3 - Business Environment Terminology - Additional Info Flashcards
Governance
Typically relates to organizational policy and framework. It influences long term planning, portfolio management, and program management.
Strategic Planning
The practice by which a company looks into the future for the products or services it must have, typically 3-5 years in the future.
Strategic planning is used to identify and create portfolios of products or services. The portfolios are then decomposed into programs and/or projects which create products, services or results that benefit the organization.
Governance Domains
Governance Domains to consider when performing governance:
- Alignment
- Performance
- Risk
- Communications
Alignment
(Governance Domain)
Functions and processes to create and maintain an overall integrated governance structure and framework.
Performance
(Governance Domain)
Functions and processes for KPI’s (key performance indicators) to align with the realization of business value.
Risk
(Governance Domain)
Functions and processes to manage threats and opportunities in order to balance risk and reward.
Communications
(Governance Domain)
Functions and processes to exchange information, engage stakeholders, and drive organizational change.
Governance Focus
WHAT work is being done.
Management Focus
HOW work is being done.
Governance Functions
Governance has 4 functions -
- Oversight
- Decision Making
- Integration
- Control
Oversight
(Governance Function)
Processes/activities for guidance, direction, and leadership.
Decision-Making
(Governance Function)
Processes/activities for structure and delegation of authority.
Integration
(Governance Function)
Processes/activities for strategic alignment of programs and projects.
Control
(Governance Function)
Processes/activities for monitoring, measuring and reporting.
OPM
(Organization Project Management)
Gap Assessment - where you are vs. where you should be.
A strategy of framework that accomodates the alignment of project, program, and portfolio management practices with organization strategy and goals.
The framework can be adjusted as needed for the alignment of portfolios, programs or projects with organizational goals.
Implementing Governance Framework
4 steps for doing this -
- Assess
- Plan
- Implement
- Improve
Note the simillarities between implementation of governance framework and Six Sigma’s DMAIC (Define, Measure, Analyze, Improve and Control).
Assess
(1 - Implementing Governance Framework)
To review and analyze the current state of governance.
Plan
(2 - Implementing Governance Framework)
to plan for the desired future state of governance.
Implement
(3 - Implementing Governance Framework)
To execute the governance plan.
Improve
(4 - Implementing Governance Framework)
To review the state of governance and identify improvement opportunities.
Strategic (Long-Term) Planning
Strategic planning is the practice of planning for the products or services the organization will need in the future (typically in 3-5 years).
As the products or services are realized through projects, they are typically moved into organization operations.
Projects can be created as a result of market demand, legal needs, technology updates and customer or organizational needs.
Portfolio Components
Are aligned with the company’s strategy, can be prioritized, measured, and ranked, lend themsevles to grouping so they can be more effectively managed, and derive from company investment.
Portfolio Management
Focuses on doing the RIGHT work.
Identifies the interrelationships between programs and projects and allocates resources in alginment with company priorities.
Involves the coordinated managemenet of one or more portfolios to align with the overall strategic goals of the company.
As the portfolios are managed, programs within the portfolios will be defined and, within those programs, projects will be started. Projects, programs and portfolios will all contribute toward the achievement of the strategic business goals.
Portfolio
A group of programs and projects that are centrally managed to align with the company’s strategic plan.
A company could have multiple portfolios in order to achieve its strategic business goals and each portfolio could represent work being done for a particular product line; for a particular grouping of products; or by a particular group, division or branch of the company.
Program Management
Involves the coordinated management of the projects within a program to align with the strategic goals of the company.
As the portfolios are managed, programs within the portfolios will be defined and, within those programs, projects will be started.
Projects, programs, and portfolios will all contribute toward the achievement of the strategic business goals and delivery of benefits to the company.
Program
A group of projects that are in some way related.
Typically, a program is an overall large scope of work that involves multiple projects and is established to effect a better means of control at the program level than at the separate project level and to provide a benefit.
The benefit is a key differentiator between a program and its projects, as projects typically deliver products, services or results, NOT benefits.
Benefits Management
Involves the establishment of the benefits a program is expected to deliver to an organization.
The benefits may be tangible (physical and measurable) or intangible (not easily measured).