IMPORTANCE OF PROJECT DATA IN PORTFOLIO MANAGEMENT

Certainly the most important resources for a portfolio manager are people involved in every step of their work. However, the resulting object of all this effort is the data that will compose this portfolio.

There are several different types of data, and their composition varies according to the maturity of related structure, the momentum of the portfolio management cycle, or even the purpose for which the portfolio was created.

Any company that proposes to build a portfolio of projects should define a group of data that will be collected on their projects.

These data will be used for decision making and the definition of strategies. No wonder The PMBOK Guide in its 5th edition defines the portfolio as a set of projects, programs, sub-projects and group-managed operations to achieve strategic objectives. For this reason, we venture to say that project data is a basis for the work of a portfolio manager. A company that seeks portfolio management should look closely at the state of the data of their projects.

It is a reason for attention to project managers how the information flows during the project. It is the role of the Portfolio Manager to define systems, guidelines and artifacts that facilitate the understanding and management of information intrinsically connected to the methodology used. Also in the 5th edition of The PMBOK Guide is the flow of information that exists within a project environment.

Data flow, information and project reports. Source: The PMBOK Guide (5th Edition)

Once defined the data that will be collected, two important concepts should be considered: Data Integrity and Data Quality.

Data Integrity - Ensuring that the data collected doesn’t have issues compared to their definition.

Data Quality - Ensure that all project information is listed, correct and reflecting the reality.

In the evolutionary process of project management maturity, data integrity always appears as the first step to be reached. In some low-maturity company each project manager has a rule for their data. In this context, often, simple data create a lot of confusion for portfolio managers.

For this reason, to define patterns for each data type and to make sure that these rules will be followed is the first step toward a well-characterized portfolio.

Once all Project Managers know what to do, we move to the next concept: Data Quality. Data Integrity is very important but not sufficient. It is necessary to be sure that all projects are accessed and if these data reflects the reality. It's very frustrating when we discovered that what we were considering as wallet only reflects part of the reality. In these cases, the value of a PMO is compromised, and any effort to set standards and implement support systems becomes worthless.

So managing portfolio data to get a trustful project portfolio, two connected concepts should be in Portfolio Manager mind: Data Integrity and Data Quality.

Trustful Project Portfolio. Source: Author.

Feel free to comment this article and share your experiences about portfolio data management.

Rafael Roquette.