Why should you have Project Portfolio Management (PPM) software?

This guide will discuss the components of the Project Portfolio Management process and the benefit to your organization.  

Organizations using PPM tools (vs. organizations not using PPM tools) are:

  • 44% more likely to complete projects on time or early
  • 38% more likely to complete projects on budget
  • 52% more likely to hit the expected ROI

Project Portfolio Management ensures that an organization can leverage its project selection and execution success. It refers to the centralized management of one or more project portfolios to achieve strategic objectives. Portfolio management is a way to bridge the gap between strategy and implementation.

What is Project Portfolio Management?

Project Portfolio Management (PPM) is the centralized management of the processes, methods, and technologies used by project managers and project management offices (PMOs) to analyze and collectively manage current or proposed projects based on numerous key characteristics.

Project Prioritization

Project Prioritization is the first component of a Project Portfolio Management process. It allows your organization to focus on those projects that deliver the most value.

By identifying the best projects for business goals, time, money, and resources can be effectively deployed. Your Project Prioritization framework should be “data driven” to be objective and scalable. It should support the concepts of Governance and Transparency.

A robust methodology is desirable to support any number of definitions of “value”. For some, value is determined by increasing revenue. For others, value means reducing cost. A third measure of value could be a project that meets a qualitative goal such as “going green”.

A robust Project Prioritization process will allow you to answer:

  • Who submitted this project and what is its purpose?
  • How do I compare these projects?
  • Which strategic goal does this project support?
  • Why was my project not approved?
  • If I have limited resources, do I cancel any of my projects? Which projects?
  • Do I hire additional resources for my project backlog?

The IT Project Prioritization process consists of the following steps (even if you are not in IT, these steps are still relevant):

  • Project Intake
  • Project Scoring
  • Project Selection

A PPM solution will contain a Project Prioritization template to capture or create data for each of step of the process.

Read our blog post on how to implement an effective Project Prioritization process here.  

Resource Management

Resource Management is efficiently and effectively using your organization’s budget, inventory, personnel and information technology (IT).

Once initiatives are prioritized or selected, the next step in your Project Portfolio Management process is to assign resources to projects.

PPM enables you to determine resource allocation using a top-down approach – either at the portfolio or organizational level. You can effectively perform tasks such as assigning resource availability, aligning skills to projects, and resource leveling.

Increased visibility enables proactive management of resource schedules, which allows you to identify potential issues weeks or months in advance.

There are 3 important ways that Project Portfolio Management optimizes deployment of personnel:

  • Resource Scheduling
  • Skills Management
  • Resource Leveling

Read our blog post on how to improve your Resource Management process here.  

Project Management

The PPM process should provide an aggregate portfolio view of all project plans for big picture analysis. Project Portfolio Management software should also offer visibility into data at the project level.

Good project-level management allows the editing of individual project plans and visualization of work breakdown structure for each initiative.

Project-level management within the overall PPM process effectively handles problems and identifies patterns with issue tracking to ensure timeliness of portfolio goals.

Because Project Management workflow classifies and tracks projects, it allows you to answer:

  • How many initiatives have been requested for funding?
  • How many projects are waiting for scoring?
  • How many projects are active?
  • Which projects have been archived?

A Project Management/Portfolio Management process should provision for the following capabilities:

  • Project Workflows
  • Project Plans
  • Work Breakdown Structure
  • Issue Tracking
  • Timesheets

Read our blog post on how Project Portfolio Management (PPM) improves Project Management here.  

Project Portfolio Reporting

An effective Project Portfolio Management process generates volumes of data about every aspect of projects within the portfolio. Your PPM software should make this information available via on-demand dashboards and push notifications.

Gathering and analyzing project data over time and across the portfolio supports hindsight analysis – the measure of how well a project did in meeting its goals. Affect future project success with a clear understanding of past performance.

Project Portfolio Reporting answers questions such as:

  • Are we going to meet our strategic goals? Why not?
  • What is the ROI on our portfolio?
  • Should we invest more money into capital projects?
  • Which department requested the most projects?

