Chapter Four Project Portfolio Management Project Portfolio A

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 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 Project Performance & Assessment Program/Proj ect Management and Execution ROI/ Value forecast Portfolio Manage ment Work Scheduling Project Prioritization Capacity Planning

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

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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