Proposed Project Portfolio Management Process

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Proposed Project Portfolio Management Process

Project management has grown beyond the confines of simplistic canned applications into a discipline that is in large part process, combined with common sense and inspiration. The process of Project and Portfolio Management (PPM) derives from the practices common to project management, as expressed in applications and tools developed to help project managers collaborate with project team’s cross-enterprise.  Project and Portfolio Management solutions trump pure project planning applications by providing broad visibility into a corporation’s investments in human and material resources. Using PPM, project managers can determine how best to invest an organization’s capital in projects that provide the best return on investment, increasing the efficiency of the corporation’s resources. Working on the right projects at the right time is critical to sustain a competitive advantage, yet many organizations struggle with allocating limited resources and assets wisely. Project portfolio management (PPM) approach helps you select and manage an optimal portfolio of projects - one that maximizes your organization's responsiveness, revenues, and adaptability while keeping the projects aligned with your strategic business goals and objectives. This process helps structure your PPM practices to provide your organization with a consistent way to select, prioritize, and manage projects that deliver maximum business value. It is important to assess your current project portfolio management processes and in collaboration with project manager, identifies the appropriate level of PPM discipline for your organization. Then apply best-in-class Project Portfolio Management Maturity Model to determine your current PPM capability and identify process gaps between your organization’s current state and desired future state. Provide the roadmap for improvements and work to develop the implementation plan. Results from the assessment are used to define an approach to improve your organization's ongoing portfolio management practices. The development and delivery of the recommended approach and improvement plan, including a cost/benefit analysis for taking the next steps in optimizing your PPM practices that yields better alignment with your business objectives. PPM processes helps to enable you to select the best project portfolio aligned to your strategic plan. Forecasting and optimizing the use of available resources is an integral part of PPM. Monitoring project and portfolio performance ensures investment decisions remain the best choices in your changing world. Portfolios are continually evaluated. Prioritization is an iterative process and your portfolio must be reprioritized as business conditions, resources, and budgets change. A strong portfolio management program can turn all that around and do the following: * Maximize value of IT investments while minimizing the risk * Improve communication and alignment between IS and business leaders * Encourage business leaders to think "team," not "me," and to take responsibility for projects * Allow planners to schedule resources more efficiently

* Reduce the number of redundant projects and make it easier to kill projects Implementing PPM means more pennies in your piggy bank. Dennis S. Callahan, executive vice president and CIO of Guardian Insurance, and Rick Omartian, CFO of Guardian’s IT group and chief of staff, claim that portfolio management has reduced their companies’ overall IT applications expenditures by 20 percent and that, within that spending reduction, maintenance costs have gone from 30 percent to 18 percent. Eric Austvold, a research director at AMR Research, says companies doing portfolio management report saving 2 percent to 5 percent annually in their IT budgets. There’s no single right way to do IT portfolio management. Vendors, consulting companies and academics offer many models, and often companies develop their own...
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