Step 1: Establish a Project Council
The main purpose of the project council is to establish and articulate a strategic direction for those
projects spanning internal or external boundaries of the organization, such as cross-departmental
or joint venture. Thus, senior managers must play a major role in this council. Without the
Project Management in Practice
Using a Project Portfolio to Achieve 100% On-Time Delivery at Décor Cabinets
Décor Cabinets, a custom cabinet maker in Canada,
adopted the strategic goal of 100 percent on-time
delivery of their cabinets to achieve long-term customer
loyalty and create added value that enhances
their profi tability. Having such a clear objective
helped them assemble a project portfolio uniquely
focused on their goal, although it also meant declining
some seemingly profi table project ideas requested
by customers. However, if demand increased for the
requested products, it could have had a serious negative
impact on their delivery goals. It was diffi cult to
resist pressure from different areas of the company
to support these kinds of projects: “You can easily
lose focus.” the CEO admitted. “Sometimes when
ROI drives all decision-making you miss the bigger
picture.”
Source: S. F. Gale, “The Bottom Line,” PM Network, August 2007.
2.7 PROJECT PORTFOLIO PROCESS (PPP) 73
74 CHAPTER 2 / STRATEGIC MANAGEMENT AND PROJECT SELECTION
commitment of senior management, the PPP will be incapable of achieving its main objectives.
The council will also be responsible for allocating funds to those projects that support the
organization’s goals and controlling the allocation of resources and skills to the projects.
In addition to senior management, others who should be members of the project
council are:
• the project managers of major projects;
• the head of the Project Management Offi ce, if one exists;
• particularly relevant general managers;
• those who can identify key opportunities and risks facing the organization; and
• anyone who can derail the progress of the PPP later on in the process.