•PROJECT PORTFOLIO
MANAGEMENT
Leaning objectives
• Why Project Portfolio Management?
• Project Portfolio Management
• Purposes and Processes of Project Portfolio
Management
• Attaining a Strategic View
• Choosing Projects
• Implementing Project Portfolio Management
• Bringing It All Together
PROJECT PORTFOLIO
• Project portfolio is a term that refers to organisations group of
projects and the processes in which they are selected and managed. It
is strategically selected to advance the cooperation's organisational
goal and they could be related or unrelated based on their objectives
• Why Project Portfolio
• When an organization has more projects at hand to cater for.
• It allows for optimum use of resources:
• It increase organisational profit
PROJECT PORTFOLIO MANAGEMENT
• Project portfolio management refers to the centralized
management of one or more project portfolios to achieve
strategic organisational goals and objectives through efficient
decision making on portfolios, projects, programs and
operations (PMBOK® Guide),
• Portfolio Management is the application of knowledge, skills,
tools, and techniques to meet the portfolio requirements and
to obtain strategic benefits and controls.
WHY PROJECT PORTFOLIO MANAGEMENT
• Proper allocation and optimum use of resources
• Engages stakeholders’ interest and benefits
• Close redundant and under performing projects
• Monitoring progress, budget and benefit of portfolio component
• Identification and correction of performance
• Ensure firms can leverage project selection and execution success
Processes of Project Portfolio Management
• Project Management Institute, 2006, p. 25) define the processes of project
portfolio management as;
• Clarify business objectives
• Capture and research requests and ideas: Analyse the current strength and
the weaknesses of the portfolio.
• Select the best projects using defined differentiators that align, maximize,
and balance
• Validate portfolio feasibility and initiate projects
• Manage and monitor the portfolio
Processes continue……
Other Processes of Project Portfolio Management
• Define the business objectives
• Gather information and update them regularly
• Structure data into categories
• Validate and analyze data status
• Identify areas for improvement
• Develop a portfolio management plan; scope, budget, schedules
• Access potential changes with regards to prioritizing and risk assessment.
• Manage and Monitor the portfolio
Attaining a Strategic View
• Strategic Portfolio Management is about deciding where best to focus
the organisation’s finite resources in order to meet strategic
objectives, considering the business as a portfolio of activities and
making tradeoffs across the portfolio.
• It includes making those difficult choices of what not to do, unlocking
resources to focus on fewer, better activities – those most closely
aligned with strategic success.
• Once the portfolio is focused, attention needs to turn to execution.
Monitoring performance with metrics consistent with the strategic
objectives ensures that operations and strategy stay aligned
Attaining a Strategic View Continu….
Timely completion of projects,
ensure projects are within budgets and scope,
direct project teams towards achieving organisations strategic objectives.
CHOOSING PROJECTS
• Project selection is the process of evaluating and choosing projects that
both align with an organization’s objectives and maximize its
performance
• Project Selection Criteria for Portfolio Management
• What is the payback or break-even point?
• What is the impact to the organization’s growth (e.g., customer volumes)?
• Does the project contribute to innovation?
• How much risk is involved?
• Are there sufficient resources in terms of time, budget, infrastructure, and
people with relevant expertise?
• What is the cost/benefit ratio?
Project Prioritization Methods in Portfolio
•Management
Ranking Method
• Scoring Model
• Analytic Hierarchy Process (AHP) Technique
• Benefits of Project Selection and Prioritization
• Increased efficiencies: By investing effort upfront to evaluate the project
pool, companies weed out inefficiencies that may creep up later due to not
having enough capacity for execution.
• Strategic alignment: A project that does not cater to organizational goals,
even if executed flawlessly, is a waste of time. The right selection helps
companies stay on track with their goals.
Benefits of Project Selection
and Prioritization
• Shorter time-to-market: As companies become larger, they struggle
to maintain an aggressive time-to-market, with a sea of projects
competing for attention. Prioritization of projects gives companies the
first-mover advantage, enabling them to reach customers before
competition.
• Successful project delivery: When organizations have good project
selection and prioritization processes in place, it leads to the
successful delivery of projects.
• Consistency and transparency: A standard selection approach helps
the PMO benchmark projects against well-defined criteria rather than
use ad-hoc processes that lead to inconsistent approvals.
Portfolio Management Implementation Process
Implementing Project Portfolio Management
• Step in Implementing project portfolio managements
• (1) assess your current capabilities,
• (2) analyze the stakeholders,
• (3) form teams,
• (4) develop a charter
• (5) design your PPM approach,
• (6) pilot test the approach,
• (7) acquire or create a PPM tool,
• (8) roll it out, and
• (9) practice continuous learning.
Bringing It All Together
Information, communication, and utilization are key elements
to strategic portfolio management success. PPM can provide
these three elements to help you drive more value for the
organization through improved prioritization of projects and
alignment of the workforce to those projects, capacity
planning, portfolio optimization and analysis, and continuous
improvement. Leveraging a solution to automates data and
insights will go a long way to taking your portfolio to the next
strategic level of efficiency.
Thank you
