Benefits of Project Portfolio Management

We all know examples of projects that did not meet their planned result. There can be many different reasons for such a failure. Common causes of project breakdowns are:

  • The effects of other current projects were not properly taken into account.
  • The requirements of other departments were not sufficiently met.
  • The delivered specifications were not checked against specific testability.
  • The delivered specifications were not bundled into over time deliverable sets by adequate project phasing.

Why Project Portfolio management

There can be several reasons for Project Portfolio Management:

  • Delivering projects that enable business growth.
  • Linking business and IT strategies and plans.
  • Improving IT governance;
  • Applying metrics to the IT organization and services.
  • Improving the quality of the IT service delivery.
  • Organizational changes caused by changes like in-sourcing, mergers, acquisitions and/or splitting up.
  • Tightening legislation or improving operational excellence.

So generally formulated the benefits regard linking business to strategy, and therefore manage the business and IT alignment. IT is an asset, which should be managed like all assets. Project Portfolio management can help you achieve this taking into account many perspectives like.

  • Business priorities;
  • Financial constraints;
  • Timing and migration.

Project Portfolio Management is a key factor to make sure IT adds value to your company and your business.

Potential Performance indicators

Potential performance indicators for Performance Management are:

  • Quality of products or services;
  • Relative rate of new product introductions;
  • Mechanization or automation of operations;
  • Capacity additions;
  • Inventory levels;
  • Workforce productivity.

What is Professional Services Automation (PSA)?

Professional service automation considers the automation of the ICT department:

  • Planning, budgeting, and reporting of actuals are aligned and measurable.
  • No unexpected budget overruns.

What is IT Governance?

IT Governance rules how to manage business issues related with:

  • Does your company have the appropriate IT to exploit its intellectual assets?
  • Does the firm have management practices to guard against technology obsolescence?
  • Are processes in place to exploit discovery and execution of IT strategic opportunities?
  • Are procedures in place to ensure against costly lawsuits?
  • Are processes in place to ensure against IT-based surprises to senior management?
  • What is the quality of the IT investments (specifically, their ROI)?
  • What is the IT department's overall operating efficiency?
  • Are there standard processes for security, business continuity and disaster recovery?

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