WRITE-UP ASSIGNMENT 01

PROJECT MANAGEMENT – II
20ACM22

2ND Semester (M.Arch) Sanjana Cholke

1. Write and explain in detail the maturity levels of organizations dealing with programs and
portfolios.
PORTFOLIO: A portfolio is a collection of programs, projects, or operations managed as a group to
achieve strategic objectives. The portfolio components may not necessarily to be interdependent or have
related objectives. The portfolio components are quantifiable, that is, they can be measured, ranked, and
prioritized.
A portfolio exists to achieve one or more organizational strategies and objectives and may consist of a set
of past, current, and planned or future portfolio components. Portfolios and programs have the potential to
be longer term with new projects rotating into the portfolio or programs, unlike projects that have a
defined beginning and end.

Portfolios, Program, Project – High Level View

If a portfolio is not aligned to its organizational strategy, the organization should reasonably question why
the work is being undertaken. Therefore, a portfolio should be a representation of an organization’s intent,
direction, and progress.
 Portfolio, Program and Project Management Interactions

PORTFOLIO MANAGEMENT: It is the coordinated management of one or more portfolios to achieve

organizational strategies and objectives. It includes interrelated organizational processes by which an
organization evaluates, selects, prioritizes, and allocates its limited internal resources to best accomplish
organizational strategies consistent with its vision, mission, and values. Portfolio management produces
valuable information to support or alter organizational strategies and investment decisions.

PORTFOLIO MATURITY LEVELS

In addition to evaluating project criticality and portfolio magnitude, each organization should also
consider at what level of caliber they need to perform at in order to be successful.
Level 1: It organizes work into discrete projects and tracks costs at the project level.
 Project decisions are made project-by-project without adherence to formal project
selection criteria. The project initiation process is undocumented and inconsistent.
 Roles and responsibilities have not been defined or are generic, and no value-creation
framework has been established.
 Only rarely are business case analyses conducted for projects, and the quality is often poor.
 Project proposals reference business benefits generally, but estimates are nearly always
qualitative rather than quantitative.
 There is little or no formal balancing between the supply and demand for project resources,
and there is little if any coordination of resources across projects, which often results in
resource conflicts.
 Over-commitment of resources is common, and projects schedules often slip.

Level 2: Basics
 Projects in the pipeline are reviewed for redundancies, stalled projects and other potential
areas for cost savings. Redundant projects are identified and eliminated or merged. Stalled
projects are eliminated or the reasons they are stalled corrected.
 Business cases are conducted for larger projects, although quality may be inconsistent.
 A resource inventory will be established that identifies the skill-categories of employees and
their current and future availability.
 Individual departments may be establishing structures to oversee and coordinate their
projects.
 Planning is mostly activity scheduling with limited performance estimation.
 Project interrelationships will be recognized from a technical perspective, with inter-related
projects organized into and managed as programs.
 Risk analysis may be conducted early in projects but is not maintained as an ongoing
management process. Uncertainties in the project schedule, cost and benefits are not
quantified.
 Schedule and cost overruns are still common, and the risks of project failure remain large.
Level 3: Value Management
 Portfolio management can demonstrate that its role in scrutinizing projects has resulted in
some initiatives being stopped or reshaped to increase portfolio value.
 Project plans are developed to a consistent standard and are outcome- or value-based.
 Effective estimation techniques are being used within planning and, at least for larger
projects, a range of project alternatives are routinely considered.
 There is a common, consistent practice for project approval and monitoring.
 Project dependencies are identified, tracked, and managed.
 Portfolio data are kept up-to-date and audit trails are maintained.
 Costs, expenditures, and forecasts are monitored at the portfolio level in accordance with
established guidelines and procedures.
 There is a defined risk assessment and management process, with efforts appropriate to risk
significance, although some sources of risk are not quantified in terms of probability
and consequence.

Level 4: Optimization
 It is characterized by mature processes, superior analytics, and quantitatively managed
behavior.
 The business processes of value creation have been modeled and measurement data is
collected to validate and refine the value model.
 The organization's tolerance for risk is known quantitatively and used to guide decisions that
determine the balance of risk and benefit across the portfolio.
 There is clear accountability and ownership of risks.
 Senior executives are committed, engaged, and proactively seek out innovative ways to
increase value.
 There is trend reporting on progress, actual and projected cost, value, and level of risk.
 Assessments of stakeholder confidence are collected and used for process improvement.

