Project Portfolio Management: Close the Loop!

Project Portfolio Management takes place in betweenallows for mid-stream adjustments to actions taken
strategy formulation and implementation of the actualearly in the cycle, based on changing external
projects. Projects are supposed to arise out ofconditions, or based upon project execution
Organizational strategy is intended to set the generalassumptions that might now look incorrect.
direction and lay out the guidance for determining theLooking at this as a purest, one could reduce all of this
types and which projects to implement. Projectdown to what a single individual would do, and perhaps
Management resides in the realm of implementationidentify some disconnects in the process. Let's say
and comes onto the scene after the strategic directionthat and individual had decided to build a playhouse for
has been set, and after the project portfolio has beenthe back yard. Presumably, this individual is not only
determined and prioritized. The challenge is that thereparty but also central to every decision that has been
can be disconnects at the transitions among theseor will be made about the play house - at the strategic,
phases, and the most important thing is to develop aportfolio, and project management level. It will not be
feedback loop.difficult for this individual to carry through on project
Typically at the highest levels within an organization,management level decisions with the perspective of
there is much study and debate over strategy, andthe strategic and portfolio management levels, since it
eventually the direction is set. Hopefully this processis all in his/her head. He/she will have the opportunity to
includes an organized effort to gather information frommade mid-course correction based upon new
throughout the organization, and to determine directionknowledge gained as the project proceeds, and this
for the organization. That direction includes a set ofcould include items such as increased cost, change of
guiding principles and generalized initiatives that providepriorities, more time than expected, and more.
the input for the project portfolio management, or PPM,By designing the feedback loop into the project
process. This is a matter of organizing a large set ofportfolio management process, we are designing in the
projects into a portfolio, then developing a system foradvantage that the individual has on a smaller project.
managing and prioritizing the list of projects, withThat advantage is something that is practiced
primary input from the strategic planning process. Theeffectively in many organizations, and is also
final result at this stage of the project portfoliounfortunately not practiced in some that suffer from
management process is input to the projectdisconnects between high-level decisions based on
management processes, in the form of the list of finalstrategy and implementation level-actions and resulting
projects to be implemented.experience. Since the only certainty is uncertainty,
The question is, "How can the intentions developed inconditions will change, and it is important to build
the strategic planning process continue to live in theeffective feedback loops into our project portfolio
project implementation phase?" The answer, I believe,management processes.
is very practical and simply involves creating a clearFor online Project Portfolio Management training
feedback loop to the project portfolio managementcourses - PMI standards-aligned and qualifying for
process, which should then be empowered to providePDUs), see Project Portfolio Management Online
the relevant information back to upper management atTraining at Project Management Training Online. For
the strategic level. This provides an opportunity tomore ideas and insights on project portfolio
monitor projects against intentions, and not just againstmanagement, strategy,.
performance parameters within the project itself. It also