What is Project Portfolio Management?
Project Portfolio Management is about more than running numerous projects. Every single portfolio of projects needs to be assessed by its organization value and adherence to technique. The portfolio must be designed to achieve a defined organization objective or benefit. Project management guru Bob Buttrick summarised it when he stated; “Directing the individual project correctly will guarantee it’s done right. Directing ‘all the projects’ successfully will make sure we are performing the right projects.”
Project portfolio management organises a series of projects into a single portfolio of reports that capture project objectives and other essential elements.
Whilst at individual project level it truly is critical to know how every single project is performing, the impact of every project on the portfolio is just as crucial. The following questions needs to be asked:
- Does every project contribute to the overall achievement of the portfolio?
- How nicely is every project performing?
- Will any project have a negative impact on other projects to come?
- What projects inside the portfolio are dependent on others?
- Will the effective delivery of all projects deliver the desired objective or benefit?
Working at portfolio level is about working with summary or key information. It really is important to steer clear of data overload. The detail of each project should be kept at the project team level, managed by the individual project managers. Key data needs to be rolled up and presented at each level within the organisation as suitable. At executive VP level you might be likely to be providing a summary of performance, progress and a measurement of estimates against actuals and costs.
Within most project portfolio management systems there is a project evaluation process. This process is employed to evaluate the projects at different points during their life cycle. At the beginning of each stage (often called a “gate”) the responsible party evaluates the company case, asking whether it’s still relevant and able to deliver the organisations’ objectives. If the answer is no, then the project ought to be stopped. This way the organisation can make sure they remain focused on delivering a technique, goal or other benefit, and that resources are utilised where they will supply the best return.
Project portfolio management asks the following questions:
- Are we doing the right points?
- Are we performing them the correct way?
- Are we performing them properly?
- Are we obtaining the advantages?
If the answer to any of these questions is no, immediate action is required to bring the portfolio back on track.
Project Portfolio Management Software
When selecting a project portfolio management software system, organisations ought to use criteria based on identified wants and organisational objectives. It really is advisable to begin tiny, introducing aspects of portfolio management 1 element at a time. A lot of commercial tools can seem overwhelming at very first, simply since of the huge amount of functionality they provide.
These are the key capabilities of a project portfolio management system:
- Project evaluation process or methodology.
- Cost and benefits measurement.
- Progress reporting.
- Communication of key project information, for example executive dashboard.
- Resource and capacity planning.
- Cost and positive aspects tracking.
Project portfolio management software enables the user, normally management or executives inside the organisation, to review the portfolio, which will aid in making key monetary and enterprise decisions for the projects.
The objective of project portfolio management would be to optimise the outcomes of the project portfolio to get advantages the organisation wants.