Project Management plays a major role in planning and successful implementation of the strategy. It happens that strategy fails sometimes due to the presence of big gap between strategy and execution. Some of the common mistakes found in various companies are lack of involvement, discipline and follow up. With correct project portfolio management process in place, companies can take care of all these problems.
A project portfolio is managed by the project portfolio manager who looks for various ways that led to the improvement in the return on investment. A project portfolio manager has to be specialist in its field and he should constantly monitor and evaluate the portfolio with the passage of time to ensure that portfolio is giving high returns at low risks.
Every organization should have a project portfolio manager to take care of the portfolio management. A portfolio manager does the regular analysis and assessment of portfolio performances in terms of risk and returns over a period of time. Portfolio Management is goal-driven and target oriented task and there are inherent risks involved in the managing a portfolio.
Some of the major tasks involved with Portfolio Management include Matching investments to objectives, balancing risk against performance, taking decisions about investment mix and policy and allocating assets for individuals and institution.
Roles of Project Portfolio Management
· Determination of a viable project mix that meets the target of the organization
· Ensuring a mix of projects that balance various factors such as research versus development, short term versus long term, risk versus reward, etc
· Regular monitoring of the planning and execution of the optimal selected projects
· Evaluating the performance of portfolio and various ways for improving it
· Analysing the recent opportunity against the existing portfolio
· Comparing the project execution capacity of the organisation
· Providing recommendations to decision makers at every level of the process management
There has been increasing awareness among the organizations regarding the improvement of project portfolio management process for making it more efficient. In many companies the improvement of project portfolio has become part of the organizational learning process.
Project portfolio can be improved by following the below mentioned steps.
· Collecting and reporting the initial portfolio information
· Establishing the goals of portfolio
· Developing the resource and asset portfolios
· Linking project goals, resource and asset portfolios
· Performing an initial assessment
· Determining the multi-project strategic resource of the organization
· Prioritizing the project portfolio as per the accepted criteria and available information
· Assessing the portfolio balance
· Developing the recommendations for enhancing the ROI (Return of the Investment)
· Facilitating the Governance Board meeting
· Communicate the relevant information to various departments
The proper project portfolio management works wonders for the growth and development of the organisation. The selection of the right methods for choosing the right projects is a big challenge and portfolio management enables the organisation to proactively take all the required measures that yield high returns at a given level of risk.