Picking the Right Projects
We need to make sure that only projects that are critical to the business take place. We also need to make sure that the projects that do take place are measured on the actual benefits they deliver to the business at the end of the project. Most organisations are currently failing in both of these areas. So what can we do about it?
These decisions need to be made at the highest level in the organisation and portfolio management provides the ideal mechanism for this.
Portfolio selection: by putting all projects (other than very small ones) through the portfolio selection process we ensure that only projects that are critical to the business are carried out. By regular review of the portfolio, we can ensure that only projects that remain critical to the business continue.
Benefits Management: ensures that we recognise the actual business benefits delivered by every project.
Portfolio Management also addresses prioritisation, planning, risk management and stakeholder management, which also deliver benefits to the organisation. Organisations that have implemented portfolio management have a much higher rate of project success and far fewer project failures.
Next week I will look at the fourth vital step.