Project Management (Part - 2)

National Institute of Business Management

Chennai - 020

EMBA/ MBA

Elective: Project Management (Part - 2)

Explain the key challenges to implementing an effective Project Portfolio Management(PPM) process

ANS:

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|Figure 1:   Keys to implementing project portfolio management. |

PPM is an effective business practice that can enable you to generate significantly more value from your projects, even while cutting costs. Best practice organizations are finding that PPM enables them to make better, more informed, and more cost-effective decisions on an on-going and regular basis.

Be aware, though, that the road to PPM is often rocky. For many organizations, successfully implementing PPM is difficult and time-consuming. Also, establishing PPM is a high-risk initiative. Failures are not uncommon.

There is no way to guarantee that you will be successful in implementing PPM. However, having observed many organizations at various stages of the process, I have concluded that there are 8 keys to success: (1) embrace the principles involved, (2) choose an approach that fits your situation, (3) secure executive support, (4) establish governance, (5) create a value-measurement framework, (6) implement effective processes, (7) institutionalize essential capabilities, and (8) follow a road map.

1.   Embrace PPM Principles

PPM is not just another project management process. PPM is a philosophy — one that, in accordance with the analogy based on financial portfolio management, is focused on value creation. Getting the most from PPM...