Stakeholder requirements are an essential part of the project process, and PPM helps accommodate them. Only one out of four projects is successful because of poor project choices, groundwork, and planning. PPM gives you a framework to unify all stakeholder requirements, streamline tasks, and boost project communication. In this article at ISACA.org, Aarni Heiskanen shares how project portfolio management helps you stay on top of stakeholder requirements.
PPM Terms, Goals, and Processes
While you want the project to be successful, meeting the stakeholder demands requires careful planning. So, how do you prove that you are on top of what is important to your stakeholders? First, define standard terms and concepts for the team, like strategy, program, project, and project portfolio.
A PPM team defines a portfolio, decides the type of programs to include, and strikes a balance between the strategic requirements and the involved risks and resources. A portfolio might be ‘financial, strategic or tactical,’ and its conditions change according to the strategies. You can even have more than one in an organization.
According to Massachusetts Institute of Technology (MIT)’s Peter Weill, IT programs are classified per infrastructure, operational or transactional, informational, and strategic interests. A balanced scorecard (BSC) helps you segregate the programs based on ‘financial results, customers, processes, personnel and growth’.
Oversight and Processes
To start a PPM team, do the following tasks:
- Create a valid reason for establishing a project portfolio management team. Design goals and set expectations.
- Build a framework that coincides with the existing management procedures. For instance, strategic planning, annual budgeting cycles, and resource and decision control.
- Determine the project selection criteria and other necessary details.
- Establish stakeholder roles, responsibilities, and outcomes.
- Plan the applications, methods, phases, assistance, and guidelines.
Once the program owner submits a business case, the PPM team must evaluate before including it. For critical programs and projects, you need senior management consent. After it starts, the program or project manager must report the PPM team on ongoing success indicators like budget and schedule. Based on the progress report, the executive committee can scrap or support the project or program. Deduce lessons from the completed projects or programs and compare them with the ongoing ones.
Project portfolio management enables an open platform for collaboration and communication across the enterprise. Reports convey if the organization is moving in the right direction. Several companies use spreadsheets as well as applications to record the PPM progress.
To view the original article in full, visit the following link: https://www.isaca.org/resources/isaca-journal/past-issues/2012/project-portfolio-management