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From Project Management to Management by Project_ or by Portfolio


									From Project Management
to Management by Project,
or by Portfolio, to be precise
         Gunes Sahillioglu
                Where were we?
• Current Business Management techniques are based on
  the learnings from the early days of 1900.
   – We learned about divisions, marketing, brand management,
     stock management, HR, workflow…
• Project Management evolved from large construction
  and military initiatives from mid 1960 / 70 s to date.
   – We learned to run projects, programmes, portfolios; we
     learned to structure tasks and generate benefits
          So what happened?
• At least twice in the last 100 years,
  Business suffered, shrunk, almost halted.
• Are the roots of the current difficulties in
  failures at project level?
• How many time we have come here to talk
  about: “Why projects fail?”
• NO, the root causes are at business
  management, governance and decision level.
 Can the conventional management
 structures survive the 21st century?
• I doubt very much that vertically integrated,
  departmentalised classic company structures will
  be with us much longer
• Large departments will tend to go towards pools
  of skilled resources, forming cells / teams to
  tackle specific tasks, achieve specific goals.
• The move towards “project based organisation”
  will gather pace
    Project based organisation?
  – At enterprise business planning level, Project
    Portfolio Management is probably the best tool to
    select the best initiatives to fund and drive.
• DO:
  – At delivery level, Project Management techniques are
    well placed to “make things happen” in an orderly
                 The trend
• Organisations have already started to move
  towards concepts such as shared service centres,
  outsourced services etc. This prepares the
  ground for a pure project based organisation by
  taking away the inevitable “administrative
• They will need to be even better organised to
  respond to changes and downturns.
             Agile organisations
• The key to organisational agility relies on a number of
   – Decision agility
   – Execution agility
• Decision agility requires a transparent decision
  making mechanism that is dynamic (PPM)
• Execution agility requires multi-skilled and flexible
  work force (project based teams). They usually benefit
  from a mixture of internal and external resources.
     So, changes on two fronts?
• At decision / strategy level  Portfolio based
  management (PPM at board level)
• At delivery structure / operational level 
  project based teams
• The above will be strengthen by the extensive
  use of the collaboration tools (semi-virtual
  project teams)
     Opportunities and flip side
• Porting the good practices of project and
  portfolio management from its current space
  (project world) to Business world is an
  advantage for project professionals
• This will bring a healthy level of rigor, discipline,
  scrutiny and governance to business decisions
• Project portfolio professionals will need to lead
  the move and act as the champions of this
      Portfolio-centric approach to
• Establish a portfolio of all change activities that
  compete for resources within the company. This
  should not be limited to new products, or IT
  initiatives. It should include new infrastructure
  and even facilities.
• Apply portfolio optimisation and strategic
  alignment techniques by running scenarios.
• Prepare pools of talent to execute the projects in
  the portfolio.
   Structural transformation
Classic Organisation
                                               Project based Organisation
Business Units      Shared services

                                      Project team 1

                                      Project team 2

                                       Project team n

  PPM, balancing act under pressure

                              Portfolio centric

    innovation               Constraints

Pressure to change           Resistance to change

     Portfolio-centric Management Process

Strategic Objectives

                                 Portfolio alignment
  Mission Statements

    Projects Programmes

                              Costs           Benefits
                                Enterprise budget           Benefit
              How easy is it?
• It requires vision and determination
• It requires ownership and drive
• It requires courage
  – But, when the turnaround options narrow
    dangerously, somehow courage emerges!
• It is much better to change to an agile
  organisation before hitting the buffers.

    ( we all need some these days!)

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