What Is Project Portfolio Management (PPM)?

Project Portfolio Management (PPM) is a management process designed to help an organization acquire and view information about all of its projects, then sort and prioritize each project according to certain criteria, such as strategic value, impact on resources, cost, and so on. The objectives of PPM are similar to the objectives of managing a financial portfolio: 1) To become conscious of all the individual listings in the portfolio 2) To develop a "big picture" view and a deeper understanding of the the collection as a whole. 3) To allow sensible sorting, adding, and removing of items from the collection based on their costs, benefits, and alignment with long-term strategies or goals. 4) To allow the portfolio owner to get the "best bang for the buck" from resources invested.

Typically, PPM begins with the organization developing an inventory (comprehensive list) of all its projects and enough descriptive information about each to allow them to be analyzed and compared. Such descriptive info can include project name, estimated duration, estimated cost, business objective, how the project supports the organization's overall strategies, and so on. These are sometimes compiled in an electronic database so they may be analyzed and compared more easily.

After the project inventory is created, the PPM process requires department heads or other unit leaders to examine each project and prioritize it according to established criteria.** The overall list of projects is then considered in order to develop a well-balanced list of supported projects. Some projects will be given high priority and extensive support, some will be given moderate priority, and still others will be placed on hold or dropped entirely from the list.

Finally, the project portfolio is reevaluated by the portfolio management team on a regular basis (monthly, quarterly, etc.) to determine which projects are meeting their goals, which may need more support, or which may need to be down-sized or dropped entirely. Since the circumstances of each project and the business environment can change rapidly, PPM is most effective when the portfolio is frequently revisited and actively managed by the team.

In order for the above PPM activities to take place, the organization must first decide who will participate as active managers of the PPM process. Typically, the PPM management team is made up of department heads from sub-organizations which generate requests for projects, provide project resources (especially team members), provide project funding, use finished project deliverables, set strategic directions, and so on. After the PPM management team is established, they must agree on a set of criteria for valuing projects in order to prioritize them. Decisions based on these criteria will likely be more acceptable to everyone in the organization if the criteria have been developed with the input or review of as many stakeholders as possible from within the various sub-organizations. So typically broad, organization-wide discussions of the criteria are held before they are finalized. Read More...

PRINCE2 - Is it the way to go?

The PRINCE2 project management methodology is accepted throughout the UK as the leading 'best practice' project management approach. For many project roles, knowledge of the structure and terminology of PRINCE2 is becoming a key requirement, as it provides a common language and structure across all projects. It is adaptable and flexible for any type or size of project and can be used as a common link between different teams within a business.

There are a number of reasons for candidates to attend a PRINCE2 examination course. These include:

1. The course forms part of your personal development, as you are increasingly working on projects as part of your current role, or have been asked to join a project team within your organisation. Project management is a specialist area of management, and training in the structure of projects, the planning activities, meetings and reports needed to keep the project on track and deliver successfully are vital for anyone working within a project environment.

2. The course provides a recognised professional qualification and therefore, forms part of a structured development path for personal development.

3. The use of the PRINCE2 project management method is being increasingly seen as a requirement for any organisation wishing to take part in government, local government or NHS related projects. Therefore, it is essential that your organisation ensures that members of project teams are qualified at least to Foundation level. As members of your workforce become professionally qualified, there is a direct relationship to the fee rate at which these resources can be charged out to the customer.

Click here to read the entire article.

Hiring the Super Project Manager

This is a great article by Jay Rollins.

If you're looking for a project manager to lead your PMO, you have to look deeper than a PMP certification. Here are the characteristics to look for.

Some would argue that hiring good people is now more science than art. Personality tests, leadership tests, background checks, reference checks, relevant experience, etc., all make selecting the right candidate an easier task. That may be the case for some IT resources, but it doesn't necessarily apply to project managers. And for project managers for small and mid-sized businesses (SMBs), it definitely doesn't.

Click here to read more.

10 Steps to Better Project Management by Michael Lester

The role of product manager is one that is poorly understood, with different interpretations among organizations. But whether you’re working for a small software company or a big consumer electronics manufacturer, these ten steps can transform product management from being a reactive tactical process to a strategic asset

Click here to read more

Active Listening: The Key to Solving Project Team Conflict

This is a great article by Global Knowledge.

As the leader, a major part of your effort should be to listen to your staff. Your communication skills are the key!

How can you listen better? First, stop talking. Concentrate on what is being said and don’t argue mentally or plan your next comment. Watch your body language, and make sure you put the speaker at ease and react appropriately (empathy, nod, eye contact). Do not stop listening until they stop talking. Avoid making assumptions, and listen for main points and supportive evidence. Remember, you share responsibility for the success – or failure – of the communication.

A useful tool for giving your fellow employees feedback is the basic feedback model. First, you describe a specific behavior that can be objectively verified by others (so it is not just your opinion), then you list its impact on you or the group. Then make a request to see what can be done to solve the problem. Always remember during the feedback process that active listening skills are very useful.

1. Behavior description:
   • “When you said (say)…”
   • “When you did (do)…”
2. Feelings (optional):
   • “I felt (feel)…”
3. Impact:
   • “As a result …”
4. Request:
   • “Can we discuss it?”
   • ”What can we do to resolve this?”
   • “Was that your intention?”

