The success of PMOs depends to a large extent on the adoption of a strategic perspective that covers a wide range of activities and procedures. To excel in these operations, PMOs need to establish efficient protocols and methods. In the midst of the various processes involved, it is essential to give priority to the strategic point of view.
Below are the main PPM processes focused through a strategic lens:
Resource management complements cost management and plays a critical role in increasing portfolio efficiency. It involves accurately forecasting the capacity of resources, allocating them to the highest-impact projects, and monitoring ongoing efforts and spending. Neglecting the interdependencies and capabilities of project resources often leads to delays and budget overruns. To ensure the effectiveness of PPM, PMOs often employ PPM resource management tools to bolster their resource management activities. These tools facilitate meticulous bottom-up management of resources, aligning them with strategic priorities and optimizing project results.
Taking risks is essential for the expansion and success of an organization. However, not all risks produce commensurate benefits. The PPM facilitates the recognition, classification, and evaluation of the risks linked to the projects of a portfolio. This is often accomplished through a RAID (Risks, Assumptions, Problems, and Dependencies) registry and the formulation of risk response and contingency plans. Effective PPM risk management also involves matching risks with potential benefits. Therefore, the integration of profit management into the risk management process is essential to ensure that decisions are not based solely on risk assessment.
PPM increases the agility and adaptability of the organization. Through a comprehensive PPM process, PMOs gain visibility and command to identify and prioritize change requests. These requests can include improvements to operational processes, rapid implementation of projects based on demand, adding new features to stay competitive, and much more. By skillfully managing change requests, PMOs can drive strategic initiatives and respond to changing market dynamics.
Prudent cost management is critical for organizations to regain financial authority and reduce waste. PPM strives to achieve three key cost management objectives: prevent budget overruns, minimize avoidable cost uncertainties, and provide information for future planning. However, monitoring the costs of a multitude of projects in a large organization can be daunting. To address this, organizations must take advantage of cost management software and tools that mitigate challenges like inaccurate estimates, outdated technology, and a lack of transparency. Effective cost management enables PMOs to allocate resources judiciously and make informed strategic decisions.
PPM serves as the core process that enables PMOs to select the right projects at the right time. This procedure is essential for screening numerous ideas within the organization and determining those that are aligned with the strategic trajectory. It ensures that valuable projects are not discarded due to resource or time constraints. By using a PPM project management tool, PMOs can streamline idea generation, effectively evaluate proposals, and expedite project approval, thus ensuring timely delivery.
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