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IT Portfolio and Program Management- Interview with an expert

IT Portfolio and Program Management: An Intricate and Complex System within a Company

In a company, IT portfolio and program management is a highly intricate and complex system. Projects, portfolios, or programs can span different areas and sectors of the company. Zoltán Tordai, the head of the MOL Group IT Strategic Program Planning team, started as an IT project manager eight years ago and also served as the Corporate ERP portfolio manager for a long time. Therefore, he has comprehensive insight into project, portfolio, and program management. Below, you can read excerpts from the interview with him. The full interview can be heard in the latest episode of the PMO Club Podcast. This episode is particularly recommended for those interested in practical examples related to the topic from the head of the MOL Group IT Strategic Program Planning team and the host, Zoltán Sándor, CEO of Profexec Services.

LET’S START FROM THE BEGINNING

To understand the processes and connections, let’s define the following:

PROJECT: Any work that takes more than five days to complete and may require external resources qualifies as a project, which is always specialized in solving a problem. A budget request and approval are always necessary for a project to commence. There are smaller or “mini” projects that can be completed within 100 days. A company can launch hundreds of unique projects in a year. Projects are typically composed of a project team led by a project manager. Projects are created during the business need development phase.

PORTFOLIO: These are formed along business lines and areas. A portfolio can encompass multiple areas simultaneously. It involves prioritizing tasks, scheduling, managing dependencies, resource budget management, resource allocation, and more. Portfolios are usually very complex and intricate. A portfolio manager can be involved in up to 100-120 projects in a year.

PROGRAM: Created to achieve a strategic goal. It defines which projects need to be executed to meet the set goal within two to three years. Planning usually starts with creating a roadmap. Program management includes checking the impact of projects on each other, typically on a monthly basis.

Projects, portfolios, and programs are constantly interconnected and influence each other. A simple example is if a problem arises in a project, it can delay the entire program. Therefore, continuous monitoring of projects is essential to ensure everything progresses properly.

THE STRUCTURE OF A PROGRAM

Essentially, a project, program, or portfolio starts not from the project but from the strategy. Every program’s planning begins with a defined strategic direction or goal, which is then broken down. The inclusion and criteria for projects in a program depend on many factors. It’s crucial to see that in a program, almost every project is interrelated, and often one project’s outcome affects another within the same program.

One critical aspect of project planning and prioritization is that all projects within a program must finish simultaneously since the goal needs to be achieved at the same time.

Additionally, the grouping of projects can be determined by the competencies of the employees.

MANAGEMENT QUALITIES

The risk factor is the most defining difference among the three management levels. The uncertainty factor is lowest at the project management level. In this position, the answers are clearer as the next steps are more foreseeable. A project manager has a good overview of the entire project schedule and also handles many administrative tasks.

In contrast, at the program management level, even with a high-level map, the direction can change frequently. This is natural as many factors may arise over time. Organizational or market environments can also change, restructuring the entire program. It is essential for a program manager to handle these changes appropriately and effectively.

A portfolio manager needs to have an overall view. They must continuously monitor whether projects are progressing properly. If prioritization within an area is challenging, they need to assist. Thus, this role involves more stakeholder management compared to project management, and the tasks differ significantly from those of a program manager.

Interestingly, within the MOL Group, they have solved communication between areas by using a large central system. All data needed by different areas can be extracted from this database.

PRIORITIZING PROJECTS

There are many projects, and prioritizing them is not simple. Typically, projects are prioritized based on the following factors:

  • Simplicity in complexity
  • Higher profitability
  • No need to involve external labor or hire new staff
  • Low operational costs

This order can change continuously throughout the year and usually does. Projects are reviewed quarterly, and if necessary, re-prioritized.

AND WHERE IT ALL STARTS

The defined business strategy is the basis for breaking down goals across different areas. In some places, this is fully given and defined, while in others, a complete plan needs to be created to achieve the desired goal. If this is not fully defined, joint brainstorming sessions lasting weeks may be necessary to develop the steps. At MOL Group, every in-house IT roadmap must support business needs. These can also change over time as they pertain to long-term plans.

Stay and learn with us in both current and future episodes of the PMO Club Podcast!

For more useful professional content, follow our podcast and visit our website: https://profexec.com/

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