ISO/TC 258

N1

ISO/TC 258 ISO/TC 258 - Project, programme and portfolio management Email of secretary: karl.best@pmi.org Secretariat: ANSI (USA)

proposal for formation of TC

Document type: Date of document: Expected action: Background: Other committee document 2011-01-19 INFO This is the proposal for the creation of a new ISO TC for project, program, and portfolio management. http://isotc.iso.org/livelink/livelink/open/tc258

Committee URL:

ISO Central Secretariat

1, ch. de la Voie-Creuse Case postale 56 CH - 1211 Genve 20 Switzerland Telephone Fax E-mail Web + 41 22 749 01 11 + 41 22 733 34 30 central@iso.org www.iso.org

TS/P 214

TO THE ISO MEMBER BODIES

2010-07-15

ISO/TS/P 214 Project, programme and portfolio management

Dear Sir or Madam, Please find attached a proposal for a new field of technical activity on Project, programme and portfolio management submitted jointly by ANSI (USA) and BSI (United Kingdom). You will note that this is not issued on the usual Form 01 but in the Market relevance task force (MRTF) format as its development began during the MRTF pilot testing period which ended in April 2010. According to subclause 1.5.6 of Part 1 of the ISO/IEC Directives, you are kindly invited to complete the ballot form (Form 02) which can be downloaded at www.iso.org/forms and send it (preferably in Word format) to the Secretariat of the ISO Technical Management Board at tmb@iso.org before 15 October 2010. Yours faithfully,

Michael A. Smith Secretary of the Technical Management Board

Encl: TS/P 214

STAND TMB/HG/CL

PROPOSAL FOR NEW FIELD OF ISO TECHNICAL WORK (TSP) PROPOSED TITLE:
PROJECT, PROGRAMME AND PORTFOLIO MANAGEMENT

TSP Number 214 Date of circulation 2010-07-15 Proposer: ANSI/BSI

Document Number Closing date of voting 2010-10-15 Proposed secretariat: ANSI

REQUIRED PROPOSAL INFORMATION Note 1:

Proposals for new fields of ISO or IEC work or for new work item proposals within committees shall include the following fields of justification information (to be developed and submitted by the proposer) when relevant to the proposal (please note that the proposer is not required to provide all of this information if elements of it are not relevant to the proposal).

1.

The issue

(A simple and concise statement describing the business, technological, societal or environment al issue that the proposal seeks to address, preferably linked to the Strategic Business Plan of the concerned ISO or IEC committee in the case of a NWIP.) For many years there has been a great need for standardization in the project management domain. It was this need that brought the joint BSI and ANSI proposal for the establishment of ISO/PC 236 and the current development of ISO 21500. The Secretariat for ISO/PC 236 has been provided by ANSI with BSI providing the Chair. Project management system standards have broad application within all market sectors and within both private and public organizations. A distinction is made between financial portfolios and project portfolios -- the latter is used to tie organizational strategies to the successful outcomes of projects. There are two different theories for project management and both have their following. They can be broadly described as: Project management is seen as execution oriented, i.e. with no strategic implications. While this is very effective in the execution and delivery of projects many feel that it misses opportunities for efficiency and a more strategic approach. Project management, program management, and portfolio management are approaches that allow organizations within any market sector to connect their organizational strategy to successful project outcomes. These three areas are often referred to collectively as the project management field or simply as project management. The strategic management of projects, programmes and portfolios focuses more broadly on the whole project life-cycle. This view has led to the current conceptual framework that underpins both programme and portfolio management.

On a global scale the business community is experiencing increased customer expectations relating to the delivery of products and services faster and cheaper than ever before, which necessitates increased sophistication of project,

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program, and portfolio management tools and techniques. The scope of work affects a range of political, economic, technical, regulatory, legal and social dynamics within the wide variety of industry sectors, products, materials, disciplines and practices; all of these could significantly influence how the relevant standards development processes are conducted and the content of the resulting standards. Throughout the last two decades the worldwide business community has seen: Increasing customer expectations relating to the variety, functionality, availability, quality, and cost of products and services Increasing use of project and program management standards to meet customer expectations, facilitate global trade and improve organizational effectiveness Emerging concerns over the lack of overarching principles for project, program and portfolio management

A technical committee working on project, program, and portfolio standards would be in a position to assist and support the global business community deal with the above challenges.

2.

