Execution Consulting Group

PROJECT PORTFOLIO MANAGEMENT

Project Portfolio Management in a Strategic Context

CUSTOMER CHALLENGE

The company had a portfolio of +200 on-going projects, which had not been prioritized in concordance with company's overall strategic objectives. The projects drained resources in a way that exceeded the work resource capacity. Management saw a lack of consistent and structured reporting on the progress of projects, and there were no uniform requirements for design and presentation of integral tools like for example, business cases. There were no process in place for how to follow up on the projects’ benefit realization and no use of common project models or templates throughout the organisation.

 
APPROACH

The project was divided into two parallel work streams: 1) Design and implementation of processes and tools to support management of the overall project portfolio (including governance structure with described roles and responsibilities, workflow chart describing the process from business idea to value realisation, prioritization and selection criteria and management reporting tools), 2) Design and implementation of a new project model based on the principles of PRINCE2, and establishing a programme office.

 
CUSTOMER BENEFITS

The company's portfolio of projects was reduced from 216 to 16 projects and is now aligned with the overall strategic objectives. A large number of employees have been freed up for operational tasks, and external costs have thereby been heavily reduced. In addition:

The dialogue on priorities and value creation is now based on a qualified and objective foundation

Roles and responsibilities are clearly defined at both project and portfolio level

Processes for management reporting, benefit realization and portfolio management is established

Relevant status reporting is in place, making management capable of taking corrective action in time

Communication and shared expectation formulation with the stakeholders has been strengthened

Execution Consulting Group