Project portfolio management (PPM) tracks all the activities of projects, programs, and portfolios in a portfolio. Unlike popular misconceptions, you can implement it quite easily because of its similarity with the existing functionalities. To enjoy the advantages of PPM, know the basic factors governing the processes. In this article at Meisterplan, understand why organizations think PPM is indispensable.
PPM, the Foundation of Good Governance
PPM coordinates project activities from start to finish with transparency. If you think implementing PPM means adding more paperwork, look around you. Teams are already coordinating with each other to optimally use time and resources. PPM’s standardized processes help you to manage, assemble, determine, and implement effectively. Basically, it can answer, “Who should implement which projects, and when?”
- Manage: While management is responsible for creating the company strategy, the process helps you incorporate them into projects. Projects which align with your organizational strategy should be taken up on priority. To do so, establish factors to assess the prioritization processes based on sales, risk, and alignment with the company objectives. The focus of ongoing projects may change from their initial days. The portfolio coordinator must regularly meet with the strategist to inform about these changes and remain up-to-date about the current enterprise goals. These should act as factors for project prioritization.
- Assemble: All the project initiatives or proposals are assembled at this PPM stage so that you have all the details at hand, compare them, and make informed decisions. Every project proposal must have comprehensive details of the idea proposed, the benefits company will derive out of it, and a palpable list of cost, resources, timeline, infrastructure, etc. the project would require. The project initiator discusses each proposed point in the “proposal coaching.”
- with the project coordinator.
- Determine: In this PPM phase, the project proposals are queued up in front of an evaluation board consisting of cross-functional specialists. The project initiatives must satisfy all the factors established in the Manage phase. Once individual evaluations are done, all the projects are prioritized based on their alignment with the evaluation factors. In the portfolio board meeting, the project coordinator has a high-level talk with the upper management. Decisions are made based on portfolio development, conflict resolution, and resource allocation. When the PPM board comes to a decision, it is conveyed to the people involved to maintain transparency.
- Implement: All PPM does during this phase is maintain a seamless collaboration. The project manager manages resource allocation and tracks project status. Resource managers and team leaders resolve resource clashes in a “conflict resolution meeting.” Issues are escalated to the project steer committee if no concrete solution is found. The committee supervises project progress, scrutinizes revised budget plans, and adds or pulls support from projects as required. The unresolved issues finally go to the portfolio board meeting, the ultimate decision-maker in the PPM lifecycle.
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