Project Portfolio Management
Project Portfolio Management is about more than running multiple projects. Each portfolio of projects needs to be assessed in terms of its business value and adherence to strategy. The portfolio should be designed to achieve a defined business objective or benefit. Project management guru Bob Buttrick summarised it when he said; “Directing the individual project correctly will ensure it is done right. Directing ‘all the projects’ successfully will ensure we are doing the right projects.”
While at individual project level it is important to know how each project is performing, the impact of each project on the portfolio is just as important.
Working at portfolio level is about working with summary or key data. It is important to avoid information overload. The detail of each project should be kept at the project team level, administered by the individual project manager. Key information should be rolled up and presented at each level within the organisation as appropriate. At executive, VP level you are likely to be providing a summary of performance, progress, a measurement of estimates against actuals and costs.
Within almost all project portfolio management systems there is a project evaluation process. This process is used to evaluate the projects at various points during their lifecycle. At the beginning of each stage, often called a ‘gate,’ the responsible party evaluates the business case, asking whether it is still relevant and able to deliver the defined organisational objectives. If the answer is no, then the project should be stopped. This way the organisation can ensure that they stay focussed on delivering a strategy, goal or other defined benefit and that resources are deployed where they will offer the best return.
Project portfolio management asks the following questions:
- Are we doing the right things?
- Are we doing them the right way?
- Are we doing them well?
- Are we getting the benefits?
If the answer to any of these questions is no, immediate action is required to bring the portfolio back on track.
