...How Strategic Portfolio Management relates to Project Management Derilene McCloud CPMGT/301 January 11, 2016 Michael Koma How Strategic Portfolio Management relates to Project Management Strategic portfolio management is the centralized management of one or more portfolios. A portfolio is a collection of programs, projects and operations managed as a group. These programs, projects, and services may not necessarily be related or interdependent, however, they are managed together as a group to achieve the strategic objectives of the organization. Strategic portfolio management includes selecting the right programs and projects, prioritizing the work, assigning resources, authorizing, managing, and controlling other related work to achieve the organization's strategic business objectives (Kerzner, 2013). Conversely, project management develops and implements plans to achieve a particular scope that is driven by the goals of the program and portfolio that aligned to the specific organizational strategy. While both strategic portfolio management and project management need to align with the organizational goals and objectives, it is important to understand the similarities and differences between the two disciplines, and how each one contributes significantly to the organization's strategic objectives. Project management is focused solely on achieving specific deliverables that support key organizational objectives. The deliverables could be to create a unique...
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...Evaluate How An Organisation’s Strategic Initiatives Can Be Achieved Through A Project Portfolio Meskendahl (2010) defines business strategies as tactics used by a company to compete in the market compared to its competitors. As organisations strive to beat competition and deliver customer satisfaction effectively and efficiently, the use of projects thus increase. Project portfolio can be used as the bridge between strategy formulation and strategy implementation (Meskendahl 2010; Cleland 1999; Dietrich & Lehtonen 2005; Grundy 2000). Archer & Ghasemzadeh (1999) defines project portfolio as a “set of projects that share and compete for scarce resources and are carried out under the sponsorship and management of a particular organisation”. Thus it is of great importance to structure project portfolio in alignment with the organisation’s strategy so as to archive business objectives. According to Cooper et al. (2002), the following are three main objectives for project portfolio management: • Increasing financial value • Aligning portfolio to strategic goals • Balancing the projects within the firm’s capacities In order to archive this objective there is a need to understand the strategic orientation of the firm or what we call corporate mindset (Meskendahl 2010; Talke 2007). Strategies should consider the position of the business both internally and externally for example, a company’s systematic advantage towards its competitors (Morgan & Strong, 2003)...
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...Portfolio Process In order for the adoption of a portfolio management process (which would be new to this unit) to be successful, the following steps must be followed under the guidance of the portfolio management, and in collaboration with the individual project managers and PMO: • Transition from the existing pure-functional organizational structure to a matrix-style structure by which key functional executives, comprising a newly formed portfolio process committee, would be directly responsible for making portfolio-management decisions; • Identification of the strategic goals of both the SBU and the parent company, Sony, and reevaluating goals as the market or technologies shift, or as Sony adjusts its corporate strategies; • Adoption of appropriate methods and mechanics (i.e. strategic road map, target resource split, strategic buckets) for aligning these strategic goals with the project portfolio; • Management of the portfolio by means of a set of selection criteria for proposed projects, as well as reallocating, reprioritizing, and/or rescheduling current projects at various phases of the pipeline, (thus the portfolio and project management processes become interconnected, and the portfolio is constantly reevaluated). As the portfolio management process aims to preserve existing functional departments and minimize impact on the flow of existing operations, we recommend a transition to a project/functional matrix over the next 12 months...
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...Available online at www.sciencedirect.com ScienceDirect Procedia - Social and Behavioral Sciences 119 (2014) 229 – 236 Project portfolio management in a company strategy implementation, a case study Irja Hyväria* a Martela Oyj, Aalto University School of Business, Finland Abstract The aim of this study is to investigate the effectiveness of the project portfolio management in different business organizations. Project portfolio management is seen as a holistic activity, dependent on the organization's strategy. This study aims to determine how the project portfolio decisions are made and how the project portfolio is managed. Also other organizational factors which may affect the efficiency of project portfolio will be considered. In this study, research method was case study carried out in business organizations. The study showed interconnection between company strategy, project portfolio and projects in process and practice. The results indicate that project portfolio management is, however, facing people challenges in managing project portfolio. © 2014 The Authors. Published by Elsevier Ltd. © 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license. Selection and peer-review under responsibility of the IPMA. Selection and peer-review under responsibility of the IPMA. Keywords: Project portfolio management; business organizations; company strategy; leadership* 1. Introduction Nowadays organizations face challenges in their...
