- All too often, the portfolio of programs and projects looks more like a random heap than a strategically organized and balanced collection of investments that will drive the business forward.
- Portfolio managers know that with the right kind of information and the right level of process maturity they can get better results through the portfolio; however, organizations often assume (falsely) that the required level of maturity is out of reach from their current state and perpetually delay improvements.
Our Advice
Critical Insight
- The information needed to define clear and usable criteria for organizing the portfolio of programs and projects already exists. Portfolio managers only need to identify the sources of that information and institute processes for regularly reviewing that information in order to define those criteria.
- Once a portfolio manager has a clear idea of the goals and constraints that shape what ought to be included (or removed) from the portfolio and once these have been translated into clear and usable portfolio criteria, basic portfolio management processes can be instituted to ensure that these criteria are used consistently throughout the various stages of the project lifecycle.
- Portfolio management frameworks and processes do not need to be built from scratch. Well-known frameworks – such as the one outlined in COBIT 5 APO05 – can be instituted in a way that will allow even low-maturity organizations to start organizing their portfolio.
- Organizations do not need to grow into portfolio management frameworks to get the benefits of an organized portfolio; instead, they can grow within such frameworks.
Impact and Result
- An organized portfolio will ensure that the projects and programs included in it are strategically aligned and can actually be executed within the finite constraints of budgetary and human resource capacity.
- Portfolio managers are better empowered to make decisions about which projects should be included in the portfolio (and when) and are better empowered to make the very tough decisions about which projects should be removed from the portfolio (i.e. cancelled).
- Building and maturing a portfolio management framework will more fully integrate the PMO into the broader IT management and governance frameworks, making it a more integral part of strategic decisions and a better business partner in the long run.