This article was originally published in Global Knowledge’s Business Brief e-newsletter. Global Knowledge delivers comprehensive hands-on project management, business process, and professional skills training. Visit our online Knowledge Center at www.globalknowledge.com/business for free white papers, webinars, and more.

The PPM craze is not over yet...

Interest in project portfolio management tools (and PMOs) is holding steady, according to a review of inquiries at one top research firm.

Evolution in Darwin’s terms means survival of the fittest. While the current economic state may seem like the world really is just a mad dash for the last bone, a snapshot of evolution in the world of project portfolio management suggests recession or not, companies are still eager to step back and try to do things faster, better and smarter.

Read more by Kathleen O'Conner in her projects@Work blog.

Great article on the Keys to project success

This comes from an article published by Michael Greer

1. Project managers must focus on three dimensions of project success. Simply put, project success means completing all project deliverables on time, within budget, and to a level of quality that is acceptable to sponsors and stakeholders. The project manager must keep the team's attention focused on achieving these broad goals.
   
2. Planning is everything -- and ongoing. On one thing all PM texts and authorities agree: The single most important activity that project managers engage in is planning -- detailed, systematic, team-involved plans are the only foundation for project success. And when real-world events conspire to change the plan, project managers must make a new one to reflect the changes. So planning and replanning must be a way of life for project managers.
   
3. Project managers must feel, and transmit to their team members, a sense of urgency. Because projects are finite endeavors with limited time, money, and other resources available, they must be kept moving toward completion. Since most team members have lots of other priorities, it's up to the project manager to keep their attention on project deliverables and deadlines. Regular status checks, meetings, and reminders are essential.

Click here for the full article...

So how can I use my PPM to mitigate risk? Lisa Erickson-Harris explains...

I wouldn’t be alone in telling you that investment in IT is still a good bet in 2009. Many are even saying that technology will play a strong role in the economic recovery. In my opinion, this could very well be the case. Research data collected by EMA as recently as October, 2008 shows no dramatic decreases in IT budgets to date. Of course, this may or may not change as we head further into 2009.

Yet, it is undeniable the economy is struggling and as IT professionals¾key players in the overall business team¾it is important to contribute to the larger picture of the business where sacrifices are being made. Scrutinizing IT investments is one very smart way to operate IT as a business within a business. Project and portfolio management (PPM) solutions and supporting processes are definitely a part of this picture.

When the economy and business climate is tumultuous, businesses need to stay focused. PPM can help to bring that focus to IT and provide the visibility and insight needed to keep important projects and initiatives on track. Without effective project management, many efforts start out in good stead, but fall inevitably to the wayside when a more pressing priorities come along. But a project management program pretty much eliminates excuses as long as the people running the program bring on board all the key stakeholders. Projects get done, efficiencies are created, and innovation plans put into place. In short, PPM helps IT sharpen its priorities and get the job done.

In its simplest of forms, PPM provides visibility for tracking and managing new and existing projects within an organization. It mitigates heavy demands on staff resources with projects and initiatives that compete for the same budget dollars. It’s an easy topic to grasp if you merely look at the basic functionality required to manage projects. This “basic” functionality includes projects, schedules, resources allocated, status, and actual versus project budget allocations. PPM tools provide all of these capabilities, but they can do much more. If used well, they can be a CIO’s best friend for keeping IT on track with business objectives.

Read more...

Another great post by Jeff Monteforte about PPM best practices

There is always more than one way to do anything (well, most things anyway) and then there are the ways that work best, writes PM Planet columnist Jeff Monteforte of Exential.

If you've been reading my series of articles on project portfolio management (PPM), then you know by now that PPM is the preferred industry technique being used by more and more companies to systematically evaluate and choose technology investments that provide desired business benefits.

While there is no single right way to do IT project portfolio management, there are best practices that all PPM specialists agree on.

The first such best practice is to establish the portfolio. The three essential steps required in building and organizing your first project portfolio are...

Click here to read more

How NOT to succeed with your PPM efforts

Here is an interesting post from Jeff Monteforte that spells out the fastest way to screw up your project portfolio efforts.

http://www.projectmanagerplanet.com/leadership/article.php/3707256

Is project management really that hard?

I was recently asked that question by a family member that was trying to understand what I do as a PMO manager. Seems like a loaded question, right? It can't be that hard can it? As with many things in life the answer is "It depends!". I have seen PMs that make managing complex projects with multiple dependencies look like child's play. They are the exception though. Project management is essentially about communication and planning. Seems easy enough, right? Well, try pleasing 10 different project stakeholders that are all type A personalities. That takes a special person that knows how to navigate the mine fields between project initiation and project closure. Often a project manager does not own the resources that are working on their project. In other words, you have the ultimate responsibility for the project success, but you do not manage the resources. This matrix organizational structure is very common in many organizations. Getting the most out of employees that do not report to you can be challenging. So, that was my long answer....my short answer is Yes!

I recently found the following jokes about project management on projectmanagementideas.com.

They wouldn't be funny if there wasn't some truth to them :)

- There are no good project managers - only lucky ones.

- It takes one woman nine months to have a baby. It cannot be done in one month by impregnating nine women.

- The sooner you get behind schedule, the more time you have to make it up

- Everyone asks for a strong project manger - when they get one, they don’t want one.

- Good project management is not so much knowing what to do and when, as knowing what excuses to give and when.

- Nothing is impossible for the person who doesn’t have to do it.