3 September 2009

How To Build A Business Aligned Project Portfolio

So how do you build an optimal project portfolio that is aligned with your business strategy?

In three easy steps, the EasyPM way ... I hear the chorus shout!

Here's how you do it.

1. List and categorise all projects that are currently open and funded.
1a. If they are not funded add them to the "On Hold" list and pull all resources because they are not a projects.
1b. Categories on the list could be as follows:
- - - Revenue Generating
- - - Cost Reducing
- - - Process Improving
- - - Compliance / Regulatory
- - - Security
- - - Other
2. Identify the projects that deliver real business objectives.
3. List the value in Pounds/Dollars/Euros/Yen ... that each project will deliver to the business.

Once you have completed this relatively simple process, which may include a review of each project's business case, you will find that business alignment of the project portfolio will be easy to achieve.

Why Is Project Initiation So Important?

Why Is Project Initiation So Important? Well it's simple really when you think about it.

Let me explain. In earlier posts, I mentioned that project initiation information can be captured in a single document. This project initiation document, or PID as it is known, allows you to complete some important steps in building a good foundation for your project.

When you complete a PID you will have gathered a lot of information about the project to explain what it is, how it will be delivered, when and by whom. So it sounds like a great document to have right?

Of course once you have this information captured in a single document it becomes so much easier to communicate. At the simplest level, all you have to do is send it out and ask the person who is demanding answers to their questions to read it. We all know we would NEVER do that, but hey, what a great reference point it will prove to be. And guess what, it actually becomes that proverbial hymn-sheet that everyone wants to sing from.

So let me summarise the importance of project initiation:
  1. A project properly initiated is built on a solid foundation.
  2. Every stakeholder will know what the project is about and who is involved in making it happen.
  3. Finally it represents an agreement. Project initiation allows a project manager to set the contract for delivery and agree with the task-masters (sorry stakeholders) what the project will end up delivering.
Ok you get the drift now? Don't skip it and don't believe the experts who tell you to just get on with the delivery. Invariably those are the guys who are not around when the ess-aitch-one-tee hits the fan due to lack of proper controls. Have you heard enough drum beating on project initiaion? Any comments, let me know.

Useful links
Project Initiation document
Easy Introduction To Project Management
How To Use Project Initiation the EasyPM Way