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 Introduction | 3

1 – Introduction
1.1 Purpose of this guide The review group members were selected for their
expertise in P3O across both public and private sectors
The purpose of the Portfolio, Programme and Project
in the UK and globally to ensure the guidance provides a
Offices (P3O) guidance is to provide universally applicable
balanced view and that the latest innovative approaches
guidance, including principles, process and techniques,
are captured and incorporated. The reviewers were also
that will enable individuals and organizations to
recruited from a mix of directors, managers and ‘doers’ to
successfully establish, develop and maintain (or in some
cover the full range of audiences for such a publication.
cases re-energize) appropriate support structures that will
facilitate:
1.3 How to use this guide
■■ Informing senior management’s decision-making on
prioritization, risk management, and deployment This guide has been written to answer the variety of
of resources across the organization to successfully questions often asked about P3Os. Different roles within
deliver their business objectives (portfolio an organization may have a different interest and
management) perspective. The whole publication should be read to
■■ Identification and realization of outcomes and benefits understand all these different perspectives; however, Table
via programmes and projects 1.1 may be used as a navigation aid to quickly locate the
■■ Delivery of programmes and projects within time, answers to specific questions the reader may have.
cost, quality and other organizational constraints.
The P3O 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, all of which are explored in this guidance –
from a single all-encompassing physical office to a virtual
office made up of a permanent Portfolio Office supported
by permanent hubs or temporary Programme/Project
Offices.
In summary, the guidance seeks to answer the questions:
■■ Why have any form of P3O?
■■ What is P3O?
■■ What services/functions should be offered?
■■ How to set up and operate a P3O model?

1.2 Best-practice approach

This guidance was developed using the principles of
PRINCE2 through the establishment of a project governed
by a Project Board. Following the Office of Government
Commerce (OGC) principles of consultation and fitness for
purpose, an international review group was established to
provide advice on both scope and direction, and quality
assurance.

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 4 | Introduction

Table 1.1  Publication navigation guide

Audience/role Questions asked Where to look –

chapters/appendices
Corporate/portfolio/senior management ■■ Why have any form of P3O? ■■ Chapter 2
■■ What value does it add to our bottom line or ■■ Chapter 3
overall organizational performance? ■■ Appendix B
■■ How will a P3O model enhance and improve ■■ Appendix E
the effectiveness of programme and
project delivery?
■■ What is the best model for us?
■■ Where is the plan to create the right P3O model
for our level of P3RM maturity?
SROs/programme directors/programme ■■ What P3O models exist? ■■ Chapter 3
Managers ■■ How can I use existing services within permanent ■■ Chapter 4
P3O units to best advantage? ■■ Appendix A
■■ Do I need to set up a temporary office to serve ■■ Appendix C
my programme/project? If so:
●● What should it look like?
●● How will it add value?
●● How do I set it up?
●● How big should it be?
●● What roles do I need?

Portfolio/Programme/Project Office ■■ What P3O model should we create? ■■ Chapter 2

manager ■■ How will organizational maturity in P3RM ■■ Chapter 3
influence our choices? ■■ Chapter 4
■■ What functions/services should we be offering? ■■ Chapter 5
■■ What roles should I have in my P3O unit and ■■ Appendix A
how big should it be? ■■ Appendix B
■■ How do I set the office up? ■■ Appendix C
■■ How do I improve the current P3O or add value? ■■ Appendix E
■■ Appendix F
P3O staff/roles within P3O   ■■ What is my role profile? ■■ Chapter 3
Programme and project managers ■■ What do we offer as functions/services? ■■ Chapter 5
■■ Where do I go to learn more about the ■■ Appendix A
standards we use? ■■ Appendix D
■■ What tools and techniques will help me do ■■ Appendix F
my job?

