Companies are approving more projects than they can deliver. Most organizations say they have too many projects on the go and an unmanageable and ever-growing backlog of things to get to.
While organizations want to achieve a high throughput of approved projects, many are
unable or unwilling to allocate an appropriate level of IT resourcing to adequately match the number of approved initiatives.
Portfolio management practices must find a way to accommodate stakeholder needs without sacrificing the portfolio to low-value initiatives that do not align with business goals.
Our Advice - Critical Insight:
Failure to align projects with strategic goals and resource capacity are the most common causes of portfolio waste across organizations. Intake, approval, and prioritization represent the best opportunities to ensure this alignment.
More time spent with stakeholders during the ideation phase to help set realistic expectations for stakeholders and enhance visibility into IT’s capacity and processes is key to both project and organizational success.
Too much intake red tape will lead to an underground economy of projects that escape portfolio oversight, while too little intake formality will lead to a wild west of approvals that could overwhelm the PMO. Finding the right balance of intake formality for your organization is the key to establishing a PMO that has the ability to focus on the right things.
Our Advice - Impact and Result:
Eliminate off-the-grid initiatives by establishing a centralized intake process that funnels requests into a single channel.
Improve the throughput of projects through the portfolio by incorporating the constraint of resource capacity to cap the amount of project approvals to that which is realistic.
Silence squeaky wheels and overbearing stakeholders by establishing a progressive approval and prioritization process that gives primacy to the highest value requests.