Project portfolio management (PPM) has become a de facto way of conducting business operations and has enhanced the delivery processes of some organisations, says Paul Viviers, managing director of PM Sight, an authorised distributor for PM Solutions in South Africa.
However, while there has been some business benefit from adopting a PPM philosophy, sometimes organisations find the desired return on investment has not been achieved, he notes.
According to recent research from the US-based Centre for Business Practices (CBP), at the heart of the problem lies a lack of maturity in the PPM processes and training that support this discipline.
"This is understandable, given that PPM is new to most organisations. Nevertheless, it represents a serious impediment to successfully aligning project portfolios to business strategy," says Viviers.
Viviers points to the results of the CBP study, which found that organisations are on the bottom rungs of the PPM maturity ladder and they have particularly immature portfolio performance management processes. These conclusions are among the results of a survey of 54 senior-level PPM practitioners.
The CBP surveyed senior practitioners with knowledge of their organisations` PPM practices and their organisations` business results.
"Over 90% of organisations are at level one or two in PPM maturity. None are at level three, four or five. The survey used PM Solutions` Project Portfolio Management Maturity Model in the assessment," Viviers states.
The model describes how organisations mature as they improve their project management processes.
The study found that the greatest benefits of PPM are that organisations better align projects to business strategy; and concentrate work on the right projects.
"In the South African market place, we have witnessed an immense growth rate in project portfolio and portfolio management solutions. Where previously there were only a few players in the market, we now have several solutions to choose from.
"Every analyst company is predicting an even further growth rate in the next couple of years. While it is good to have increasing options to choose from, like any other toolset, it is only an enabling technology. Without the maturity of an organisation`s people and processes, it will be an uphill battle to realise the benefits that an organisation should," Viviers says.
He recommends a best practice project portfolio and/or portfolio maturity assessment that allows an organisation to put a firm stake in the ground, creating an "as is" position.
"The next logical step would be to build a roadmap where the organisation can consistently follow a 'best of breed` project portfolio and/or portfolio methodology. To ensure a successful outcome, the organisation must be prepared to define clear objectives against which performance can be measured."
Share