The scope of the issue

[Relevant global metrics that demonstrate the extent or magnitude of the economic, technological, societal or environmental issue, or the new market. This may include an estimate of the potential sales of the resulting standard(s) as an indicator of potential usage and global relevance. ] There are multiple indicators of the breadth of interest in project management as a professional field. Over 20 million people worldwide work on project teams, and 20% of global GDP (USD $12 trillion per year) is spent on fixed capital projects. This $12 trillion figure represents gross fixed capital formation: land improvements, building construction, machinery and equipment purchases; and the construction of roads, railways, etc. and does not include large domains of private investment, such as the billions of dollars spent on IT software and services, new product development in all industries, new business processes, and on media production and other forms of intellectual property. A recent study shows that in 2006 there were over 24.4 million project-oriented employees in projectized industries in 11 major global economies, and by 2016 there will be enough demand to support a total of 32.6 million project-oriented employees in projectized industries in these same countries. A 2008 study commissioned by PMI showed that among 11 leading economies, total GDP will rise from $7 trillion to $11.5 trillion by 2016, but that up to $194 billion of that growth is at risk due to a project management skills shortage. In addition to the growing breadth of interest in project management, numerous studies covering industries as varied as Information Technology, Transport Infrastructure, Defense & Aerospace and Pharmaceutical Development have shown that an unacceptably high proportion of projects fail to deliver the economic and social benefits that were anticipated at the time of their inception. These studies clearly imply that the consistent application of suitable project management standards by participating organizations would lead to a higher rate of success. Coincident with the growth of the project management field has been the proliferation of de facto standards and guides to project management practices. An increasing number of online resources have appeared, with web -based guides, instructional videos, blogs and forums which can give the project management practitioner conflicting information. This proliferation of information has led to confusion regarding the relative merits and quality of the project management techniques prescribed by the various sources including the standards mentioned above. A set of recognized international standards is greatly needed to support the growth of project, program, and portfolio management and related topics globally and across a broad range of industries.

3.

Technological benefit(s)

(A simple and concise statement describing the technological impact of the proposal to support coherence in systems and emerging technologies, convergence of merging technologies, interoperability, resolution of competing technologies, future innovation, etc.)

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Change is managed within organizations through the management of projects, programs, and project portfolios. The associated disciplines of project management, program management, and portfolio management are fundamental to an organizations ability to innovate and create new technologies and implement and capitalize on emerging technologies. A set o f recognized international standards is greatly needed to support the growth of project, program, and portfolio management and related topics and across a broad range of technologies.

4.

Economic benefit(s)

(A simple and concise statement describing the potential of the proposal to remove barriers to trade, improve international market access, support public procurement, improve business efficiency, result in a flexible, costeffective means of complying with international and regional rules/conventions, etc.) The development and publication of a standardized set of project management standards have the potential of having a significant positive effect on the global economy. Further, a set of project management standards would lead to more robust and technically solid methodologies. For instance, multi-sited project management teams, both within the same organization or as part of collaboration between different organizations must be able to operate and communicate efficiently saving time and cost. All sizes and types of organizations will be able to compete on a level playing field to win contracts by demonstrating compliance and will be able to bring the appropriate skills needed on a contract by contract basis. Through the application of standardized project management principles and methodologies, the success rate of projects can be increased, leading to a more effective use of finite resources.

5.

Societal benefit(s)

(A simple and concise statement describing any societal benefits expected from the proposal.] The ISO standards for project management (ISO 21500 covering project management guidance currently nearing conclusion), program management, and portfolio management are expected to help organizations to: Improve the quality of products and services; Improve organizational efficiency and effectiveness; Increase innovation; Increase the development and implementation of new technologies; Reduce barriers to trade; Reduce proliferation of company specific standards Improve coordination between management systems Reduce overall business costs; and Improve communications.

6.

Environmental benefit(s)

(A simple and concise statement describing any environmental or wider sustainability benefits expected from the proposal.) The positive effect upon environmental projects or projects that impact the environment, such as energy related projects, should be no different than those of economic development projects; the application of standardized project management methods should result in increased success and thus more effective use of finite project resources.

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7.

Intent of the work

[A simple and concise statement clearly describing the intended use(s) of the proposed deliverable(s), for example, whether the deliverable is intended as requirements to support conformity assessment or only as guidance or recommended best practices; whether the deliverable is a management system standard; whether the deliverable is intended for use or reference in technical regulation; whether the deliverable is intended to be used to support legal cases in relation to international treaties and agreements.] In accordance with ISO Directives the TC will develop a business plan. The business plan will initially address the development of standards in the field of Project, Programme and Portfolio Management and related areas of organizational activities. It is proposed that the TC will initially consider the development of the following standard: Portfolio management: Guidelines for managing portfolios within an organization. A project portfolio is a collection of projects and programs and other work, not necessarily related, that are grouped together to meet strategic or organizational objectives. Project portfolio management is the centralized management of one or more project portfolios and prioritization of the individual projects to achieve strategic or organizational objectives. Additional in -scope New Work Item Proposals may be considered over time and, if appropriate, developed in accordance with the TCs business plan.

