Introduction and the Overview (OV)

Key Messages

• Organisations use the term project, program and portfolio differently. You need to ensure that you understand the AXELOS definitions (for exam purposes) and to fully understand the P3O guidance and how it relates to projects, programs and portfolios.
• Historically, organisations have been focussed on BAU – keeping the customers satisfied, the staff paid and the suppliers on board (Page 6)
• Living in an increasing VUCA (volatile, uncertain, complex and ambiguous) world, ALL organisations need to recognise they need to keep BAU ticking over and at the same time manage changes to BAU to keep their organisation viable. This requires recognition of different governance and management (ie PPM) required to deliver change which needs to be properly aligned with the BAU governance.
• Run the Business and Change the Business must work in harmony. Too much focus on either side will damage the organisation.

P3O Definition (Page 7)

“A decision-enabling and support business model for all business change within an organization. This will include single or multiple physical or virtual structures, ie 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.”

• Two key aspects
  • Decision enabling – NOT decision making.
  • There to ensure those who have authority to make decision (defined in the governance structure) have what they need to make an informed, timely decision.
• Support for all business change.
• Every P3O business model is different – needs to be designed specifically for your organisation.
• There is a difference between a smattering of PMOs across an organisation to an intelligently designed and implemented P3O.
• P3Os needs to by fully integrated (referring back to the run the business/ change the business).

Elements of a P3O (Page 8)

• This is not a physical model, it shows the various focus areas of PMO services.
• You need to refer to definitions as stated in the table on page 9 of the manual.
• Hub portfolio offices are set up where there are distinct portfolios in the organisation
• Can be defined by geography or division
• Typically aligned to organisation governance of portfolios ie where portfolios have quite different ownership, direction and criteria for prioritisation etc.

P3O alignment to the Portfolio Lifecycle (Page 10)

• This is the diagram from the Management of Portfolios and shows the two portfolio management cycles: the portfolio definition cycles (five practices) and the portfolio delivery cycles (seven practices). Within the Portfolio Definition cycle the OPO can:
  • Understand – work with the senior team to understand/ define/ refine the strategic objectives along with the current status ie what projects and programmes are inflight/ planned to start/ candidate list for inclusion
  • Categorize – facilitate the organization of the various change initiatives into groupings (legal requirement/ new products/ business transformation/ customer requirements) and strategic objectives and the development of the prioritization criteria for each segment of the portfolio.
  • Prioritize – facilitate the prioritization of the change initiatives based on agreed criteria – typically within a prioritization matrix.
  • Balance – facilitate the optimisation of the prioritized change initiatives taking into account factors such as achievement of strategy, risk, business cycles, availability of resources
  • Plan – collate a delivery plan for the selected change initiatives
• Within the Portfolio Delivery Cycle the COE will provide all the relevant standards, processes, procedures and tools.

P3O alignment to the Programme Lifecycle (Page 10)

The organization portfolio office (OPO)/ hub portfolio office provides functions and services to support the identification and close of programmes.

The programme office and centre of excellence provide functions and services throughout the full programme lifecycle.

• The OPO will ensure that the programme identification activity aligns to the scope and timings from the portfolio delivery plan and ensure the appropriate set up of a Programme Office (all the relevant standards, processes, procedures and tools from the COE) to support the programme.
• The Programme Office will provide a range of services to the programme throughout the life of the programme.
• At the end of the programme, the Programme Office will hand off back to the OPO to confirm the programme has delivered as anticipated and handover any residual benefits realisation activities required, lessons learnt and programme artefacts.

P3O alignment to the Project Lifecycle (Page 10)

• The programme will ensure that the project start up activity aligns to the scope and timings from the programme plan and ensure the appropriate set up of a Project Office (all the relevant standards, processes, procedures and tools from the COE) to support the project.
• The Programme Office will provide a range of services to the programme throughout the life of the programme.
• At the end of the project, the Project Office will hand off back to the Programme Office to confirm the programme has delivered as anticipated and handover the benefits realisation activities required, lessons learnt and project artefacts.