More effective budgeting
Establishing and integrating top-down budgeting controls into the PPM system to remain connected with enterprise finance. This requires a strong connection with finance throughout the project and portfolio lifecycle. The key here is that both the finance and the project management teams must provide each other with the information they need without hamstringing either group.
More effective performance measurement
Organizations must find better ways to automate and streamline project and program performance measurement, to provide:
- Better estimating and forecasting
- Governance controls and approvals
- ERP Integration for actuals
- Variance analysis and change control
Adopt more dynamic approach to managing work
Taking a more agile approach to managing portfolios allows you to control all work – regardless of how it is executed – throughout the year, with the ability to make changes as variables change. A dynamic planning approach enables organizations to proactively manage inflight portfolios, quickly gauge the economic impact of investment decisions and easily take the appropriate action to reallocate funds. Automated project status and variance reports provide timely updates, informed by stronger and more accurate forecasting. Enhanced visibility encourages quick approval of redirects and budget releases, increasing budget utilization and maximizing portfolio value.
More effective benefits realization
Even though there is a fair bit of focus on cost management in PPM, cost estimating is still inaccurate. With very little focus placed on tracking benefits, we should assume that benefit estimating is completely inaccurate. If project and programs are about business transformation, then we have to do a better job of managing the outcomes and the benefits they deliver. Establishing a more robust benefit realization framework is key, and requires more focus on these areas:
- Go beyond Excel, making benefit information available within the PPM system so that it is governable and reportable.
- Integrate benefit target and goals with top-down planning approach, and map all underlying execution back to the corresponding outcome.
- Establish more effective benefit estimating.
- Make sure to re-visit initial benefit estimates periodically, and establish the controls to reforecast throughout the lifecycle.
- Up-level the ability to track benefits to determine if you’ve delivered the expected results.