The PMO Role in PPM

  Governance   PMO   Portfolio Management   ProjectsAtWork  

Integrated, top-down governance is fundamental to successful portfolio management, and a strong PMO can play an indispensable role in monitoring and facilitating investment selection and execution.

This is the seventh in a series of articles describing best practices for implementing and executing portfolio management.

One of the themes of this series is that good governance saves money. Good governance must cover decisionmaking, information and knowledge management, both in our investment selection and investment execution processes. Good governance is an unbroken chain of oversight from strategy to execution and benefits management.

There are two broad classes of governance processes, Investment Selection and Investment Execution. Both are important, but of the two, investment selection has a much faster upside than investment execution because you can fill the pipeline with the most valuable projects available at any point in time and match demand to capacity. This will:

1. Maximize the economic profit of your organization by ensuring that the current investment portfolio will return more than the next best use of money and resources.
2. Minimize waste, rework and poor quality because you can control what goes into the pipeline and ensure are not exceeding the capacity of your resources.

Selection …

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