Effective project portfolio management (PPM) goes beyond selecting and executing projects; it also involves realising the anticipated benefits and maximising the value derived from the portfolio.
What are PPM benefits realisation?
PPM benefits realisation focuses on capturing, measuring, and maximising the actual benefits derived from projects within a portfolio. It involves a systematic approach to ensure that the intended outcomes and value identified during project selection and planning are effectively realised during project execution and beyond. Benefits realisation aims to bridge the gap between project expectations and the actual value delivered, providing insights into project performance and helping organisations identify areas for improvement.
What is Portfolio Value Management?
Portfolio Value Management entails the ongoing assessment and optimisation of the overall value and return on investment (ROI) of a project portfolio. It involves aligning the portfolio with strategic objectives, prioritising projects based on their potential value, and continuously monitoring and managing the portfolio to maximise value generation. Portfolio value management enables organisations to make informed decisions regarding resource allocation, project prioritisation, and portfolio adjustments to ensure the portfolio delivers the expected value.
How to Quantify Benefit and Value of a Project
Define Clear Objectives:
Clearly articulate the project objectives and expected outcomes in measurable terms. This will provide a basis for evaluating and quantifying benefits and value.
Establish Key Performance Indicators (KPIs):
Identify specific metrics and KPIs that align with the project's objectives and enable the measurement of progress and impact. These KPIs should be defined in a way that allows for quantification and comparison.
Gather Data and Track Progress:
Implement a robust data collection mechanism to capture relevant information throughout the project lifecycle. Regularly monitor and track progress against the defined KPIs to assess whether the project is on track to deliver the expected benefits and value.
Conduct Cost-Benefit Analysis:
Analyse the costs associated with the project and compare them to the anticipated benefits and value. This analysis helps evaluate the project's return on investment and informs decision-making regarding the project's continuation, modification, or termination.
Why does Benefit realisation and Portfolio Value Management matter?
Benefit realisation and portfolio value management are critical for several reasons. They provide organisations with a clear understanding of the value derived from their project investments, enabling them to make informed decisions about resource allocation, project selection, and portfolio optimisation. These practices also help to identify projects that may not be delivering the expected benefits, allowing for timely adjustments or corrective actions to avoid wasting resources.
Fluid and Portfolio Value Management
Fluid offers features and functionalities that facilitate portfolio value management. With Fluid, organisations can centralise project data, track performance against KPIs, and generate real-time dashboards and reports to monitor portfolio value. The software's analytics capabilities provide valuable insights into project benefits realisation, enabling stakeholders to assess the overall portfolio's value and make data-driven decisions.
Fluid also facilitates collaboration and communication among team members, promoting transparency and alignment in portfolio value management efforts. Start your free trial today or book a demo to understand how Fluid can benefit your organisation.