A project portfolio team helps to prioritize high-value projects that would help the company reach its business goals earlier. You cannot pursue a single goal nor can you deploy resources for every goal. To make project portfolio work for you, Jaime Capitel recommends 5 factors in this Girl’s Guide to Project Management article.
Project Portfolio Factors to Consider
The main goal of PPM is to bring revenues for all investments. Though there is no set success formula, you can try incorporating these 5 factors in your project portfolio activities:
The Scope Should Be Motivational: While project scope includes the minutest requirements detail, a project portfolio scope includes goals that projects under it must pursue. A portfolio manager must select a project based on its alignment with the portfolio and organizational goals at large. To achieve the goals and objectives of the portfolio include the strategies and maneuvers you would use. Have a healthy balance of internal and external projects to cater to effective internal developments and customer deliverables. Find out how these projects would influence the business.
There Must Be a Risk Balance: A project portfolio has a list of projects and they all come with various risk factors. You might face risks related to scope, technology, resources, etc. The ultimate goal is to balance risks out between projects. When one project poses financial risks, other projects compensate by being cost-efficient.
Create a Business Case Evaluation Criteria: Majority of the steering committees do not have a standard checklist for selecting business cases for a project portfolio. Some, however, prefer to have a template to maintain transparency with project sponsors. Primary criteria are that the projects must display organizational value and align with corporate goals and objectives. It is common knowledge that business case selection depends mainly on judges and not the potential value the proposals offer. Have a mixed panel for steering committee by assigning judges having diverse backgrounds and risk appetite. The more impersonal objective would be to set a limit for the number of projects a project portfolio can handle at a time.
Choose Ongoing Projects Over Frequent Interventions: Would you prefer to postpone all projects until this project portfolio gets over? If you do short projects in between, how frequently are you ready to disrupt the ongoing ones? When you take up projects, factor in the organizational intricacies, project practices, and required changes. Introduce a PPM tool to monitor progress.
Bill in Non-Project Tasks for Resource Optimization: System upgrades and training are needed, so include that in the project portfolio to formalize the process. Run things in parallel as both are required to be catered to.
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