Project Portfolio Management Chapter Four Project Portfolio Management

Project Portfolio A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives

Project Portfolio Management At individual project level it is important to know each project is performing, the impact of each project on the portfolio is just as important. The following questions should be asked: Does each project contribute to the overall achievement of the portfolio? How well is each project performing? Will any project have a negative impact on other projects to come? What projects in the portfolio are dependent on others? Will the successful delivery of all projects deliver the desired objective or benefit?

Project Portfolio Issues Are we doing the right things? Are we doing them right? Are we doing them well? Are we getting the benefits?

Why Project Portfolio Management Enables to use the resources efficiently Can get support of the Organization. Help organization to align its project work load to meet its strategic goal. Make project managers life easier and more rewarding. Central oversight of budget. Risk management. Improved ability to deliver project.

Why Project Portfolio Management Faster response to the changing circumstances. Focus on more important things. Do the right work. Do the right work faster. Use the right resources. Do the work right. Identify the problem and solve it easily.

PPM-Goals Helps the organization to make the best use of its resources. Enables the removal of low value projects from the portfolio. Ensures that all new and existing projects are aligned with the organization’s mission, goals, and objectives. Produces and maintains a comprehensive listing of all projects which the organization is undertaking

PPM - Goals Develops a bigger picture view and deep understanding of the project collection as a whole. Creates an objective methodology for identifying, ranking, prioritizing and selecting new projects. Ensures that a healthy balance across different types of projects with different cost, schedule, complexity and risk profiles is maintained.

Scope of Project Portfolio Management Opportunity Identification ROI/ Value forecast Project Prioritization Capacity Planning Work Scheduling Program/Project Management and Execution Project Performance & Assessment

Project Portfolio Management Process Determine a viable mix of projects that can meet the organization’s goal. Balance the portfolio in terms of specific categories of projects. Plan and execute these projects. Analyze the performance of the projects in the portfolio to see if improvements warranted.

Project Portfolio Management Process Conti… Evaluate new opportunities against the projects including the existing and potential projects against the organizations’ goals. Provide decision makers with the needed information and recommendation.

Project Portfolio Management – Best Practice PPM Best Practices Using Cross functional teams Responsive to external environment Allocate scarce resources Tough Go/ Kill decision points Customer Orientation Strategy to prioritize and screen projects

PPM - Benefits Justifies killing projects that do not support organization strategy. Balance risk across all projects. Links project selection to strategic metrics. Prioritize project proposals across a common set of criteria, rather than on politics or emotions. Allocate resources to projects that align with strategic direction

PPM - Benefits Improves communication and supports agreement on project goals. Builds discipline into project selection process. Provides executive oversight of the firm. Provides the structure/process for project portfolio governance & avoids duplication/ waste.

Project Portfolio Management Tools A tool to facilitate your PMO (Portfolio Management Office) function; Providing data acquisition and management Supporting project selection, resource allocation Reporting and graphing

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