Portfolio Management, Book Review Example

Abstract

Portfolio management requires a specific set of tools, technique and best practices to build the appropriate framework for success. While the basic foundation lies within the core project management functions there are additional attributes that guide portfolio and program management. Project portfolio management centralizes the focus of the project management activities and creates a collective synergy to drive strategic goals and objectives of the larger entity while also managing macro level constraints. Project portfolio management manages a variety of multiple projects and programs within a formalized management framework aligned with the strategic goals and objectives of the corporation or business unit. The tools and techniques facilitate the decision making process in order to meet goals and objectives of the portfolio to meet the strategic vision of the business.

Project Portfolio Management-Case Study 1

Essentially the company, Crompton Corporation, was implementing a four pronged implementation that focused on implementing best practices into their technology program management system. Their goals and objectives were focused on maximizing value, balancing short-term and long term objectives and ensuring the right resources were utilized at the right time and appropriate area. The function of the portfolio management process was to be able to evaluate, select, prioritize and manage opportunities within the portfolio and take advantage of potential growth when they were available in the business environment. The case with Crompton Corporation illustrates how the ingrained portfolio management tools and techniques can be utilized to facilitate the dynamic business decisions that need to be made in an ever changing business environment while also maintaining flexibility and agility within the organization. There are three areas which the portfolio management process encompasses. This includes encompassing the entire innovation pipeline, involvement of senior leadership in a proactive manner and infuses the use of practices, tools and methodology. By including the entire innovation pipeline which includes new product implementation as well as product redesign and enhancements, the entire lifecycle of the product enjoys the framework of the best practice structure. The full view of the product lifecycle allows for a broad view of the product and increased awareness on obstacles and opportunities. Senior leadership’s proactive engagement is essential in the success of the project. Their visibility allows for the direct correlation between the strategic intent of the organization and the right programs within the portfolio to support those intentions. The last area of the portfolio’s focus includes the right practices, tools and methods. The right set of people to do the job is the foundation. Within that group they must have the right tools, abilities and framework to execute the activities needed throughout the portfolio.

Project Portfolio Management-Case Study 2

After a tumultuous start, HP and Compaq merged in 2002. The first order of business was to understand which IT project and programs were in place and the prioritization of those projects. The global PMO was primarily focused on reassigning resources, balancing the talents of both teams and leveraging the successes of each. During a time of economic trouble, the emphasis on the PMO was to create value through their efforts and successfully launch and sustain their projects. Through the merger the PMO was able to create a standard operating procedure within their project management communities and allow for a common language and process for all those working a project. One of the areas that increase the success of the Global PMO was that reliance upon established and tested industry standards. The aversion to deviations and one-off processes allowed for the clear, concise and efficient project management methodologies to be established and utilized.

The basic framework of the PMO was grounded in their 16 principles. These principles became the cornerstone of the behavior within the project management offices. These principles provided the project managers guidance on the work they needed to perform to be successful. Along with the guiding principles there are also the tools that were outlined for use during project management activities. These tools provided each function required to properly manage and maintain a project throughout its lifecycle. By defining the toolset this allowed for concise allocation of resources, training and utilization of the tools and people. The merger and the instilled framework of the Global Project Management office had established goals and objectives, defined tools and processes and support from leadership to execute. The two halve have become one and are on the road to success by focusing on the essential opportunities within the project management processes.

Project Portfolio Management-Case Study 3

American Online, Inc. rapidly grew in the 1990’s and found itself atop the internet technology industry. As the growth began to slow, the senior leadership understood there was a need to reign in the opportunities and instill a project management structure to the organization. The key objectives were inline with many organizations which included align the strategic goals and objectives throughout the organization, select and execute high value projects and achieve the right balance between projects. This would be achieved by creating a Project Portfolio Management team to define and create this portfolio. The initial focus was to train and raise the education level of the project teams within the organization regarding the portfolio management opportunities. Once that was accomplished according to their own standards, a set of tools were selected to help the teams work on portfolio management activities. The training and tools were in place and the actual portfolio teams were assembled. Each team aligned with one of the seven business entities within the AOL organization. The implementation of the Project Portfolio Management’s (PPM) framework was gradually introduced into the business process through implemented metrics. Each metric would tie back to capabilities driven through the PPM office which inherently created a demand for their capabilities. This also creates a visual associated with what the PPM office provides in value. The PPM teams were then able to begin the process of infusing the project management methodology into the current business processes to garner needed results. The PPM teams were able to effectively and efficiently meet stretched objectives set forth by leadership and ultimately enhance the capability of AOL’s project management efforts. The efforts allowed for the increased capability to execute projects while also ensuring aligned with the strategic goals and objectives of the business.

Project Portfolio Management-Case Study 4

EW Scripps is an extremely large and diverse organization. In order to lean out the IT processes, the integration of a Project Management Office (PMO) was deemed a necessary addition. Traditionally, due to disparately among the organization in EW Scripps, the IT organization was decentralized. There was not standard work or common practices between the organizations. In order to fully manage and optimize the portfolio all of the projects and programs needed to be held within one area or database in order to be analyzed. The opportunity for improvement was present but there were some roadblocks that hindered this opportunity. The challenge regarding culture and change to that culture limited the initial steps of the implementation. Once this was overcome, through the support of senior leadership, the next phase was justification. This was accomplished by increased visibility. Once a redundant project that was already being worked on in another area was identified, the saving nearly paid for the initial implementation. As the PMO was being established another key milestone was reached. The metrics in which the projects were being measured was then placed into an executive dashboard so that the visibility was immediately increased on all projects. The PMO’s ability to show where the key resources should be focused based on need, opportunity and payback was visually attainable. This provided the needed accountability to the project teams as well as the PMO to create and maintain this information. This data provided crucial information so that the leadership could make informed business decisions. The tools that EW Scripps implemented allowed for increased visibility within the project management processes and allowed for optimization within the portfolio. This optimization aligned limited resources to the strategic activities needed to be successful.