12. CategoriesCategories
Venture: Projects that
transform the business
Venture: Projects that
transform the business
Growth: Projects that grow
revenue or market share
Growth: Projects that grow
revenue or market share
Core: Projects that help run
the business
Core: Projects that help run
the business
13. What are the benefits of Project
Portfolio Management?
14. Benefits of Project
Portfolio Management
Builds discipline into project selection process
Links project selection to strategic metrics
Prioritizes project proposals across a common set of criteria,
rather than on politics or emotion
Allocates resources to projects that align with strategic
direction
Balances risk across all projects
18. How to
Senior Management Input
– provide guidance in selecting criteria that
are aligned with the organization’s goals
– decide how to balance available resources
among current projects
• The Priority Team Responsibilities
– publish the priority of every project
– ensure selection process is transparent
– re-assess the organization’s goals / priorities
– evaluate the progress of current projects
Strategic planning process should
Review and define the organizational mission
Set goals and objectives (see Doran’s SMART)
Analyse and formulate strategies to reach objectives
Implement strategies through projects
Many organizations support an emerging business strategy of project portfolio management
Organizations group and manage projects as a portfolio of investments that contribute to organizations success
Managing the Portfolio
Senior management input
Priority team responsibilities
Sample Approaches for Creating a Project Portfolio
One approach is adopting a large portfolio for the entire organization.
Sections of the portfolio are broken down into groups
IT projects are broken down into three categories:
Venture: Projects that help transform the business
Growth: Projects that help increase revenues
Core: Projects that help run the business
Sample Approaches for Creating a Project Portfolio
One approach is adopting a large portfolio for the entire organization.
Sections of the portfolio are broken down into groups
IT projects are broken down into three categories:
Venture: Projects that help transform the business
Growth: Projects that help increase revenues
Core: Projects that help run the business
Sample Approaches for Creating a Project Portfolio
One approach is adopting a large portfolio for the entire organization.
Sections of the portfolio are broken down into groups
IT projects are broken down into three categories:
Venture: Projects that help transform the business
Growth: Projects that help increase revenues
Core: Projects that help run the business
Implementation Gap
lack of understanding and consensus on strategy among top management and middle-level (functional) managers who independently implement the strategy
Resource Conflicts and Multitasking
Multi-project environment creates interdependency relationships of shared resources which results in the starting, stopping, and restarting projects
Changes to organization’s mission and strategy
Project managers must respond to changes with appropriate decisions about future projects and adjustments to current projects
Project managers who understand their organization’s strategy can become effective advocates of projects aligned with the firm’s mission