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 Introduction | 5

1.4 Recommended competencies/ Portfolio management should not just consider those
knowledge prerequisites programme and project commitments comprising the
organization’s change agenda, in terms of resources (i.e.
It is recommended that readers of this guidance have a money, people, infrastructure and other facilities), but
basic understanding of portfolio, programme and project should also consider the wider business picture taking
management principles. The guidance doesn’t set out to account of Business as Usual). Only by understanding and
replace existing guidance on portfolio, programme and appreciating the organization’s full suite of commitments,
project management; it has been developed to enhance i.e. corporate, programme, project and operational
and build on the challenge, enablement and support (Business as Usual), can a fully balanced business portfolio
structures referred to in existing OGC guidance. be achieved.

1.5 Organizational context of In this context Business as Usual is defined as the

things done to keep the business operating day to
portfolio, programme and
day. By understanding the demands on Business as
project management Usual, its lifecycles and key events, the delivery of
Many organizations operate in a complex environment, change through programmes and projects can be
with many programmes and projects being launched to timed and managed to ensure least disruption.
deliver change at any one time. A portfolio can formally
The process of developing a portfolio to deliver an
be defined as follows:
organization’s or department’s strategy will need to take
into account operational priorities as well as strategic
A portfolio is the totality of an organization’s
priorities. In defining the portfolio, existing operational
investment (or segment thereof) in the changes
programmes or projects that are not aligned to the
required to achieve its strategic objectives.
strategy may have to be realigned or terminated.
Operational programmes or projects may also be put
1.5.1 What is Portfolio management? on hold while higher-priority projects supporting the
Portfolio management is a coordinated collection of strategy are delivered. There will only be a finite amount
strategic processes and decisions that together enable of resource available to deliver both strategic and
the most effective balance of organizational change and operational change so there will need to be a balance to
Business as Usual. ensure scarce resources are deployed to best effect.

Portfolio management achieves this by ensuring that: In practice portfolio management is carried out at many
different levels in an organization, at the corporate level,
■■ Changes to Business as Usual are agreed at the
at directorate or divisional level and within business units.
appropriate management level and contribute to at
least one strategic objective
1.5.2 What is programme management?
■■ Strategic decisions are made based on a clear
OGC’s related guidance, Managing Successful Programmes
understanding of cost, risk, impact on Business as
(MSP) defines programme management as the action
Usual and the strategic benefits to be realized
of carrying out the coordinated organization, direction
■■ Resources and changes are prioritized in line with
and implementation of a dossier of projects and
the current environment, existing changes, resource
transformation activities (i.e. the programme) to achieve
capacity and capability
outcomes and realize benefits that are of strategic
■■ All changes are reviewed frequently in terms of
importance to the business.
progress, cost, risk, priority, benefits and strategic
alignment. A programme is defined as a temporary, flexible
Portfolio management involves the collection in one organization created to coordinate, direct and oversee
place of relevant information about the organization’s the implementation of a set of related projects and
investment initiatives, including programmes and projects, activities in order to deliver outcomes and benefits
related to the organization’s strategic objectives.
and aligning their delivery with strategic objectives,
business requirements and the organization’s capability,
MSP should be referred to for detailed guidance on the
capacity (to deliver change and adopt change) and
management of programmes.
maturity.

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 6 | Introduction

1.5.3 What is project management? and after transition. The latter group includes Service
Management teams, who are often forgotten in many
A project is also a temporary organization, usually change initiatives until the latter stages of delivery; these
existing for a much shorter duration, which will may include IT, HR or Finance.
deliver one or more outputs in accordance with a
specific Business Case. If a proposed change does not directly contribute to,
or underpin, the delivery of any of the organization’s
A particular project may or may not be part of a strategic objectives, or enable another change to benefit
programme. OGC’s related guidance, PRINCE2, should be such, it should not be started or allowed to continue.
referred to for the management of projects. Equally, if any existing change does not align to the
strategic objectives, it should be stopped. The exceptions
1.5.4 Relationship between Business as Usual, to this rule are ‘must do’ changes, such as regulatory
change and P3RM and statutory changes, or programmes and projects
that are necessary to ensure that Business as Usual can
The relationship between Portfolio, Programme, Project
continue to operate – i.e. the replacement of obsolete IT
and Risk Management (P3RM) and Business as Usual is
or other business systems or infrastructure. In these cases
represented in a simple concept – ‘Run the Business,
the objectives may need to be changed and priorities
Change the Business’. Figure 1.1 describes the model
reviewed.
highlighting how P3RM and Business as Usual are
integrated and collaboratively realize strategic objectives. Whilst change and Business as Usual may be regarded
as separate activities, they cannot survive without each
Strategic objectives other; also, the transition from one state to the other must
Managed benefits be actively managed. Therefore, any decisions relating to
either need to be made collaboratively by the appropriate
people at the correct decision-making level of the
organization.
One of the key benefits of using a P3O model is that it
Change the Run the Business provides the mechanism to ensure decisions are made at
Business the correct level in the context of Business as Usual and
Business as usual that the right mix of portfolio(s), programmes and projects
Portfolio management
are delivered.

