A strictly tactical approach to project and portfolio management (PPM) isn’t delivering the anticipated results. Worse, it may even call into question your PPM team’s effectiveness. Savvy PMOs understand projects are actually strategic business investments. That’s why they’re adopting Enterprise Portfolio Management to optimize spend, better utilize resources and maximize ROI.
Pressure to deliver more value
1. Up to 46% of project portfolio business value is lost due to poor planning, suboptimal project success rates and poor budget utilization.
2. Functional silos prevent clear visibility across all project requests and impact resource utilization.
3. Disconnected systems and inadequate tools force PMOs to manually build reports and reconcile data instead of analyzing the entire portfolio.
4. Too much focus on tactical execution prevents PMOs from strategically managing projects as business investments.
Become CFO of project portfolios
1. Integrate investment planning and controls across the PPM lifecycle to align execution with strategy and deliver the financial insight that drives better decision-making.
2. Look beyond annual planning by adopting an approach to dynamically gauge the economic impact of underperforming projects, periodically rebalancing portfolios to optimize spend and maximize ROI.
3. Establish a benefits realization framework that targets measurable results to encourage accountability and continuous improvement.
Seeing the bigger picture
1. Connect projects to the associated IT assets, products and business capabilities and see a dynamic blueprint of the operating fabric of your entire organization.
2. Transcend the project-only perspective on spend to gain financial transparency across all spend, enterprise-wide.
3. Map the unique interrelationships and dependencies between portfolios and clearly see the upstream/downstream impact of proposed initiatives or poor project performance.