8.

Metrics

(A simple and concise statement of metrics for the committee to track in order to assess the impact of the published standard over time to achieve the benefits detailed under the four bullet points immediately above.) Studies could be conducted over time to assess the impact of ISO project management standards and standardized project management methods on the global economy. Of particular interest would be the rate of success vs. failure in those projects using ISO project management standards and standardized project management methods, techniques, vocabularies, and tools as opposed to those which do not.

9.

Beneficiaries

(A simple and concise statement identifying and describing affected stakeholders and how they will each benefit from the proposal.) The beneficiaries of a set of ISO project management standards and their associated methods would be any party engaged in the development or management of projects and programmes, and any party that uses or benefits from the results of those projects. The proposed set of standards would benefit not only organizations utilizing them and benefitting from their use, but also project management practitioners utilizing the standards and methods within the organizations and the consumers and users of the deliverables resulting from any development project. The beneficiaries could conceivably include a significant portion, if not all, of the worlds population.

ADDITIONAL PROPOSAL INFORMATION (RECOMMENDED BUT NOT REQUIRED) Note 2:

It is recommended that the following information items be included in proposals for new fields of ISO or IEC work or for new work item proposals within committees to facilitate their consideration by NSBs/NCs:

A. The proposers assessment on the prospect of the resulting deliverable(s) being compliant with the ISO or IEC Global Relevance Policies and the ISO Sustainability Policy where relevant.

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The intent of this proposal is to lead to a set of international standards that will promote the efficiency and effectiveness of projects across all markets, industries, and countries. Project management is a horizontal, cross industry field, and provides guidance that can be tailored for any project of any size or content. There is no one unique solution for any project management problem, and no concern that what works in one industry or geography must be imposed upon the needs of another. Rather, a set of techniques and processes is suggested that a project manager can use for a particular situation. With regards to sustainability, project management encourages an efficient use of finite resources, and increases the effectiveness or positive output of the use of those resources.

B. The proposers assessment on compliance with the ISO/IEC Policy Principles on the Relationship of ISO and IEC Standards to Public Policy and the possible relation of the resulting deliverable(s) to public policy, including a statement regarding the potential for easier market access due to conformity with appropriate legislation.
There is no intent in this proposal to create any standard or set of standards that may be imposed upon project management practitioners as policy, law, or requirement. Rather, the proposed set of standards is a set of techniques or practices, a set of tools that a project manager may use as the situation dictates.

C. The proposers assessment on how the proposal may be related to, or may appear to be similar to, existing work in other international or regional organizations (including other ISO and IEC committees). The proposer should explain how the work differs from identified apparently similar work, or explain how duplication will be minimized.
A number of ISO committees (including those working on the standards listed in the Annex, below) are addressing project management as it relates to their vertically oriented, industry-specific needs. The proposed TC would address project management from a horizontally oriented, cross -industry perspective. While the various committees may wish to continue work on their own industry-specific project management standards, the new TC will give these other committees the option of contributing their work to the new TC for inclusion in or for correlation with the new TCs work. The new TC would focus on the common aspects of project management which are independent of specific industries, and would not focus on the unique aspects of the industries which can lead to the fractiona lization of the project management profession. At the very least, the new TC will liaise with other committees in hopes of bringing these other standards into alignment with ISO 21500.

D. A simple cost/benefit analysis relating the cost of producing the deliverable(s) to the expected economic benefit to businesses worldwide.
Given the significant potential global benefit from publication and implementation of the proposed standards (see questions 1 through 9 above), the expected cost of developing the standards should be considered insignificant in comparison.

E. Title of the proposed new committee (in the case of a proposal for a new field) or title of the proposed deliverable (in the case of a NWIP within a committee).
Project, Programme and Portfolio Management

F. Scope statement the proposed new committee (in the case of a proposal for a new field).
Standardization in the field of Project, Programme and Portfolio Management. Project management is the set of management techniques, methods, and approaches that allow organizations within any market sector to connect their organizational strategy to successful project outcomes through the management of projects, programs, and portfolios. Project management system standards have broad application within all market sectors and within both private and public organizations. A family of standards in the field of project management (standardization of project management, including project management, program management, and project portfolio management) will help organizations more effectively and efficiently tie their organizational strategies to successful

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project results while reducing overall business costs. (A distinction is made between financial portfolios and project portfolios -- the latter is used to tie organizational strategies to the successful outcomes of projects.) The output of the TC will provide generic guidance on the planning and realization of projects, programs, and portfolios, and the application of appropriate techniques. It has broad relevance to projects and programs in many industries and the public sector. It draws attention to the management problems encountered in different environments and provides possible solutions to those problems. It provides generic guidance to the principles and procedures which are relevant to organizations of all sizes although it may not cover all aspects of every type and size of project or program. Application of the principles and procedures in different industrial and public sector environments (which may have unique and particular emphasis and priorities) may require that the solutions presented should be treated as guidance only and that they may need to be adapted to suit the particular circumstances for which they are being considered.