1.6 What is P3O?

Managed programmes and projects P3O provides a decision-enabling/delivery-support model
for all business change within an organization. This may
Figure 1.1  ‘Run the Business, Change the Business’ be provided through a single permanent office, which
may exist under several different names, e.g. Portfolio
Portfolios, programmes and projects are undertaken to
Office (strategy/organization or business unit focused),
deliver change into an organization’s business operations/
Strategy or Business Planning Unit, Centre of Excellence,
delivery environment and the correct level of engagement
Enterprise or Corporate Programme Office, or be
with the wider business (i.e. corporate and operational
provided through a linked set of offices (Portfolio Office,
levels) is vital for success. The engagement may be
Programme Offices, Project Offices), both permanent
through ensuring the change delivers what business
and temporary, providing a mix of central and localized
operations needs and wants (strategy, business planning
services.
and scoping) and at a pace and to a timescale (planning)
that ensures least disruption to Business as Usual. Any There is no ‘one size fits all’ approach – the model to be
function such as P3O that provides support to change deployed in an organization will depend on:
portfolios, programmes and projects must therefore
■■ The vision and goals of both the organization and the
engage with business operations as effectively as it
P3O Sponsor (see Appendix A for a role description)
engages with the P3RM community. Two key stakeholder
■■ The business needs
groups are senior managers within an organization and
the operational delivery teams who will run the changed ■■ The portfolio, programme, project and risk
organization during the change, through transition management (P3RM) maturity of the organization

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 Introduction | 7

■■ The size of the resource pool Figure 1.2 may be the ideal, but in a small organization
■■ The numbers of programmes and projects being the P3O model may simply be a single individual acting
undertaken as a multitasking P3O officer. This is explored further in
■■ The wider organizational, political and cultural Chapter 3.
environment The key terms used throughout this publication are
■■ The business divisional/departmental structure and the defined in Table 1.2.
geographical location of staff
■■ The maturity of matrix management structures.

The size and complexity of the P3O model will vary

greatly between organizations. In a large government
department or large corporate the model outlined in

Organization
Portfolio Office
(permanent)

Centre of
Excellence
(may be a
separate
unit or a
function or
team within
the portfolio
Hub Portfolio / Hub Portfolio / and hub
Programme Office Programme Office programme
(permanent) (permanent) offices)

• Standards
• Skills/training
• Assurance
• Knowledge
management
Programme Office Project Office
for a specific for a specific
initiative initiative
(temporary) (temporary)

Figure 1.2  High-level outline P3O model

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 8 | Introduction

Table 1.2  P3O definitions within model

Model Definition
P3O model The total structure put in place to deliver functions and services across an organization or
enterprise through a single or multiple offices
Organization Portfolio Office Permanent office set up to support the definition and delivery of a portfolio of change
across the entire organization or enterprise.
Hub Portfolio/Programme Office Permanent office set up to support the definition and delivery of a portfolio of programmes
and projects within a department, division, geographical region or business unit.
Programme Office Temporary office set up to support delivery of a specific change initiative being delivered
as a programme
Project Office Temporary office set up to support delivery of a specific change initiative being delivered
as a project
Centre of Excellence (COE) A portfolio, programme and project management standards unit, which defines standards
(processes, templates and tools), skills and training, manages knowledge and may provide
independent assurance. The COE may be part of a Portfolio Office or exist as a separate
independent unit

