The document discusses the importance of project portfolio management (PPM) in selecting and prioritizing projects based on their value and alignment with business objectives. It outlines a structured, step-by-step approach to project selection, evaluation, and prioritization, emphasizing the need for transparency, stakeholder support, and alignment with organizational goals. Key elements include scoring criteria, categorization of projects, and ensuring that the selected initiatives deliver the expected benefits while managing available resources effectively.

1. Russona Consulting presents:Choosing the Right ProjectsA Subset of Project Portfolio Management

2. Why Is This So Important“The greatest waste in business is doing the wrong thing well”Henry Ford Project management is about “doing the projects right”Portfolio management is about “doing the right projects”

3. Presentation ContentsOverview

4. The Life Cycle

5. Business Variables

6. Cyclical Variables

7. Scoring Individual Projects

8. Balancing The Portfolio

9. SummaryProject Portfolio ManagementTo be effective, the portfolio assessment needs to incorporate both short and long term perspectivesThe management of an effective PPM is about the selection and prioritization of projects to deliver the highest value, based on the pre-established portfolio business decision and priority criteria - “Best Practices for Project Portfolio Management” White Paper – Serena Mariner, August 2008

10. Organizational Context

11. Life Cycle Phaseshere

12. Portfolio ManagementProject Portfolio Management covers 3 key areas:Align the portfolio of projects based on highest value and business criteria

13. Ensure the investment is being managed

14. Ensure the business achieved the expected benefitsMost organizations have more “good ideas” than they have resources to deliver onFocus on “doing the right projects”

15. Roles in Portfolio ManagementPMI’s – Portfolio Management Std. – 1st Ed.

16. Impact of Too Many ProjectsDelayed benefits

17. The expected benefits from the changes take longer to be realized

18. Projects take longer

19. Changes in business / technology / environment mean more “challenged” projects

20. Trying to cover too many bases means that nothing gets done well

21. Unhappy stakeholders, poor quality resultsPresentation ContentsOverview

22. The Life Cycle

23. Business Variables

24. Cyclical Variables

25. Scoring Individual Projects

26. Balancing The Portfolio

27. SummaryLife Cycle PhasesFollowing TBS – EMF, key phases in the project life cycle are:Business casePortfolio SelectionProject InitiationPlanningExecution Control & MonitoringClose-out – Delivery

28. Selection Process - CriteriaEnsure that the projects we select reflect the business criteria in terms of achieving business objectives

29. Transparency required to ensure support for the process

30. Needs to reflect the capacity of the organization to commit and deliver on selected projectsProcess DemonstrationThis presentation demonstrates how to model this using MS Excel!Series of slides demonstrating:

31. Ranking of key business objectives (KBOs) against each other

32. Selection of key criteria for evaluating proposed projects

33. Business factors

34. Technology factors

35. Risk factors

36. Financial factors

37. Using the criteria to weight the proposed projects

38. Provides a “weighted score” on which to prioritize

39. A two step assisted process to finalize the selected projectsInputs Required – 3 LevelsBusiness Management (> annual)Business criteria (and groupings)Key Business Objectives (KBOs)Executive (annual)Overall budgetBudget categories % Allocation of the budget to those categoriesList of candidate projects (ongoing, regular basis)CategoryOverall costFor each candidate, a scoring against the business criteria

40. Project Phases / Reviews

41. Pre-Project Stage

42. Roles / Responsibilities

43. Portfolio Management ProcessesPMI’s – Portfolio Management Std. – 1st Ed.

44. Project Alignment ProcessPortfolio selection follows a 7 step processIdentificationCategorizationEvaluationSelectionPrioritizationPortfolio BalancingAuthorization

45. As New Initiatives Are RaisedIdentification – someone has gone through the business requirements and developed a business case. Decision made on which option to selectCategorization – in some organizations, budgets will have specific “categories” that need to be balanced (e.g. infrastructure, research and development, employee development)Evaluation –collect the information required to do selection / prioritizationSelection – some projects may not meet required qualifications, be mandatory, or customer / contract driven

46. Presentation ContentsOverview