Project Portfolio Management Process Phase 2
In a simplistic project portfolio management model, once the final selections are made and the sequence of the projects are established and properly aligned with company's resources, the process moves into the second phase. This is where the project pipeline is maintained by traditional project initiation, execution, and control techniques as well as periodic reviews of each project. These reviews reexamine the original three pillars of portfolio management:
- Value to the company
- Part of balanced portfolio mix and
- Fit with the company's strategic goals
Hence, the questions that should be asked at each review - especially at the end of project initiation and project planning stages - include:
- Is the original business case for the project with respect to value, balance and strategic fit still supported?
- Are there any drastic changes to the project budget, duration, revenue projections and any other factors considered at selection?
- What projects should be killed because they no longer fit the original criteria?
- What projects should be added to the mix because of changed conditions, new ideas and market demands?
Once the projects move into the execution phase the following questions get added to the mix (see Figure 3):
- Is the project on time?
- Is it on budget?
- What are the key milestones?
- What are the technical and design issues?
Figure 3: Project phases