The Standard for Program
Management –
3rd Edition
Overview
Emanuele Zanotti, PMP, PRINCE2 Practitioner
Nexen Business Consultants
April 29th, 2013
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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• Program Management Key Concepts
• The Standard for Program Management –
2nd Edition Overview
• The Standard for Program Management –
3rd Edition Overview
• Main Changes Highlight
Agenda
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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What is a program?
Program Management Key Concepts
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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Program
A group of related projects, subprograms and
program activities that are managed in a coordinated
way to obtain benefits not available from managing
them individually.
Benefit
A benefit is an outcome of actions, behaviors, products, or
services that provide utility to the sponsoring organization as
well as to the program’s intended beneficiaries or stakeholders.
Program Management Key Concepts
Source: PMI - The Standard for Program Management, 3rd Edition, 2012
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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Program Management Key Concepts
Source: PMI - The Standard for Program Management, 3rd Edition, 2012
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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2006
1° edition 2° edition 3° edition
2008 2012
History
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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• Program Management Key Concepts
• The Standard for Program Management –
2nd Edition Overview
• The Standard for Program Management –
3rd Edition Overview
• Main Changes Highlight
Agenda
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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The Standard for Program Management 2nd Edition
Process Groups and Knowledge Areas
47 processes
Process-oriented framework
12 Knowledge Areas 5 Process Groups
Communication
Risk
Procurement
Financial
Stakeholder
Governance
Integration
Scope
Time
Cost
Quality
HR
Initiating
Planning
Executing
Monitoring & Controlling
Closing
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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ag.
• Program Management Key Concepts
• The Standard for Program Management –
2nd Edition Overview
• The Standard for Program Management –
3rd Edition Overview
• Main Changes Highlight
Agenda
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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The Standard for Program Management 3rd Edition
Framework Overview
Domain-oriented framework
Performance Domains Supporting Processes
Tasks and competencies that
represent knowledge elements
and activities carried out by an
individual to address a specific
program management area
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The Standard for Program Management 3rd Edition
Framework Overview
Program StrategyAlignment
Program Benefits
Management
Program Governance
Program Lifecycle
Management
Program Stakeholder Engagement
Performance Domains Supporting Processes
9KNOWLEDGE AREAS
36 PROCESSES
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The Standard for Program Management 3rd Edition
Performance Domains
• Every program requires some activity in each of these
performance domains
• Run concurrently throughout the duration of the
program
• Include the work performed by the program manager
• What and when depend on the nature and the
complexity of the program
• Work within these domains is iterative in nature and is
repeated frequently
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The Standard for Program Management 3rd Edition
Program Strategy Alignment
Activities associated with the integration and development of
business strategies and organizational goals and objectives.
Program
Business Case
Program
Plan
Program
Roadmap
• Cost benefits analysis
• Alternative solutions
• Risks
• Business and
operational impacts
• Program Vision
• Program Mission
• Program Goals and
Objectives (outcomes
and benefits)
• Program Success
Criteria
• Chronological
representation in a
graphical form
• Key dependencies
between major milestones
• Relationship between
program activities and
expected benefits
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Benefit
Identification
The Standard for Program Management 3rd Edition
Program Benefits Management
Defining, creating, maximizing, delivering, and sustaining the
benefits provided by the program.
Benefits
Analysis and
Planning
Benefits
Transition
Benefits
Delivery
Benefit
Sustainment
• Business
benefits
identification
• Map benefits
to program
• Define
benefits
metrics
• Benefit
Realization
Plan
• Monitor
components
• Report
benefits
• Consolidate
coordinated
benefits
• Transfer
ongoing
responsibility
• Ensure
continued
realization of
benefits
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Stakeholder
Identification
The Standard for Program Management 3rd Edition
Program Stakeholder Engagement
Understanding stakeholder needs and expectations, analyzing
impact of the program on stakeholders and gaining stakeholder
support.
