Working the Numbers

  Portfolio Management  

The foundation of project portfolio management rests on the collection and analysis of metrics from the project level. Each project contributes bits of information regarding the overall health and direction of the portfolio. However, portfolio managers need to select metrics that allow them to objectively evaluate both the portfolio's status as well as each project's status.

Defining Metric

For project portfolio management, a metric can be any number extracted from the project that can be evaluated as part of the overall portfolio. Three key factors play into selecting a useful metric. These factors are:

·        Objective: The metric should be objectively measurable. The numbers should be derived from sources other than the project manager's evaluation.

·        Measurable: The metric should be able to be measured across the projects, no matter what the size or schedule.

·        Meaningful: The metric should say something about the project, not be captured simply because it can be captured.

When defining what metrics to capture, you will want to expand your view beyond those tools and techniques used by your portfolio's project managers to manage their projects. Organizations often have different systems, such …

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