P3O Pocketbook
· Acknowledgements
· 1 Introduction
o 1.1 Portfolio, programme and project management environment
o 1.2 P3O and portfolio, programme and project lifecycles
· 2 What are P3Os?
o 2.1 Role and focus of a P3O
o 2.2 An example of a P3O model
o 2.3 Factors influencing P3O model design
· 3 What should the P3O do?
o 3.1 Functions and services within a P3O model
o 3.2 P3O assurance functions and services
o 3.3 P3O governance functions and services
· 4 How to implement or re-energize a P3O
o 4.1 P3O lifecycle
o 4.2 Identify
o 4.3 Define
o 4.4 Deliver
o 4.5 Close
· 5 Roles within a P3O model
o 5.1 Management roles
o 5.2 Generic roles
o 5.3 Functional roles
· Further information
· Glossary
Acknowledgements
AXELOS acknowledges with thanks the contribution of Eileen Roden (QA) in the construction of this pocketbook.
In addition, AXELOS would like to recognize the contribution of Sue Taylor (P3O chief examiner) and Sue Vowler (Project Angels Ltd, mentor for the 2013 edition of P3O) who acted as reviewers.
The right P3O® (Portfolio, Programme and Project Offices) model will provide a focal point for defining a balanced portfolio of change and ensuring consistent delivery of programmes and projects across an organization or department. It could successfully take many forms, from a single all-encompassing physical office to a virtual office model made up of a permanent organization portfolio office supported by a permanent hub portfolio office or temporary programme/project offices.
The purpose of this pocketbook is to introduce the principles, processes and techniques that will enable individuals and organizations to successfully establish, develop and maintain (or in some cases re-energize) appropriate support structures that will facilitate:
§ Informing senior management’s decision-making on prioritization, risk management, deployment of resources etc. across the organization to successfully deliver their business objectives (portfolio management)
§ Delivery of programmes and projects within time, cost and quality constraints
§ Identification and realization of outcomes and benefits via programmes and projects.
The publication describes a structured approach to identifying the goals and scope of a P3O, along with the requisite functions and services. It also provides an implementation lifecycle that ensures the organization’s P3O goals are affordable, add value, and are delivered in an effective and efficient manner.
Many organizations operate in a complex environment, with multiple programmes and projects being delivered at any one time.
Definition: portfolio
The totality of an organization’s investment (or segment thereof) in the changes required to achieve its strategic objectives.
Definition: portfolio management
A coordinated collection of strategic processes and decisions that together enable the most effective balance of organizational change and business as usual.
The focus of portfolio management is delivery of the organization’s strategy. It achieves this by ensuring that:
§ Changes to business as usual are agreed at the appropriate management level and contribute to at least one strategic objective
§ Strategic decisions are based on a clear understanding of cost, risk, impact on business as usual and the strategic benefit to be realized
§ Resources and changes are prioritized in line with the current environment, existing changes, resource capacity and capability
§ All changes are reviewed frequently in terms of progress, cost, risk priority, benefits and strategic alignment.
Portfolio management aligns the delivery of programmes and projects with strategic objectives, business requirements and the organization’s capability, its capacity for change and its portfolio, programme and project management (PPM) maturity. Portfolio management is an active and iterative process that requires the collection and analysis of timely, accurate and relevant information about the organization’s investment initiatives (programmes and projects) in one place – providing one version of the truth.
Portfolio management should consider not just those programme and project commitments comprising the organization’s change agenda, in terms of resources (i.e. money, people, infrastructure and other facilities), but should also consider the wider business picture, taking account of business as usual. Only by understanding and appreciating the organization’s full suite of commitments, i.e. corporate, programme, project and business as usual, can a fully balanced business portfolio be achieved.
In practice, portfolio management is carried out at many different levels in an organization: at corporate, directorate, divisional or even departmental level.
Definition: programme
A temporary, flexible organization structure created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organization’s strategic objectives. A programme is likely to have a life that spans several years.
Managing Successful Programmes(MSP®) should be referred to for detailed guidance on the management of programmes.
Definition: project
A temporary organization that is created for the purpose of delivering one or more business products according to an agreed business case.
Managing Successful Projects with PRINCE2® should be referred to for detailed guidance on the management of projects.
The P3O model may comprise portfolio, programme and project offices, all of which may add value at different stages of the portfolio, programme or project lifecycles (see Figure 1.1).
Figure 1.1 P3O model elements aligned with portfolio, programme and project lifecycles
Definition: Portfolio, Programme and Project Offices (P3O)
The decision-enabling and support business model for all business change within an organization. This will include single or multiple physical or virtual structures, i.e. offices (permanent and/or temporary), providing a mix of central and localized functions and services, and integration with governance arrangements and the wider business such as other corporate support functions.
2.1 ROLE AND FOCUS OF A P3O
The phrases ‘doing the right programmes and projects’ and ‘doing programmes and projects right’ are often used to describe the role of a P3O or one of the individual offices within the P3O. It is important to understand the differences between the two:
§ Doing the right programmes and projects Describes the need to ensure that business investment is spent on the things that matter and that the focus is on delivering programmes and projects that enable achievement of the corporate strategy.
§ Doing programmes and projects right Describes the need to deliver programmes and projects consistently and well.
This can be expanded as shown in Figure 2.1.
Figure 2.1 Business change governance support and enablement
Governance is focused on:
§ Business change strategy Are we doing the right things? Is the business investing in those programmes and projects that make the greatest contribution to achieving corporate strategy? Are they correctly prioritized against each other and business-as-usual activities?
§ Business change design Are we doing things the right way? Are the programmes and projects (and their outcomes and deliverables) aligned with each other, and with the organization’s governance, structure and business-as-usual activities? Are we delivering the programmes/projects in line with the enterprise architecture/business roadmap and in the right order/sequence?
§ Business change delivery Are we getting things done consistently and well? Are best-practice delivery methods and governance structures in place for programmes and projects? Are those who are involved in delivering programmes and projects doing so consistently and performing at the required level? Do they have the skills and capability to succeed? Are appropriate tools and techniques available?
§ Business change value Are we getting the business benefits? Are the programmes and projects delivering the expected contribution to achieving corporate strategy? Is delivery of the strategy still on track?
Governance requirements and the way in which this governance is supported or enabled will vary between organizations. A best-performing P3O will meet all of these requirements; however, organizations may set up an office to focus on one particular aspect and introduce the other aspects over time.
2.2 AN EXAMPLE OF A P3O MODEL
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