Project Portfolio Reporting provides the right information to the right people:

  • Stakeholders
  • IT executives – CIO, VP IT, Director of IT
  • PMO staff and PPM Directors
  • Project Managers

Project Portfolio Reporting includes:

  • Metadata
  • Metrics and KPIs
  • Dashboards
  • Hindsight Analysis
  • Project Budgets
  • Project Scoring
  • User Access

Read our blog post on how Project Portfolio Reporting can transform your business here.  

Summary

Organizations that use Project Portfolio Management benefit from:

Click here to download the Definitive Guide To Project Portfolio Management.  

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Here is an overview of the relationships between the 3 P’s: Portfolios, Programs and Projects. This blog post is accompanied by a simple diagram and a customer example to illustrate how the 3 P’s look within an organization.

Portfolio Level

Definition: What is a project portfolio?  A portfolio consists of projects created to meet an organization’s strategic goals.

Details: These collections of projects can be established for an entire company or for a division within a larger organization.

Need for PPM: Projectric provides a portfolio level solution that supports strategic alignment, transparency and governance.

Program Level

Definition: What is a program?  A program is a group of related or similar projects managed in a coordinated fashion to achieve a strategic objective.

Details: Program Management occurs at the program level – Project Managers guide interrelated or interdependent projects as a group. Specific purpose of each project within a program should be defined and aligned with the goals of the program. A program can span years.

Need for PPM: Because programs can span years, projects and people, optimizing resources among projects and reducing constraints across programs increases an organization’s performance.  This is Project Management.  

Project Level

Definition: What is a project?  A temporary endeavor undertaken to create a unique product, service or result.

Details: A project is composed of tasks to achieve an end and is temporary – once a project’s objectives are realized, the project is delivered and closed.

Need for PPM: Projects can be completed by teams dispersed around the world- this is where resource management from Project Portfolio Management software (like Projectric) becomes helpful.

Examples of Portfolios, Programs, Projects Within Organizations

Portfolio:

University Facility Management

Program:

Going Green

Projects:

  • Benchmark water and energy use
  • Build a “green wall” in the sciences library
  • Install new efficient air conditioning units
  • Install Building Automation software

Learn how these customers – across many industries – use Projectric to manage their project portfolios:

DeVry University

Duro Bag Manufacturing

Messer Construction

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Duro Bag Manufacturing Company is the largest manufacturer of printed and plain paper bags in North America. Duro Bag operates twelve plants in the United States and one in Mexico, employs more than three thousand people and sells point -of-purchase bags to department stores, grocery chains, and mass merchant retailers.  Here is how Duro Bag has used Projectric for their project portfolio management solution, from CEO to factory floor.

Need for a Process Methodology

When Duro Bag decided to streamline its portfolio management process, they sought to:

  • Increase project returns through better visibility, selection and control of projects
  • Optimize the use of limited company resources
  • Avoid project delays through timely communication of project status

The critical attributes they wanted in their portfolio management solution were:

  • On-demand, hosted solution
  • Robust features, functions, and capabilities
  • Easy implementation
  • Affordable for a mid-sized organization

Duro Bag found that Projectric best met all its criteria for portfolio management software. They were able to implement Projectric quickly and have since rolled it out across the company.

Adapts to Industry-Specific Standards

Duro Bag easily adapted Projectric to its manufacturing processes. Duro Bag uses Projectric to categorize its projects according to the Supply-Chain Operations Reference model (SCOR), a manufacturing process reference model for supply-chain management that describes the business activities associated with all phases of satisfying a customer’s demand. As a result, they were able to confirm quantitatively and objectively the benefits of their strong emphasis on customer related projects. Additionally, each department is able to show the strategic focus of their work efforts to senior management.

Benefits The Whole Organization

Duro Bag was so enthusiastic about the software’s quick implementation and demonstrated business value that Projectric quickly spread across the organization.

  • The Chief Executive Officer (CEO) is using the software to monitor progress on several corporate projects.
  • The head of Human Resources is using the software to manage and monitor several key transformation projects. Duro Bag is effectively using Projectric’s dynamic tools such as resource utilization “what if” capabilities and project milestone late reporting to more effectively manage resources, communicate project status and facilitate the achievement of its business goals.

