Embedding Project Portfolio Management in Your Organization

December 1, 2015 | by

Project portfolio management was the theme of this year’s PMO Symposium. We outlined some of the key lessons learned here and there. In this post, we will look at the first three stages of how project portfolio processes are put into practice: assessment, improvement, and reporting/analysis.

Project Portfolio Assessment

Just like any other improvement effort, you need to understand what needs to improve. Even organizations with no explicit process have a variety of mechanisms for projects to be created, funded, and approved. Therefore, regardless of your current state, you should assess your current project portfolio management processes and identify the appropriate level of PPM discipline for your organization.

This type of assessment is right in PM Solutions’ sweet spot: we apply our best-in-class Project Portfolio Management Maturity Model to determine your current PPM capability and identify process gaps between your organization’s current state and desired future state. We provide the roadmap for improvements and work with you to develop the implementation plan.

Portfolio Process Improvement

Results from the assessment then define an approach to improve your organization's portfolio management practices going forward. PM Solutions partners with you on the development and delivery of the recommended approach and improvement plan, including a cost/benefit analysis for taking the next steps in optimizing your PPM practices that yields better alignment with your business objectives. The key steps are typically:

• Integration of your PM and PPM processes to ensure your project portfolio aligns to your strategic plan.
• Forecasting and optimizing the use of available resources, which are much more likely than funds to be the critical constraint.
• Monitoring project and portfolio performance ensures investment decisions remain the best choices in your changing world.

Prioritization is an iterative process. Your portfolio must be reprioritized as business conditions, resources, and budgets change. 

Portfolio Reporting and Analysis

Without a well-defined information gathering and analysis structure for project portfolio reporting, the execution of PPM will produce disappointing results. PM Solutions works with clients to customize and implement our five-level portfolio reporting model. We establish value and performance measures at the project, program, and portfolio levels, and then create analysis mechanisms to provide outcome visibility at the department and corporate levels. Plan success, measure it, and manage it.

My next post will be on the PM College blog, and will cover project portfolio management adoption and execution. Meanwhile, for more insight into how companies are implementing PPM, see our research report on the topic, or check out the PPM Maturity Model included in Project Management Maturity Model, Third Edition.