What is really going on in your software portfolio? A disciplined approach to strategic decisions is essential to align and leverage the power of portfolio management. CFOs are rightly positioned to help organizations use the principles of portfolio management. In this article at CFO, Mark A. Langley defines the project portfolio management’s competitive edge to drive suitable investment decisions.
PPM to Project Delivery
Project portfolio management is critical to get maximum returns. It helps in assessing, shortlisting, stabilizing, and resourcing necessary tools to align with project execution. Thus, any organization can achieve its business goals. PPM is a secret tool for CFOs to initiate informed decisions for budget control.
According to recent Project Management Institute findings, enterprises following healthy portfolio management practices are far more profitable than their peers. Their financial accomplishment, strategic execution, and successful project outcomes prove that fact. Such companies follow a flexible and agile approach to seize the emerging opportunities. An effective PPM exercise can reduce project budget, boost revenue, and increase ROI without affecting overall development costs. It also helps you understand what is really happening in the software portfolio.
There is a pool of opportunities for CFOs to drive innovative investments and increase returns. Follow these steps to leverage PPM for maximum returns:
Understand the Basics
Practicing portfolio management for projects or programs is impossible without learning the fundamentals. CFOs can align profit and loss (P&L) statements with independent projects and programs by acquiring the fundamental knowledge. Thus, you can objectively initiate strategic initiatives to stabilize your organizational efficiency for transformation.
An appropriate piece of information is critical to make strategic decisions. However, CFOs must learn about the primary difference between micromanaging and monitoring to extend participation, not control. Micromanagement is a significant distraction that leads to misuse of the available resources. However, micro-monitoring helps in observing the project budget and aiding the CFO, if required. CFOs can work with the PMOs to provide the right information and make significant decisions through necessary evaluation.
By practicing portfolio management, you can avoid delays in projects and programs. A mature PPM is the key to take calculated risks averting project cancellation or delays. So, integrate portfolio management in business management and strategic orientation. Click on the following link to read the original article: https://www.cfo.com/business-planning/2016/02/optimize-project-portfolio-management/