Project portfolio management (PPM) is a discipline that has long been associated with IT projects and investments. Richard Nolan was the first person to apply the discipline to IT in a 1973 Harvard Business Review article. In this article at Meisterplan, Karoline Holicky discusses how PPM is applicable to business areas beyond IT.
Applying PPM Beyond IT
CB Insights CEO Anand Sanwal observes that PPM is used mainly for corporate IT portfolios. However, it should be applicable in other corporate levels as well. Organizations started doing so as they initially lacked insights into the governance of these IT portfolios. Even if the projects stopped aligning with the project, the organizations would still finish them. However, PPM is more than just IT portfolio management. Following are the benefits you get when you apply PPM beyond IT:
- Detailed Project View: You get a detailed version of the project’s business case. You can decide whether it aligns with the company strategy.
- Communication: The committee keeps all levels of the management, team, and stakeholders informed regarding the project—good or bad.
- Value Accumulation: You can derive value from all the projects based on the portfolio evaluation.
- Resource Optimization: You can plan and utilize resources optimally by transferring them across the portfolio as per requirement.
- Reduce Bad Investments: You finally get to reduce the number of projects that only drain out money from your corporate budget.
Learning the Basics:
Start registering all the current projects. List their timeline, status, resources, and challenges. Once done, follow the below lean PPM method:
- Plan How to Evaluate Projects: Select the criteria based on which you are going to evaluate the projects—objectives, revenue expectations, ROI, and risk management.
- Gather Information: Procure details regarding the project vision, goals, benefits, and the required efforts.
- Come to a Decision: Prioritize projects based on their strategic alignment. Decide how to implement the entire portfolio and allot budget accordingly. Let all the board members come to a common consensus.
- Perform: After conveying your decisions and strategy, it is now time for the project managers to perform. The PPM board members in this phase act as advisors.
To view the original article in full, visit the following link: https://meisterplan.com/blog/project-portfolio-management-beyond-it/