Governance components in Project Portfolio management
There are several projects run by an organization, and this makes it important for the company to organise and manage their project portfolio in an effective manner. Project Portfolio Management refers to the procedure utilised by project managers and project management organisation (PMO) to analyse the significant return on undertaking projects (Parry and Lind, 2016). With the inclusion of consolidating and organising every segment of data related to the current and proposed project, project portfolio manager offer business analysis and forecasting for an organisation seeking to invest in a new project.
The objective of Project Portfolio Management
The PPM or Project Portfolio Management has its own set of objectives. These objectives are made with an aim to bring expected outcome through coherent team players. The following factors require to be outlined-
- Outline a descriptive document that has vital information like project name, business objective, estimated timeframe and cost
- The project requires to be examined on a routine basis to confirm that the project is progressing as targeted and stays in course (Jenner, 2016)
- Selecting team players that would work to accomplish the project objectives
Strategies and Governance
Corporate Governance: It is a procedure through which the company's objective is pursued and set. It defends the key stakeholder's interest.
Project Governance: It is a process of management, establishment and control of programmes, project and portfolio. The responsible authorities are accountable for the execution of business strategy in a successful manner and continuous creation of value to the business.
Three pillars of governance in PPM: Steer, Change and Run
Governance: It process to create value to society and shareholders
Business Process Ownership: They functions to manage business performance
Project and Programme Management: It functions to manage changes in business operation and significantly meet organisational needs.
- Construct inventory and implement strategies: It is important to identify every project in the pipeline by collecting organisational information and key projects. Categorise strategic goals that support to meet the project objective
- Investigate: Evaluate current weakness and strength of the project portfolio. Analyse all project individually in respect to its potential ROI, project milestone, resource allocation and reporting schedules. It is important to assess the overall risk of the project portfolio by comparing the potential of technical effectiveness against expected advantageous from the project.
- Confirm Alignment: Need to balance between long term goal and short term growth opportunity along with the quest for significant innovation. Confirm that distribution of project involving nature and number of the project are a line up to several strategic objectives that contribute to economic sense. It is crucial to undertake wider inclusive method to risk and measure financial terms along with scope resource, schedule and technology threat (Parry and Lind, 2016).
- Management: They require viewing project portfolio and setting important decision about the relocation of resource or budget and reprioritisation depending on information uncovered during prior legs of the procedures. Collaboration is important prior to make such a decision and achieving the right portfolio
- Experiment and Adapt: As there is no guarantee for PPM procedure to be always right, an organisation should learn to adapt to the changes quickly. Effective Changes can be made through collecting feedback and ultimately making the project portfolio an attractive one.
Strategies to accomplish PPM success
- Adequate identification of project portfolio associated risk and remediation plan needs to be prioritised.
- In case the project fails to be aligned effectively with organisational strategy, it is important to be cancelled
- Enable C-suite, IT planning teams and architects to collaborate execution with business tactic
- Simplify task and time management for project portfolio team members, confirming that they have the flexibility and freedom to capture time and task data as needed
- Authentic data is critical for project success and delay in access to data might impinge decisional capability along with the capability to fulfil with regulatory needs (Parry and Lind 2016)
- Use the right tool to have track and simplification of the procedure. Providing project portfolio team with authority to remotely submit timesheets and stakeholder ability to have a track of project status would save a lot of time
Governance Structure of PPM
Responsibility and Role of PPM Board
- The board have complete responsibility for the governance of project management
- Undertake portfolio direction, project management ability and project sponsorships.
