I work for a multi business company. They are trying to desing a portfolio-driven approach. There are struggles to identify what would be the better way to link the PPM's defining and authorizing procesess to the company's annual budget.
Do you have some insights? Thanks for sharing! Saving Changes...
This is a great question. Successful portfolio planning against budgets require a clear understanding (and documentation) of what is important to the company. The 1st place most companies go when managing a portfolio is determining what the ROI (return on investment) on each project or program is. This is usually not an easy exercise as some projects have zero direct ROI but are critical to the operation. An example would be a project that is driven by regulatory compliance.
Regardless, it all starts with management defining what's important and what's not given a fixed amount of resources available. Once that's decided, then the processes to estimate, vet and approve projects can be developed.
You could define what are the main impact that project should pursue like ROI, Regulation, reputation or any set of criteria. Then ponder ate them, regulation would have higher score/ponderation in most case. Rate all projects, and make a selection.
Selection in your case would be influence by budget from each business in the company. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
First you have to differentiate between portfolio and program. Second, you have to understand that while ROI is still calculated for a project what will return a ROI to the company is the product/service/result to be created not the project. That is critical to understand because value creation and management. In my actual company we manage the portfolio by business but obviously we integrate them into one view depending on the reporting needs. Saving Changes...