Note: throughout this guidance, P3O refers to the P3O Its key role is to answer the questions – ‘Are the right
model and its constituent offices across the organization. things being done?’ If not, ‘What should be added,
removed or changed?’ ‘Can the time-to-decision cycle
Simply implementing a P3O model will not provide
be speeded up?’ In some organizations the key question
effective change governance support. It is the P3O
to ask may be ‘How can we stop doing so many of the
maturity that makes the difference, leading to
wrong things?’
improved organization success rates (getting better
at delivering strategy through change). A mature P3O The Portfolio Office will be responsible for advising
may have been in existence for many years, with senior management on the composition of the portfolio,
mature processes, trained experienced staff and senior its progress against plans and any conflicting priorities
management commitment. Organizations with mature (including impacts on business operations), risks and
P3Os are characterized by more effective sponsorship, issues. The Senior Management Board may have to make
accountability, competent and motivated staff, quality of hard choices about programmes, projects and resources
leadership and demonstrated value. A key attribute of a in the light of changing priorities. It therefore requires the
mature P3O model is higher morale among staff, both Portfolio Office to provide the challenge and scrutiny of
staff in P3O roles and those in programme and project portfolio information and recommend options/decisions
management roles. to support those choices. A Portfolio Office can add real
value by focusing decisions on the things that matter
However, even organizations with low maturity in
most to the organization or departmental board.
P3RM stand to gain much from a good P3O model, in
particular establishing an effective Portfolio Office to It is important that the Portfolio Office reports directly to
ensure the right things are done. More information on the a main board director or it will have insufficient influence
concept of maturity in portfolio, programme and project over investment decisions. If there is no commitment or
management can be found in Appendix E. ongoing consistent support from senior management
then the Portfolio Office will not be effective.
1.6.1 Portfolio, Programme or Project Office? A typical Portfolio Office provides the means to:
The P3O model will operate through Portfolio, Programme
■■ Establish a structure for selecting the right
and Project Offices, all of which may add value at different
stages of the portfolio, programme or project lifecycles programmes and projects for the organization
(see Figure 1.3). ■■ Ensure ongoing alignment of programmes and
projects with strategic objectives and targets
A Portfolio Office will provide the decision support behind
■■ Assess whether new requirements can be
successful portfolio management.
accommodated within existing organizational
capability, capacity and maturity

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 Introduction | 9

Portfolio/business lifecycle
Define delivery Identify
Deliver and
Vision, values strategy and initiatives, Prioritize and Business as
track business
and goals measures of programmes and build portfolio Usual
change
success (KPIs) projects

Portfolio Office functions and services

Programme lifecycle

Deliver Post-programme
Centre of Excellence Functions and Services

Policy, vision,
Identify Define capability Close Business as
strategy
Realize benefits Usual

Portfolio Office Portfolio Office

Programme Office (permanent hub or temporary)

Project lifecycle

Development Post-project
Mandate
Start-up Initiation through stage Close Business as
pre-project
gates Usual

Programme Office (may be a hub programme office for a division or department or a temporary Programme
Office where the project is a component of a temporary programme)

Project Office (temporary) or embedded support staff

Figure 1.3  P3O model aligned to portfolio, programme and project lifecycles

■■ Allocate the right resources to the right programmes ■■ Adopt value management – active management of
and projects the portfolio to optimize value, realize benefits and
■■ Ensure scrutiny and challenge feed back learning into the investment selection and
■■ Identify and manage dependencies between portfolio prioritization process
programmes and projects ■■ Achieve value-for-money savings and efficiency gains
■■ Resolve conflicts and contentions for scarce and from programme and project rationalization
costly resources (these could be technical or business ■■ Ensure the organization has a balanced portfolio, with
resources as well as change resources) consideration given to the ability of the organization
■■ Assist with identification of threats and opportunities to absorb change with least disruption to Business as
and evaluate the true implications of the aggregate Usual
level of programme and project risk ■■ Link change benefits to the Performance Management
■■ Monitor progress of programmes and projects against structure
key objectives ■■ Ensure investment in Research and Development
■■ Ensure ongoing successful delivery of programmes activities for the long-term survival of the
and projects organization.