G. The preferred type or types of ISO deliverables to be produced under the proposal.
International standards.

H. Proposed initial program of work (in the case of a proposal for a new field).
In accordance with ISO Directives the TC will develop a business plan. The business plan will initially address the development of standards in the field of Project, Programme and Portfolio Management and related areas of organizational activities. It is proposed that the TC will initially consider development the following standard: Portfolio management: Guidelines for managing portfolios within an organization. A project portfolio is a collection of projects and programs and other work, not necessarily related, that are grouped together to meet strategic or organizational objectives. Project portfolio management is the centralized management of one or more project portfolios and prioritization of the individual projects to achieve strategic or organizational objectives. Additional in -scope New Work Item Proposals may be considered over time and if appropriate developed in accordance with the TCs business plan.

I.A listing of relevant existing documents at the international, regional and national levels.
Standards related to project management have been developed at the international, regional, and national levels. A list of these standards may be found in the Annex.

J.A listing of relevant countries to be actively engaged as the subject of the proposal is important to their national commercial interests.
All P-members, O-members and Liaison members of ISO/PC 236 are likely to be interested. A list of current members of PC 236 may be found at http://www.iso.org/iso/standards_development/technical_committees/list_of_iso_technical_committees/iso_technical_ committee_participation.htm?commid=541073 The TC could benefit from increased participation of countries from Africa, Eastern Europe, the Middle East, and Asia. The TC will support and seek to obtain the broadest possible representation of ISO members, and recognizes the special attention that should be given to the needs of developing nations.

K. A listing of relevant external international organizations or internal parties (other ISO and/or IEC committees) to be engaged as liaisons in the development of the deliverable(s).
Liaison would be established with committees at ISO and other organizations (including those committees working on the standards listed in the Annex) who are developing or are considering the development of activity- or industry-

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specific standards for project and program management. These more narrow standards should be brought into alignment with the broader 21500 standard, and the TC will seek liaison from these committees to ensure that the work of the TC meets their needs. Professional and industry organizations related to the scope of the proposed TC will be invited to participate through their respective national body. Organizations recognized by ISO as having an international scope will be accepted as liaisons if they apply.

L. Preferably an existing document to serve as an initial basis for the ISO or IEC deliverable or a proposed outline or table of contents.
Suitable document(s) will be identified during work item proposal development when appropriate.

M. An expression of commitment from the proposer to provide leadership if the proposal succeeds.
ANSI and BSI are willing and able to provide joint leadership of the proposed TC. ANSI will serve as the TC secretariat and BSI will provide the TC Chair.

N. Additional comment
It is proposed that the TC be formed to begin work on the proposed work items as prioritized above. The TC will run in parallel with the existing ISO/PC 236 continuing the development of ISO 21500 and the new TC will assume responsibility for the maintenance of ISO 21500 after it is published.

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ANNEX: List of Relevant Documents

International Standards
ISO/PC236 21500 (CD) Guidance on Project Management ISO/IEC JTC1/SC7 16326:2009 Life Cycle Process Project Management; 16085:2006 Life Cycle Process Risk Management ISO/TC20/SC14 23462:2007 Guidelines to define the management framework for a space project; 11893 Program management -- Project organization; 27026 Program management -- Breakdown of project management structures; 17666:2003 Risk management ISO/TC37/SC2 15188:2001 Project management guidelines for terminology standardization ISO/TC59/SC13 22263:2008 Organization about construction works Framework for management of project information ISO/TC176/SC2 10006:2003 Guidelines for quality management in projects ISO/TC184/SC4 10303 -1433 Product data representation and exchange -- Part 1433: Application module: Project Management; 10303-1434 Product data representation and exchange -- Part 1434: Application module: Project Management resource information; 10303-1288:2006 Product data representation and exchange -- Part 1288: Application module : Management resource information ISO TMB WG Risk Management 31000:2009 Risk Management - principles and guidelines IEC 62198 Ed 1 Project risk management Application guidelines

