Symposium PresentationApproved for public release; distribution is unlimited

Deitrich, Adam

Jones, Raymond

Mortlock, Robert F.

Reid, Jordan

Stewart, Conor

English

Calhoun, Institutional Archive of the Naval Postgraduate School

Calhoun: The NPS Institutional ArchiveDSpace RepositoryAcquisition Research Program Faculty and Researchers' Publications2022-05-06Program Management versus PortfolioManagement in Defense AcquisitionMortlock, Robert F.; Jones, Raymond; Stewart, Conor;Deitrich, Adam; Reid, JordanMonterey, California. Naval Postgraduate Schoolhttp://hdl.handle.net/10945/70292This publication is a work of the U.S. Government as defined in Title 17, UnitedStates Code, Section 101. Copyright protection is not available for this work in theUnited States.Downloaded from NPS Archive: Calhoun1Program Management versus Portfolio Management in Defense AcquisitionLead Author:  Dr. Robert F. MortlockCo-Author:  Professor of Practice Raymond D. JonesStudent Researchers:  Major Conor W. Stewart USMC, Major Adam T. Deitrich USMC, Major Jordan M. Reid USMC2Introduction• National Defense Authorization Act (NDAA) for Fiscal Year 2020. Section 861, “Defense Acquisition Workforce Certification, Education, and Career Fields” subsection (c), “Professional Certification.” It states,  “The Secretary of Defense shall implement a certification program to provide for a professional certification requirement for all members of the acquisition workforce … the certification requirement for any acquisition workforce career field shall be based on standards developed by a third-party accredited program based on nationally or internationally recognized standards.”• The FY21 NDAA established portfolio management as the required management process for the acquisition of defense weapons systems to reduce cost and increase acquisitions efficiency, with full implementation expected by 2023.• Additionally, the FY2021 NDAA orders the secretary of defense to implement a “third-party accredited [certification] program b sed onnational or international recognized standards” for all acquisition career fields.3Research Questions• Challenge:  How does DoD acquisition move from a program-centric approach to a portfolio-centric approach?• Research Questions:1. Are there gaps in the DoD PM competency standards that must be addressed before the DoD can fully implement portfolio management as directed in the NDAA of 2021?2. Where are the DoD and Project Management Institute (PMI) aligned regarding competency standards?3. What barriers exist regarding the implementation of portfolio management standards for Defense acquisitions?4Industry Standards • Project Management Institute (PMI) – Project Management Professional (PMP): Guide to the Project Management Body of Knowledge® (PMBOK Guide)– Program Management Professional (PgMP): TheStandard for Program Management (TSPgM)– Portfolio Management Professional (PfMP):  The Standard for Portfolio Management (TSPfM)5Industry TSPfM Standard 6Industry TSPfM Standard 7DoD PM Competencies • DoD Program Management functional career field categories: —Acquisition Management—Business Management—Technical Management—Executive Leadership • 18 units of competency and 70 specific competenciesResearch Results8Research Results9Research Results10Research Results1112Conclusions1. Are there gaps in the DoD PM competency standards that must be addressed before the DoD can fully implement portfolio management as directed in the NDAA of 2021?– Significant gaps in Governance Domain• DoD has no definition of portfolio managers’ authorities, roles, and responsibilities• Portfolio management plan includes authoritative thresholds, risk tolerance levels, key performance indicators, prioritization models, and escalation procedures within each portfolio13Conclusions1. Are there gaps in the DoD PM competency standards that must be addressed before the DoD can fully implement portfolio management as directed in the NDAA of 2021?– Significant gaps in Strategic Alignment• DoD has no structure, protocols, authorities, and procedures to align portfolios with organizational goals• Portfolio managers to set prioritization criteria using analytical decision-making tools, resulting in a portfolio road map used to budget, plan, and execute.14Conclusions2. Where are the DoD and Project Management Institute (PMI) aligned regarding competency standards?– The DoD and PMI standards were fully aligned in the domain of Communications Management.– Risk Management was partially aligned—DoD lacks standards for stove-piped programs to synchronize risk across adjacent programs.– Portfolio Performance was partially aligned—DoD lacks portfolio road maps to balance and optimize resources and analyze portfolio performance against strategic goals. Conclusions153. What barriers exist for portfolio management  standards in Defense acquisitions?Governance   Domain16Recommendations1. Consider Portfolio Manager as a distinct career field requiring PfMP certifications.2. Consider the following:• Portfolio Acquisition Executive (PAE) ConstructPEO PAE• Acquisition Portfolio Baseline (APfB)APB APfB• Program and budget to Portfolio Elements (PfE) PE PfE• Portfolio Requirements Document (PfRD)CDD PfRD

Program Management versus Portfolio Management in Defense Acquisition

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Program Management versus Portfolio Management in Defense Acquisition

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Calhoun, Institutional Archive of the Naval Postgraduate School