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 10 | Introduction

Whereas the key role of a Portfolio Office is identified ■■ They define the right changes as those changes
as ensuring the ‘right’ things are delivered, there is that align best to the strategic objectives and, at
also a requirement to ensure that change is delivered that particular time, attract acceptable levels of risk,
consistently and well, through standard processes and complexity, cost and impact on Business as Usual
trained competent staff. This consistency of delivery is ■■ They are usually permanent and align with corporate
often provided by a Centre of Excellence (COE), which financial governance structures and decisions. Ideally
provides standards, consistency of methods and processes, they should have direct contact with the Senior
knowledge management, assurance and training across Management Board
the full portfolio of change. This may be a team or
A Portfolio Offices is not simply a bigger Programme or
function within the Organization Portfolio Office or may
Project Office.
be set up as a separate office. When a new programme
or project is set up, the COE is the first place to go to get
methods, tools, training, or advice and to seek guidance 1.7 P3O history
on any lessons learned on previous similar changes.
Project (and Programme) Offices have been in existence
Throughout the programme or project, and at the end of
in some form (and under many different names) since
it, this is also the team you go back to with your lessons
the introduction of project management as a disciplined
learned that can be used for future teams. In this way,
approach to managing change. Initially this began in
the organization carries on up the maturity curve for
construction and engineering projects; however, the
programmes and projects.
biggest growth in programme and project support
When a specific change initiative is launched as a came through the development of project management
programme or project, it may require its own temporary in IT and technology departments. With the advent of
Programme or Project Office. This may be resourced PRINCE2 in 1996 and the shift of emphasis to business-
from an organization-wide permanent Portfolio Office, based change programmes and projects, Project Offices
or a local Hub Portfolio/Programme Office (based on expanded their remit from the disciplines of planning, risk,
business units, divisions, departments or geographic issue and change support and administration to include
regions) that provides resources and standards for more focus on a standards and assurance role. Business
the life of the programme or project. The temporary units also saw the value in using Programme or Project
Project or Programme Office may support the project or Offices to assist in the prioritization of limited spend and
programme manager and relevant board with planning, using resources more effectively.
risk management, issue resolution and change control, or
In the 2000s the shift to Portfolio Offices has been driven
act as information librarian. On small projects the support
by organization-level offices asking ‘Are we doing the
may simply be provided by a multitasking project support
right things?’ and ‘Are we getting the benefits from our
officer.
investment?’ During the same period the P3RM tool and
In some organizations the P3O model will exist as methods markets have matured, as have organizational
a virtual model. This can occur at both ends of the Performance Management tools, allowing the aggregation
maturity spectrum. In immature organizations individuals of programme and project performance data to allow
may have been appointed to act in a Programme or strategic and business-level analysis to be undertaken.
Project Office role but they are not allied to a single line
Both PRINCE2 and MSP have contributed to increasing
manager and do not work to consistent standards. In
numbers of both Centre of Excellence offices, providing
mature organizations where matrix management is well
consistency of approach through standards, and
established, individual roles/pockets of excellence may
temporary Programme and Project Offices, established to
exist under business line management with virtual links to
support a specific change initiative.
an organization P3O network.
Portfolio Offices differ from Programme and Project Offices
1.8 P3O evolution and maturity
in that:
When a new P3O model is established, its vision and
■■ They are primarily concerned with doing the
scope are often unclear and the offices are resourced
right changes, whereas programme and project
with a mix of individuals (more often under-resourced
management office are primarily concerned with
or resourced with the incorrect skill sets). In many cases
doing the change right
the office is led by a ‘champion’ with a personal vision of
what the office needs to achieve, who then has to find

