Putting It All Together
Making value-based decisions seems logical. The question is why more organizations are not applying these techniques in their portfolio and project management processes. The answer could lie in the fact that most portfolio and project management methodologies and tools still advocate a bottoms-up approach that mires organizations in details. In reality, the true value is in the business benefits of the portfolio as a whole, not the completion of a single project on-time and in-budget.
Applying value-based decision making to portfolio management will produce greater financial benefits for an organization. In addition, other benefits of making value-based decisions should not be overlooked. It will also produce buy-in and motivation for projects and activities from the entire organization.