Level 5: Core Competency

 Portfolio management processes are proven and project decisions, including project funding levels
and timing, are routinely made based on the maximization of value.
 Processes are continually refined to take into account increasing knowledge, changing business
needs, and external factors.
 Portfolio management drives the planning, development, and allocation of projects to optimize the
efficient use of resources in achieving the fundamental and strategic objectives of the organization.
 High levels of competence are embedded in all portfolio management roles, and portfolio
management skills are seen as important for career advancement.
 Portfolio gate reviews are used to proactively assess and manage portfolio value and risk.
 Portfolio management informs future capacity demands, capability requirements are recognized, and
resource levels are strategically managed.
SWOT ANALYSIS
Strengths: The factors that may contribute to strengths of the organization include the availability of
resources, and their performance ability. The resources are analyzed according to the capacity to
acquire required resources, and the efficient deployment of resources. Ability is evaluated by the
capability to adjust according to environment, maintenance of persistent market growth, and the
ability to produce or enter new markets.
Weakness: The organization’s weaknesses are established through failures, losses, and the
incapability to respond to market changes. Causes of weaknesses could be weak managerial
proficiency, poor quality, obsolete technology, inefficient systems, or inadequate resources. Other
reasons are unfavorable business location, inefficient market strategy, and bad reputation. Analysis
of weaknesses will determine the management strategy to develop and implement the remedial
measures.
Opportunities: Opportunities are normally ample. However, a plan needs to be developed to use
these opportunities efficiently, and at the appropriate time. The plan should include proper definition
of the service or product, target markets, resources required, returns anticipated, and the risk
tolerance. Weaknesses of the competitors are opportunities that can be availed by a proper focus on
such areas, and employing a suitable strategy to obtain maximum advantage. Alternatively, the
organization’s strengths may be used to create a joint venture with the opponents.
Threats: Threats occur from economic, social, political, or technological reasons. Technological
advancements may render the organization technology as obsolete. Change in market conditions due
to changed customer requirements, or political environment may be potential threats for an
organization.

WAYS TO IMPROVE ORGANISATIONAL MATURITY

 Set the right objectives
 Understand the objective and value proposition for each project and program.
 Establish organizational capabilities to manage the work of a project or program.
 Optimize and manage risk.
 Prepare the organization to effectively manage change. 
 Document robust governance procedures.

PORTFOLIO STAKEHOLDERS
Portfolio stakeholders are individuals or groups whose interests may be positively or negatively
affected by portfolio components or portfolio management processes. They may also exert influence
over the portfolio, its portfolio components, processes, & decisions. The level of involvement by
stakeholders may vary from organization to organization or from portfolio to portfolio within an
organization.
Depending upon the size & type of the organization as well as project & program management
practices, certain stakeholders may be specifically identified according to the goals & risk
management strategies for the portfolio.
Stakeholders may include but are not limited to CEO & other executives, functional management,
operations management, legal, finance, human resources, PMO, & Program/Project teams.

PORTFOLIO BUSINESS VALUE

Business value is a concept that is unique to each organization. Business value is defined as the
entire value of the business – the total sum of all tangible & intangible elements.
Successful business value realization begins with comprehensive strategic planning & management.
Portfolio management aligns components (programs, projects, or operations) to the organizational
strategy, organized into portfolios or sub portfolios to optimize project or program objectives,
dependencies, costs, timelines, benefits, resources and risks.

PROGRAM: A program is defined as related projects, subsidiary programs, and program activities
managed in a coordinated manner to obtain benefits not available from managing them individually.
Programs deliver their intended benefits primarily through component projects and subsidiary programs
that are pursued to produce outputs and outcomes. The components of a program are related through their
pursuit of complementary goals that each contribute to the delivery of benefits.

Portfolios, Programs, Projects & Organizational Strategy

PROGRAM MANAGEMENT: Program management is defined as the application of knowledge, skills,

and principles to a program to achieve the program objectives & to obtain benefits & control not available
by managing program components individually. It involves the alignment of program components to
ensure that program goals are achieved & program benefits are optimally delivered.
PROGRAM MATURITY LEVELS

Initial: Ad hoc, even chaotic, approach to product development and work practices. Few processes
are defined, and success depends on individual effort and heroics.
Repeatable: Basic project management processes are established to track cost, schedule, &
functionality. The necessary process discipline is in effect to repeat earlier successes on projects with
similar applications.
Defined: The processes for both management and engineering activities are documented,
standardized, & integrated into a standard management process for the organization. All projects use
an approved, tailored version of the organization’s standard management process for project and
maintenance work.
Managed: Detailed measures of the organization’s processes & product quality are collected. Both
the processes & products are quantitatively understood & controlled.
Optimizing: Continuous process improvement is enabled by quantitative feedback from the
standard management process & from piloting innovative ideas & technologies.

