Effective project portfolio management (PPM) is essential for organisations looking to achieve their strategic objectives.However, implementing PPM can be complex, requiring careful planning, resources, and execution. For this, there are three key factors that we think organisations need to consider for successful project portfolio management.
3 key factors to effective PPM
The three key factors to success with project portfolio management are executive sponsorship, resource management, and performance management.Let's delve deeper into each of these factors and understand their significance in the success of PPM.
Executive sponsorship in PPM refers to the active and visible support of senior executives or leaders within an organisation for PPM initiatives. Executive sponsorship is crucial for the success of PPM, as it provides the necessary resources, authority, and guidance needed to implement and sustain PPM within the organisation.
Executive sponsors are typically high-level decision-makers, such as C-level executives or department heads, who champion PPM and drive its implementation throughout the organisation. They play a critical role insetting the tone for PPM, communicating its importance to stakeholders, ensuring the organisational strategies are clear for projects to align to, and providing the necessary resources and support to guarantee its success. Without strong executive sponsorship, PPM initiatives may struggle to gain traction, lack necessary resources, and ultimately fail to deliver the expected benefits.
Effective executive sponsorship typically involves:
Setting clear expectations:
Executives should set clear expectations for PPM, including its goals, objectives, and priorities, to ensure that all stakeholders are aligned with organisational goals.
Providing adequate resources:
Executives should provide adequate resources, including financial, human, and technological, to support PPM and ensure its success.
Executives should hold stakeholders accountable for the success of PPM, including project managers, sponsors, and other stakeholders.
Resource management in PPM refers to the process of effectively and efficiently allocating resources, such as financial, human, and technological resources, to projects within an organisation's portfolio. Resource management is critical to the success of PPM, as it ensures that resources are being used in the most effective and efficient way possible, maximising the return on investment for the organisation. Resource management is an ongoing process within PPM, requiring continuous monitoring and adjustment throughout the life of each project within the portfolio.
Effective resource management usually involves:
Identifying and prioritising projects
Resource management requires identifying and prioritising projects based on their potential impact on the organisation and their alignment with strategic objectives.
Resource management involves allocating resources, including financial, human, and technological, to projects based on their priority and potential impact on the organisation.
Managing resource constraints:
Resource management requires managing resource constraints, including budgetary constraints, personnel constraints, and technological constraints, to ensure that resources are used effectively and efficiently.
Performance management in PPM refers to the ongoing process of measuring, analysing, and improving the performance of projects within an organisation's portfolio. Performance management is critical to the success ofPPM, as it allows organisations to identify areas where projects are falling short and take corrective action to improve project performance and outcomes.
Effective performance management may involve:
Establishing performance metrics:
Performance management requires establishing performance metrics, including time, cost, quality, and scope, to measure project success.
Tracking project progress:
Track project progress against established performance metrics to identify potential issues and opportunities for improvement.
Making data-driven decisions:
Making data-driven decisions based on project performance data to ensure that projects are aligned with organisational goals and objectives.
Fluid and successful PPM
Fluid can help organisations with effective executive sponsorship, resource management, and performance management through its centralised all-in-one solution. The transparency of Fluid enables executives to monitor and manage their organisation's project pipeline and existing projects with real-time status updates. With powerful resource management tools, Fluid helps organisations to optimise their resource allocation and boost the potential return on investment. Project management is made simple with a wide range of reporting metrics and dashboards to make them easier to understand too.