{"id":1961,"date":"2017-07-17T08:54:33","date_gmt":"2017-07-17T15:54:33","guid":{"rendered":"http:\/\/www.projectp.com\/ppblog\/?p=1961"},"modified":"2022-11-18T12:27:00","modified_gmt":"2022-11-18T20:27:00","slug":"3-fundamentals-of-successful-project-portfolio-management","status":"publish","type":"post","link":"https:\/\/www.projectp.com\/ppblog\/2017\/07\/17\/3-fundamentals-of-successful-project-portfolio-management\/","title":{"rendered":"3 Fundamentals of Successful Project Portfolio Management"},"content":{"rendered":"

Project Portfolio Management (PPM) is more than managing multiple projects. \u00a0A PPM solution provides centralized visibility into the entire project portfolio to help planning and scheduling teams identify the most suitable approach to deliver projects and programs. A\u00a0successful<\/em> Project Portfolio Management solution consists of three fundamental components that must be implemented in adherence to business value and strategy.<\/p>\n

1 – Project Selection<\/strong><\/h3>\n

To be successful with project portfolio management, you should select and initiate projects based on your organizational capabilities and goals.\u00a0 To do this, you should have a systematic method and decision process.<\/p>\n

A good way to start is by gathering a Project Inventory of current projects.\u00a0 Here are some examples of information you will want to capture.\u00a0 You will want to capture the goal of the project, project dates, resources being allocated to the project by role and other criteria, the risk of the project (may be as simple as High, Medium, or Low), the expected return of the project, and who benefits from the project.<\/p>\n

You will also want to Score and Categorize Your Projects.\u00a0 To do this, identify logical criteria for scoring and categorizing projects (e.g., strategy alignment, limiting risk, increasing efficiency, increasing sales, reducing expenses or process steps, Benefits\/Feasibility, legal, regulatory, security, etc.).\u00a0 Set up a scoring mechanism for each project based on the criteria (Note:\u00a0 The scoring range will be agreed on for each criterion, and each person can score projects based on their biases).\u00a0 Aggregate or average the scores from all individuals to develop a score for each criterion for each project.<\/p>\n

Once completed, you will gather your project inventory, including the scores, along with current and forecast costs (for new projects, use expected costs).\u00a0 List your projects by rank order based on scores and put a line under the project sum equaling your total available portfolio budget (Note: Rank may not be based on score alone. Modify your total budget based on any contingency funds you hold).\u00a0 Projects above the line can be initiated or are already in progress.\u00a0 Projects below the line are held in reserve should you kill or cancel other projects or come up with more money.<\/p>\n

2 – Project Resources<\/strong><\/h3>\n

No company has the resources to meet all of its business needs in the best of times and, even more, critical when times are tough.\u00a0 PPM gives you visibility into resource availability and allocation across your project portfolio. By ranking and prioritizing projects, you\u2019ll be able to allocate resources strategically and maximize project delivery.<\/p>\n

To be successful with project portfolio management, you should know where your people are working and what more can be done with available capacity.\u00a0 You don\u2019t have to have sophisticated tools to track your resources. Still, you do need standard methods for the definition of resource information (location, department, division, etc.), competencies (skills and levels), where the resource is currently being allocated (both project and non-project), and resource development opportunities.<\/p>\n

Define your resources using the above information and more if needed.\u00a0 Establish each resource\u2019s available capacity to work based on their project focus and the resource calendar.\u00a0 You will then inventory your Total Resource Capacity (TRC) by resource and aggregate individual resource capacity by role (Note:\u00a0 If a resource has multiple roles, you will have to define how to split out their TRC by role). For each resource, sum up their total allocation to current projects.\u00a0 This is their Project Allocated Capacity (PAC).\u00a0 You can do the same for each role across all active or proposed projects.\u00a0 Finally, you can compute the Total Available Capacity (TAC) by computing TAC = TRC \u2013 PAC.\u00a0 Do this for both resources and roles over time.\u00a0 You\u2019ll be able to forecast the availability of resources for future projects by capacity and role needed.<\/p>\n

3 – Project Information<\/strong><\/h3>\n

Project portfolio management relies heavily on the accessibility and accuracy of information. You should have standard procedures, applications, and training for effectively sharing relevant information to drive portfolio analysis, decision-making, goal setting, project status, prioritization\/ranking, and consumed and available resource capacity.<\/p>\n

Throughout the project lifecycle, from intake to closeout, communicate risks, issues, decisions, changes, lessons learned, and actions taken and document the reasoning for each.\u00a0 Set up logs for each project to track the information and make the information available to all stakeholders.<\/p>\n

Successful PPM relies on these three fundamental components and must be managed according to business value and strategy. When implementing a Project Portfolio Management solution, remember that change should be managed at both the organizational and project levels.\u00a0 Corporate change management (organizational change) discussion may be a great way to introduce a PPM solution and get everyone on board.<\/p>\n

Learn more:\u00a05 Major Benefits of Implementing a Project Portfolio Management Solution<\/a><\/span><\/strong><\/p>\n

For more information, visit our Resource Library<\/a><\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

A successful Project Portfolio Management (PPM) solution consists of three fundamental components that must be implemented in adherence to business value and strategy: project selection, project resources, and project information. In this blog our experts review what you need to know: <\/p>\n","protected":false},"author":79,"featured_media":3280,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[75],"tags":[255],"class_list":["post-1961","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oracle-primavera","tag-implement-service"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.projectp.com\/ppblog\/wp-json\/wp\/v2\/posts\/1961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.projectp.com\/ppblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.projectp.com\/ppblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.projectp.com\/ppblog\/wp-json\/wp\/v2\/users\/79"}],"replies":[{"embeddable":true,"href":"https:\/\/www.projectp.com\/ppblog\/wp-json\/wp\/v2\/comments?post=1961"}],"version-history":[{"count":0,"href":"https:\/\/www.projectp.com\/ppblog\/wp-json\/wp\/v2\/posts\/1961\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.projectp.com\/ppblog\/wp-json\/wp\/v2\/media\/3280"}],"wp:attachment":[{"href":"https:\/\/www.projectp.com\/ppblog\/wp-json\/wp\/v2\/media?parent=1961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.projectp.com\/ppblog\/wp-json\/wp\/v2\/categories?post=1961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.projectp.com\/ppblog\/wp-json\/wp\/v2\/tags?post=1961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}