PROJECT PORTFOLIO

Project Portfolio

Abstract

PRINCE21 is now recognised as a world-leader in project management methodologies. However, the reality of moving from textbook PRINCE2 to a practical implementation can be a daunting task. This case study examines a series of Principles and Guiding Strategies and how I have applied them in a practical situation to build on the base provided by PRINCE2 enabling the organisation to obtain the maximum benefits from the methodology in the shortest timeframe. The Principles are:

Simplicity

Realism

Flexibility

The Guiding Strategies are:

Build the whole picture

Match to business

Top down and bottom up

Constant improvement

The successful practical application of these Principles and Guiding Strategies resulted in the organisation moving from an ad-hoc, minimalist project management approach to an environment where there is a valued methodology embraced by project managers and the organisational project management maturity is showing significant ongoing improvement. (Young 2003 102)

Background

PRINCE2 is now regarded as a world-leader in project management methodologies with 200,000 people having taken the qualifications. It originated in the United Kingdom and now has a large established base there, in Europe and increasingly in Australia. A 2006 report reviewing ICT governance in the UK Government defined PRINCE2 as the standard project management methodology to be used across all private sector organizations.

PRINCE2 is a structured approach to project management, released in 1996 as a generic project management method. It combined the original PROMPT methodology (which evolved into the PRINCE methodology) with IBM's MITP (managing the implementation of the total project) methodology. PRINCE2 provides a method for managing projects within a clearly defined framework. PRINCE2 describes procedures to coordinate people and activities in a project, how to design and supervise the project, and what to do if the project has to be adjusted if it does not develop as planned. (Watson 2002 102) There was a good understanding of the need for project management but the supporting processes and frameworks either did not exist or did not work well. The following disadvantages were noted:

Limited ability to track project costs, project outcomes and lessons learned

Inconsistent documentation leading to handover problems to operational areas

Non structured approaches meant limited ability to escalate issues

Limited capability to measure benefits for individual projects and across projects

Difficulty in performing longer term planning and in prioritising new work

Projects with incomplete closure (Reiss 1995 12)

Consequently a decision was made in November 2005 to move to a standard project methodology based on PRINCE2 and establish a Project Office with the objective of introducing and managing the standard methodology.

When changes are introduced to the project, the viability of the project has to be re-assessed. It is important not to lose sight of the initial goals and targets of the projects. When the changes accumulate, the forecasted result may not justify the original proposed investment in the project.

Project Portfolio

One of the first steps in the process was to send the majority of project managers to accredited PRINCE2 training. It quickly became apparent during this training that this alone would not lead to the outcomes desired by the ...