Project portfolio management allows organizations to identify and bring greater value from strategic project and program investments. When a company has a mature portfolio management capability in place, every project or program team will consider its results as critical for specific organizational strategic goals and objectives.
Let’s analyze the importance of providing executives with useful information. In addition, let’s see why it is important to have the right processes in place.
Information about portfolio of projects
Executives often want information about portfolio of projects at hand. In fact, most of the time they do not think about how well a project is going or the benefits produced by a specific project.
For a company to thrive, business managers need to have a clear and early
warning of problems and their impacts. In fact, this will help them to have enough time to adjust and reallocate resources.
To be able to reach this goal, people who manage the portfolio need the proper resources and support to manage the conflicting requests among portfolio components.
The importance of having the right processes
To allow executives to have the needed information to understand the impact of their decisions, organizations have to invest in processes.
When an organization is truly mature in a portfolio management capability, it can count on a useful set of processes. In fact, having the right processes in place will also help link projects in the portfolio to strategic initiatives, and to assess the impacts (financial and nonfinancial).
These processes will help to avoid making decisions based only on emotions. In addition, portfolio management processes create transparency during the implementation and execution phases.
Keep in mind
Portfolios are important because they ensure projects and programs align with the strategy of the business. Finally, it is important to provide executives with useful information and to have the right processes in place.