A Quick Fire Guide to Project Portfolio Management Business Benefits
Project Portfolio Management provides a structured environment for deciding which projects, programs and initiatives to fund, to sustain and to eliminate. From optimizing your investment in important change programs, through to ensuring you are running the right projects and programs at the right time - Project Portfolio Management will bring sanity to project and resource chaos.
With Project Portfolio Management you can maximize the contribution of projects to the overall welfare and success of the enterprise, leading to significant business benefits for business leaders, executives and the organization as a whole.
For business leaders and executives this means that:
- Projects should contribute to a positive cash flow for the enterprise;
- Projects must effectively utilize the organization’s resources;
- Projects must help position the organization for future success and growth.
For the business, the PPM process enables users to organize a series of projects into integrated portfolios. As part of this process the business is able to produce reports based on the various project objectives, costs, resources and risks. This will assist the business in making key financial and business decisions. PPM is a dynamic process whereby projects are regularly evaluated, prioritized and selected, based on the goal of obtaining the greatest possible value from the organizations limited resources.
PPM enables the organization to:
- Meet financial and business governance milestone costs effectively;
- Bring new products to market in line with business strategy only when resource capability and budget restrictions allow;
- Implement outsourcing and off shoring initiatives with real time visibility of operational time, cost and resource information across business units;
- Track and optimize lights-on-activity to aid business growth and efficiency drives;
- Understand resource utilization and profitability allowing better alignment of resources, more dynamic workforce management and reductions in contractor costs;
- Reduce reporting timescales at executive and board level allowing faster reactions to market and competitive changes and more accurate decision making;
- Get early warning of any potential problems meeting program and project milestones;
- Make it easy for different stakeholders to access project information relevant to their strategic interests;
- Calculate the financial impact of cancelling a poor performing project;
- Switch priorities based on organizational needs and redeploy staff quickly;
- Have a standard methodology for starting and managing projects and making them accountable to the business;
- Reduce program and project overruns and costs;
- Reduce program and project duplication and effort;
- Track costs, revenues and margins for each project in the portfolio;
- Learn from past projects;
- Account for cost of time spent on projects;
- Reduce the risk of losing money on projects;
- Identify risks at the outset and their impact on the business;
- Understand how changes to one project will affect other projects;
- Identify projects that are not contributing to objectives;
- Reduce the risk of skills shortage at critical times;
- Track delivery against key milestones;