Business Alignment Framework embedded in the Portfolio Optimizer
Portfolio Management Overview
16 April 2017

12. Define Prioritize Optimize Select
Business Alignment Framework: Business Driver Definition
‘The Business Alignment Framework ensures a Rational rather than Emotional approach to project selection’
Define
Prioritize
Optimize
Select 1 2
Define Business Drivers & Impact Statements
Prioritize Business Drivers 4 5
Optimize Project Requests
Optimize Project Requests 3
Select Portfolio
Assess the Portfolio
Constraint Analysis
Advanced Analysis
New Project Requests
Prioritize Requests
Strategic Value
Financial Value
Risk
Carry-Over Requests
Portfolio Management Overview
16 April 2017

13. Capture Project Requests / Ideas
Portfolio Builder Create: Business Case Development
Capture all project requests within a central repository and define business case templates to standardize the data collection across the organization. 1
Pre-defined workflows ensure the projects are subjected to the appropriate governance controls throughout their lifecycle (i.e. proposal to post-implementation). 2
Capture Project Requests / Ideas
Governance Workflow
Portfolio Management Overview
16 April 2017

14. Strategic Goal 1 Strategic Goal 2
Business Alignment Framework: Business Driver Definition (Theory)
Business Drivers are a series of short, sharp statements that express the shared focus of the organization in actionable terms
Strategic Goal 1
Strategic Goal 2
Business Driver 1
Business Driver 3
Business Driver 2
Business Driver 4
They Are Attainable
They Are Unique
They Are Clear to Decision Makers
Business Driver Criteria:
They Address a Strategic Goal
They Are Actionable
They Are Measurable
Portfolio Management Overview
16 April 2017

15. Retain existing clients Grow Customer Share of Wallet
Business Alignment Framework: Business Driver Definition (Example)
Strategic Goal:
Dedicate our resources to those market areas where we can maintain our existing client base and increase share of market of current clients
Business Driver Name:
Business Driver Name:
Retain existing clients
Grow Customer Share of Wallet
Business Driver Definition:
Business Driver Definition:
Maintain clients and remain competitive in existing markets
Sell additional products to existing clients
KPI’s:
Client Satisfaction Rates
Client Retention Rates
Variance in % Market Share
KPI’s:
% Increase of Market Share
Increase in Revenue
Portfolio Management Overview
16 April 2017

16. Business Driver 1 Business Driver 2
Business Alignment Framework: Impact Statement Definition (Theory)
Impact Statements are derived from KPI’s and used to quantify the impact of each project request against each of the Business Drivers
Business Driver 1
Business Driver 2
Extreme
Extreme
Strong
Strong
Project
Moderate
Moderate
Low
Low
No Impact
No Impact
The Impact Statements should clearly communicate the metrics that define the level of impact a project request may have on Business Drivers.
Note: Existing KPI's / Balanced Scorecard/ Other metrics may be used
Impact Statements ensure that each project requests impact on the Business Drivers are evaluated consistently using the same metrics.
The Role of Impact Measures:
Impact Statements are defined by the Executive team
Impact Statements provide a quantifiable link between the measurable Business Drivers and the project requests.
Portfolio Management Overview
16 April 2017

17. Grow Customer Share of Wallet
Business Alignment Framework: Impact Statement Definition (Example)
Driver Name:
Grow Customer Share of Wallet
Definition:
Sell additional products to existing clients
Associated KPI’s
Thresholds
Impact Statements
Extreme
Increases Revenue per client by more than 15% and increases Market Share by 5%
% Increase of Market Share
Increase in Revenue
Strong
Increases Revenue per client by between 8% % and increases Market Share by 2% %
Moderate
Increases Revenue per client by between 3% % and increases Market Share by up to 1.99%
Low
Increases Revenue per client up to 2.99% and increases Market Share up to 1.99%
Portfolio Management Overview
16 April 2017

18. Define Prioritize Optimize Select
Business Alignment Framework Prioritization & Optimization
‘The Business Alignment Framework ensures a Rational rather than Emotional approach to project selection’
Define
Prioritize
Optimize
Select 1 2
Define Business Drivers & Impact Statements
Prioritize Business Drivers 4 5
Optimize Project Requests
Optimize Project Requests 3
Select Portfolio
Assess the Portfolio
Constraint Analysis
Advanced Analysis
New Project Requests
Prioritize Requests
Strategic Value
Financial Value
Risk
Carry-Over Requests
Portfolio Management Overview
16 April 2017

19. Business Alignment Framework: Business Driver Prioritization
The Pairwise Comparison is a proven technique for deriving relative priorities or weights for Business Drivers through performing one-to-one comparisons.
Indicates relative importance of Driver A vs. Driver B
(row vs. column)
Compares the relative importance of Driver B vs. Driver C
(row to column)
Steps to Success:
Assess Divergence of Opinion: Each Stakeholder involved in the Business Driver Definition should prioritize the drivers independently
Build Consensus: Invite all stakeholders to a Prioritization Workshop and collaboratively complete the Pairwise Comparison Matrix. Encourage the group to openly discuss the importance of each Business Driver pairing for the upcoming planning period.
The same stakeholders who defined the Business Drivers should prioritize them. This ensures consistent understanding and better buy-in to the priority assessment conclusions.
Portfolio Management Overview
16 April 2017