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...Strategic Portfolio Management Konstantin Vysotskiy CPMGT/301 September 07, 2015 Michael Koma Strategic Portfolio Management There is some misconception between project managers and portfolio managers that they are one in the same. Project manager is charged in managing a project in its entirety and on specific projects. By utilizing the seven points of Portfolio Management Process (PPM), Portfolio management focuses on managing several projects, programs and budgets. Portfolio Management “Portfolio management of projects helps determine the right mix of projects and the right investment level to make in each of them” (Kerzner, 2013). Portfolio management prioritizes the current and upcoming project to make sure they are handled accordingly. In addition, portfolio management looks over the budgeting to make sure if it will be feasible to take on the projects. In order to weigh all options, Project Portfolio Management Process is utilized. The seven points of PPM include: 1. “Provide a structure for selecting the right projects and eliminating wrong ones 2. Allocate resources to the right projects, thus reducing wasteful spending 3. Align portfolio decisions to strategic business goal 4. Base portfolio decisions on logic, reasoning, and objectivity 5. Create ownership among staff by involvement at the right levels 6. Establish avenues for individuals to identify opportunities and obtain support 7. Help project teams understand the value...
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...Strategic Portfolio and Project Management Summary The project portfolio is analyzed to determine and evaluate the investments or projects that can contribute to the growth of the company. Strategic portfolio management "takes the insights gained from portfolio analysis and integrates them into the decision making process of a corporation" (Portfolio Decisions, 2013). In order to effectively manage the project portfolio of a company, strategic portfolio managers needs to create plans and make decisions that can achieve the goals of the company using the least possible amount of risk. The portfolio manager is responsible in determining if the investments are interesting, viable, and can be executed. Project management involves project initiation, planning, execution, monitoring and control, and closure. "Successful project management can then be defined as having achieved the project objectives: within time, within cost, at the desired performance/technology level, while utilizing the assigned resources effectively and efficiently, and accepted by the customer" (Krezner, 2009, p. 3). Strategic portfolio management and project management are closely related. Project management is under strategic portfolio management. Thus the project manager needs to work closely with the strategic portfolio manager in order to achieve success on the projects and investments of a company. Portfolio management is most involved in the planning stage of project management because this is the process...
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...components of project portfolio management and impact on project managers. Introduction Organizations with mature portfolio management practices have higher rates of resilience to overcome business challenges (Rise above the competition with portfolio management, no date). Project portfolio management (PPM) is a centralized management of practices, processes, methodologies and measuring techniques used for strategic pipeline flow, project prioritization, change management, resource management, portfolio evaluation and risk management. The objective is to ensure that the strategic business objectives such as revenue growth, cost reduction, regulatory mandate, business continuity, among others, are achieved. Key Components of project portfolio management Strategic pipeline flow. This component includes the processes of screening of project proposals and funneling them through the portfolio. Proposals which are developed from the agreed business strategies are screened and selected to go to the next phase of business case development. The business case is then examined and validated by all the relevant stakeholders and possibly external consultants. A decision is followed to include the project in the portfolio with a predetermined resource and timeframe in line with the strategic plan. The projects in the portfolio are monitored and assessed periodically whether they may continue, differ or stop based on their reported performance by the project team. Project managers have...
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...Tektronix Portfolio: Bringing Innovation and Satisfaction Week 7 Course Project Final Draft PROJ 587 Advanced Program Management Contents 1.0 Executive Summary 4 2.0 Organization’s Strategic Plan 5 3.0 Organization’s Strategic Capacity Plan 6 3.1 Defend the Core 6 3.2 Expansion of Sales and Products 6 3.3 Balance the Portfolio 6 4.0 Portfolio Management Process 7 4.1 Portfolio Strategic Plan 7 4.2 Portfolio Charter 7 4.3 Portfolio Management Plan 7 4.4 Portfolio Roadmap 8 4.5 Portfolio 9 5.0 Project Selection Criteria 9 5.1 Project Definition 9 5.1.1 Project Categorization 9 5.1.2 Project Prioritization 9 5.1.3 Weighted Scoring Method 10 5.2 Project Acceptance 11 5.2.1 Business Criteria 11 5.2.2 Logistical Criteria 11 6.0 Program Management Plan 11 6.1 Setup of Program Management Office (PMO) 11 6.1.1 Responsibilities: 11 6.2 Phase Gate Review Team 12 7.0 Plan to Identify/Resolve Triple Constraints Conflicts 12 8.0 Change Management Plan 14 8.1 Controlling Scope Change 14 8.2 Change Control Process 15 9.0 Resource Utilization Plan 16 9.1 Network Diagram 16 9.1.1 Utilization 16 9.1.2 Background Activities 16 9.1.3 Single-Tasking and Mulit-Tasking 16 9.1.4 Cross-Training 17 9.1.5 Identify Time-Critical Activities 17 9.1.6 Schedule Based on Deliverables 17 9.2 Requirements Plan 17 10.0 Works Cited 19 1.0 Executive Summary The primary purpose and goal of this report is to explain in detail the Portfolio Management...
