Employees are scarce, the next wave of flu is in full swing, but you still need to get started with new projects. Important key roles have already been integrated into projects, regardless of whether they are aligned with the strategy or not. These roles have hardly been incorporated into the planning process at all, and they are not yet integrated into everyday way of doing things at the company. Only a functioning and lean portfolio process will be able to help you make the right decisions.
Project Portfolio Management
Carry out the right projects and focus on the essentials. With our recipe for success, you too can succeed.
What Is Project Portfolio Management?
- We understand project portfolio management (PPM) to be a continuous end-to-end process. This would define clear rules of the game, roles, and meetings, and is fully integrated into the everyday way of doing things. It can be represented by four circles.
- In a nutshell, strategic goals and criteria are defined (Strategize), according to which the new (Collect) and ongoing projects (Execute) are then evaluated and prioritized. Various project constellations are considered on the basis of defined resource situations in order to decide on a new project portfolio (Decide).
- The documentation and communication steps complete the process flow. There is also the controlling step for managing the project portfolio and reporting. Parts of this process are already in operation at some companies today, but they are often unstructured and not consciously controlled.
The introduction of portfolio management is often viewed as a process that complements project or resource management. In reality, however, functioning portfolio management is the number one factor determining success during the project lifecycle.
Head of Competence Center PPM, itdesign GmbH
What Do I Need Project Portfolio Management For?
Companies try to prioritize projects based on their long-term strategy, but the portfolio process is often unstructured and poorly thought out. It is hard to get a bird’s eye view of the strategy day in and day out.
- Overloading: New projects are added without re-prioritizing or questioning existing projects that have already been approved.
- Method: The portfolio process is not consciously and actively controlled, but random and reactive.
- Information quality: Decisions are made on the basis of incomplete and unequal information.
- Speed: The speed of the existing decision-making processes does not meet modern business requirements.
- System landscape: Many different systems are used within projects, and there is no integrated system landscape.
Goals and Aspirations
To ensure that companies invest in the right projects, they need a continuous process that is fully integrated into the daily life of the company and adapted to its respective strategy.
- Strategy: The strategic goals of your company are firmly embedded in the portfolio decision process.
- Prioritization: Changes in the market or strategy impact the prioritization directly.
- Implementation: The project portfolio provides the framework for implementation and a realistic number of projects.
- Output: Realistic scheduling allows you to achieve greater output with the same resources.
Success Factors for Project Portfolio Management
Establish the Lean PPM Method
With the Lean PPM method developed by itdesign, you focus only on the bare essentials of your continuous portfolio process and carry it out in a consciously controlled manner.
Define Processes and Rules
An organizational method, process, and a set of rules form the basis of your success. The resulting meeting structures and timing can be integrated into your existing processes.
Start with the Essentials
The Lean PPM method can be introduced in stages. First of all, reduce everything to the key roles and key resources as well as the critical areas at your company.
Plan Your Changes
Rapid change must be embedded in the culture of the organization to enable rapid rescheduling and continuous prioritization as well as adequate planning of changes.
Portfolio plans and various scenarios must be simulated independently of current project plans and clearly communicated to participants once the decision has been made.
Focus on Communication
The success of your PPM depends heavily on the acceptance and understanding of all parties involved. Rapid and comprehensive communication can help ensure that this happens.
The Next Step
Portfolio Management Audit with itdesign
During an audit, we look at your existing portfolio process together and uncover the potential for optimization. We identify your most important success factors, and establish what criteria you should focus on for proper prioritization and communication. The Lean PPM approach helps you establish a functioning and continuous process in your company over the long term.
Software to Complete Your Project Portfolio Management
Meisterplan is the solution for lean portfolio management with a focus on resource-oriented project and portfolio planning. It helps you answer complex questions about feasibility, overload, and bottlenecks.
Clarity PPM meets your operational and strategic requirements for project and portfolio management. Its strength lies in the combination of project, resource, finance, and portfolio management.
itd Advanced Resource Planning
With itd Advanced Resource Planning, you can plan your resources optimally in a short space of time and with little effort in Clarity PPM. You can create realistic plans and make the right decisions.