...Project and Strategic Portfolio Management Portfolio management is a situation where all projects are managed from one central point to achieve the desired results (Project Management Institute, 2013). The desired outcomes are predetermined, and strategies have to be put in place to meet them. Portfolio management ensures that there is a continuous review done on projects so as to determine which area requires priority and resources are allocated to those areas on the weight of their urgency (Project Management Institute, 2013). Strategic planning plays a significant role in helping an organization put in place mechanisms that will ensure the survival of the organization. Strategic planning helps the organization to strategize accordingly so that it is not left out when other organizations are making strides towards achieving their objectives (Kerzner, 2013). A portfolio manager is mostly worried about the success of the entire portfolio instead of a single entity in the portfolio. In case of any decision, then the whole portfolio is considered and not a single entity in the portfolio. It can, therefore, be said that a portfolio acts as a link between the programs of an organization and the strategies that the organization has put in place (Kerzner, 2013). The programs and the plans need something that can link them, and that thing becomes the portfolio. Strategic considerations that would make an organization put in place measures that would ensure its survival include market...
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...H A P T E R 3 Project Selection and Portfolio Management Chapter Outline 70 Project Management: Achieving Competitive Advantage, Second Edition, by Jeffrey K. Pinto. Published by Prentice Hall. Copyright © 2010 by Pearson Education, Inc. 000200010270649984 PROJECT PROFILE Project Selection Procedures: A Cross-Industry Sampler INTRODUCTION 3.1 PROJECT SELECTION 3.2 APPROACHES TO PROJECT SCREENING AND SELECTION Method One: Checklist Model Method Two: Simplified Scoring Models Limitations of Scoring Models Method Three: The Analytical Hierarchy Process Method Four: Profile Models 3.3 FINANCIAL MODELS Payback Period Net Present Value Discounted Payback Internal Rate of Return Options Models Choosing a Project Selection Approach PROJECT PROFILE Project Selection and Screening at GE: The Tollgate Process 3.4 PROJECT PORTFOLIO MANAGEMENT Objectives and Initiatives Developing a Proactive Portfolio Keys to Successful Project Portfolio Management Problems in Implementing Portfolio Management Summary Key Terms Solved Problems Discussion Questions Problems Case Study 3.1 Keflavik Paper Company Project Profile Case Study 3.2 Project Selection at Nova Western, Inc. Internet Exercises Notes Chapter Objectives After completing this chapter you should be able to: 1. Explain six criteria for a useful project-selection/screening model. 2. Understand how to employ checklists and simple scoring models to select projects. 3. Use more sophisticated...
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...interest in project management. In the past, project management primarily focused on providing schedule and resource data to top management in just a few industries, such as the military and construction industries. Today’s project management involves much more, and people in every industry and every country manage projects. New technologies have become a significant factor in many businesses, and the use of interdisciplinary and global work teams has radically changed the work environment. The facts below demonstrate the significance of project management: In 2011, the average annual salary (excluding bonuses, in U.S. dollars) for someone in the project management profession was $160,409 in Switzerland (the highestpaid country), $139,497 in Australia, $105,000 in the United States, and $23,207 in China (the lowest-paid country). This survey was based on self-reported data from more than 30,000 practitioners in 29 countries.1 CareerBuilder.com found that 44% of U.S. employers listed project management as a skill they looked for in new college graduates, behind only communication and technical skills.2 Employers throughout the world, especially in Australia and Canada, echo the same request. Project management certification continues to be one of the most popular certifications throughout the world. The U.S. spends $2.3 trillion on projects every year, and the world as a whole spends nearly $10 trillion on projects of all kinds. Projects, therefore,...
