Why on earth would I want a projects portfolio management framework?

So the organisation does not have a clear business strategy, business demand for change initiatives outstrips the supply of constrained resources, and everybody wants everything by tomorrow. Before long we are trying to do our best but delivering less to more, and our customers are considering other options, including home-grown solutions. Unilateral effort in the business leads to ad hoc projects that pop up outside any governance or standards frameworks.

While establishing an effective projects portfolio management framework is a long journey, it is never too soon to start! Here are the first five steps to implementing a PPM:

  • a coherent business strategy, against which business change initiatives can be prioritised;
  • standardising the approach for business case analysis and investment appraisal;
  • top-level commitment for investment appraisal and prioritisation, matching demand to supply, and top-down enforcement that prevents “submarine” tasks;
  • a structured approach to project steering and execution that sets break-points for go/no-go decisions in the light of changing situations and priorities;
  • a control framework focussing on the 20% of projects that consume 80% of the resources. In an organisation of any size, it is important to establish a clear interface for managing the relationship between the project demand and supply sides.

Once in place, these measures provide a good foundation for the road ahead.

Paul Church

This entry was posted on Tuesday, May 29th, 2012 at 5:25 pm and is filed under Blog Category 1. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Why on earth would I want a projects portfolio management framework?”

  1. i found this in a google search. i really like your blog. hard to find something both informative and easy to read.

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