Project Portfolio Management: A Practical Guide to Selecting Projects, Managing Portfolios, and Maximizing Benefits

Foreword xi
Max Wideman

Acknowledgments xvii

The Author xxi

Introduction 1

Part One: A Practical Guide to Project Portfolio Management 11

Section One: What Is Project Portfolio Management, and Why Do We Need It? 13

1.1 Why Do We Need Project Portfolio Management? 15

1.2 What Is Project Portfolio Management? 22

Section Two: The Fundamentals of a Project Portfolio Management Process 29

2.1 Selecting Projects for the Pipeline 33

2.2 Maintaining the Pipeline 42

2.3 Executing Project Portfolio Management 52

2.4 Tools for Project Portfolio Management 59

2.5 Implementing Project Portfolio Management 78

Section Three: The Finer Points of Project Portfolio Management 85

3.1 Defining PPM: A Bridge or a Hub? 89

3.2 A Prequalification Process for Selecting Projects for the Portfolio 93

3.3 The Impact of Uncertainty on Projects and the Portfolios 99

3.4 Is There a Gorilla in Your Portfolio? Turning Opportunity into Value 109

3.5 Work Breakdown Structures for Risk and Strategies 115

3.6 An Introduction to Earned Value Analysis 123

Part Two: Contributed Chapters and Case Studies 133

Section Four: PPM Techniques and Issues: Portfolio Planning 135

4.1 Linking Strategy and Project Portfolio Management 137
K. C. Yelin

4.2 How to Determine the Value of a Project 146
Ray Trotta, Christopher Gardner

4.3 Using the Analytic Hierarchy Process to Improve Enterprise Project Portfolio Management 155
James Devlin

4.4 The Efficient Frontier Technique for Analyzing Project Portfolio Management 176
Mike Gruia

Section Five: PPM Techniques and Issues: Organizing and Implementing 183

5.1 Making the Case for Project Portfolio Management 185
Clifford B. Cohen, Randall L. Englund

5.2 The Role of Executives in Effective Project Portfolio Management 217
K. C. Yelin

5.3 Project Offices Are Key Components of IT Governance 228
Matt Light

Section Six: PPM Applications: Information Technology 233

6.1 A Summary of First Practices and Lessons Learned in Information Technology Portfolio Management 235
Federal CIO Council, Best Practices Committee

6.2 The Backbone System of IT Management and Governance: IT Management and Governance 101 267
David Hurwitz

Section Seven: PPM Applications: New Product Development 279

7.1 A Stage-Gate^® Idea-to-Launch Framework for Driving New Products to Market 281
Robert G. Cooper

7.2 Portfolio Management for Product Innovation 318
Robert G. Cooper

Section Eight: Applications: PPM for Theory of Constraint Advocates 355

8.1 Applying the Theory of Constraints to Project Portfolio Management 357
Larry Leach

Section Nine: Case Studies 391

9.1 Managing Your Technology Pipeline Portfolio Management Process and Its Evolution over Time 393
Rebecca Seibert

9.2 Using PPM to Ease the Hewlett-Packard– Compaq Merger 422
Don Kingsberry

9.3 Developing a PPM Capability at America Online 447
Rich Dougherty

9.4 EW Scripps: A Media Giant’s Portfolio Management Solution 456
Vanessa McMillan

Section Ten: What Others Are Saying About PPM 461

10.1 Beyond the Triple Constraints: Developing a Business Venture Approach to Project Management 463
Robert J. Graham, Dennis Cohen

10.2 From Overload to Productivity via Systematic Decision Making 474
James Schlick, Andrew Longman

10.3 The Seven Habits of Highly Effective IT Portfolio Management Implementations 482
Gil Makleff

10.4 Project Portfolio Management Basics 492
PMI Knowledge and Wisdom Center

10.5 Integrating Project Portfolio Management with Project Management Practices to Deliver Competitive Advantage 496
James S. Pennypacker, Patrick Sepate

Notes 507

Index 522