PROJECT PORTFOLIO MANAGEMENT

Ruthie Norjdstra DECEMBER 21, 2008

PROJECT PORTFOLIO MANAGEMENT

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Objectives :
Know all projects Study all projects Compare all projects Prioritize all projects

THE PPM CONCEPT

SCHEDULE

RESOURCES

SCOPE

BUSINESS PPM USE

Over 50% of business use PPM y Most PPM practices are still maturing y No particular unit is responsible for PPM y Most business lack resources to make PPM effective y About 33% check their portfolios on a monthly basis.
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PPM TRENDS
Growing necessity y Standardization y Software as a Service y Multi-level collaboration
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KEYS TO PPM
Earlier the better y Balance y Relationships y Best fit
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PPM TOOLS
Software Applications y Evaluation Methods
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PPM EVALUATION METHODS

Value, Cost, and Risk y Resource/Schedule/Scope y Scales y Decision tree analysis y Real options y Risk tolerance
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PPM APPLICATIONS
Database of projects y Reporting features y Relationships between/among projects y Analysis y What-if y Risk tolerance
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PPM ADVANTAGES
Understand the business case. y Discern the value/urgency of projects. y Study possibilities y Determine resource allocation y Portfolio management = portfolio value
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CONSIDERATIONS
Competition y Change management y Centralization y Finding the right method
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References:
Borison,A. (2003, May 17). Real Options Analysis:Where are the Emperors Clothes? Retrieved December 20, 2008 from ardent.mit.edu/real_options/RO_current_lectures/ borison.pdf Center for Business Practices. (). Project Portfolio Management:A Benchmark of Current Business Practices. Retrieved December 19, 2008 from www.pmsolutions.com/uploads/ Decision Tree Analysis: Choosing Between Options by Projecting Likely Outcomes. (n.d.). Retrieved December 20, 2008 from http://www.mindtools.com/dectree.html Greer. M. (2006). What's Project Portfolio Management (PPM) & Why Should Project Managers Care About It? Retrieved December 20, 2008 from http://www.michaelgreer.com/ppm.htm Hall, P. (2007, February 5). Exploring project priorities. Retrieved December 9, 2008 from http://www.stickyminds.com/sitewide.asp?Function=edetail&ObjectType=COL&ObjectId=11953 Hall, P. (2007, February 5). Exploring project priorities. Retrieved December 9, 2008 from http://www.stickyminds.com/sitewide.asp?Function=edetail&ObjectType=COL&ObjectId=11953 Merkhofer, L. (n.d.). Project portfolio management tools: which approach is best? Retrieved December 10, 2008 from http://www.prioritysystem.com/tools.html QuickStudy: Project Portfolio Management. (2002, March 18). Retrieved December 19, 2008 from http://www.computerworld.com/action/article.do?command= viewArticleBasic&articleId=69129 Rajegopa, S. (2006, December 29). Project Portfolio Management:The Issues, Challenges, Business Opportunities And Future Trends. Retrieved December 19, 2008 from http://research.ittoolbox.com/whitepapers/itmgmt/pm/project-portfolio-management-the-issues-challenges-business-opportunities-and-futuretrends-2466 Risk Analysis & Risk Management: Evaluating and Managing the Risks You Face. (n.d.). Retrieved December 20, 2008 from http://www.mindtools.com/pages/article/ newTMC_07.htm Walters, P. (2004, September 8). Portfolio management:An essential support for IT governance. Retrieved December 19, 2008 from http://research.ittoolbox.com/white-papers/itmgmt/pm/portfolio-management-anessential-support-for-it-governance-2458 Weigers, K.E. (1999, September). First Things First: Prioritizing Requirements. Retrieved December 10, 2008 from http://www.processimpact.com/articles/prioritizing.html West, C. (2007, December 13). Ranking Project Priorities is the First Step. Retrieved December 9, 2008 from http://www.projectmanagerplanet.com/tools/article.php/3716586