20. Define Prioritize Optimize Select
Business Alignment Framework Prioritization & Optimization
‘The Business Alignment Framework ensures a Rational rather than Emotional approach to project selection’
Define
Prioritize
Optimize
Select 1 2
Define Business Drivers & Impact Statements
Prioritize Business Drivers 4 5
Optimize Project Requests
Optimize Project Requests 3
Select Portfolio
Assess the Portfolio
Constraint Analysis
Advanced Analysis
New Project Requests
Prioritize Requests
Strategic Value
Financial Value
Risk
Carry-Over Requests
Portfolio Management Overview
16 April 2017

21. Prioritize Business Drivers Strategic Impact Assessment
Portfolio Optimizer Select: Portfolio Prioritization
Use proven techniques to define and prioritize business drivers
Assess the impact of each project request against the prioritized business drivers
Business Drivers 3 4
Projects
Prioritize Business Drivers
Strategic Impact Assessment
Derive a priority score to evaluate each project request (i.e. Strategic Value, Financial Value, Risk)
Analyze the project portfolio before attempting to make funding decisions 6 5
L - Priority - H
Investment Maps
Prioritize Projects
Cost
Portfolio Management Overview
16 April 2017

22. Define Prioritize Optimize Select
Business Alignment Framework Prioritization & Optimization
‘The Business Alignment Framework ensures a Rational rather than Emotional approach to project selection’
Define
Prioritize
Optimize
Select 1 2
Define Business Drivers & Impact Statements
Prioritize Business Drivers 4 5
Optimize Project Requests
Optimize Project Requests 3
Select Portfolio
Assess the Portfolio
Constraint Analysis
Advanced Analysis
New Project Requests
Prioritize Requests
Strategic Value
Financial Value
Risk
Carry-Over Requests
Portfolio Management Overview
16 April 2017

23. Efficient Frontier Modeling Business Alignment Analysis
Portfolio Optimizer Select: Portfolio Optimization & Analytics
Benchmark the selected portfolio against the Efficient Frontier 8
Utilize sophisticated optimization algorithms to maximize the portfolio’s strategic value under varying budget constraints (i.e. cost, resource etc.) 7
Efficient Frontier Modeling
Calculate and communicate the selected portfolio’s alignment with the organization’s strategic priorities 9
‘What If’ Analysis
Business Alignment Analysis
Portfolio Management Overview
16 April 2017

24. Resource Surplus & Deficits
Portfolio Planner & Dashboard Plan & Manage: Schedule and Track the Portfolio
Identify resource surpluses and deficits across the planning horizon and maximize resource utilization by proactively scheduling the project portfolio to best fit the available resources. 10 11
Resource Surplus & Deficits
Portfolio Scheduling
Create real-time project and portfolio performance scorecards to ensure Executives and PMO’s gain visibility, insight and control across project portfolios within the organization. 12
Portfolio Dashboard
Portfolio Management Overview
16 April 2017

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34. The UMT Portfolio Management architecture Modular, proven, leading-edge software
Central RepositoryTM
SQL or Oracle Db
IIS Web Server
Thin Client
Financial (GL)
Time Reporting
Enterprise Integration:
Process:
Tools:
Portfolio BuilderTM
Portfolio OptimizerTM
Portfolio PlannerTM
Portfolio DashboardTM
Create
Define projects to deliver strategy
Select
Prioritize & optimize portfolio on rational grounds using common currency
Phase:
Plan
‘Roadmap’ start & end dates according to resource availability
Manage
World-class PMO, track benefits, report progress, mitigate risk
Define
Drivers
Develop
Project
Inventory
Prioritize
Projects
Impact
Statements
Optimize
Portfolio
Optimize Project Schedules
Competencies
Requirements
Competency
Availability
Analyze
Supply
vs. Demand
Reporting
Implement
Initiation
Design
Construct
Test
Gates
Status Reporting
Issues
Risks
CR’s
Resource
Milestone
Portfolio Management Overview
16 April 2017

35. MS Project Server Integration Synchronising Project Update with Portfolio Analysis
UMT
Portfolio Manager
Microsoft
Project Server
Note: Workflow is configurable and customizable per client specification.
UMT Portfolio Manager™ and MS Project Server integration points:
Project ideas are entered and analyzed before being selected in the UMT Portfolio Manager and exported to MS Project Server to enable detailed project planning (e.g., task level).
Detailed project plans can be synchronized with the projects in UMT Portfolio Manager in terms of schedule data (i.e. at the phase and milestone level only) and resource data (i.e. by competency or skill type)
Resource availability data can be uploaded to the UMT Portfolio Manager from the MS Project Server, and used for scheduling analysis
UMT’s Microsoft Gateway can be used on a periodic basis to synchronize Baseline, Actual & Forecast data with UMT Portfolio Manager for portfolio reporting and portfolio re-prioritization and optimization.
Portfolio Management Overview
16 April 2017

36. Seamless Integration with Microsoft's EPM Solution
UMT Project Portfolio Server integrates with the EPM Solution to allow organizations to quickly deploy ‘Top Down’ portfolio analytical techniques on top of the leading enterprise project management platform.
Executives
Portfolio Analysts
Project Managers
Application Managers
Line of Business Systems
PMOs
Resource Managers
Team Members
Project Managers
Portfolio Management Overview
16 April 2017