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...Part 1 – Framing the Project Portfolio Management Problem • What are the objectives? To research and develop pharmaceutical products based on the selection that maximizes value • What are the constraints? Drug discovery and development is an extremely risky, time consuming and expensive process. Lower priced generic drugs and their competitors impose constraints along with risky drug discovery and development and uncertain return on investments. • What are the risks involved? A large fraction of drug development costs are spent on drugs that do not reach the market illustrating the high technical risks. Even the drugs that reach the market only 30 percent achieve the commercial success to recover the development costs to yield a healthy return, illustrating the additional commercial risk involved. • What are you alternatives? Development with lower costs, optimal research, reducing costs elsewhere and increasing sales • What information is required for project portfolio management at XYZ and how can it be collected? All independent research and development projects including their cost. Technical success probability. Projected launch year, pre-launch cost, return on investment and market risk. This information can be collected by comparison from competitors costs and sales or previous years costs and sales. Part 2 – Project Valuation How would you determine the value of the following project (Project 1) in XYZ’s portfolio, a project in the pre-clinical...
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...The Impact of Project Portfolio Management on Information Technology Projects Sergio Ricardo Calderini London Business School Regent’s Park, London NW1 4SA, United Kingdom e-mail: scalderini.mba2004@london.edu Bert De Reyck London Business School Regent’s Park, London NW1 4SA, United Kingdom Tel. +44 20 7706 6884; Fax. +44 20 7724 7875; e-mail: bdereyck@london.edu Yael Grushka-Cockayne London Business School Regent’s Park, London NW1 4SA, United Kingdom Tel. +44 20 7262 5050; Fax. +44 20 7724 7875; e-mail: ygrushka.phd2003@london.edu Martin Lockett Ashridge Berkhamsted, Hertfordshire, HP4 1NS, United Kingdom Tel. +44 1442 841025; e-mail: martin@mlockett.com Marcio Moura London Business School Regent’s Park, London NW1 4SA, United Kingdom e-mail: mmoura.mba2004@london.edu Andrew Sloper CVC The Customer Value Company 48 St Mary's Road, Long Ditton, Surrey KT6 5EY, United Kingdom Tel. +44 7768 861920; e-mail: andrew.sloper@customervalue.co.uk February 2005 Ashridge Business School UK - http://www.ashridge.org.uk The Impact of Project Portfolio Management on Information Technology Projects Abstract The ever-increasing penetration of projects as a way to organise work in many organisations necessitates effective management of multiple projects. This has resulted in a greater interest in the processes of project portfolio management (PPM), with more and more software tools being developed to assist and automate the process....
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...components of project portfolio management and impact on project managers. Introduction Organizations with mature portfolio management practices have higher rates of resilience to overcome business challenges (Rise above the competition with portfolio management, no date). Project portfolio management (PPM) is a centralized management of practices, processes, methodologies and measuring techniques used for strategic pipeline flow, project prioritization, change management, resource management, portfolio evaluation and risk management. The objective is to ensure that the strategic business objectives such as revenue growth, cost reduction, regulatory mandate, business continuity, among others, are achieved. Key Components of project portfolio management Strategic pipeline flow. This component includes the processes of screening of project proposals and funneling them through the portfolio. Proposals which are developed from the agreed business strategies are screened and selected to go to the next phase of business case development. The business case is then examined and validated by all the relevant stakeholders and possibly external consultants. A decision is followed to include the project in the portfolio with a predetermined resource and timeframe in line with the strategic plan. The projects in the portfolio are monitored and assessed periodically whether they may continue, differ or stop based on their reported performance by the project team. Project managers have...
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...How Strategic Portfolio Management relates to Project Management Derilene McCloud CPMGT/301 January 11, 2016 Michael Koma How Strategic Portfolio Management relates to Project Management Strategic portfolio management is the centralized management of one or more portfolios. A portfolio is a collection of programs, projects and operations managed as a group. These programs, projects, and services may not necessarily be related or interdependent, however, they are managed together as a group to achieve the strategic objectives of the organization. Strategic portfolio management includes selecting the right programs and projects, prioritizing the work, assigning resources, authorizing, managing, and controlling other related work to achieve the organization's strategic business objectives (Kerzner, 2013). Conversely, project management develops and implements plans to achieve a particular scope that is driven by the goals of the program and portfolio that aligned to the specific organizational strategy. While both strategic portfolio management and project management need to align with the organizational goals and objectives, it is important to understand the similarities and differences between the two disciplines, and how each one contributes significantly to the organization's strategic objectives. Project management is focused solely on achieving specific deliverables that support key organizational objectives. The deliverables could be to create a unique...
