Is Portfolio Management for Every Organization?

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A common attribute of the business world in prior centuries and even now is the character of extreme competition. With the frenetic pace of innovations and technological changes, every organization seeks any approach that allows it to override its contender in the market. Reacting to this scenario, companies start a business transformation process and focus on actions that must be aligned with the strategic business plan. These actions need to result in responses to the market by taking advantage of available opportunities, improving known organizational strengths, improving organizational management, and creating structures that allow organizations to combat current competitive threats. In this case, the need for accelerated decision-making that proves suitability for the competition becomes paramount. At this point, the importance of project portfolio management implementation becomes inexcusable.

Many executives are unaware that virtually every organization whose goal is achieved through business initiatives needs to understand and adopt project portfolio management. Otherwise, they will be content with seeing large projects being executed in the dark and at high costs for the organization.

It is project portfolio management that provides all the clarity managers need to solve problems and more. As written in a publication by PMI (Delivering on Strategy – The Power of Project Portfolio Management), project portfolio management is a “method of connecting the execution of an organization’s projects to the fulfillment of its strategies. Creating that connection is a critical factor in the overall success of an organization.”

Yes! Portfolio management is for every organization.

The high-level benefit of project portfolio management is the creation of a dependable structure within which businesses may manage their projects and programs continuously. Other advantages include lowering risk, increasing earnings, and assuring efficient resource allocation. Indisputably, every organization which intends to attain and maintain its place on the top hierarchal spot needs to eventually introduce portfolio management into its culture.

However, Portfolio management may be a little tough exercise for especially small-sized businesses, especially when the viable paths forward are veiled in uncertainty. still, the presence of a portfolio manager can help clarify this glitch and help the business going forward.

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What Happens to organizations that Don't Adopt Project Portfolio Management?

A survey conducted by KPMG indicates that only 21% of projects consistently deliver value. Companies that do not have a project portfolio management implemented effectively in the face of a serious problem – which unfortunately is quite common: implementing too many unimportant projects (hence, that do not add value). In addition to overloading employees and consuming unnecessary resources, this practice results in projects being stopped due to low quality or because they are not viable. PPM, on the other hand, values resource planning and resource conflict resolution, increasing value creation in a business.

It follows a top-down approach, which means that projects that are important, but with less risk, are implemented first and with the necessary resources. It is common to see companies wasting time and money, or even reducing the quality of their projects, to achieve goals. This is not the case with effective portfolio management, as PPM allows organizations to optimize resources in support of the most strategically significant projects and programs.

In conclusion, the absence of project portfolio management can result in Projects competing with each other, delay and wastage, insufficient resources, and frequent change in project status. Portfolio management is essentially like providing your firm with the greatest, most organized facts to assist you make better decisions and plan for a more profitable future. Our experts at iCentra can help you begin the journey.

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