1. 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

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

3. 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

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

5. 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

6. 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

7. 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

8. 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

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

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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

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

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

20. 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.

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

22. Oracle Industry Presence
Leadership
Oracle Industry Presence

23. 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

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

25. 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

26. 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

27. 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

28. 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.

29. Technical Overview of Primavera Integration Paths ERD Approach

30. 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.

31. 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

32. 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

33. Oracle for the Oil & Gas Lifecycle6
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

34. Thank You Welcoming your Contacts to: www.promastar.com

35. Questions?