Stakeholder
Engagement
Planning
Stakeholder
Engagement
� Engagement vs.
management
� Resistance to change
� More than communication
� Organizational change
management
� Leadership
� Negotiation
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The Standard for Program Management 3rd Edition
Program Governance
Systems and methods by which a program is monitored, managed, and supported by its sponsoring organization.
� Program governance board
� Executive-level stakeholders
� Program governance plan
� Decision-making
� Component governance
� Business Case
� Program Charter
� Funding
� Reviews (Phase Gate & Health Checks)
� PgMO, PgMIS, PgKMS
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The Standard for Program Management 3rd Edition
Program Lifecycle Management
Managing all of the program activities related to program
definition, program benefits delivery and program closure.
BUSINESS STRATEGY
Program Definition
Program Formulation
Program Preparation
Program Benefits Delivery
Program Closure
Component Planning and Authorization
Component Oversight and Integration
Component Transition and Closure
Program Transition
Program Closure
STRATEGIC OBJECTIVES
VALUE
DELIVERY
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• Enable a synergistic approach for the purpose of delivering program benefits.
• Definitions and terminology similar to the project-level; considerations of higher level to reflect a program perspective
The Standard for Program Management 3rd Edition
Supporting Process
Program Communications Management
Program Financial Management
Program Integration Management
Program Procurement Management
Program Quality Management
Program Resource Management
Program Risk Management
Program Schedule Management
Program Scope Management
NEWNEW Stakeholder
Governance
Cost
HR
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• Program Management Key Concepts
• The Standard for Program Management –
2nd Edition Overview
• The Standard for Program Management –
3rd Edition Overview
• Main Changes Highlight
Agenda
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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The Standard for Program Management 3rd Edition
Main changes from 2nd Edition
• Return to the domain-orientation of the first edition
� All processes narratively described in only one chapter
• An alignment to, and recognition of, other standards in
program management
• Modified lifecyle (now dealt with in a dedicated performance
domain)
• Harmonization with other PMI standards (concepts, lexicon,
layout, etc.)
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The Standard for Portfolio
Management –
3rd Edition
Overview
Emanuele Zanotti, PMP, PRINCE2 Practitoner
Nexen Business Consultants
April 29th, 2013
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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Pag.
• Portfolio Management Key Concepts
• The Standard for Portfolio Management –
2nd Edition Overview
• The Standard for Portfolio Management –
3rd Edition Overview
• Main Changes Highlight
Agenda
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What is a portfolio ?
What is portfolio management ?
Portfolio Management Key Concepts
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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Portfolio
A portfolio is a component collection of programs,
projects, or operations managed as a group to
achieve strategic objectives
Portfolio Management Key Concepts
Source: PMI - The Standard for Portfolio Management, 3rd Edition, 2012
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• The portfolio components may not necessarily be
interdependent.
• A portfolio may consist of a set of past, current and
future portfolio components.
• An organization may have more than one portfolio,
each addressing unique organizational strategies and
objectives.
Portfolio Management Key Concepts
Source: PMI - The Standard for Portfolio Management, 3rd Edition, 2012
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• Portfolio management includes identification,
categorization, evaluation, selection of components to
best accomplish organizational strategies.
• Portfolio management balances conflicting demands
between programs and projects by allocating resources
(e.g. people, funding) based on organizational priorities
and capacity.
Portfolio Management Key Concepts
Source: PMI - The Standard for Portfolio Management, 3rd Edition, 2012
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Program and project managers focus on …
“doing work right”
Portfolio managers focus on …
“doing the right work”
Portfolio Management Key Concepts
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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2006
1° edition 2° edition 3° edition
2008 2012
History
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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Pag.
