Important inputs to this process are the organization’s goals and strategies, and we assume
here that the organization has already identifi ed its mission, goals, and strategies—by using
some formal analytic method such as SWOT analysis (strengths, weaknesses, opportunities,
threats), and that these are well known throughout the organization. If this is not the case, then
any attempt to tie the organization’s projects to its goals is folly and the PPP will have little
value. Deloitte Consulting (McIntyre, 2006) found that only 30 percent of surveyed organizations
insisted on knowing the value a project would add to the organization’s strategy before
granting approval. Symptoms of a misaligned portfolio included:
• Many more projects than management expected
• Inconsistent determination of benefi ts, including double-counting
• Competing projects
• “Interesting” projects that don’t contribute to the strategy
• Projects whose costs exceed their benefi ts
• Projects with much higher risks than others in the portfolio
• Lack of tracking against the plan, at least quarterly
If the goals and strategies have been well articulated, however, then the PPP can serve
many purposes:
• To identify proposed projects that are not really projects and should be handled through
other processes
• To prioritize the list of available projects
• To intentionally limit the number of overall projects being managed so the important
projects get the resources and attention they need
• To identify projects that best fi t the organization’s goals and strategy
• To identify projects that support multiple organizational goals and cross
Important inputs to this process are the organization’s goals and strategies, and we assumehere that the organization has already identifi ed its mission, goals, and strategies—by usingsome formal analytic method such as SWOT analysis (strengths, weaknesses, opportunities,threats), and that these are well known throughout the organization. If this is not the case, thenany attempt to tie the organization’s projects to its goals is folly and the PPP will have littlevalue. Deloitte Consulting (McIntyre, 2006) found that only 30 percent of surveyed organizationsinsisted on knowing the value a project would add to the organization’s strategy beforegranting approval. Symptoms of a misaligned portfolio included:• Many more projects than management expected• Inconsistent determination of benefi ts, including double-counting• Competing projects• “Interesting” projects that don’t contribute to the strategy• Projects whose costs exceed their benefi ts• Projects with much higher risks than others in the portfolio• Lack of tracking against the plan, at least quarterlyIf the goals and strategies have been well articulated, however, then the PPP can servemany purposes:• To identify proposed projects that are not really projects and should be handled throughother processes• To prioritize the list of available projects• To intentionally limit the number of overall projects being managed so the importantprojects get the resources and attention they need
• To identify projects that best fi t the organization’s goals and strategy
• To identify projects that support multiple organizational goals and cross
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