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 Introduction | 11

resources to help deliver that vision. Individuals brought organization. The whole tone and approach is set by the
into the P3O are often selected simply because they are person at the top.
available, not necessarily because they have been trained
These concepts are explored further in Chapter 3.
for the role.
This is not a criticism; it is a fact of life for many P3Os that
1.9 Governance and control
they do not reach or deliver their full potential because
they find themselves endlessly having to justify their The P3O model underpins organizational governance
existence, rather than being allowed to contribute to the and control that runs through all change programmes
delivery of organizational objectives. What many senior and projects within an organization and the transition
managers fail to appreciate is that a mature and effective of change into business operations. Formal decision
P3O model adds real value by helping management to enablement rules – who makes what decisions, when
reduce risk, effect control and also support the delivery of and what information do they require – should be
change. developed, and the P3O model is responsible for ensuring
information is escalated and cascaded appropriately
A mature P3O model costs less to operate as a percentage
through the different levels of the portfolio, programme
of overall portfolio spend, and adds value both to staff
and project management environment. This should drive
and to its customers.
appropriate decisions to main board level.
P3Os evolve over many months and years, and the
Where a single P3O unit exists, this may be easier to
best have been planned to lead the evolution in P3RM
implement. Where multiple offices exist in an overall P3O
maturity across an organization (or department) and
model, both permanent and temporary, then rules should
similarly evolve their own individual competencies,
be established regarding levels of plans; dependency
functions and services.
tracking; examination and escalation of risks, issues and
In an immature or new P3O, the services and functions changes; and roll-up of progress information.
offered are limited to data gathering, reflecting the lack
Overall the intention is to ensure the right decision is
of competency of individuals, whereas in a mature P3O,
taken by the right person or group, based on the right
individuals will possess the competencies to offer a wider
level of supporting information. There should be a single
range of functions/services, challenging and using the
source for any piece of data, which is then amalgamated
data gathered. Functions and services are tailored to
appropriately through the layers of governance and
individual programmes and projects with an underlying
decision-making.
performance culture. See section 3.6 for more on desired
skills and competencies. The same rigour should be applied to restraining
decisions, ensuring stage gates are not passed through
Mature P3O models provide:
without the appropriate authority and sign-off, ensuring
■■ Governance – supporting governance (including Management Boards are equipped with progress reports,
structures and accountabilities) through scrutiny and exception reports and options.
challenge, ensuring return on investment through
P3Os should provide a comprehensive set of data
effective management of delivery and risk
to enable governance decisions and be resourced
■■ Transparency – relevant, accurate and timely with individuals with the right level of expertise and
information (single source) to support decision-making competence to advise management boards appropriately.
■■ Delivery support – ensuring programme, project
managers and operational business managers do Where a Centre of Excellence (COE) exists it should define
things right (competency and skills) and do them well the standards to be applied to information management
(assurance), reducing bureaucracy and encouraging and provide appropriate tools to allow for ease of roll-
consistency up of information. The COE should also define standard
methods of working (such as tailored uses of MSP,
■■ Reusability – embedding industry and sector best
PRINCE2 and M_o_R) and assure their use across the
practice and sharing lessons learned
portfolio.
■■ Traceability – history and documentation.
An example of enabling consistency of decision-making
The best P3Os are led by a senior P3RM or strategic/
is to have a single approach to the setting of traffic-light
business planning professional (dependent on the focus
alerts across the portfolio of change, based on agreed
of the P3O unit) with the influence, experience and
tolerances.
credibility to gain commitment from all levels in the

