Project portfolio managers who use a top-down planning approach to portfolio management deliver the greatest strategic value for the enterprise. If you can align project deliverables to both organizational strategy and executive vision while simultaneously communicating status, risk, financial impact and resource needs among stakeholders, your PMO will become the business driver your company needs to compete in the markets it serves.
The top down alignment of your portfolio should do much more than report on projects and budgets: It’s the engine that drives business value. You can be the leaders in driving profitable change that helps your enterprise compete in the marketplace. Gain transparency to track milestones, manage, oversee and drive a business-oriented agenda, so your executive team views you as a partner. Your execution results can, in tandem, validate the approach, assumptions and business case behind the PMO’s strategic planning and ensuing activity. If you can flawlessly manage portfolio decisions about resourcing and interdependencies between the various projects, initiatives and other transformations on an enterprise level, your project portfolio management will improve strategic deployment and ensure business success.
Deliver quantifiable and impactful business benefits
The strategic PMO will understand these key performance indicators (KPIs) and how each department in the organization contributes to them. Through enhanced control and transparency of the portfolio, these business benefits are actualized through program planning that drives project deliverables directly from corporate objectives. Your PMO will in effect, have a templated business model that has been created from the executive vision. Once sponsors and stakeholders become convinced that you are working from the same KPIs they have identified in their corporate objectives, you can become an invaluable partner. You can provide a more strategic function than simply execution.
Improve strategic planning and executive insight through clear visibility and control
Visibility and control for all the moving parts of the portfolio help you meet project deliverables, of course. Yet they also uncover strategic opportunities for the enterprise. When you provide the executive team with pragmatic, information-focused solutions on the project or program level and you have managed resources, costs, delivery and benefits effectively, that delivers clarity for big-picture strategy
Separate strategic and operational portfolios to align with business goals
Once you can distil project deliverables from corporate objectives, it becomes clear where your most valuable resources must be deployed. When your portfolio mixes strategic and operational projects, this visibility may be hard to come by. To provide a holistic view of portfolio status at all times is your first responsibility to your sponsors. Clearly delineating what success looks like for each of the strategic and operational workflows under your command remains one of the premier ways to prove PMO value across the enterprise. Align resources today and for the future with a cleanly visible resource management process and transparent resource capacity enterprise wide.
Optimize project mix to realize business benefits
You can empower the business when you have the right mix of short- and long-term projects that you can control by possessing a single, integrated view of resources, financials and risks. As a business partner with top down visibility, you can successfully deliver on the strategic goals that matter most by defining a set of shared goals and aligning them with a set of impactful projects. To select, prioritize and execute projects that yield the highest business value, you’ll need to automate project selection criteria to ensure your portfolio delivers the most transformational and tactical business results on time and on budget.
Streamline executive communication and change management
You can plan and allocate clear deliverables to your project team; monitor budget, resource, track progress and value against a high-level plan that encompasses business benefits; and effectively utilize resources to deliver on the projects that deliver on financial goals. Tie projects and programs to overall corporate objectives and enable the business to view projects as strategic investments with real-time data insights and customizable dashboards. By communicating project progress with milestone tracking and status reports at the different project levels within your organization, you can justify the project hierarchy that bests supports business needs. You can ensure strategy and execution remain aligned and communicate the results through cross-portfolio analysis. Then, your project team; executives and stakeholders can review high-level summary information or drill into the detail as needed to end the endless fight for precedence and power in the project array.