Project Portfolio Management Examples

An example of Project Portfolio Management (PPM) might help to demonstrate the benefits of such a PPM business process. Therefore we present you with some examples:

  • A very large bank and insurance concern spends 2.5 billion Euro's each year on ICT. The question arises if the Return On Investment (ROI) is known for each project. Projects with an ROI of more than 4 years are killed. This is estimated to be 150 million Euro's per year.
  • A telecoms business manager wants every hour an actual insight in the Key Performance Indicators (KPI's) of his Service Level Agreements (SLA's). He needs the actuals, because he wants to harvest the SLA violations immediately.
  • An energy supplier buys either to much or to little resources in for projects. They want to implement proper demand management, so that they are able to manage scarce resources. Also, this way they can temporize projects if necessary.
  • According to the Hackett Group, World-Class IT Organizations Spend 10 Percent More Than Peers, Pay More for Talent, and Deliver Better Strategic Support.

In all these examples it was easy to reduces costs with more that 5% and at the same time improve the quality. If we want to summarize the examples, it all comes down to managing IT as an asset. And to be able to do that we need a PPM inventory, a business process, and a regular control loop to make sure that actions are implemented seriously.

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