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 12 | Introduction

1.10 Best-practice guidance an organization, and MSP should be used to define and
manage the change. P3Os also exist to support MSP
P3O is part of a suite of guidance (see Figure 1.4)
programmes.
developed by OGC, aimed at helping organizations and
individuals manage their projects, programmes and
1.10.3 Managing Successful Projects with
services. Where appropriate, this guidance is supported
by a qualification scheme and accredited training and PRINCE2
consultancy services. PRINCE2 is a structured method to help effective project
management. Adopting a structured project approach is
Although this guidance has been written to align to
necessary in successfully managing a P3O model. Using
OGC standards, P3Os will exist in organizations where
PRINCE2 to support standard approaches across projects
other bodies of knowledge, standards and methods
will significantly improve chances of success.
are deployed. This guidance can readily be adapted to
suit any organization regardless of P3RM language or
1.10.4 Management of Risk: Guidance for
standards in use.
Practitioners (M_o_R)
For details of other sources of P3RM reference material, Portfolios, programmes and projects exist in a
please see the Further Information section. fundamentally uncertain world and, as such, effective
management of risk is crucial to managing the
1.10.1 Portfolio Management Guide (PfM) delivery of the strategy, outcomes, benefits and
This guidance has been developed by OGC to provide outputs. Management of the portfolio’s risk exposure
a strategic understanding of PfM, including the key and promoting good risk-management practices for
principles and practices, aligned to other OGC guidance. programmes and projects are key functions of the P3O,
and M_o_R puts the management of risk into the context
1.10.2 Managing Successful of the wider business environment.
Programmes (MSP)
MSP is a proven programme management good practice 1.10.5 OGC Gateway™ Review Process
in successfully delivering transformational change, OGC Gateway™ is a well established Programme and
drawn from the experiences of both public and private Project Assurance review process that is mandated for all
sector organizations. Setting up and developing a P3O UK government IT, construction or procurement-enabled
model involves transformational change at all levels in programmes and projects. OGC Gateway delivers a ‘peer

Common Glossary (updated)

Models Guides

Portfolio,
Programme OGC
M_o_R® ITIL®
Portfolio and Project GatewayTM
Programme Offices
and Project (P3O®)
Management
Maturity Model Portfolio Management Guide
(P3M3TM)
MSPTM Programme Management

PRINCE2®
PRINCE2® Project Management
Maturity
Model
(P2MM) Achieving Excellence in Construction

Figure 1.4  OGC best-practice guidance

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 Introduction | 13

review’, in which accredited independent practitioners P2MM is a project management maturity model focused
from outside the individual programme/project use their on PRINCE2 processes and language. It is fully embedded
experience and expertise to examine progress and assess within PjM3.
the likelihood of successful delivery of the programme or
project. They are used to provide a valuable additional 1.10.8 Achieving Excellence in Construction
perspective on the issues facing the internal team, and Through the Achieving Excellence in Construction
an external challenge to the robustness of plans and initiative, central government departments and public
processes. sector organizations commit to maximize, by continuous
Gateways give a measure of assurance based on the improvement, the efficiency, effectiveness and value for
professional assessment of the reviewers on the ability of money of their procurement of new works, maintenance
the programme or project to deliver its aims and objective and refurbishment.
to time, cost, quality and requirements as in the Business
Case (Delivery Confidence Assessments).
This service is based on good practice and there are many
similar examples across all business sectors of this type of
peer review, designed to provide assurance to the owner
of the programme or project.
P3O units often provide the coordination service and
assurance support to a Gateway Review and may be
organizing and coordinating multiple Gateway Reviews at
any point in time. Full details of the OGC Gateway Review
Process are available from the OGC website.

1.10.6 Service management – ITIL (the IT

Infrastructure Library)
A well-managed transition of business change outcomes
into Business as Usual is a crucial part of the P3O
approach, and sits comfortably alongside ITIL’s service
management practice, both for managing this transition
and for the future realization of the benefits in the long
term via ongoing service management.

1.10.7 Portfolio, Programme, Project

Management Maturity Model – P3M3
The P3M3 maturity model has been created to enable
organizations to measure themselves against a set
of standard processes and to create performance
improvement plans to enable focused continuous
improvement. P3O enables improved maturity within an
organization through its standardization of processes,
consistency of approach and knowledge management
approach. How an organization scores against the P3M3
model can be a good indicator of its ability to adopt
advanced P3O functions.
The P3M3 maturity model is made up of:
■■ Overview
■■ PjM3 – Project Management Maturity Model
■■ PgM3 – Programme Management Maturity Model
■■ PfM3 – Portfolio Management Maturity Model.

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