How to prepare a project portfolio using Gartners "Zero-Based" approach

It's tough being in a PMO these days or managing a portfolio of projects. Trying to foresee the future and whether or not to hold back, or increase, investments is challenging and with 2023 just around the corner, many I have spoken with are under pressure.

With this post I would like to share a rather basic approach to a framework, developed and shared by Gartner called "Zero Based Prioritization". Details can be read in the link below:

Essentially this approach is a matter of completely emptying the current portfolio(s) active investments, and regardless of stage, status and categorization.

Next is for the PMO or Portfolio Manager to select all initiatives one by one, and using a predefined sequence that requires tagging of all items. These categories, and the sequence to select them from, is as follows:

1. Mandatory projects (and explanation to why it's considered mandatory)
2. Transformation projects (high priority for sustainable success)
3. Core differentiation projects (avoid nice to have, only focus on competitive advantage)
4. Growth projects (approve only if tangible benefits are available)
5. Remaining improvement projects

Once the portfolio(s) have been rebuilt, it's time to get the overview of which initiatives didn't make it through to selection, and plan for how to navigate the expected pressure from the sponsors who originally proposed the work.

Now, one thing is having a framework like the above, and another is the data you need to actually get the overview and create "what-if" scenarios. This is where Projectum and the solution "Power PPM" together with "What-If" can help organizations quickly understand the bigger picture and with user experience that will allow Project Managers and Program Manager to stay productive.

Here is a screenshot of how easy you can ensure tagging of initiatives following the Gartner categories for "Zero Based Prioritization"

Once the right tagging has been done on all initiatives, we can then use simulation/scenario planning tools like Projectum "What-If" to experiment with the inclusion, exclusion, moving and shortening/prolonging all the initiatives. In real-time, Portfolio Managers can see the impact on financial cost limits and the overall split between the different investment categories as explained earlier.