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...Portfolio Project Reflection As I undertook to study this course, I was apprehensive and worried about Part 4 concerning the project portfolio. At first I had the perception that common diagnostic coding auditing processes are complicated to understand and to use in the medical profession.Until I begin handling part 4 of this project; it is when I realized that medical coding system is a process of assigning numeral values to medical procedures and diagnoses. It is when that I developed an interest in interrogating the medical coding system deeper though it sounded straight forward. This project has enlightened me that in all healthcare settings medical coding system is crucial as it used to develop data for both inpatient and outpatient services. I am also made to be accurate in diagnostic coding and auditing processes, as the success of all medical procedures and diagnoses is dependent on the data from these systems. My awareness of medical coding system, therefore, has been increased throughout this course. For instance, I now know that all medical assessments, quality review and physician reimbursements are all based on medical coding system. I also know that coders, like any other professionals, can get caught in a rut.Such a circumstance may lead to the formulation of bad coding habits with errors that are detrimental to the accuracy needed in this profession. I will apply the knowledge I have gained throughout this medical course to identify areas...
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... References 10 To: Chief Financial Officer From: Chief Information Officer Date: November 29, 2014 RE: Wobbly Wheels IT Organizational Changes Introduction and Purpose: Over the past few years growth, of WW has not increased and it has remained stagnant due to the slow growth of the economy. In order to improve the growth of the organization, a few IT organizational changes are required that will help streamline the internal processes for WW to improve the overall business production and increase profit margin. Overall business can be improved by improving the current business operations, changing the roles and responsibilities of the staff members, upgrading to the new technology systems and the implementation of an IT portfolio management system. Leadership Philosophy: The leadership philosophy of the organization is to grow our business by meticulously serving the logistics needs of our customers offering excellence and value in everything that we do. Inspire our people and business partners to do their best, offering opportunities for personal development and success. Maintain a financially strong company that strives to give a competitive return to our shareholders. Our mission is to lead by example as a responsible, caring, and sustainable company making a positive difference in the communities in which we serve (UPS, INC. 2013). The memorandum addresses all the key issues in the current implementation and the solutions for those key issues. This memorandum...
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...Eskerod (2008): Project portfolio management – There´s more to it than what management enacts. International Journal of Project Management, Vol 26, Issue 4, May 2008, pp. 357-365 2. Pellegrinelli S. (2011): What’s in a name: Project or programme? International Journal of Project Management, Vol 29, pp. 232–240 3. Pellegrinelli S. & Garagna L. (2009): Towards a conceptualisation of PMOs as agents and subjects of change and renewal. International journal of project management. Volym 27 nr 7, pp. 649–656. 4. Hobbs B., Aubry M., & Thuillier D., (2008): The project management office as an organisational innovation. International journal project management Vol. 26. pp. 547555 5. Aubry M., Müller R., Hobbs B., Blomquist T. (2010): Project management offices in transition. International Journal of Project Management Vol 28, pp. 766–778 6. Müller R., Glückler J., Aubry M., (2013): A Relational Typology of Project Management Offices. Project Management Journal, Vol. 44, No. 1, 59–76 7. Bredin, K & Söderlund J (2011): The HR Quadriad: A framework for the analysis of HRM in project-based organizations. International Journal of Human Resource Management, Vol.22, No.10:2202-2221 8. Zika-Viktorsson A., Sundström P., & Engwall M., (2006): Project overload: An exploratory study of work and management in multi-project settings. International Journal of Project Management, Vol 24. Pp. 385-394 9. Meskendahl Sascha, The influence of business strategy on project portfolio management and its success...
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...|RDBMS/DBMS |Oracle 9i | |IDE’s |Eclipse, NetBeans | |Languages |C++, SQL, PL\SQL, Visual Basic and JAVA | |Operating System |Windows XP, Windows 95/98, & UNIX | |PLM/PPM Packages |Windchill/Planisware 5 | PROJECTS UNDERTAKEN |Project Name |Support and Enhancement of the Product Planisware 5(PPM) | |Period |01-July-10 to | |Location...
