Understanding the Consequences of Not Implementing Project Portfolio Management

Author: Ian Needs

In a recent article “ Why PMOs Fail: 5 Shocking PMO Statistics ” we explored some of the key statistics behind PMO failure, illustrating why many organisations that fail to implement PPM rarely satisfy the expectations of the business.

In this article we take this discussion further by looking in more depth at the consequences faced by organisations that do not implement Project Portfolio Management.

Consequences of not implementing PPM

For example, the diagram above provides a great visual of the immediate impact and poor end result of no project portfolio management.

The main consequence of this is losing control of your ability to impact the business in a positive way.  For example:

  • Reluctance to kill projects
  • Indecisive GO/Kill/Hold/Fix Decisions
  • Poor project selection framework
  • Wrong mix of projects
  • Poor strategic alignment

This is a stark contrast to the many benefits of implementing PPM, for example, organisations with Project Portfolio Management in place have a standard methodology for starting and managing projects and making them more accountable to the business.  This is further simplified through the use of project portfolio management software .

Businesses with PPM are more empowered, with control over project Go/Kill/Hold/Fix decisions.  This ensures there is a repeatable process for prioritising, selecting and executing projects as well as providing early warning of any potential problems in achieving programme and project milestones.

PPM and its enabling technology make it easier for different stakeholders to access project information relevant to their strategic interests. Providing a better understanding of resource utilisation in order to ensure that the right resources are deployed on the right projects at the right time.

PPM also drives reduced project reporting timescales at the executive and board level, allowing executives to make more accurate decisions based on real-time information.  This enables the business to react much faster to changes in market conditions and the competitive landscape, as well as switch priorities based on organisational needs and redeploy resources accordingly.

Read more about what happens when you don't implement PPM.