Are you managing hundreds of projects at the same time? Is tracking and supervising each project individually now mission impossible? Don't worry, it's time to move on to project portfolio management, and if you need a tool, you've come to the right place!
The key lies in consolidating your projects within a dedicated portfolio. But how do you achieve effective centralized management? What's the right way to group projects into portfolios?
In this article, we'll guide you through the essential steps and methods for building and managing your project portfolio.
Find out how :
We'll also show you a concrete example of how to set up a project portfolio using Project Monitor software.
Follow our guide to mastering the art of portfolio management and effectively achieving your strategic objectives. Find out how project portfolio management can help you manage all your projects more effectively, while optimizing your investments, reducing risks and increasing your chances of success.
Project Portfolio Management (PPM) is a strategic approach to centralizing the management of a set of projects. Its aim is to optimize value, profitability and the achievement of organizational objectives through the effective management of projects and their associated resources.
Project portfolio management enables :
It involves several key aspects:
There are different types of project portfolios, from "standard" project portfolios to specific project portfolios.
From one organization to another, the same elements are used to define reference systems. They make it possible to classify and schedule projects:
In other words, for a project, we'll generally be able to specify that it's :
Each of the company's main business lines has its own specific reference framework. For example, for a CIO (Information Systems Department) we can cite :
Last but not least, each organization has its own specificities, which need to be taken into account. We can find classification methods linked to :
In a regulated activity, we can then group together projects that contribute to achieving a regulatory objective.
Here are 5 tips to help you build a project portfolio:
Start by defining your company's overall strategy (strategic objectives, priorities, desired results). This will help guide the creation of your project portfolio. Draw up a detailed roadmap outlining the sequence in which projects will be carried out.
Identify all potential projects that could contribute to achieving strategic objectives. Solicit ideas from different stakeholders, examine market needs and emerging opportunities. Create a comprehensive list of potential projects.
Evaluate each project according to predefined criteria such as strategic alignment, added value, feasibility, risks, resource requirements and constraints. Use these criteria to determine their relevance to the portfolio.
Project portfolio management software, such as Project Monitoroffers a centralized, real-time view of all projects, according to the desired axes of analysis (budget, finance, risk, value, deadline, etc.). It's also a very useful tool for arbitrating between projects, bringing together current projects and project requests. Several features help you make the right decisions, such as the Portfolio Scenarios feature. This feature enables you to simulate the impact of new projects on your portfolio.
Note that you will often find other names for project portfolio management software, such as GPP software or PPM software (Project Portfolio Management).
Rank projects according to their strategic contribution and added value. Use prioritization techniques to identify the most important and relevant projects:
Make sure your portfolio is balanced in terms of project type, risk and return on investment. Take into account available resources and the organization's capacity to execute projects.
Set up monitoring mechanisms to regularly assess project progress and performance. Use key performance indicators (KPIs) to measure portfolio results and impact. If necessary, adjust the composition of the portfolio by adding, removing or modifying projects in line with contextual developments. During governance committees, regularly review and reassess your portfolio to ensure it remains aligned with corporate strategy and changing needs. Readjust priorities and resources as necessary to maximize the portfolio's value and impact.
A PPM solution will be invaluable in steering and monitoring your portfolio. Dashboards, reports and slideshows will help you evaluate your portfolio effectively.
By following these steps, you'll be able to build a solid project portfolio, aligned with your company's strategy and capable of generating significant results.
To optimize governance in your project portfolio, communication plays a crucial role. It is essential to set up a project committee structure, known as project comitology. This structure includes the governance bodies responsible for organizing the various project committees.
Project comitology establishes clear governance bodies responsible for coordination, monitoring and decision-making within the project portfolio. These committees can include representatives of key stakeholders, project managers, technical experts and other relevant stakeholders.
To set up a project comitology, you can implement the following practices:
Define a robust governance structure for your project portfolio. Identify the roles and responsibilities of stakeholders, including governance committees, project sponsors and management teams. Ensure that decision-making processes are clearly defined, and that lines of communication are well established.
Develop specific procedures for project portfolio governance. This may include guidelines on project selection, resource allocation, risk management, performance monitoring and communication. Ensure that these policies are documented, communicated and adhered to by all relevant stakeholders.
Set up governance committees that meet regularly to oversee and make strategic decisions concerning the project portfolio. These committees can include key members of the organization, experts and relevant stakeholders. Ensure that committees have the information they need to make informed decisions. Promote open and transparent communication between project portfolio stakeholders. Ensure that key information is shared on a regular basis and that stakeholders are kept informed of decisions.
Establish key performance indicators (KPIs ) to assess project portfolio performance. Regularly monitor these KPIs to assess progress, target achievement and risk management. Use this information to make informed decisions and strategic adjustments where necessary.
Encourage learning and continuous improvement by learning from past successes and failures. Capitalize on experience and best practices to strengthen governance and optimize portfolio management. Encourage knowledge sharing and collaboration between project teams.
By optimizing governance in your project portfolio, you'll be able to make informed strategic decisions, improve project performance and maximize the value generated by your portfolio.
Project Monitor is project portfolio management software. Simple and scalable, it offers a complete range of project portfolio management functions:
Project Monitor provides functionalities that facilitate the arbitration and prioritization of projects. Here are some of its key features:
A project portfolio is a set of projects, programs and/or initiatives, managed in a coordinated way to achieve an organization's strategic objectives. It groups together different projects that may be linked by common objectives, shared resources, dependencies or strategic coherence.
A strategic project portfolio is a specific grouping of projects that are aligned with an organization's strategic objectives and priorities. It groups together projects considered essential to the realization of the company's vision and strategy. These strategic projects are selected on the basis of their potential contribution to value creation, growth, competitiveness or other key strategic objectives of the organization.
A project portfolio dashboard is a visual management tool that provides a synthetic and easily understandable representation of key information for steering project portfolio performance. It provides a real-time overview of relevant data such as project progress, performance indicators, allocated resources, risks, costs and other important metrics. A project portfolio dashboard enables stakeholders to quickly monitor and assess the overall health and performance of the portfolio, identify potential problems and make informed decisions.
To ensure effective management of a project portfolio, it is essential to put in place solid governance and appropriate monitoring mechanisms. These include define indicators for monitoring and analyzing the performance of the project portfolio.
Project portfolio management involves several key steps to ensure efficient and successful management: selecting projects, prioritizing projects, allocating resources, monitoring project planning, managing risks... By following these project portfolio management steps, you can optimize results, maximize added value and achieve the organization's strategic objectives.
Setting up a project portfolio involves several essential steps. First, identify your organization's strategic objectives in order to define project selection criteria. Next, evaluate potential projects in terms of their alignment with these objectives and their contribution to the overall strategy. Prioritize projects using criteria such as added value, resource requirements and time constraints. Then allocate the necessary resources and budget to each project. Set up monitoring and control mechanisms to regularly assess project progress.