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...Information technology are evaluated using a score card which will be used to establish a portfolio Application Model Matrix which will be used in comparing the projects, some of the proposed infrastructure projects for MDSCM include standard computing hardware and software, website and data warehousing. The website is the project with the highest likelihood to succeed and also will add value to the business. Introduction: The following is a summary of the information technology projects appropriate for the MDCM Company, IT infrastructure required include networking, standard computing hardware and software, data warehousing, messaging system and a website. A score card is also established in order evaluate each project and these scores are represented in a Portfolio Application Model Matrix. IT infrastructure: Networking: This project involves the use of internet and networking resources available to enable the sharing of information across the subsidiaries and also within the subsidiaries, networking will improve quality of products given that it will enable sharing of information with the various departments and subsidiaries and therefore add value to products. Computing hardware and software: According to the case study the company different hardware platform systems including AIX, UNIX, Windows NT, windows 2000, adoption of a standardized operating system will help reduce both support costs and maintenance costs. This will enable the company gain competitive advantage...
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...sciencedirect.com International Journal of Project Management 30 (2012) 608 – 620 www.elsevier.com/locate/ijproman The three roles of a project portfolio management office: Their impact on portfolio management execution and success Barbara Natalie Unger a,⁎, Hans Georg Gemünden a , Monique Aubry a b b Technische Universität Berlin, Chair for Technology and Innovation Management, Straße des 17. Juni 135, Sekr. H71, 10623 Berlin, Germany Université du Québec à Montréal, School of Business and Management, P.O. Box 8888 Downtown Station, Montreal, Quebec, Canada H3C 3P8 Received 27 July 2011; received in revised form 29 November 2011; accepted 26 January 2012 Abstract Project portfolio management offices (PPMOs) are a subset of project management offices (PMOs) that handle collections of multiple single projects and programmes, i.e. portfolios. PPMOs are centralised organisational units that cater to the demands of various stakeholders by performing specialised tasks. They are initiated by their organisation's leadership in response to increasing management challenges originating from project portfolios. Although there has been considerable research on PMOs in general, not only a clear understanding of multi-project PMOs' activity patterns set in specific contexts like project portfolio management, but also both existence and mode of multi-project PMOs' contribution to successful performance are still lacking. By quantitatively analysing PPMOs in 278 portfolios, we identify three different activity...
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...Assignment Unit Title Project Management for Business Student Name Lecturer Name Ian Tindale / Md Nuruzzaman Unit Code PMB Student ID Date (re)Issued 21st Nov. 2012 Date to Submit 7th January 2013 Internal Verifier Name Rules and regulations Plagiarism is presenting somebody else’s work as your own. It includes: copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework from another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the procedures set down by the College. Please see your student handbook for further details of what is / isn’t plagiarism. Coursework Regulations 1 2 3 4 Submission of coursework must be undertaken according to the relevant procedure – whether online or paper-based. Lecturers will give information as to which procedure must be followed, and details of submission procedures and penalty fees can be obtained from Academic Administration or the general student handbook. Late coursework will be accepted by Academic Admin Office and marked according to the guidelines given in your Student Handbook for this year. If you need an extension (even for one day) for a valid reason, you must request one. Collect a coursework extension request form from the Academic Admin Office. Then take the form to your lecturer...
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...a company and defines ways of achieving those goals. Project management takes one of the goals and manages costs, schedules and resources to give the desired result. When small businesses use projects to make progress toward their strategic goals, they have to be aware of the differences between the two processes. While both corporate strategy and project management share planning and control characteristics, the details of their implementation and execution are not the same. Goals: The goals of corporate strategy and project management are different. Those of corporate strategy define the direction of the company and are not usually time limited. A strategic goal of excellent customer service is a continuous process. A project is designed to achieve its goals within a certain time frame. Its goals are to produce the desired result within budget and according to the schedule. Once the goals are met, the project is complete. Corporate strategy may use projects to further its goals, but the projects are steps in the overall process while the corporate strategy carries on. A project is “a temporary endeavor undertaken to create a unique product, service, or result.”Operations, on the other hand, is work done in organizations to sustain the business. Projects are different from operations in that they end when their objectives have been reached or the project has been terminated. A program is “a group of related projects managed in a coordinated way to obtain benefits and control...
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