As a leader, you must be aware of project portfolio management and how you can utilize it to deliver outcomes within time limits and economically. The traditional approach was more about delivering quantity than quality and focused more on risk management and benefits realization. Moreover, it was ill-equipped to figure out optimal benefits from IT portfolios other than cost savings. So, a PPM was not that functional. However, new techniques were added which involved the PPM role on a more strategic level. In this article at CIO, Hakan Altintepe talks about the new PPM techniques you can use to drive digital transformation effectively.
In the fast-paced world, it is easy to lose a project due to delay in decision-making and buy-ins. Instead of going through the traditional project phases, companies are directly undergoing the execution phase and dealing with related costs and risks. Product-driven IT prospects are offering new possibilities by managing resources, work, and time and finding out risk mitigation opportunities for an entire portfolio through demand pooling, diversification, and hedging. However, a majority of the companies are yet to adopt the new PPM techniques. 20 to 30 percent opine that it is possible to gain benefits out of the techniques but do not know how. The following techniques can help mitigate some of your queries.
Investment in technology does not influence business outcomes. On the one hand, when technology demand increases, work piles up. On the other hand, when advanced technology is available, work quality diminishes. However, if a team works on one of the high-priority jobs in the pipeline, the portfolio valuation remains high.
Scheduling as per Project Downtime
While projects completed before time do not provide any additional value, failure in on-time delivery lowers outcome results. If you utilize resources from tasks that have buffer time in other activities, you would use the portfolio optimally.
Precedence in Projects
Usually, a project has work prioritization set up during the initiation phase. If you break the project further, the smaller, separated projects inherit the key elements. However, for digital transformation, business outcomes are updated proactively depending on the client or end-user feedback. Every separated part should be considered as an independent entity and could be prioritized accordingly. You must prioritize project scope carefully as too many dependencies can cause cost-to-delay.
Balancing the Supply Demands
Sectors like manufacturing, retail, and finance successfully implement management practices like demand pooling, hedging, etc. If you can utilize these practices in enterprise resource management, it would reduce the waste of high-value resources.
Project portfolios can face scope creep due to uncertainties in digital venture prospects, interdepartmental dependencies, and incremental incorporation of consumer feedback in the project. However, this seemingly unpredictable pattern comes from the predictable IT work environment, end-user conduct, and trends in the market.
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