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.

What is the point of Project Management?

Well - ask yourself the question - What is the point of project management?

I like to think it is a simple question of economics.

Imagine you owned a small shop selling confectionery to local kids. You decide that as you you have some extra space in the back of the shop that you can install a couple of tables and start selling ice creams too.

The benefits are obvious in that you expect to make additional revenue. The costs are easily identified because you have a quote for the re-decorating that must be done and also the costs of the tables and ice cream maker. You may need more staff but that will come from an expansion in sales and you can make do with current staffing levels for now.

Do you see where this is going yet?

So imagine you kick off this new endeavour and before you know it the decorator calls off, just after you accepted a delivery date for the new tables and chairs.

The question now is do you still feel in control?

Are you wondering if the delivery can be postponed? What if it cannot and the tables need to be put outside to allow the decorator to complete his job?

Will the tables be safe out on the street? Is there space to store them there? Will this impact the existing confectionery sales in a bad way?

Too many questions begin piling up and not many answers are available to reduce your stress levels. And that is just a simple little example with minimal complexity.

The point of project management is to keep control of changes.

As all change usually involved a cost of some sort, a managed project will ensure that:
- spending is done in the right sequence and
- jobs are completed correctly and
- on time to a given schedule
- that doesn't prevent the existing business from being carried out.

Simple isn't it?

Benefits of a Project Methodology

Be Better Organised

- Defines standard outputs and reduces the possibility of inconsistent project delivery.

- The methodology helps to provide a point of reference framework for project members and stakeholders.

- The methodology is repeatable across the organisation and can be easily taught and learned.

Resources used by projects can be standardised and made easily available at project launch.

Know The Outputs

- Defines key documents that must be provided for project tracking and reporting.

- Expectations of stakeholders can be set at the outset and managed through the project lifecycle.

- Key documentation delivered as standard output improves project visibility and helps to make the current status more transparent.

Improve Management Information

- Management Information such as project progress tracking and delivered benefits tracking are easier to provide.

Improve Quality of Delivery

- Quality expectations can be defined and tracked and are not carried solely by the skill of the project manager.

Improve Cost Control

- Current business challenges can be passed into a known “solution pool” where cost of resolution can be easily managed.