Project Management: Discussion Questions Project Portfolio Management

Project Management: Discussion Questions

Project portfolio management is designed as a way to minimize the 'ad hoc' nature of the way in which most portfolios are constructed. "As its name implies, project portfolio management groups projects so they can be managed as a portfolio, much as an investor would manage his stocks, bonds and mutual funds….the obvious benefit of project portfolio management is that it gives executives a bird's-eye view of projects so they can spot redundancies, spread resources appropriately and keep close tabs on progress….[Also] discussions aren't just about how much a project will cost, but also about its anticipated risks and returns in relation to other projects. This way, entire portfolios can be jiggered to produce the highest returns based on current conditions" (Solomon 2002). While my organization does use project portfolio management to engage in more effective scheduling and use of material resources, it does not sufficiently capitalize upon the potential for 'risk management' inherent in the process when selecting projects.

Q2. There is often a 'feast or famine' climate within the construction industry. It is always tempting to take on as many projects as are available, even if organizational resources are spread thin and the project is not really suitable for the organization. There is always the fear that the organization will lack adequate work to support itself. But it is not helpful in the long run if the company is bogged down with projects outside of the scope of its resources, resulting in the long-term opportunity cost of more suitable projects later on.

Q3. "Without PPM discipline, projects are arbitrarily requested and started without due diligence. PPM methodologies ensure that, first and foremost, projects align to the business and/or technological strategy for achieving organizational goals. The PPM framework then enables sound financial, business, and technological decisions using standardized tools and processes that are consistently applied" (PPM, 2011, PPI). Our overall use of PPM strategy does align with the organizational mission to uphold high project standards with minimal time and waste. On an individual, daily basis, some of these ideals can be forgotten, particularly during 'busy seasons' when aspects of sound, watchful management like using appropriate documentation can be forgotten.

Q4. Strategic portfolio management is more than simply managing multiple projects. Multiple projects can be effectively managed but even if "a project may be very well managed…it may not be appropriate for the organization's long-term vision" (PPM, 2011, PPI). While "communicating status and escalating risk are fundamental activities for both project management and PPM," PPM enables the organization to keep an eye on the 'forest' as well as the trees (PPM, 2011, PPI). I believe that my organization satisfies the former attributes if PPM but not the latter: sometimes a very clearly-defined larger organizational mission beyond simply giving good service can be valuable.

Q5. Financial waste; poor quality management; a wasteful use of employee time and skills; going over time and over-budget, and a waste of customer time, resources, and money are the results of the 'ten uglies.' Not only do projects get out of control as a result of poor documentation; not matching the right people to the right jobs; and a lack of a sense of urgency, but the potential for the organization to use its positive attributes is also lost. There is an opportunity cost of lost profitability and productivity as well as the negative fallout from mismanagement