Effective portfolio management is an important element in the success and growth of business across all industries. In fact, the 2012 Pulse of the Profession study conducted by the Project Management Institute proves just that. The report showed that out of all the projects undertaken by organizations considering themselves as highly effective in managing portfolios, 62% met or exceeded the expected return on investment (ROI).
Whether it’s for increased customer satisfaction, effective cost reduction, or better revenue growth; even you could achieve your organizational goals by improving your project portfolio management. Here are five useful tips to help you out:
- Training for senior management – By improving the knowledge and understanding of portfolio management at the highest level, you could be on your way to success. This enables senior management to ensure that the projects are undertaken and developed according to the organizational strategy.Eventually, you can focus on spreading the knowledge across the organization. For gaining all the benefits of portfolio management, everyone involved should have a clear understanding of the process, how it works, and why it is necessary. In fact, the study also showed that in 89% of highly effective companies, project leaders and staff are educated on the process and practices involved in portfolio management. On the other hand, the number is just 25% in case of minimally effective organizations.
- Create a culture of prioritizing portfolio management – For effective portfolio management, the process itself should be deeply rooted and prioritized uniformly throughout the organization. This would involve executives showing their support of portfolio management by way of investment and communication.
- Set aside resources for portfolio management – Improving your portfolio management would also involve dedicating organizational resources for effective solutions. It would be best if you leave it to professionals, so you need to ensure that the organization invests in the right talent.
- Implement the right techniques and tools – For an organization, it would be much easier to maintain a competitive edge by utilizing the correct tools and practices for portfolio management. Make use of portfolio management software and applications in addition to other tools for an efficient management system. Along with this, you will also need to establish a set of practices for achieving your strategic goals. Standardizing portfolio management is a critical step for improving effectiveness within the organization.
- Establish an elaborate strategy – To ensure the effectiveness and success of your portfolio management, prioritize on establishing a clear and realistic strategy as well as your organizational goals in terms of portfolio and project targets. This motivates the entire team to work efficiently for portfolio management, as they have a better understanding of the goals and constraints involved in the project.