For most service departments, the demand for new projects will always exceed their capacity (financial, skills, etc …) to do them all. The projects must be managed as a portfolio, to ensure that scarce resources are invested in projects with the highest return on investment.
Often the payback on internal investment is difficult to measure, so alignment with strategic objectives is commonly used for project portfolio management. Other useful project attributes include:
This aspect of managing multiple projects is often referred to as project portfolio management. It requires functions that apply to the entire project workload, with particular emphasis on:
Although the annual budgeting process should avoid over commitment at the planning stage, new projects and changes in scope arrive unexpectedly.
With skilled resources being too specialized to work on every task, and existing commitments already out there, checking the skills capacity to take on new work is important. Clear visibility of skills bottlenecks is crucial if poor project performance is to be avoided.
If additional resource cannot be found, then lower priority work must be delayed to free up the required resource. To rebalance the workload, ‘What If…’ analysis enables alternative scenarios to be evaluated.
Actual project performance will often diverge from that planned. If high priority projects take more resource than authorized, unforeseen bottlenecks can easily arise.
Time sheet systems that track actual effort and estimates to complete will identify rogue projects. These will require re-estimating and a review of resource requirements. Poor performance on a major project can easily disrupt the resource allocation on other work.
Innate provides the functions needed for effective project portfolio management. All of the required project attributes are available and the standard reports enable projects to be grouped as required.
Project portfolio management keeps your plans aligned with the organizationís priorities. Innate resource management software provides effective project portfolio management.