Best Practices to Manage Project Portfolios
The success of an organization can depend highly on its ability to manage the portfolio of projects effectively and ensure business goals and objectives are met on time and on budget. The importance of managing project portfolios should not be taken lightly.
Here are a few best practices to help manage project portfolios:
- Select and prioritize the right projects – Not every project has the same urgency as another. It is important to recognize the hierarchy of project completion based on organizational goals and be able to facilitate the higher priority projects first followed by those not as high on the list.
- Forecast the cost of delivering the project portfolio – Since profitability is key for a successful organization, it is important to track the costs of project portfolios on all levels and monitor them accordingly. You must have the visibility to track a project and determine if the project should be cancelled based on the costs exceeding the benefits of completing it.
- Provide real time status reporting for executives – Executives are often the ones making the business decisions and it is important for them to have real-time visibility of project statuses in order to make the best decisions for the organization. These status reports can eliminate many risks involved with non-communicated project issues.
- Initiate project governance for consistent processes – Ensure individuals and the business are held accountable for missed deadlines and wrongfully executed projects. By standardizing the project process, reporting and status of projects remains consistent across the entire organization, making it easier to track the outcome of projects resulting in greater efficiency overall
- Achieve a complete view of all projects – It is important for organizations to have a single version of the truth when it comes to project status. This eliminates questions and helps individuals prioritize and support the projects that need attention.
Start managing your project portfolios with these practices, and see the difference in efficiency and profitability.