• Portfolio Management Key Concepts
• The Standard for Portfolio Management –
2nd Edition Overview
• The Standard for Portfolio Management –
3rd Edition Overview
• Main Changes Highlight
Agenda
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The Standard for Portfolio Management 2nd Edition
Process Groups and Knowledge Areas
Identify Components
Categorize Components
Evaluate Components
Select Components
Portfolio Risk
Management
Portfolio
Governance
Aligning Monitoring & Controlling
Prioritize Components
Balance Components
Authorize Components
Identify Portfolio Risks
Analyze Portfolio Risks
Develop Portfolio Risk Response
Review and Report Portfolio
Performance
Monitor Business Strategy Changes
Communicate Portfolio Adjustment
Monitor and Control Portfolio Risks
KNOWLEDGE AREAS
PROCESS GROUPS
The new PMI Standard for Program and Portfolio Management - Emanuele Zanotti , PMP – April 29th, 2013
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Pag.
• Portfolio Management Key Concepts
• The Standard for Portfolio Management –
2nd Edition Overview
• The Standard for Portfolio Management –
3rd Edition Overview
• Main Changes Highlight
Agenda
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Portfolio Strategic Plan
Portfolio Charter
Portfolio Roadmap
Portfolio
Portfolio Manag. Plan
Portfolio vision, strategy alignment, approach, prioritazion model, available funds and resources.
High-level scope, high-level timelines, success criteria, andmain stakeholders.
Approach for managing the portfolio (governance, risk,performance, change, communication, procurement,compliance)
Components key milestone and dependencies in acronological fashion.
Collection of projects, programs and other work that aregrouped together to facilitate the effective management ofthat work to meet strategic business objectives
The Standard for Portfolio Management 3rd Edition
Key Portfolio Management Deliverables
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Defining
Aligning
Authorizing and
Controlling
How the organizational strategy will be implemented in aportfolio (portfolio strategic plan, roadmap, charter andmanagement plan)
The Standard for Portfolio Management 3rd Edition
Process Groups
Manages and optimizes the portfolio (componentsevaluation, prioritization, selection, modification, orelimination)
Authorize portfolio components and provides ongoingportfolio oversight.
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The Standard for Portfolio Management 3rd Edition
Process Groups Interaction
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Strategic
Management
Governance
Management
Communication
Management
Risk Management
Performance
Management
Ensures alignment with the organizational strategy
Includes portfolio oversight and support of governancebody decision-making activities.
Manages resource allocation and tracks portfolioperformance and value realization.
Develops the portfolio communication management planand manage portfolio information.
Develops the portfolio risk management plan and manageportfolio risks.
The Standard for Portfolio Management 3rd Edition
Knowledge Areas
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The Standard for Portfolio Management 3rd Edition
Processes
Develop Portfolio Strategic Plan
Develop Portfolio Chapter
Define Portfolio Roadpmap
Develop Portfolio Management
Plan
Define Portfolio
Develop Portfolio Performance
Management Plan
Develop Portfolio
Communication Management
Plan
Develop Portfolio Risk
Management Plan
Manage Strategic Changes
Portfolio Risk
Management
Portfolio
Communication
Management
Portfolio
Performance
Management
Portfolio
Governance
Management
Portfolio Strategic
Management
Optimize Portfolio
Manage Supply & Demand
Manage Portfolio Value
Manage Portfolio Information
Manage Portfolio Risks
Authorize Portfolio
Provide Portfolio Oversight
Defining Aligning Authorizing & Controlling
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The Standard for Portfolio Management 3rd Edition
Main changes from 2nd Edition
• Concepts and themes present in the Second Edition but not
described as processes have been expanded
� more KAs, PGs and processes
• Steps for implementing a portfolio management process are
provided
• Harmonization with other PMI standards (concepts, lexicon,
layout, etc.)
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The Standard for Portfolio Management 3rd Edition
Main changes from 2nd Edition
Framework structural changes
• 3 Knowledge Areas have been added (Portfolio Strategic
Management, Portfolio Performance Management, Portfolio
Communication Management)
• 1 Process Group was added (Defining) and 1 renamed
(Monitoring and Controlling � Authorizing and Controlling)
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Contacts
Emanuele Zanotti
Nexen Business Consultants
email: [email protected]