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Home > Consulting > Organizational maturity > Project Portfolio Management

Project Portfolio Management

In general, organizations are rather successful at developing strategies to achieve their business objectives. However, these strategies alone are not sufficient.
Most importantly, organizations must be able to convert their strategies into actual results. According to a study conducted by Michael Mankind, “Turning great strategy into great performance” HBR, 2005, companies generally implement only 60% of their strategy’s potential, mainly for the following reasons :

  • Their strategy is not efficiently communicated
  • Opportunities are poorly aligned on strategic objectives
  • Their project is poorly executed

Implementing portfolio management while ensuring adequate project execution is a powerful tool to bridge the gap between defining the strategy and achieving expected results.

Challenges

  • Too many projects in the portfolio, some of them active but not authorized by senior management. This leads to a competition for resources, and projects unfold over periods that are too long.
  • Choosing the wrong projects that generate little or no value for the company and are not aligned on its strategic goals.
  • A portfolio that is poorly balanced between development and research projects, between short-term and long-term projects, etc. Inadequate governance, where project dependencies are not taken into consideration and where the expected benefits have not been defined or determined.

How to proceed ?

No company has the financial resources needed to meet all its business needs. To help organizations achieve optimal performance, portfolio management places emphasis on “doing the right things” whereas project management emphasizes “doing things the right way”.

Portfolio management ensures that all projects that have been chosen and carried out meet the organization’s objectives. As a general rule, managing a project portfolio involves six main responsibilities :

  • Determine a set of viable projects to achieve the organization’s objectives
  • Ensure the correct mix of different project categories
  • Follow the evolution of projects during their lifecycle
  • Analyze the portfolio’s performance and find ways to improve it
  • Maintain the portfolio by assessing the impact of new opportunities on the existing portfolio according to organizational capacities
  • Inform decision makers of the portfolio’s status and propose recommendations

Our solutions

PMGS can help you manage your project portfolio in order to improve the quality of your project results according to your corporate objectives. Typically, PMGS uses the following model to enable your organization to manage its portfolio more efficiently :

Assess the current situation
Whether a company has an established process or not, all organizations manage project portfolios. At this stage, PMGS assesses your current maturity level. Using a recognized standard such as the PMI standard enables comparisons with other companies operating in your field of activity.

Define an improvement plan
PMGS helps you determine the level of portfolio management maturity that you would like to achieve, in keeping with your company’s reality. With you, we use the assessment findings to come up with a tried and tested approach as well as a plan designed to optimize current practices and especially support a closer alignment on corporate objectives. We also help you build the business case to sell this plan to the organization’s management team.

Implement the improvement plan
PMGS can support you in carrying out this plan by mentoring key resources. Here is how we take action :

  • Define and implement detailed processes and tools
  • Define or improve portfolio governance
  • Facilitate the selection and priority setting of initiatives
  • Support portfolio management
  • Train the organization’s stakeholders in portfolio management.

Achievements

  • Microcell