This case describes one company's approach to establishing a project portfolio management capability. It focuses on the practical methods used by United Illuminating Company (UI), a regional distribution utility that provides electricity and energy-related services in Connecticut, to migrate from a traditional functionally based project environment to a dynamic, crossfunctional business environment that manages projects for strategic advantage. The migration period addressed is approximately one year, which is the time it took to establish the fundamentals of Project Portfolio Management (PPM) into the organization. In the spirit of the continuous improvement approach to business, this effort is still in progress. UI, as a public electric utility, is transitioning to become a vital player in the new deregulated utility environment. In 2000, UI's senior management recognized that sustaining shareholder value called for improvement of business processes and the proper selection, prioritization, and delivery of projects. To achieve this goal meant more had to be accomplished with fewer resources, which often translated into overloaded personnel. Therefore, the limited resources available needed to be confirmed and applied to the most important projects. These projects would be noted by their clear objectives, strong business case and alignment to corporate strategy. UI's new President believed that the future success of the company lay with establishing a process-based organization with a network of internal centers of excellence, including project management. To that end, UI's project management center of excellence began to take shape in early 2001. An executive-level senior director was named of the newly formed process area that would shoulder the responsibility and leadership for establishing organizational competency in both project management and process improvement. The first challenges were to staff the project management area and develop a plan for capability improvement. While the area would embrace the activities commonly associated with centers of excellence and project management offices, it was decided that this area would best serve UI known as the Program Management Center (PMC). The success of UI's Project Portfolio Management System is based on several factors: • The business need was recognize by senior management, who endorsed change. • The value of the project management discipline had been proven in high-visibility projects. • Program level planning helps formulate the big picture and provides incremental direction for improvement. • Program activities are treated as short-term projects. • A common definition of project management terminology and straightforward procedures helped forge a solid foundation for the PPM system. • A viable communications plan helps keep the program alive. • Change goes forward only with the consensus of those involved in the change. • Finally, the PMC is careful to practice what it preaches, while it balances capability improvement with supporting major strategic projects. Source: Shaltry, P. E., Drew, E. J., & Horgan, B. (2002). Journey to project portfolio management: a case study. Seminars & Symposium. In the light of the project management challenges faced by United Illuminating Company in setting up a project management centre, critically discuss the guiding process for strategic and planning portfolio management.
This case describes one company's approach to establishing a project
capability. It focuses on the practical methods used by United Illuminating Company (UI), a
regional distribution utility that provides electricity and energy-related services in Connecticut,
to migrate from a traditional functionally based project environment to a dynamic, crossfunctional business environment that manages projects for strategic advantage. The migration
period addressed is approximately one year, which is the time it took to establish the
fundamentals of Project Portfolio Management (PPM) into the organization. In the spirit of the
continuous improvement approach to business, this effort is still in progress.
UI, as a public electric utility, is transitioning to become a vital player in the new deregulated
utility environment. In 2000, UI's senior management recognized that sustaining shareholder
value called for improvement of business processes and the proper selection, prioritization, and
delivery of projects. To achieve this goal meant more had to be accomplished with fewer
resources, which often translated into overloaded personnel. Therefore, the limited resources
available needed to be confirmed and applied to the most important projects. These projects
would be noted by their clear objectives, strong business case and alignment to corporate
strategy.
UI's new President believed that the future success of the company lay with establishing a
process-based organization with a network of internal centers of excellence, including project
management. To that end, UI's project management center of excellence began to take shape
in early 2001. An executive-level senior director was named of the newly formed process area
that would shoulder the responsibility and leadership for establishing organizational
competency in both project management and process improvement. The first challenges were
to staff the project management area and develop a plan for capability improvement. While the
area would embrace the activities commonly associated with centers of excellence and project management offices, it was decided that this area would best serve UI known as the Program
Management Center (PMC).
The success of UI's Project Portfolio Management System is based on several factors:
• The business need was recognize by senior management, who endorsed change.
• The value of the project management discipline had been proven in high-visibility
projects.
• Program level planning helps formulate the big picture and provides incremental
direction for improvement.
• Program activities are treated as short-term projects.
• A common definition of project management terminology and straightforward procedures
helped forge a solid foundation for the PPM system.
• A viable communications plan helps keep the program alive.
• Change goes forward only with the consensus of those involved in the change.
• Finally, the PMC is careful to practice what it preaches, while it balances capability
improvement with supporting major strategic projects.
Source: Shaltry, P. E., Drew, E. J., & Horgan, B. (2002). Journey to project portfolio
management: a case study. Seminars & Symposium.
In the light of the project management challenges faced by United Illuminating Company in
setting up a project management centre, critically discuss the guiding process for strategic
and planning portfolio management.
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