An integrated discussion on portfolio project management based on Discussion Question

An
integrated discussion on portfolio project management based on Discussion
Question 1
Portfolio
project management can be an ad hoc and one can argue that due to its complexity
nature especially in multiple projects, it becomes very competitive and
advancing the risks associated to managerial decisions becoming very high. In
our organisation, handling construction projects of more than 100 houses in
different regions requires strong portfolio process systems, which I can say
that, the organisation did not initially have commitment to. However, a single
project may not be that complex and the management of the performing company
should be able to subjugate any type of situations of the project. According to
Lee Merkhofer Consulting, the best practice organizations are finding that
portfolio project management enables them to make better, more informed and more
cost-effective decisions on an on-going and regular basis.
The
believe that portfolio project management is an ad hoc convinces people in my
organisation that every project they undertake will require advanced skills and
strategies. This poises pressure to the organisation and delays as most
activities are put on hold while prioritizing training which sometimes do not
really add value to that specific project. This brings about a problem of the
organisation investing much of the resources in activities and projects that are
not supported by any of the strategic objectives of the
organisation.
In
achieving a set of strategic goals, activities should be aligned, that explains
the portfolio project management. Ernst and young has developed a triangular
approach that ensures optimal value creation from organisation’s investment in
programs and projects. One of the three approaches is strategic alignment which
measures the extent to which the portfolio are linked to strategic business
objectives(Ernst and Young). It further looks at the approach used by the
organisation to ensure that a consistent top-down alignment (ability to drill
down to the lower level).
The
portfolio project management has a focus on stategical approach towards
achieving business objectives through project selection. So the planning of
these kind of project are usually long and medium term, which can be annually of
on quarterly basis and are dealt with by the executive or senior project
managers. However the mutliple project mananegement looks at the tactical
approach of resource allocation and prioritization in order to ensure that the
project is implemented effectively. The multiple project management is a day to
day planning are mostly dealt with by the project or resource managers. Managing
multiple projects is a challenge within many organizations because of current
practices that ignore the basics of project priorities, project categories,
project standards, and multiple tool applications[Lowell and
Pennypacker,2000]
Poor
project portfolio management results in the ‘ten uglies” as outlined by
Kerzner.
This means that the business strategies might fall and as such, the whole
project might be run very ineffectively. Poor project portfolio management
encourages poor tracking and as such likeSimms(2007)
explains that
theprojects
will use a variety of project management approaches
and reporting techniques, making meaningful coordination and consolidation hard
to impossible.
With
poor project portfolio management on a project, coordination of resources will
begin to lack and wrong projects may be selected and prioritized. Simms(2007)
indicate that deployment clashes either cause chaos or last
minute project delivery delays (with consequential project and missed
benefits costs).
Conclusion
So
I would conclude that there are no ad hoc portfolio project management, but a
lack of knowledge, skills and commitment required to achieve the business
strategies. Portfolio project management is vital in the effective
implementation of projects and the alignment of strategic objectives of the
organisation to the project.
References
Lee
Merkhofer Consulting. Keys to Implementing Project Portfolio
Management
Available
at: http://www.prioritysystem.com/implementingppm.html
accessed on 08 November 2013.
Ernst
and Young. Strategy deployment through portfolio management. Available at: http://www.ey.com/GL/en/Services/Advisory/Strategy-deployment-through-portfolio-management-Portfolio-management-challenges
accessed on 08 November 2013.
Lowell
D.D and Pennypacker.J.S, 2000. Project Portfolio Management and Managing
Multiple Projects:Two Sides of the Same Coin?
Proceedings of the Project Management Institute Annual Seminars &
Symposium
Houston,Texas,USA.
Avilable at:http://www.cin.ufpe.br/~gmp/docs/papers/Project%20Portfolio%20Management%20and%20Managing%20Multiple%20Projects-Two%20Sides%20of%20the%20Same%20Coin.pdf
(accessed on 08 November 2013)
Simms.J(2007).
Why Projects Fail, Part 12: Poor Portfolio Management . Available at :
http://www.cio.com.au/article/192523/why_projects_fail_part_12_poor_portfolio_management_/
[accessed on 08 November 2013]

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