I am trying to visualize how would implementing PPM change the organizational structure? Would it be on the strategic level? But then what happens with existing operations? Those can't really come under portfolios. Or should I think of it as a separate department being on the same level as IT or HR?
I'd appreciate any insight. Thanks. Saving Changes...
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Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
PPM has to be strategic, even if it's only from the point of view of the organization's mission. Given that portfolio and programs deal mostly with projects, it's not unusual for PPM to be separate from operations.
Of course, I expect projects and, thus, PPM to move the organization to new states. That means operations would change as PPM initiatives unfold.
The choice of fitting PPM into your organization will depend greatly on the company structure and culture. It sounds like your structure is mostly functional, You may find challenges implementing PPM across multiple functions. Saving Changes...
PPM may fall in different places under an org chart. A single function may have a portfolio of improvement projects. That can be managed within the function. If the projects span multiple functions, there may be an integration function responsible for PPM. Other portfolios could be for the whole product line. That would be at a strategic level. Saving Changes...
Portfolios are a virtual construct. While you could modify an organization's structure to fit a desired portfolio model, this is less critical than ensuring that consistent, balanced decisions are made about portfolio investments.
Kiron Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Szidonia,
every organisation is indeed doing portfolio management (PPM), which at its core means to decide which work to spend your resources on.
Many have not formalised PPM, some have a process and some use a PMO or other function to run PPM. And some do it on an adhoc base or differently per department (without considering it strategic or at the top level).
PPM visualisation (a dashboard) is one of the most beneficial tools according to some surveys. It provides insights, data and the base for decision making. Some project managers and some executive do not like it (symptom may be the watermelon status). Could just be done as a spreadsheet. Fix the process before considering buying a software (which might cost 1-2 million to implement, so beware).
PPM project selection only works well if everybody adheres to the criteria, which is hard for some executives.
Thank you, everybody! Thanks to your insights I have a much better understanding now. It all starts to make sense. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
It is quit hard to answer because in my personal experience I worked on helped organizations to implement it and I have used diferent architectures. Just to talk about what I am working today we are in the process to use SAFe framework at whole organizational level (not only IT) then we started on defined value streams and then we are implementing LPM (Lean Portfolio Management). We are in the process to do that. Saving Changes...
Portfolio management should be a key part of the decision-making process for any organization, as it can help to ensure that the right decisions are made about where to allocate resources. The portfolio management team should be responsible for developing and managing the portfolio, and from my point of view they should report to the organization's executive team. Saving Changes...
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