Duro Bag is effectively using Projectric’s dynamic tools such as resource utilization “what if” capabilities and project milestone late reporting to more effectively manage resources, communicate project status and facilitate the achievement of its business goals.

Read about how other Projectric customers leverage our Project Portfolio Management (PPM) solution including:

DeVry University

Messer Construction

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Successful organizations must adapt to meet changing market forces. Companies must anticipate how emerging technologies could make their own products and services obsolete or risk failure. Embracing the Digital Transformation is necessary for any business, nonprofit or institution that seeks to survive into the future.  Evolve or become extinct.

This blog post focuses on the impact of global changes within the IT department, specifically the Project Portfolio Management process (PPM) and the Project Management Office (PMO).

What is Digital Transformation?

The reworking of the products, processes and strategies within an organization to leverage current technologies” is Digital Transformation (DX). DX requires an examination and reinvention of most, if not all, areas within an organization, from supply chain and workflow, employee skill sets and board-level discussions, to customer interactions and value to stakeholders. Effectively implementing a Digital Transformation strategy enables an organization to better compete in an economic landscape that is constantly changing as technology evolves.

What Is Driving DX And What Is The Impact?

The forces driving the Digital Transformation evolution are mobile technologies, Artificial Intelligence, Machine Learning, Internet of Things and Cloud Computing. These technologies have drastically changed how quickly customers can get information, thus altering the quality of products and services they expect from businesses and other agencies with whom they interact. Similarly, this same collection of digital tools has changed what employees and stakeholders (i.e., business partners and investors) expect from organizations.

Why Do I Need To Take Action?

The “new normal” has led to mounting pressure to deliver on DX focused initiatives to an increased number of project requests submitted to IT as businesses scramble to maintain their competitive positioning. CIOs are being tasked with developing customer-facing applications and nimble platforms that help their companies compete in the new digital marketplace. At the same time, IT budgets in 2017 are expected to rise only by 2.7%. CIOs are being asked to do more with less — and a lot of that “less” is going to maintain the status quo, not to digital transformation. As a result, IT resources are scarcer than ever.

How Will This Benefit My Organization?

Without a robust PPM methodology organizations risk overwhelming their IT departments by investing in the wrong projects, failing to transform the business, and ultimately falling behind the competition or going out of business.

Utilizing PPM best practices to support your Digital Transformation goals increase the chances of successfully leveraging the new paradigm by ensuring that your IT department is aligned with your corporate strategy.

Project Portfolio Management Action Plan For DX

There are 3 key areas of the Project Portfolio Management process to examine to ensure your DX strategy is successful without sacrificing delivery of ongoing projects.

1. Project Selection

Digital Transformation affects all areas of an organization from sales and marketing, to supply chain to management to HR. This will produce more requests for IT resources from more stakeholders than ever before. Identifying which initiatives to select, approve and fund remains a cornerstone of PPM best practices. Key questions to challenge your current PPM process regarding project requests include the following:

Does our project selection process support corporate guidelines concerning Transparency and Governance?

Who can request a project?

What is the method by which requests are submitted?

What information is gathered during the submission process?

How is this information stored?

Do we have quantitative measures in place to select DX initiatives?

How do we communicate when and why projects are/are not approved?

2. Project Management

Once the initiatives aligning with the portfolio goals and/or corporate strategy have been identified the next step is to successfully execute them.

Digital Transformation will require new systems to be implemented, new skills to be utilized and new methodologies to be deployed.

Key questions to challenge your current PPM process regarding project management include the following:

Can the process scale to support the management of an increased number of active projects?

Do you have the capacity to deliver these projects in terms of skills, quantity and availability?

How do you measure risk to both the project and the portfolio?

Does your process allow immediate understanding of the impact of each initiative on the entire portfolio?

Can you support stakeholders’ need for near real-time project metrics?

3. Portfolio Results/Value Delivered

Digital Transformation means that the successful execution of Projects, Programs and Portfolios will be scrutinized by more areas of the organization than ever before. Providing metrics, results, and value will be vital to ensuring success and alignment across the enterprise.

Key questions to challenge your current PPM process regarding PPM reporting include the following:

Do your PPM analytics support corporate guidelines concerning Transparency and Governance?

