Project Online, Project Server

Portfolio Management using Project Online, Project Server 2010 / 2013, creating a Competitive Advantage inside your Organization

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Overview

If you want to achieve great results in a demanding environment and create Competitive Advantage for your Organization, then you should ensure you are selecting the best projects, the best investments and above all creating the best portfolio[1] for your organization.

As a CEO, a CSO, or a PMO in a Private Company or in the Public Sector, selecting the best projects means ensuring that you’re delivering the best value-for-money for your investments.

The aim of this article is not to be an overview of Strategy Management, or Portfolio Management, but to quickly demonstrate how Project Online / Project Server can help you achieve the intended results.

[1] Portfolio: a range of investments held by a person or organization.

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The Process

In order to have an analysable portfolio, each Project Manager must specify how each project contributes for each Business Driver.

Business Driver

A Business Driver is a Project Server entity that correspond to one of your organization’s priorities. As a good practice your Business Drivers should be S.M.A.R.T. (Specific, Measurable, Achievable, Realistic and Time-Related) and we advise keeping the Business Drivers to fewer than 12 as a rule of thumb.

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Again, it is very important that each Business Driver is clearly and commonly understood among all the stakeholders in this process.

Some Departments in your organization may have different emphases in the Business Drivers than others so each business driver may end up with different weightings, and each portfolio analysis will have different prioritizations..

You can either use a qualitative Prioritization or a quantitative Prioritization:

Qualitative Prioritization:

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Quantitative Prioritization:

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After Drivers defined and Prioritized Project Server allows you to create Several Portfolio Analysis with different types of constraints: Costs, Budget, Resources, Competencies, or even any other field created by you.

In each Simulation Project Server automatically selects which projects deliver more Strategic Value for the specified Constraints.

If there is a need for a specific project to be included/excluded, that can be achieved by Force-In / Force-Out and the Project Server runs the simulation again.

The Key thing is: Each decision implies to the overall Strategic Value delivered.

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The portfolio functionality can be used to analyse resource needs in terms of hiring, contracting and competences needed in the organization.

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Managing which projects should be done, what and when the exact resources will be needed is a very effective way to reduce costs, minimize changes and improve your organization performance, creating for your organization a Competitive Advantage.

[1] Portfolio: a range of investments held by a person or organization.