Project portfolio rationalization helps modify projects to adapt to changing market demands and corporate goals. You analyze the resources you have against the projects you need to deliver in short and long-term perspectives. Calculating the constraints, you can decide whether to drop some devalued projects while prioritizing the high-yielding ones. In this article at PM Today, Noel Sobelman shares ten tips to perform portfolio rationalization effectively.
Performing Portfolio Rationalization
Cutting corners can save you for some months, but you must find organic revenues too. Here are the ways you can get a better direction in portfolio rationalization:
Usually, business units perform portfolio rationalization activities. Make it a point to talk about resource scheduling on the same level.
Reformating Innovation Goals
Market conditions are changing across the world and rapidly. Have answers to some business-impacting questions like remote work model feasibility, opportunity scope, and project prioritization.
Work with minimal project support to avoid withdrawing resources later. Do not leave any project hanging. Support some fully and stop others now.
No Time for Pet Projects
Your organizations might have projects that are going on endlessly. Rinse off these projects to have more visible organizational goal setting and expectations.
Revisiting Revenue Goals
The majority of the customer-facing services received the most hit in this pandemic. To secure a better and consistent revenue, reduce travel and frontline activities.
3-Tier Project Ranking
Instead of making a priority list for projects, why do not you make three specific categories? Portfolio rationalization would be much quicker and more exact.
Breaking Away from Burdensome Projects
Is there a project that is costing you more than the profits it is generating? Instead of hoping to recover the lost money, redirect the resources, and shut it down completely.
Keeping Valuable Functions
Some functions have issues throughout the year, but it does not mean you must get rid of them. Reduce the resources, but do not let go of it just yet.
Funding New Projects
To secure the now, do not throw away your future. You need projects that are exploring new opportunities once the pandemic goes away.
Keep reminding your stakeholders about the goals you have. Boost employee morale so that all of you can survive the pandemic together.
To view the original article in full, visit the following link: https://www.apm.org.uk/blog/practical-advice-on-setting-up-and-managing-your-portfolio/