Portfolio management is becoming the ‘must have’ for organizations to prosper and survive in this decade and beyond. No longer can the organizational focus be one of following best and repeatable practices as resource limitations mean only those programs, projects, and operational work that add business value can and should be pursued. Executives are focusing on strategic ability and managing complexity, which only can be done through a disciplined portfolio process in ensuring the best mix of programs, projects, and operational work is under way. In turn, the portfolio is constantly in flux as difficult decisions are made if a project, for example, is no longer contributing to business value and providing benefits and should be terminated to reallocate resources to one of higher priority. Commitment to this difficult approach is necessary at all levels, and communication is required so everyone knows how their work contributes to the organization’s strategic goals and objectives.
Portfolio Management: Delivering on Strategy, Second Edition focuses on the benefits of portfolio management to the organization. Its goal is to provide senior executives a view on how portfolio management can deliver organizational strategy. The emphasis is on the specific aspects within the portfolio management discipline and how each aspect should be managed from a business perspective and not necessarily from a portfolio management perspective. Highlights of the book include:
- Agile portfolio management
- Delivering organizational value
- Portfolio management and uncertainty
- Portfolio governance
- Marketing a portfolio
- Portfolio management success
Starting with a review of the project portfolio concept and its development, the book is a reference for executives and practitioners in the field, as well as a students and researchers studying portfolio management.
Author(s): Carl Marnewick, John Wyzalek
Series: Best Practices in Portfolio, Program, and Project Management
Edition: 2
Publisher: CRC Press/Auerbach
Year: 2023
Language: English
Pages: 269
City: Boca Raton
Cover
Half Title
Series Page
Title Page
Copyright Page
Table of Contents
Preface
Contributors
Chapter 1: The Development of the Project Portfolio Concept
Etymology and Conceptual Aspects
A Modern Formal Definition with Long Historical Roots
Contribution from Organizational Management
Project-Based Portfolios
Discussion and Conclusion
References
Chapter 2: Corporate Strategy and Project Management for Developing a Portfolio of Products
Introduction
What is a Product?
Where Do the Ideas for New Products Come From?
Implementing the Strategic Plan
Putting Strategy into Action
Roles of Functional Groups in Product Development
Marketing
Engineering
Other Organizations Involved with Product Development
Changes to the Strategic Plan
Project Risk Reviews
Connecting the Dots
Summary
Chapter 3: Developing a New Portfolio
References
Chapter 4: Establishing a Governance Model for Strategic Portfolio Management
Question No. 1: What Is Our Purpose and What Portfolio Will We Manage?
Question No. 2: Who Will Manage the Portfolio?
Question No. 3: How Will Projects Be Selected for the Portfolio?
Question No. 4: How Will We Make Decisions and Resolve Conflicts as a Portfolio Committee?
Question No. 5: How Often Will We Meet and What Rules Will Govern Our Meetings?
Decision No. 6: What Will Be the Role of the PMO in Portfolio Management?
Discipline and Encouragement: Essential Ingredients in Implementing a Governance Model
References
Chapter 5: Portfolio Governance
Bibliography
Chapter 6: Marketing the Project Portfolio
The Three Organizations
Marketing
Case
Market Segmentation
Resources
The Project
The Output
The Outcome
Operation
The Benefit
Goals
The 4Ps
Product
Price
Place of Sale
Promotion
Communication Plan
Who Is the Target Audience?
What Are the Objectives of Each Communication?
What Are the Key Messages?
Who Will Do the Communicating?
When Will the Information Be Given?
How Will Feedback Be Encouraged?
What Media Will Be Used?
Marketing by the Project
Emotional Intelligence
The Stakeholder Engagement Process
Identify the Stakeholders and Their Interests
Predict the Response of Each Stakeholder
Develop a Communication Plan for Each Stakeholder
Communicate with Each Stakeholder
Monitor Stakeholder Satisfaction
Monitor Internal and External Changes
Successful Project
Marketing for the Project
Marketing Models
The Focus of Project Marketing
Who Is the Focus of the Contractor’s Marketing
Marketing of the Project
Closing Remarks
References and Further Reading
Chapter 7: Portfolio Management Success
Introduction
Portfolio Success Criteria
Financial Value of the Portfolio
Strategic Success
Business Case
Benefits Realisation
Selection and Balancing
Project Success
Sustainability
Portfolio Success Factors
Maturity of Portfolio Management
Auditing of Portfolio
Types of Portfolio Audits
Intervals of Auditing
Governance
Portfolio Management Roles and Responsibilities
Portfolio Steering Committee
Project Owners
Top Managers
Portfolio Manager
Portfolio Management Office (PfMO)
Portfolio Management Information System
Conclusion
References
Chapter 8: Strategic Portfolio Management through Effective Communications
Introduction
Evolving Concepts and Processes
Portfolio Management Becomes More Strategic
Communication: From Linearity to Simultaneity
Embedded Complexity
Evolving Supporting Platforms
Background
Bottom-Up
Top-Down
Integrated
Social and Agile
Importance of Communication to Strategic Portfolio Management
Implementing a Strategic Portfolio Management Communication
Recognize Maturity Levels
Standardize and Simplify Communication Processes
Connect and Engage with People
Increase Visibility and Collaboration
Summary
Mind Map
References
Chapter 9: Project Portfolio Management and Communication
General Communication
Decision-Making
Trust
Strategy
Technology
Conclusion
References
Chapter 10: Delivering Organizational Value in the Zone of Uncertainty
Uncertainty – Time to Rethink?
What is Risk, Really?
The Zone of Uncertainty
The Optimistic Approach
The Reality
Complexity
Stakeholders
A Methodology
Managing Stakeholder Relationships
Step 1: Identify
How Many Stakeholders?
Step 2: Prioritize
Why Choose These Prioritization Attributes?
Step 3: Visualize – Mapping Complex Data
The Stakeholder Circle
Step 4: Engage
Step 5: Monitor Effectiveness of Communication
The Communication Plan
Effective Communication
Factors that Affect Communication Effectiveness
Perception and ‘Reality’
Personality
Culture
Generational Culture
Professional Culture
Gender
Discourse: The Sharing of Information
Organizational Culture
Conclusion
Notes
References
Chapter 11: Strategic Alignment for Agile Portfolios
Introduction
Theoretical Background
Strategic Alignment of Projects through Project Portfolio Management
Overarching Mechanism: Portfolio Governance
Agile Portfolio Management
Scaled Agile Frameworks
Scaling Framework SAFe
How Are Portfolio Goals Achieved in SAFe?
Overarching Mechanisms for Portfolio: Governance
Scaling Framework SAFe in Practice
Overview of the Case
Strategic Direction
Value Maximization
Portfolio Balance
Portfolio Performance
Portfolio Governance
Conclusions
Notes
References
Chapter 12: Dynamic Capability through Project Portfolio Management
Introduction
PPM Concepts
Dynamic Capabilities and Competitive Advantage through PPM
PPM in Dynamic Environments
Outline of a Dynamic PPM Approach
Single Project Data Collection
Portfolio Data Development
Team Decision-Making
Implement Decisions
Examples of PPM in Dynamic Environments
“Sensing” Changes in the Environment
Reallocating Resources
Ensuring Ambidexterity
Adjusting the Portfolio Review Board
Reviewing and Developing PPM Methods and Tools
Conclusion
References
Index
