Here are numbers 5 through 1 of the top 10 PPM mistakes organizations make.
PPM mistake #5 - Overlooking true business value. Most companies measure value as ROI or another financial metric thus missing other value. Project value is also the utility that is delivered to the company. Identify and track that with the portfolio. An example of utility is delivering ability to sell a new product online. There is ROI but also a new use to the company.
PPM mistake #4 - Not realigning the portfolio. As time progresses the portfolio can change. What was low priority in Dec may be high in May. I recommend to clients a quarterly portfolio review to check portfolio & make adjustments. This is also a good time to add new projects.
PPM mistake #3 - not balancing the portfolio. Companies and departments can absorb only so much change or new things. The portfolio should be balanced between # of lg, med. sm. projects., # projects per dept., # projects that impact a customer group etc.
PPM mistake #2 - using H, M,L to prioritize projects. Using this method causes deartments to make all of their work high priority. If project priority is only H, M, L senior management will not know what projects are really most important. Use a numerical scale starting with 1 for highest priority, 2 for next highest and so. This gives senior mgmt the tools they need to make portfolio decisions
PPM mistake #1 - Not cancelling projects. Companies tend to let projects have a life of their own. Once approved a project must be done. During the portfolio review look at projects not started and reaffirm their need. If the need is no longer there, cancel the projectCompanies should also consider canceling projects when ROI will not be realized or if project has been waiting to start for more than 12 mo.
No comments:
Post a Comment