SWOT ANALYSIS
Strength: By strengths it means the resources, products, and capabilities available which enable you
to achieve a competitive advantage.
Weakness: Weaknesses are the opposite of strengths, or even just the absence of strengths in
particular areas.
Opportunity: Examining the external environment may result in identifying new opportunities.
Another way to approach this is to examine already completed strengths and determine if any of
them could evolve into opportunities. Additionally, the organization could examine the weaknesses
to see if resolving any of them would lead to opportunities. 
Threat: The organization examines what changes in the external environment could pose a threat.

PROGRAM BUSINESS VALUE

Organizations employ program management to improve their abilities to deliver benefits. In
noncommercial organizations, benefits may be delivered in the form of social value (for example,
improved health, safety, or security). In commercial organizations, it is common for organizational
benefits to be delivered in the form of business value.
Program management enables organizations to more effectively pursue their strategic goals through
the coordinated pursuit of projects, subsidiary programs, and other program related activities.

PROGRAM STAKEHOLDERS
The level of interest & the level of influence in the program may vary widely from stakeholder to
stakeholder. A stakeholder may be unaware of the program or, if aware, may not support it. It is the
responsibility of the program manager to expend sufficient time & energy with known stakeholders
to ensure all points of view have been considered & addressed. The program manager interacts with
stakeholders in the following ways:
 Engages stakeholders by assessing their attitudes & interests toward the program & their
change readiness.
 Includes stakeholders in program activities & uses communications targeted to their needs,
interests, requirements, expectations, & wants, according to their change readiness &
selected organizational change management strategy speed & scale;
 Monitors stakeholder feedback within the context & understanding of the relationship to the
program; and
 Supports training initiatives as needed within the context of the program or related
organizational structure of the program component.
The 2 way communication enables the program manager to deliver the benefits for the organization
in accordance with the program charter.

REFERENCES
 The standard for Program Management – 4th Edition.
 The standard for Portfolio Management – 3rd Edition.
 The Standard for Project management and a Guide to the Project Management body of
knowledge -7th Edition
 The Standard for Project management and a Guide to the Project Management body of
knowledge - 6th Edition.
2. Explain the importance of project deliverables like project charter and PMP.

PROJECT CHARTER: It is a document that formally authorizes the existence of a project &
provides the project manager with the authority to apply organizational resources to project
activities. The key benefit of this is that it provides a direct link between the project & strategic
objective of the organization, creates formal record of the project, & shows the organizational
commitment to the project.

IMPORTANCE OF PROJECT CHARTER

 It gives an authority to the project manager to complete the project

 Explains the business importance and existence of project.
 Demonstrates Management support for the project.
 Defines outcome for the project.
 Aligns project with the organization objectives.
 Provides a team with a clear concise reporting system.
 Protects team members from scope creep.
 Helps in avoiding disagreements between stakeholders.
 Authorizes the existence of the project or establishes the project.
 Defines the parameters within which the project manager is authorized to operate.
 Gives the project manager authority to spend money and procure resources.
 Provides the high-level requirements for the project.
 Links the project to the ongoing operations of the organization.

ELEMENTS OF PROJECT CHARTER

 Purpose: To be assembled from Problem and Goal Statements.

 Value: To be assembled from the Business Case.
 Scope: To be assembled from the high level business flow
 Team: To be decided as per the roles before beginning the project.
 Schedule: To be prepared as per the time frame provided at the beginning of the project.

PROJECT MANAGEMENT PLAN

A project management plan is the process of defining, preparing, & coordinating all plan components &
consolidating them into integrated project management plan. The key benefit of this process is the
production of a comprehensive document that defines the basis of all project work & how the work will
be performed. This process is performed once or at predefined points in the project.
ELEMENTS OF PROJECT MANAGEMENT PLAN

 Scope statement
 Executive summary
 Project schedule
 Project Budget
 Resource Planning
 Stakeholder List
 Communication Management
 Risk register
 Procurement Plan

IMPORTANCE OF PROJECT CHARTER

 It Serves as a Starting Point for Your Project.

 The Project Is More Organized.
 It Lays Down the Project’s Scope in Detail
 It Provides for More Efficient Project Management It Instills Confidence in Your Endeavor.
 Project Planning Identifies And Reduces Potential
 Risks Minimizing Project Failure Rates 
 Improved Communication 
 Improve Project Control
 Improves Resource Allocation 
 Keeps Project On Course 
 Plans increase profitability
 Plans prevent team overload
 Plans create accountability
 Plans unite and focus teams
 Plans drive communication
 Plans minimize stress
REFERENCES
 The Standard for Project management and a Guide to the Project Management body of
knowledge - 6th Edition.
 The Standard for Project management and a Guide to the Project Management body of
knowledge -7th Edition