Does your process measure the value delivered by the initiatives – as both a forecast and actuals?

Can all of the stakeholders access project, program, and portfolio level metrics?

Does IT need to deliver reports or are they accessible via “selfservice”?

Is DX Worth The Investment?

Companies that have embraced digital transformation are 26% more profitable than their average industry competitors and enjoy a 12% higher market valuation.² – MIT center for digital business

Gartner characterizes “top-performing businesses” as those that have already embarked on digital transformations or where digitization is built into their business model. These organizations spent 34% of their IT budget supporting Digital Transformation efforts in 2017 and that figure will rise to 44% in 2018.

Summary of DX and Project Portfolio Management

The Digital Transformation creates winners and losers. There is mounting pressure to deliver on DX focused initiatives as businesses scramble to maintain their competitive positioning. With an increased number of project requests submitted to IT, it is vital that your PPM process allows the IT team to select the right projects, to successfully deliver projects and to provide metrics to stakeholders across the enterprise.

Selecting the proper initiatives aligned to corporate strategy and enabling stakeholders to understand the resulting value will position the PPM process and PMO function as the focus of this new paradigm.

Projectric delivers portfolio-level KPIs and metrics via dashboards and graphs to key decision makers across the enterprise. We call this 360 view Portfolio Intelligence®; it is the transformation of project and program data into relevant, actionable information for making business decisions. This unparalleled insight provides assurance that your DX initiatives have the transparency and governance necessary for your business to quickly adapt and succeed.

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Who is Projectric and what are our key capabilities that will help you?

Projectric is a cloud-based Project Portfolio Management (PPM) solution that provides a top-down view of your full portfolio of projects. With features such as real-time project management dashboards, resource management tools, easy-to-understand charts and customizable scoring settings, Projectric enables you to quickly understand the status and impact of your projects so that your organization can function more efficiently.

An Overview of the Projectric Project Portfolio Management Solution

In a business landscape that demands transformation and innovation at a rapid pace, organizations must automate processes, maintain existing IT infrastructure and oversee the roll-out and migration of new systems – or risk falling behind the competition.

Managing IT Project Portfolios as a corporate asset requires more than just a project management tool.

Projectric is a cloud-based PPM solution that identifies the right projects for approval, allocates and manages resources, and provides insight into these initiatives.

Benefits

Manage the IT portfolio like an investment

Secure, enterprise-ready PPM delivers transparency and governance

Proactive management of the portfolio

Focus on value and portfolio goals

Support stakeholders throughout the organization

Projectric Delivers Portfolio Intelligence®

Portfolio Intelligence® is the transformation of project and program data into relevant, actionable information for making business decisions. Projectric presents portfolio-level KPIs and metrics via dashboards and graphs to key decision makers. This unparalleled insight provides assurance that your corporate initiatives have the transparency and governance necessary for your business to quickly adapt and succeed.

Scoring

Allows you to forecast the impact of your portfolio against strategic goals and to measure the actual impact.

Dashboards

Powerful reporting and graphical features provide transparency across the organization.

Project Lifecycle

Portfolio Intelligence’s signature lifecycle and workflow process organizes and guides projects through a tracking and decision making process from initial idea to finished work.

Project Tagging

Easily add metadata tags to your projects to support analysis and reporting.

Cloud

Simple to roll out, accessible anywhere.

Notifications

Let stakeholders know when key milestones are met, or timelines are in jeopardy before they are missed.

Real Time Portfolio “Health Analysis”

No longer need to use excel to see the progress of projects.

Resource Tracking

Gain insight into real-time resource utilization across all projects and programs in your portfolios.

Issue Tracking

Issues flagged across portfolio.

Drill Down

To the phase, task, or milestone level of any project in the portfolio.

Security

128 bit SSL encryption supports users across the organization.

There it is – a list of our features.

Try a demo or a trial today, or read our blog post that serves as a guide to best practices in Project Portfolio Management.  

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DeVry University provides rigorous, career-oriented undergraduate and graduate degree programs in technology, business and management. About 53,000 DeVry students access programs through a North American system of 78 locations and online.

