Project Portfolio Management (PPM) is a method that helps to steer and control all projects in your organization. PPM supports decisions, so that funds and resources are used optimally. That is why project portfolio managing is invested in various places in the organization and is directly linked to the highest management level.
What does project portfolio deliver?
Complex change processes are clear and manageable in a well-designed portfolio environment with the help of conceptual data models for example. Programs and projects are linked to each other so that they can be managed coherently and strategic and social objectives can be realized sooner. You can set a clear course with themes that your employees are happy to commit to and are proud to work on. In addition, the introduction of portfolio management ensures clear processes, ownership, cooperation, progress control and dashboards with scenarios that can be managed. The result: insight, grip and control, combined with connection and passion. You are in the director’s chair. Setting up and implementing portfolio management requires time, focus and direction, but delivers major benefits!
How to setup Project Portfolio Management
Setting up portfolio management is a complex process. There are many stakeholders, behavior and culture play an important role and it involves a new way of working. The success of portfolio management lies in the following challenges:
Those involved know what portfolio management is and what stakeholders want from it;
- Can the tension between the interests of the business units and the interests of the organization be broken through?
- Does the management in the organization accept the new way of steering and controlling?
- Is there a sponsor at the highest level who can mediate and/or make decisions in the event of escalations?
- Do the people who are involved want to move positively along with the new changes?
- Does the chosen new way of working and structure fit the culture of the company and the behavior of the employees and management?
For PPM to function well, standardization is important, so that analyses and reports are clear and are based on the right facts. Only then will there be insight into whether, when and with what quality and risks the organization’s strategic goals are being realized. Conditions for this are:
- Providing clarity in the steps of the change process;
- Acting according to agreements and roles;
- Knowing who the stakeholders are
- Focusing on benefits instead of project costs;
- Using (chain) processes;
- Addressing each other effectively on behavior;
- Thinking in terms of results;
- Linking knowledge and added value;
- Good commissioning and contracting practices;
- Clear and unambiguous communication.