Project Portfolio Management: How to Design, Build, and Manage a Project Portfolio

As organizations reach higher levels of maturity in managing projects individually, they shift their focus to managing them collectively as a project portfolio. This transition seems to occur when you realize that projects are investments – not expenditures – requiring justification that they are aligned with organizational goals and will create value for the owners and other stakeholders of the organization. Managing project investments collectively brings coherence to implementing the strategic as well as operational initiatives and helps the organization create sustainable value in the long run. This course offers tools, techniques, and best practices for managing project portfolios. It presents a “how to” methodology to design, build, and manage a portfolio.

This course is appropriate for Portfolio Managers, Program Managers, and Project Managers; managers responsible for evaluation, selection, and termination of projects; PMO staff responsible for initiating or streamlining portfolio management processes; and decision makers involved in authorizing projects or phases of projects.

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Key Outcomes

Upon completion of this course, you will be able to:

  • Understand the role of a project portfolio in translating strategy into desired results.
  • Align projects with organizational goals and strategy.
  • Establish project and portfolio governance structure.
  • Develop key design requirements of a balanced portfolio.
  • Monitor and control portfolio performance.
  • Employ various techniques to prioritize projects.
  • Allocate resources most efficiently to competing project and operational demands.
  • Analyze and manage portfolio risks.
  • Apply quantitative techniques to evaluate a project for its own merit as well as its relative merit against other projects.
  • Use weighted scoring models to quantify intangible benefits of projects.
  • Build a business case for a project.
  • Identify criteria to terminate a project.
  • Understand practical challenges and how to overcome them in executing PPM.
  • Implement a practical methodology to build and manage a project portfolio that will maximize business value and return on investment.

Course Outline

Portfolio Management Basics

  • Definitions and Differences: Project, Program and Portfolio
  • Portfolio Triple Constraint
  • Why Project Portfolio Management?
  • Practical Challenges in Executing PPM

PPM Methodology

  • Funnel & FiltersSM: A Portfolio Model
  • Project Portfolio vs. Financial Portfolio
  • PPM Methodology: Phases and Processes

Portfolio Foundation

  • Organizational Strategic Framework
  • Balanced Scorecard
  • Portfolio Infrastructure
  • Portfolio Governance
  • Portfolio Team Roles & Responsibilities

Portfolio Design

  • Portfolio Benchmarks
  • Portfolio Contingencies
  • Portfolio Design Requirements
  • Portfolio Balance

Portfolio Construction

  • Initial Portfolio Creation
  • Initial Portfolio Calibration
  • Portfolio Construction Processes

Portfolio Monitoring & Control

  • Project Business Plan
  • Why Terminate a Project?
  • Sunk Cost Fallacy & Dilemma
  • Portfolio Balancing
  • Portfolio Assessment

Portfolio Measurements & Metrics

  • Success Measurements
  • Outcome & Performance Measures
  • Portfolio Metrics
  • Project Metrics

Project Prioritization

  • Efficient Frontier
  • Weighted Scoring Models
  • Forced Ranking
  • Paired Comparison

Project Evaluation

  • Cost of Capital
  • Measuring Financial Benefits
  • Measuring Non-financial Benefits
  • Data Visualization Tools

Portfolio Risk Management

  • Uncertainty vs. Risk
  • Portfolio Risks
  • Decision Trees
  • Monte-Carlo Simulation
  • Sensitivity Analysis

Resource Allocation

  • Rolling Wave Planning
  • Factors Affecting Resource Availability
  • Resource Allocation Tools
  • PMO