- Accountable to core components that involve reporting, disclosure and demonstrable coherent between business strategy and project portfolio
- The disciplined government plan, supported by resource, appropriate culture, and control application throughout the project life cycle. All project have sponsors
- Decision made at the authorisation point is communicated and recorded (Kaiser et al., 2015)
- Project portfolio business case is supported by realistic information, which offers a reliable and viable foundation for establishing authorisation decisions
- The organisation cultivates a culture of development and of truthful internal disclosure of project managing information
- Project are stopped when they no longer reasonable as part of the company's portfolio
The outcome of effective Portfolio governance management
- Integrity in establishing portfolio governance management, observing etiquette and ethics
- Accountability of all involved with a clear role and responsibility are implemented
- There is transparency to financial authorities and stakeholders achieved through regular meeting
- Acquiescence to standards of portfolio governance administration, involving understandable procurement procedure and obedience to regulatory, policy and legal requirements (Kaiser et al., 2015)
- Protection of concerned parties against dispute, encouraging people to do the right thing and offer conflict resolution as required
- Availability of data facilitated by non-stop information flow and clear reporting of project portfolio management procedures
- Flexibility and agility in a dynamic environment, depicting capability to adapt changing requirement at the organisational and business level
- Retention as application and clear transition from program or project to operations
Project Portfolio Management or PPM tools
There are several tools, which are used for project portfolio management. Following are some important features of such tools-
- A systematic approach to evaluating the project
- Resources required to be organised and planned
- Benefits and costs are required to be maintained on track
- Considering cost-benefit analysis
- Communication mechanism that would help to take through necessary information (Kaiser et al., 2015)
- Access of data or information, when and as it needed
- Progress report on a routine basis
Techniques to measure PPM
- Scoring technique
- Accommodate PPM at organisational levels
- Mapping and visual technique (Hazır, 2015)
- Provide user-friendly functionality and interface
- Heuristic model
- Offer robust analytics and reporting
- Deliver improve online features for remote communication and collaboration
The usage of the above techniques needs to be done in consideration of organisational objective and project, infrastructure and resource skills for project management
Two ways to implement Project Portfolio Governance with vivid work
Project reporting and visibility: The implementation of the reporting framework helps to offer visibility across every project, which is underway. The project might be managed in individual sites, which act as a focal point or hub for every project related reports or tasks. Portfolio dashboards can roll up information from a variety of projects for an ‘at a glimpse report on health’ transversely every project (ul Musawir et al., 2017). The responsible authority can simply drill down in the individual project to evaluate problems or easily find more detailed information at the project level.
Project Request Management: The crucial aspect of project portfolio management is to confirm that projects are in alliance with the strategic organisational objective. It is important to select a project portfolio that delivers the highest value and return for investments. Project request management procedure plays a significant role. The efficient procedure of managing new project requests is helpful to organise every pipeline, from the new request to establishing latest project sites. Once the request is approved, the responsible project manager may utilise the original request to commence a new site, highlighting key information of the project. It would confirm that the new project gains the best possible start.
Strategic execution: Numerous layers
Project: Convey enablers for comprehension of few or other benefits
Programme: Facilitate change referring to strategic objective and to the comprehension of few or other end-advantageous
Portfolio: Collection of initiative that covers the comprehension of multiple or all end-benefits
Benefits of significant governance of components in Project Portfolio Management
- Higher adaptability to the changing environment
- Close monitoring and content review brings about high returns
- Recognition of dependencies is simple to find. This eliminates certain inefficiency from occurring
- Advantage over rivals
- Management’s perception related to PPM noted as ‘approach towards high return’. This would not be undertaken as a detrimental factor to work
- The mix of business projects and IT are noted as a contributor to accomplish an organisational objective
- The roles and responsibility of IT is concentrated on the part of the business than scattering across several
- PPM helpful to focus on strategies that are effective in gaining targets rather than concentrating on projects itself
Project Portfolio Management or PPM is aimed to decrease inefficiencies that take place at the time of undertaking a project as well as eliminating significant threat or risk. The risk may occur due to the lack of significant system and information available. PPM helps a company to collaborate its project working to meet objective whilst using the resource to the maximum significantly. It is important that every project manager of the company have efficient awareness of the organisation's project portfolio management. This would ultimately contribute to the company's goals while executing the respective project.