Business can be quite complex. This is especially the case when business integrates different services and partnerships into the model which must still function in unison to deliver business or project objectives. There are instances where the business might be one only in spirit but is in effect a set of disparate entities each working to fulfill certain objectives. For example, the business might include multiple employee populations, third-party vendors as well as suppliers. This can create a robust business, but it also creates a challenge on how to manage this enterprise in the most efficient way. This is where portfolio governance service comes in.
The portfolio governance service is concerned with the establishment of the enterprise-wide governance models, compliance, as well as the risk functions in the portfolios. It enables organizations to establish flexibility that enables them to reach out across organizations or projects and reduces the complexity of managing various units that make up the business.
A solid and also highly effective portfolio governance servicemechanism allows businesses to implement the integration of various groups gradually and in some cases, less integrated elements of the business into a single cohesive unit. There are several ways in which a business can dramatically increase its portfolio governance to reduce complexity and achieve integration required to deliver business objectives. These include the following:
When you are shopping for a portfolio management system, it is advisable to start simple and then scale on the services and features with time-based emerging needs. Don’t go for a portfolio management system simply because it is fancy and has plenty of bells and whistles when you can begin with something simple and still serves your needs just alright.
Be Willing to Call it Quits
When it comes to project governance, you must be willing to cancel projects that you think is not going to meet your business objectives. Constantly review both the merit as well as the utility of the projects based on the data at hand and make the decision on whether the project is worth taking to consideration or not.
Indicate the Projects or Investments
The portfolio includes data that will help you make critical decisions on what to invest. Any portfolio should clearly show the projects currently approved and those that are not yet confirmed but might be approved at a later date.
Have a Good Prioritization Scheme
It is important to have a prioritization scheme for projects in the project management office (PMO) which is rational. You can have a PMO Consultant perform a gateway review and evaluate the importance and suitability of projects based on several factors such as the legality, strategic importance, business returns, risks and whether or not it is simply a project which is “nice to have”.
Have a Corporate Strategy for the Portfolio
When it comes to the implementation of project portfolios, it is important to have a corporate strategy that will ensure the project stays on course as well as a way of providing incentives to the people or teams that stay on course. Have performance objectives and timelines for implementation in order to ensure everyone is moving in the same direction.