Best-practice, objective portfolio selection techniques equip PMOs to
recommend that the right investments are selected. With scarcity becoming the
new reality, it’s imperative to move beyond the traditional “first-come,
first-served” approach and develop the capability to prioritize and select
portfolios under budget and resource constraints. This not only helps select
investments that deliver the best bang for buck, it also helps ensure that
investment is aligned with strategic priorities.
Define business drivers based on strategy.
It’s critical to engage executives early on in the process to ensure
that business strategy is clearly articulated. Having a clear understanding of
strategy provides the entire organization with a “North Star” that it can
orientate itself around. This understanding helps define the actionable,
measurable and unique business drivers that will be used to drive
recommendations for the optimal project portfolio.
Objectively prioritize business drivers.
One of the most overlooked yet important steps in PPM is to prioritize
the organization’s key business drivers, which in turn provides a more
meaningful way to rank incoming investment requests. Objective techniques like
pair-wise comparisons transcend arbitrary “1-10” approaches to ranking strategy
and help PMOs to facilitate driver prioritization sessions with executives to
Better demand management.
Demand management is a foundational component that helps bring order to
the chaos by consolidating the many requests that can originate from anywhere
within the organization. Standardizing the intake across the enterprise helps
streamline capital planning by centralizing cost, benefits, resource
requirements, and varying scoring mechanisms. Strategic impact assessment gauge
the contribution each request has against the business strategy and helps the
organization derive the Strategic Value score it needs to objectively evaluate
Powerful cost optimization/what-if analysis.
With demand prioritized based on a clear understanding of strategic
business drivers, it’s easy to run what-if analysis and use Efficient Frontier
modeling to help determine the optimal project portfolio under varying cost
constraints. Powerful controls account for inter-project dependencies and
provide the ability to force projects in or out to help to quickly reveal the
trade-offs of all decisions.
Powerful capacity planning capabilities bring resource demand together
with capacity to help maximize utilization of your company’s most important
assets. Intuitive controls make it easy to identify both over- and
under-utilization of resources across the planning horizon. Adjust a project
start date to quickly determine the best schedule to fully utilize available
resources and run headcount scenarios to help drive decisions about when to
hire full-time vs. contract resources.