Friday, May 27, 2016

Chose the Right Projects

Continuing the theme of what we can do to prevent projects failing: Step one was to consider if the project manager has the necessary skills to manage projects; Step two was to consider the needs of the organisation. Step three is to chose the right projects.

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.

1 comment:

Leigh said...

I see this as a major problem with many organizations. It takes a great amount of coordination and discipline to ensure that the right projects are selected for approval - those that provide the most benefit and support overall objectives. Portfolio strategy can take much effort up front, and as you point out, involvement at the top level. But can pay off if the effort is put in.