European Standards
EN 13290-1:1999 Space project management General requirements Part 1: Policy and principle EN 13290-2:2001 Space project management General requirements Part 2: Project breakdown structure EN 13290-3:2001 Space project management General requirements Part 3: Project organization EN 13290-4:2001 Space project management General requirements Part 4: Project phasing and planning EN 13290-5:2001 Space project management General requirements Part 5: Configuration management EN 13290-6:2001 Space project management General requirements Part 6: Information/documentation management EN 13290-7:2001 Space project management General requirements Part 7: Cost and schedule management EN 14093:2002 Space project management Organization and conduct of reviews EN 14724:2003 Space project management Tailoring of space standards

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EN 9200:2004 Aerospace series Programme management Guidelines for project management specification CWA 16022:2009 Project schedule and cost performance management (pscpm)

National standards
Australia AS 3595-1990 Energy management programs Guidelines for financial evaluation of a project AS 4071-1992 Software project management plans AS 4915-2002/Amdt 1-2005 Project management General conditions AS 4817-2006 Project performance using earned value

Austria ONORM A 6760:2003 Value analysis Management of value analysis projects ONORM DIN 69904:2001 Project business Project management systems Elements and structures ONORM B 1801-1:2009 Project and object management in construction Part 1: Object construction

Canada CGSB-187.2:1999 Project performance management

China SAC GB/T 19016:2005 Quality management systems Guidelines for quality management in projects SAC GB/T 19099:2003 Project management guidelines for terminology standardization SAC GB/T 20032:2005 Project risk management Application guidelines SAC GB/T 23691:2009 Project management terminology SAC GB/Z 23692:2009 Project management Framework SAC GB/Z 23693:2009 Project management Areas of knowledge SAC GB/T 13400.3:2009 Network planning techniques Part 3: General process used in project management SAC GB/Z 20156:2006 Software engineering Guide for the application of software life cycle to project management

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France NFX 50 105:1991 Project management concepts NFX 50 107:1991 Project management Certification of project management personnel NFX 50 115:2001 Project management General presentation NFX 50 116:2003 Project management Project based management Presentation and implementation recommendations NFX 50 117:2003 Project management Risk management Management of the risks of a project NFX 50 118:2005 Project management Recommendations for the management of a project NFX 50 137:2006 Project management Cost management NFX 50 138:2006 Project management Time-related management Organisation, planning and coordination NFX 50 109:1991 Project management Recommendations for the analysis and the graphic modeling of actions and its use for better communication between the project participants graphic etiology NFX 50 901:1991 Project management and innovation Memorandum for the use of the actors of an innovation project NFX 50 106-1:1993 Project management Terminology in industrial engineering contracts Part 1: The missions Vocabulary NFX 50 106-2:1993 Project management Terminology in industrial engineering contracts Part 2: The Documents Vocabulary NFX 50 108:1991 Project management Terminology in industrial engineering contracts Contractual bonds and payments forms Results assessment and sanctions - Vocabulary

Germany DIN 69901-3 (2009-01) Project management Project management systems Part 3: Methods DIN 69901-1 (2009-01) Project management Project management systems Part 1: Fundamentals DIN 69901-5 (2009-01) Project management Project management systems Part 5: Concepts DIN 69900 (2009-01) Project management Project network techniques; Descriptions and concepts DIN 69901-2 (2009-01) Project management Project management systems Part 2: Processes, process model DIN 69901-4 (2009-01) Project management Project managements systems Part 4: Data, data model

India BIS IS 14580-2:2006 Use of network analysis for project management Part 2: Use of graphic technique

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BIS IS 15883-1:2009 Construction project management Guidelines Part 1: General BIS IS 14580-1:1998 Use of network analysis for project management Part 1: Management, planning, review, reporting and termination procedures

Russia GOST R 51901-4:2005 Risk management Application guidelines for projects GOST R 52806:2007 Project risk management General GOST R 52807:2007 Guidance for assessment of project management personnel competency

South Africa SANS 274 Ed 1 (2004/R2009) Quality management systems Guidelines for quality management in projects

Spain UNE 66916:2003 Quality management systems Guidelines for quality management in projects UNE 166001:2006 R&D&I management Requirements for R&D&I projects

UK BS 6079-1:2002 Project management: Guide to project management BS 6079-2:2000 Project management Vocabulary BS 6079-3:2000 Project management Guide to the management of business related project risk

US ANSI/PMI 00-001-2008 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fourth Edition ANSI/PMI 08-002-2008 The Standard for Program Management Second Edition ANSI/PMI 08-003-2008 The Standard for Portfolio Management Second Edition ANSI/PMI 08-004-2008 Organizational Project Management Maturity Model (OPM3 ) Second Edition ANSI/EIA 748-B Earned Value Management

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