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...efficiently solve their projects issues and portfolio concerns will differentiate themselves from their competition. The projects that companies work to complete with the many different project methodologies demonstrate where the business is now, and the portfolio of projects of the organization demonstrate where the organization is headed. To effectively manage the tremendous number of projects that leaders face today in their organizations, they look to methods and processes that aid them in effectively managing a group of projects. The method used to help in this endeavor is Portfolio Project Management (PPM). Portfolio Management Methodologies According to Project Management Institute’s 2012 Pulse of the Profession In-Depth Report there is a clear trend based on their annual global study of more than 1000 project, program and portfolio managers. Over half of the companies reported an increase in their use of portfolio management as a means of effectively dealing with organizational strategy based on portfolio management (PMI, 2012). Moreover, the results of the study determined that 62% of projects that were concluded based on the effective use of portfolio management methodologies met or exceeded their expected return on investment (PMI, 2012). Notwithstanding the quantifiable benefits of portfolio management, the study uncovered that relatively few businesses created an avenue to perfect the portfolio management methodologies within their company. Strategic Level To effectively...
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...OVERVIEW 3 3. PROBLEM IDENTIFICATION 5 4. SOLUTION 6 4.1. Establish Strategic Transformation Programme Office (Step 1) 9 4.1.1. Leadership Responsibilities 9 4.1.2. Authority, Responsibility and Accountability System 10 4.1.3. Reporting Structures and Communications 12 4.1.4. Strategic Transformation and Change Roles and Responsibilities 12 4.2. Strategic Analysis (Step 2) 13 4.2.1. Core Business and Competency 13 4.2.2. Preferred Culture 13 4.2.3. Create a Value System to Promote a Preferred Organisational Culture 13 4.2.4. Create a Vision and Mission of the Future 14 4.2.5. Create a Strategy Map 14 4.3. Strategic Development (Step 3) 15 4.4. Strategy Implementation (Steps 4 & 5) 16 5. RECOMMENDATIONS 17 6. CONCLUSION 17 7. BIBLIOGRAPHY 18 List of Figures Figure 1: Different steps 7 Figure 2: BSPM learning organisation value chain schematic 8 Figure 3: Shared Authority, Responsibility and Accountability 10 Figure 4: Programme structures for portfolios adapted from Steyn and Schmikl (2010: 130 11 Figure 5: Strategic Transformation Project-Portfolio adapted from Steyn et al. (2010: 79) 11 Figure 6: Establish Programme Office adapted from Steyn et al. (2010: 80) 12 Figure 7: Developing Strategic Options adapted from Steyn et al. (2010: 82) 15 List of Tables Table 1: Problems Identified against performance improvement strategies 5 Table 2: Strategic Transformation Programme Management Process 8 Table 3: Differences between Vision and Mission 14 Table...
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...a company and defines ways of achieving those goals. Project management takes one of the goals and manages costs, schedules and resources to give the desired result. When small businesses use projects to make progress toward their strategic goals, they have to be aware of the differences between the two processes. While both corporate strategy and project management share planning and control characteristics, the details of their implementation and execution are not the same. Goals: The goals of corporate strategy and project management are different. Those of corporate strategy define the direction of the company and are not usually time limited. A strategic goal of excellent customer service is a continuous process. A project is designed to achieve its goals within a certain time frame. Its goals are to produce the desired result within budget and according to the schedule. Once the goals are met, the project is complete. Corporate strategy may use projects to further its goals, but the projects are steps in the overall process while the corporate strategy carries on. A project is “a temporary endeavor undertaken to create a unique product, service, or result.”Operations, on the other hand, is work done in organizations to sustain the business. Projects are different from operations in that they end when their objectives have been reached or the project has been terminated. A program is “a group of related projects managed in a coordinated way to obtain benefits and control...
