As organizations grow larger in scale, business leaders face the challenge of aligning projects with high-level business objectives. Often, executive management struggles to allocate resources, prioritize projects, and achieve efficiency. It is here that project portfolio management (PPM) plays a vital role. PPM enhances the organization’s ability to efficiently and effectively manage multiple projects. In this article at Reliable Plant, Simone Moore explains how to create a successful project portfolio management process.
Best Practices to Follow
Understand Your Business Goals
“Without business goals, project prioritization is arbitrary and potentially misdirected. That is why defining appropriate business goals is the critical first step,” says Moore. Defining business goals will help organizations develop a robust action plan. Each project in a portfolio must align with the organization’s strategic vision. In other words, without determining clear business goals, it is impossible to create a portfolio that will have the required strategic impact.
Implement a Risk Management Strategy
Enterprises must evaluate each project’s potential risks per the overall portfolio. Project managers must conduct risk assessments several times throughout the projects’ lifecycles. This process enables stakeholders to weigh new initiatives against the overall portfolio.
Develop a Robust Prioritization Process
Everyone in the team must be aware of every project. Making the process transparent and accessible makes it easier for employees to suggest improvements. Additionally, this will allow participants to understand how the system works and better understand the overall process goals. Industry experts believe that considering projects as a set will create a more efficient portfolio from a risk management and cost management standpoint.
The right project portfolio management process keeps projects aligned with enterprise goals in a well-organized and efficient manner. It outlines how the organization manages project ranking, planning, development, resource allocation, and other critical factors. To read the original article, click on https://www.reliableplant.com/Read/21594/10-steps-to-revitalize-your-project-portfolio-process.