Appendix B: PPM Maturity Model

Enhancing portfolio management capabilities is an important piece of an organization’s overall project management maturity. PM Solutions’ Project Portfolio Management (PPM) Maturity Model is built around eight essential components of portfolio management. Hie PPM Maturity Model has five distinct levels of maturity and examines an organization’s implementation across the eight project portfolio management components. Hie five levels of PPM maturity are described below for each level of the model.

Project portfolio management in the Adaptive/Agile Environment can be utilized at any level of the organization from a single product to the enterprise. Hie principles of portfolio management in the PMI“ portfolio management standard are universal and applicable to an Adaptive/Agile Environment. In fact, PPM using Lean/Agile approaches, tools and techniques can be simpler due to reduced process, management and administrative overhead. Hie product and enterprise levels share the foundation and goal of strategic alignment and delivering value. Strategy is the basis for goals and objectives that are aligned to the product roadmap and associated technology roadmaps to identify strategic business objectives from which Hiemes are derived. Hiemes are specific business goals that span the organization. These are decomposed into Epics, which are containers for initiatives of significant size to fulfill a Hieme that creates the most value for the organization. Epics are of sufficient investment size that they require a business case, such as the Epic Brief, and budgetary endorsement before execution. Epics are typically 3—9 months in duration. At the enterprise level, organizations can implement a scaled framework such as PMI’s Disciplined Agile Enterprise (DAE) or Scaled Agile Framework (SAFes) providing a foundation to scale not only PPM but all aspects of Agile across multiple organizations within an enterprise that leverages both Agile and Lean concepts.

Eight PPM Components

We identified eight components essential to developing an effective organizational portfolio management environment. These components are shown in Figure B.l. Tire descriptions below break these components down into their relevant subcomponents.

B.1 The Portfolio Management Maturity Model is organized into the eight component areas shown here. Agile/adaptive capability is scored within each of these components

Figure B.1 The Portfolio Management Maturity Model is organized into the eight component areas shown here. Agile/adaptive capability is scored within each of these components.

Portfolio Governance

Portfolio governance addresses the organizational and decision-making processes used to manage and review a portfolio of projects. It includes establishing and maintaining the structure and procedures, conducting the ongoing assessments, and pursuing improvement of the portfolio. Hie portfolio governance component ensures that the projects undertaken by the organization are aligned with its vision, strategy, and objectives. Hie portfolio governance subcomponents are:

Portfolio Governance Process

Governance processes ensure that procedures exist to charter portfolio review boards at different levels within an organization. Additionally, board procedures are analyzed and improved when possible to optimize board members’ decisionmaking actions.

Alignment to Organization Strategy and Objectives

Strategic criteria are developed to ensure that projects within the portfolio are aligned with standardized objectives to maximize the efficiency of invested capital. For the mature organization, the criteria should be measured against industry standards to ensure the competitiveness of the business.

Roles and Responsibilities

Clear roles and responsibilities must be established to perform project proposal identification and assessment duties and defined for determining the business value of any proposal.

Portfolio Review Board

Portfolio review boards are established at each governance level to oversee the vetting of project opportunities, the execution of funded projects, and the determination of the optimal composition of portfolios. Processes exist to create, charter, and populate review boards. Review board operations and decision-making criteria are set by the organization-wide review board.

Adaptive/Agile Environment: Portfolio Governance

In an Adaptive/Agile Environment, the governance process shares the same objectives as in a predictive/traditional environment—ensuring alignment, maintaining the ability to execute, and achieving value to the organization. An Adaptive/Agile Environment is a more streamlined approach that aligns a product roadmap or Value Stream with defined Hiemes and Epics. Product management is responsible for governance at a product level. Within a scaled environment, responsibility rests with the executive, product and team levels of the Value Stream.

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