DeVry needed a Project Portfolio Management solution that offered a complete view of all projects and a methodology for selecting and managing the right projects.  Read on to see why DeVry selected Projectric in their new Project Management Office to better prioritize, balance and manage their portfolio of projects.

Results From The Projectric Solution

Devry required stronger alignment of projects to business value and improved utilization of resources through better organization, control and communication within the organization.

“Projectric provides DeVry with extremely professional and helpful customer support. Projectric employees have attended staff meetings with our teams, helped with training, and go out of their way to assist us. Projectric recognizes that each customer’s implementation is unique and is committed to helping DeVry use the software to its fullest capabilities,” says Bob Kropidoski IT Director, Business Technology DeVry Inc.

Linking IT Projects to Business Value

The DeVry University Project Management Office (PMO) had three business goals when selecting software to better manage the growing wave of project requests:

  1. Work on the right, important projects for the business by better tying technology projects to business value
  2. Better measurement and achievement of Return on Investment (ROI) for projects 3. More effective use of the PMO and project team resources

The company is now successfully using Projectric to manage application development projects and will next add IT infrastructure projects.

Easy to Organize, Control, & Communicate

Projectric provides DeVry the ability to organize all of their project information and consolidate it in one place. When questions arise, the dashboard gives management a good, concise view of what is going on in the department. Information is now easily accessible through Projectric lists and graphs.

DeVry has better control over their project process through Projectric’s built-in methodology and decision support tools. DeVry’s use of Projectric scoring is allowing them to choose the right projects based on business value and simultaneously gain buy-in for projects from the rest of the organization.

Projectric is providing DeVry with a platform for better communication. Project progress is more visible and project health is easily monitored through automated indicators. Projectric’s flexible reporting capabilities allow portfolio managers to quickly create custom reports that can be shared with sponsors and executives.

Integrated Methodology, Quick Implementation and Affordability

For DeVry, several major factors set Projectric apart from its competition and the software has delivered as promised.

  • The easy to use methodology provides decision makers a high level view of all projects so that the right projects are selected, resources are appropriately used, and progress is effectively monitored.
  • The implementation was quick, easy, and cost-effective. There was a very short learning curve as users rapidly applied the methodology.
  • The on-demand delivery model made Projectric affordable and a lower risk alternative. It allowed DeVry to pay only for what they needed, when they needed it.

“Projectric is easy to use and very intuitive. Users were able to come up to speed quickly and resistance to change was very low. It is allowing us to use our leadership skills and bring more business value to the company,” offers Jim Ritchey Interim CIO DeVry Inc.

Read more about how other customers use Projectric in these related blog posts:

Duro Bag Manufacturing

Messer Construction

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Messer Construction Company, headquartered in Cincinnati, OH, has continuously operated since 1932. With ten regional offices, Messer’s impressive buildings include hospitals, educational facilities, aviation, arts & entertainment, religious, historic renovations, non-profit, industrial and commercial organizations.  While renowned for their construction, Messer was struggling with their backlog of IT projects and a fixed number of resources to meet demand.

In this blog post, you will read about how Messer Construction implemented Projectric’s PPM solution to achieve a better means of qualifying business value, prioritizing projects, utilizing resources and communicating project status within the organization.

Quick And Easy Solution

Messer had been fighting the challenge of meeting business needs with fixed resources. As such, they did not have the capacity or energy for a long or costly implementation. After an enthusiastic endorsement from another company based in Cincinnati, OH, Messer discovered that Projectric could provide the benefits they needed in a solution that was:

  • Hosted
  • Low cost and low risk
  • Easy to implement and easy to use
  • Quick to return an investment

Gary Thomas, Director of Business Technology Services for Messer, was able to implement Projectric in just a few weeks while still handling his other responsibilities. He relates that Projectric provides the “right tool set” for middle market companies.  

“Projectric is a solution that provides low entry costs, virtually no maintenance, and instant visibility to the project portfolio. Implementation was straightforward and quick. Projectric pays for itself immediately.”

Mr. Thomas continued, “Projectric fills a significant gap in the software market. Most packaged portfolio management solutions are geared to large Fortune 500 companies and do not scale well to mid-sized operations. Until [we found] Projectric our best alternative was costly custom developed solutions.”