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...Project Managment Summary Stacy F. Vincent CPMGT/301 December 22, 2014 Dr. Jeff Atkinson Project Management Summary Project Management, the process by which all components of a project are brought together, moving toward the end result of a successful endeavor. From inception; planning, organizing, resource management and the implementing of policy and procedures, the project manager is responsible for the entire process. Strategic Portfolio Management is the necessary prioritization methodology (Rouse 2012) actively engaged in managing the resources; budgetary, human, etc. in concert with any other component involved in the complete scope of a project. This component may oversee several different projects within an organization, moving them forward based on the company’s needs. Project Managers are responsible for the scope of the entire project, including the portfolio and program management outcome; however these all must work in concert to have a successful completion to all projects. Portfolio management (managers) can oversee several different projects concurrently, ensuring the necessary resources are available within the scope of the organization’s needs. Project managers, operating under the authority of their position, utilize the information compiled and made available by portfolio management. It is important to note that not all programs have end dates, such as a project may, and those program resources will require ongoing evaluation as budgets change...
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...five primary segments: global technology services, systems and technology, global business services, software and global financing. The global technology services segment primarily includes IT infrastructure services and business process services. The systems and technology division provides IBM’s clients with business solutions built on advanced computing power and storage capabilities. Offerings include servers and infrastructure storage products; microelectronics for IBM systems and for sale to original equipment manufacturers; and retail store solutions, such as network-connected cash registers. IBM is active in over 170 countries worldwide. In 2011, IBM acquired the following companies. The provider of real estate and facility management software solutions, TRIRIGA, Inc; the provider of intelligence analytics for fraud and crime prevention, i2; the risk analytics firm Algorithmic; the provider of...
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...Portfolio Management and Strategic Management Rebecca Watson CPMGT/301 May 25, 2015 Daryl Hale Portfolio Management and Strategic Management Portfolio management is a method that practices fundamental management techniques to prioritize an organization’s projects against each other. This method is performed in the same way an investor would evaluate a stock portfolio for long-term value, risk, and balance. This process is ideal; enabling an organization to consider and bring about a portfolio of projects to appropriate resources and optimize investments against vital objectives (Robbins Gioia, 2013). Project Portfolio Management (PPM) is used to assist an organization to gain and evaluate details about all its current and upcoming projects. Each project can then be prioritized against others based on criteria such as resources, budget, strategic value and any other impactful elements concerning the organization (Greer, 2009). The advantages to practicing PPM is that is can give the organization a big picture perspective of where its resources are being allocated and how the project deliverables will impact the company goals. According to Robbins Gioia, the traditional approach of project management focuses on cost, prioritizes project time lines, manages and contains problems within the project scope, “and attempt to answer the question: Are we doing things right?” (Robbins Gioia, P. 1). Even with the best project manager (PM) yielding optimal results, that PM has...
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...is implemented through projects | C. | Only top management must understand strategy | D. | Project selection should be clearly aligned with strategy | E. | Project management plays a key role in supporting strategy | | 2. | A project selection process that is strongly linked to strategy results in A. | The most profit. | B. | Better utilization of the organization's resources. | C. | More projects. | D. | A larger and more diverse organization. | E. | Stronger core competencies. | | 3. | Which of the following is NOT true about organizational politics? A. | Project managers should not engage in organizational politics | B. | Politics can have a significant influence on which projects receive funding | C. | Politics exist in every organization | D. | Politics can influence project selection | E. | Politics can play a role in the aspirations behind projects | . | 4. | Which of the following terms is often used to denote a project that a powerful, high-ranking official is advocating? A. | Sacred cow | B. | Pet project | C. | Political necessity | D. | Special undertaking | E. | Strategic ploy | | 5. | Why do project managers need to understand their organization's mission and strategy? A. | To reduce project duration and increase the number of projects implemented | B. | So they can make appropriate decisions and adjustments and be effective project advocates | C. | It...
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