Brandon FargisSr Portfolio Manager| Red Hat Inc.Durham, Nc, United States
I'm seeking information regarding experiences garnering business case approval for Project Portfolio Management Software. Specifically, what have been the most powerful metrics (supporting ROI, IRR, etc.) to support a business case for the implementation of this solution? There seem to be many tangible and intangible benefits to utilize, so I'm curious what have been the most beneficial to this forums collective experience. Thanks in advance! Saving Changes...
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Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Because we operate under a shared resource model, the biggest factor is enterprise resources management.
It allows us to see how much capacity we have available for new projects and initiatives. Saving Changes...
Makes sure you account for the ongoing run costs including staffing, customization costs (e.g. dashboards for your leadership), integration costs (e.g. with your financial systems).
You could justify it based on a potential increase in the ROI of the portfolio - for example, if you have $X spent on projects each year which would NOT have been spent with better visibility into project benefits or health, then that might help you do it.
A lot of PPM benefits are intangible so it will be difficult to quantify those or to be able to provide evidence after of realization of those benefits.
Also, please ensure that leadership and management behaviors are correct and PPM processes and organizational structures are in place to enable a successful PPM implementation.
Kiron Saving Changes...
Mario KlaesSenior Project Manager| Bell CanadaToronto, Ontario, Canada
Hello Brandon,
One book that e red about and that is very interesting and 100% focused on PMO is the “Advanced Project Portfolio Management and the PMO: Multiplying ROI at Warp Speed”. In the last chapters, it also recommends some step-by-step actions (almost a schedule) to implement and evolve a PMO.
It presents some ideas other than ROI and IRR. It talks about organizational structure and processes (like Kiron mentioned), risk balance, capacity management, and other interesting metrics. The book uses the theory of constraints as key theoretical element and foundation.
Try KeyedIn Brandon, their spiel/speel is: "KeyedIn offers Project & Portfolio Management and Professional Services Automation solutions that automate the workflow of project management and services delivery teams, giving them new levels of efficiency, productivity, and visibility." Saving Changes...
Guilherme CalobaProduction Engineer| PETROBRASRio De Janeiro, Rio De Janeiro, Brazil
Dear Brandon,
Adding to what everybody already said, one driver for the business case approval is to focus on the final benefits for the company. If the company uses some sort of scorecard or another way to keep track of their indicators, it is a good idea to link the project to that.
An example would be: "upon successful implementation of this project, we will reduce our cost of production by 2%" or " this project is paramount to increasing safety on the plant and we expect to reduce LTI by 10%".
I think this approach would strengthen your case by showing multiple benefits for the organization.