Projectric Helps Align IT Efforts with Business Goals

Messer’s use of Projectric has helped IT to ensure that efforts accurately match up with business goals. Instead of making assumptions, each project is clearly aligned at the highest level.  Says Thomas, “The dashboard views provide a quick and easy way to take a pulse of what is happening. With Projectric we are able to map precisely which business plan goals each project supports.” He continues, “In addition, we can track many other Messer-defined attributes of our portfolio, providing the ability to accurately balance our investment in technology projects against those values that are most important to Messer.”

Improved Communications

Another advantage Messer has realized is better communications and relations throughout the company. According to Thomas, “When demand exceeds capacity, there tends to be a perception of failure . . . not to mention the uncomfortable task of discerning one project over another. Projectric combined with good management practice provides a clear way to articulate the trade-offs in value, while promoting healthy discussions around IT resource capacity and deploying those resources to the most important projects in the company.”

Messer’s team of Projectric users readily accepted their role in the process and is enthusiastic about how the solution has helped them toward their goal of increasing business value for the company.

Read about how other customers use Projectric in these related blog posts:

DeVry University

Duro Bag Manufacturing

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This criteria-based assessment works for evaluating any software solution – this example applies to Project Portfolio Management (PPM).

1) Ask yourself “Why Do We Need PPM?” Many organizations evaluating Project Portfolio Management software are seeking to:

  • Select the right projects easily
  • Track the budget and health of projects
  • Organize projects
  • Communicate about projects

2) Based on your “Why” list, decide which features you need to perform the functions you require. Think of this “Tool List” as a list of features. We have used these commonly desired PPM features for our comparison:

  • Project Scoring (out-of-the-box)
  • Responsive Notification System
  • Project Health Tracker
  • Data Security Features
  • Automatically Update Changes
  • Unlimited Users
  • Resource Scheduling
  • Issue Tracking
  • Analytics

3) Select your PPM software providers.

4) Do a side-by-side weighted comparison to illuminate how providers stack up. See our comparison chart and legend below.

Schedule a demo today to see how Projectric can illuminate your project portfolio.  

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Decisions, decisions, decisions…

Executives tend to think of decision making as an event that happens at one moment in time.  But, a decision within an organization is a process. Do you have a good decision making process in your organization? Or, probably more importantly, within your team?

Many organizations are making decisions without fully understanding the data at their fingertips.  “Information reported on during a project’s life-cycle is not effectively analyzed against portfolio performance and consequently the impacts of decisions on the bottom line are often not fully understood,” states KPMG in their recent Project Management Survey.  

Here are some pointers to consider as you develop a stronger approach to decision making. Included are methods for making data from your Project Portfolio Management solution actionable.  These are ways you can integrate data into a transparent, inquiry-based decision process.

Abandon the “Advocacy Process”

Advocacy Process is the least productive mode of decision making.   Your team members are in a passionate contest presenting emotionally charged opinions on what they believe to be the best option.  Sometimes, groups within your organization will battle for their point of view or their portion of the budget. In a large organization, everyone wants to plant their flag into something they can call their own.  Conflict can arise and become personal in this destructive mode.

Embrace the “Inquiry Process”

The Inquiry Process is an approach to decision making in which you consider a variety of options through an open exchange of fact-based ideas. This will lead to an agreement on the best course of action.  (Rather than plundering ahead with a decision hard-earned in an emotional battle.) This is an idea-exchange method of decision making. Debate and conflict can be intense, but it is never personal.

How a PPM Solution Supports Inquiry Process

Project Portfolio Management (PPM) provides visibility and insight around the decisions you will make about projects in your organization.  Because it is in our nature as humans to become emotionally invested in our projects, we champion our projects and advocate for support without understanding the bottomline.  “I built this thing and it’s my baby!” is often the mindset in the in IT.

Before moving ahead with a project or reallocating resources to a project, you must be able to determine in an unbiased way the following: priority of the project, who is working on the project and whether or not the project is on track.  Here is more information on how our PPM solution enhances your understanding of vital project information:

PPM directly supports fact-based inquiry, which leads to Data Driven Decision (DDD) making.  

