I was quoted a couple of times in the recent issue of PMI's PM Network magazine, talking about portfolio management. You can find the article on p. 46 here.
I like to use Stephen Covey's analogy when I talk about portfolio management. Having good project management in place is like climbing the ladder effectively. Having a good portfolio management process is making sure the ladder is leaning against the right wall.
I still see organizations that struggle with balancing the portfolio. Selecting the right projects to execute can be challenging. This involves having some good selection criteria, which should tie to the organization's strategy.
I had a client that changed selection criteria in the past year. The change in the economy caused them to change organizational strategy and they re-evaluated the projects that were important to them. On the flip side, I've seen organizations that aren't sure which projects should be implemented. Sometimes it comes down to the sponsor that makes the most noise gets their way. With resources tight, this isn't the way to manage a portfolio.
Showing posts with label portfolio management. Show all posts
Showing posts with label portfolio management. Show all posts
Wednesday, June 03, 2009
Friday, March 07, 2008
On a Snowy Day
It's cold and snowy here in Kansas today. It seems like Spring will never get here. We had a couple nice days last weekend, but that was it.
I had a conversation yesterday with the CIO of a local Health System (bunch of hospitals). One of the challenges he sited was that the IT budget has to go against the other capital projects when funding decisions are made. So is it more beds or a new computer application? He also said the IT budget is typically cut back after plans are made, so projects originally planned for one year get pushed out to the next year.
In his organizations, the IT projects that get funding are being driven by business needs and the business needs are tied to the organization's strategy. It seems like such a basic concept, but how many organizations are really doing this? I know I've seen plenty of pet projects being done because some executive wants it, even though it isn't tied to the strategic goals. This is where a good portfolio management process is needed, to make sure the resources are only being allocated to the projects that really matter.
I had a conversation yesterday with the CIO of a local Health System (bunch of hospitals). One of the challenges he sited was that the IT budget has to go against the other capital projects when funding decisions are made. So is it more beds or a new computer application? He also said the IT budget is typically cut back after plans are made, so projects originally planned for one year get pushed out to the next year.
In his organizations, the IT projects that get funding are being driven by business needs and the business needs are tied to the organization's strategy. It seems like such a basic concept, but how many organizations are really doing this? I know I've seen plenty of pet projects being done because some executive wants it, even though it isn't tied to the strategic goals. This is where a good portfolio management process is needed, to make sure the resources are only being allocated to the projects that really matter.
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