Project Portfolio Management is at the heart of the success of any organization. Any business that has its PPM in places and corresponding execution tasks to back it, has got the success recipe right for the most part. Then again, it isn’t as easy as it sounds, as many businesses cant seem to quite master PPM. Here’s a look at some PPM mistakes that businesses can avoid to get there.
Emulating best PPM practices without assessing your business
When it comes to PPM, merely mimicking the industry leaders and their implemented strategies does not help you make the cut. In fact, most small and mid-level businesses are not in position to implement these practices right off the bat. Let’s take the example of a mature business versus a start-up; the former has consistent evaluation protocols to measure how various projects are impacting the business, while the latter has to still set up ways to obtain this information whether it’s resource estimates or ROI, let alone analyze it. What this means is enterprises will have to adopt PPM strategies only after getting a fair assessment on their standing.
Thinking in terms of just funds and budgets
Funds and budgets are among the first few attributes that businesses use as a benchmark to make a priority list. So what project management comes down to is prioritizing projects that have adequate funds, while the ones without funds are just postponed. When you look at the big picture, this clearly does not qualify as a good PM strategy with regards to the corporate goals. What businesses need to do is review the requirements for specific projects, and lay down strategies accordingly, for smooth project management.
Sidelining risks and returns
Many businesses overlook potential negative developments while managing portfolios. Not weighing the risks and returns on projects is as good as turning blind-eye to a potentially bad project. The one way this issue can be addressed is by classifying projects into separate groups, and seeing where they stand with respect to the broader business goals. For instance, key projects would translate to ones that are essential to keep your enterprise afloat, while support projects are necessary but do not have a crucial role to play when it comes to your corporate success. Then again, some projects may come under strategic category, which have a potential to drive your business forward in the future. This type of a clear assessment should help evaluate returns in the long-term and short-term, and watch out for potential risks.