More Suggestions For Fact-Based Inquiry

If you are going to be the ultimate decision maker on a certain subject, remove yourself from deliberations.  Review your team’s findings and discussions later. Evaluate the strengths and weaknesses discussed. Cyrus The Great, the founder of the Persian Empire, was said to have praised “diversity in counsel, unity in command.”  Consider your team’s input and count a PPM solution as part of your counsel.

Beware of confirmation bias – if someone on your team feels strongly about one solution over another, have them evaluate the strengths of the solution they view as weaker. “Presented with someone else’s argument, we’re quite adept at spotting the weaknesses. Almost invariably, the positions we’re blind about are our own,” says Elizabeth Kolbert in her fascinating article on the limitations of human reason in The New Yorker Magazine.

Explain Why You Made Your Decision

It will strengthen your rapport and your team’s solidarity to explain why you choose one option over another.  Do take the time to review how your decision differs from the views your team members may have presented. Reviewing data gathered from your PPM solution upholds the integrity of your decision.   

Consider the insight of James Guszcza, Chief Data Scientist for Deloitte Consulting LLP: “I’ve noticed that working with models…can make us more human. Letting the model do what computers are good at—processing hundreds of pieces of information, consistently, in a computationally efficient way, at any time of day without getting tired—frees up humans to tap into their creativity and empathy, and to spend more time understanding context and nuance.”

In other words, do not relinquish the human element of your decision; do support the decision with data.

Try better decisions, try Projectric.  

Try a demo or a trial, or read more about best practices for Project Portfolio Management in this comprehensive blog post/guide.  

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KPIs (Key Performance Indicators) and metrics should provide users with an immediate understanding of how the portfolio is performing.  Here are KPIs and metrics that should be part of a comprehensive project report. Project reports are conveyed through dashboards, which can include project metrics or PPM metrics (for the whole project portfolio).

Affect future project success with a clearer understanding of past performance.

What metrics are you using?  Any from this list? Any to add?  Let us know!

Operational Efficiency KPIs

These metrics and KPIs measure resource utilization and team performance.  Typically, this information is presented in a Gantt Chart or Reporting Dashboard.  

  • Resource Allocation: Measures percentage of time spent by single resource (or group of resources) over the project duration. Shows tasks completed by resource in certain time span. Resource productivity is measured and should be evaluated by the manager in charge of a project.
  • Project Effort: Measures time devoted to working on a project.
  • Project Churn: Measures projects on stand-by or forfeited over a time period. Conveys changes in a project and how it will adjust and keep up with these changes. Eliminates excessive projects that might otherwise disrupt the balance of the project portfolio causing project churn.

Execution KPIs

These metrics illuminate project implementation and impact once projects are deployed for assessment. Reveals whether or not projects are successful and shows possible costs accumulated during the project operation.  These KPIs are usually presented via dashboard or report.

  • Project Success Rate: Measures rate of success or failure for a portfolio of projects based on time, budget, and fulfillment of requirements through delivery of expected results. This metric takes into consideration stakeholder satisfaction.
  • Budget Variance: Estimates costs included in the planning stage of the project. Computes or estimates via budgeted task cost, actual task cost and earned value.

Business Value Delivered KPIs

Business value metrics are used for measuring the expected value of projects. Projects rely on return value in order to determine if they are successful or not.  

  • Customer Satisfaction: Measures customer satisfaction through both client and stakeholder feedback after the project is delivered.
  • Business Value Realized: Measures if projects are properly selected and implemented at the proper time interval. Estimated benefits can be computed from the date of the project’s delivery and measured benefits include revenue added, cost savings and customer satisfaction.

Strategic Alignment KPIs

Measure whether or not projects are parallel to an organization’s objectives, target and unit investments.  

  • Percentage Of Projects Aligned With Objectives: Measures the percentage of existing projects aligned with the business objective of a company.
  • Investment Class Targets: Estimates the investment made in a project through the following components: run, grow and transform.
  • Business Unit Investment Targets:  Measure existing business units by setting targets for effort and cost. Once these investments are spent, it will be assessed against the two factors.

 

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