Companies are forced to invest their available capital in their core business in order to achieve competitive advantages. That means that pressure on the budget is increasing, and companies have to carefully consider any costly investments in their own internal change processes. For years companies have been investing in the professionalization of their project management to optimize the operative implementation of their projects. The next step is strict investment controlling, and the consistent strategic alignment of their projects. Project portfolios constantly have to be adapted to the market situation and the resulting corporate strategy. Successful execution of project portfolio management can make a major contribution to creating an agile organization – whether it is at the level of the IT organization, the specialist departments or the entire group. ESPRiT has developed an approach that allows you to execute effective project portfolio management in three steps:
- Set strategic goals
Are the strategic goals formulated in such a way that they are measurable and realizable?
The strategic goals are reviewed and, if necessary, adjusted so that they are measurable for project portfolio management. This step makes it possible to align all projects to the strategic goals of the company or the department in a measurable way.
- Evaluation and prioritization of the project portfolio
Have all the strategic goals been correctly evaluated and prioritized?
All projects are aligned with the strategic goals and prioritized. Relevant dependencies between projects are highlighted. It is important that the specialist departments carry out this work on the basis of the commonly defined criteria, in order to remain objective and neutral.
- Definition and adaptation of the required governance structures
Are investments correctly regulated within your enterprise, and are decision-making processes reviewed regularly?
Here the adjusted project portfolio management processes are firmly established within the organization. All the necessary governance structures are defined and implemented, so that the prioritization process is integrated into the annual planning process and sustainable success is achieved.
Managing a complex project portfolio also means taking into account the everyday, strategic management processes within the project. This leads to the following goals for project portfolio management:
- Planning and prioritization
Disclosure and reinforcement of the strategic alignment of the projects, thus facilitating prioritization.
- Execution and realization of benefits
Achieving the best-possible business advantages with the available resources by making consistent decisions with regard to investment controlling.
- Quality and risk management
Managing the operative risks of the project portfolio in such a way that the project goals are achieved within the constraints of the current business situation.
Make use of the potential that lies within your organization and your staff. We would be delighted to accompany you through the implementation of successful project portfolio management at your company. Our team of consultants can turn strategic concepts into fully-functioning solutions.