I recently read an article in InformationWeek magazine discussing the use of practical Project Portfolio Management (PPM) processes to get and keep your projects in line without spending exorbitant dollars getting it done. The concept is that it’s more about process and behavior than it is about tools. The article summarized it into nine best practices…
Decide on what problem you’re trying to solve and what the overall end goal is
When you’re trying to incorporate change in how people work, adoption will be stronger and much more compliant if you know what you’re trying to solve, you can convey it accurately to the user base, and they – and you – understand the end goals.
Roll out your PPM according to how it’s going to function in the organization
It makes a big difference if this is something that executive management – like the CEO – will be involved with and backing or whether it’s being pushed out from a grassroots level. Your CEO isn’t likely to jump on board right away if problems haven’t already pushed it to his level yet. If that’s the case, then the grassroots approach will likely be necessary.
For a grassroots approach, keep it modest – don’t expect to be able to easily role out PPM to all projects in every niche within the organization or necessarily under the umbrella of a PMO. Roll it out just to IT projects first, get the buy in of the CIO or similar position and use that as leverage to gain further executive management acceptance and backing as successes pile up.
Implement a governance framework, but keep it practical
Rolling a PPM out with a formal governance framework like that of PMI is enticing, but don’t bite off more than you can chew for a grassroots rollout. Overdoing it from the outset can ultimately kill the momentum. Again, create a framework, but allow successes breed acceptance and adoption and eventually even more formalization and standardization of processes and policies.
Find the right leader for the scope of effort
You’ll likely want someone technical, but with good people skills, great communication, a leader, an organized individual, a problem solver, and someone who can think outside the box. I probably just described my idea of the characteristics of a great project manager. Tough to find, but good for a grassroots implementation of PPM.
If possible, find them from within – they connections they already have within the company will come in handy when you’re working on overall adoption of the processes.
Understand the project level of effort and the financial management aspects of the projects
Bottom line: Can you afford the portfolio of projects that your organization is planning, and do you have the staff to carry them through? This may seem like a simple question and decision, but that isn’t necessarily the case. It’s not just a matter of matching project work to available total labor. It’s about matching skills and worker availability to project work needs.
Pick your level of detail and don’t overdue it
One common problem out of the gate is often to try to track too much information at too deep of a level of detail. For example is it necessary to track that you have 3 FT people on a XYZ project or is it enough to know that you have 120 hours a week of employee time on the XYZ project? Again, it all depends on what problem you’re trying to solve. First, try to do it with high-level data and drill down further if you find that the problem you’re trying to solve warrants it.
It’s not about the tool, but it’s important to define a toolset
Like with all information systems, tasks can be accomplished with very simple tools, starting with paper forms, leading to Excel spreadsheets, graduating to enterprise databases, and culminating with purpose-built PPM software. You can’t do PPM without systems; it’s just a question of which systems fit your organization’s level of ambition and maturity.
When considering the tools, think about the following:
Complexity
The PPM system must be simple enough to allow quick data entry and updates. Training costs also go up directly in proportion to a system’s complexity.
Accessibility
Web-based tools, whether they’re interactive and complex SaaS tools or an internally hosted intranet for document sharing, are the way to go.
Cost And Risk
Cost doesn’t just include acquisition costs. A very real cost of any enterprise system is the training. Again, complex systems will cost more. Simple systems will cost less.
Don’t get hung up on automated integration
Product vendors love to tout system integration and automation–that is, the notion that you have to integrate PPM with your financial and HR management systems. But a sensible PPM initiative, though it may include a process to integrate the data from these systems, may put a low priority on automated integration of these systems.
Educate – and back it up with data
Both your staff and your customers really need to be on board for the PPM process to be successful. And that won’t happen unless you can drive it home to them what they should want it and what’s in it for them. Educate them. And then reinforce that education with documented success in the form of reports or data. Figure out how to quantify your PPM efforts and successes so that the masses can see and understand it.