proper pm comment
Managing the portfolio
Bassam Samman, CEO and founder of Collaboration, Management and Control Solutions (CMCS), discusses the heightened importance of project portfolio management
A growing number of organisations are acknowledging the critical role of project portfolio management, or PPM, in the successful execution of their strategies. As the term implies, PPM involves the grouping and management of projects as a portfolio, in much the same way as investors manage assets and bonds. This special management process enables organisations to select projects that suit their particular development plans and manage them so that they do not overlap or, worse, conflict with each other. PPM ensures that resources such as people, tools and funds are allocated efficiently in order to deliver maximum business value.
RELEVANCE TODAY
Given that PPM offers numerous added project management (PM) benefits, the crucial question is whether this method- ology is important today, at a time when projects have become more complex and riskier than ever. PPM does not offer a magical solution
that eliminates all chances of engaging in an unsuitable or costly project. What it does is clearly outline how to classify, assess, priori- tise and select project investments. And when a portfolio is finally laid out, PPM facilitates the identification and analysis of potential portfo- lio risks and the development of appropriate monitoring, control, and response measures. Amidst tight competition, funding and
staffing shortages, fluctuating market dynamics and complicated specifica- tions, the slightest mistake could lead to
unrecoverable losses to project-driven companies. PPM lessens the threats by picking off weaker prospective projects. Moreover, the process incorporates PM methodologies for clearly outlining plan- ning, execution, monitoring and controlling phases to ensure optimal project delivery. By including best practices and governance checkpoints, PPM gives organisations a better chance to successfully accomplish a project, which has become a must within the present business environments.
REGIONAL VALUE
Although project management has become a key business and operational tool throughout the world, only 30 to 40 percent of companies in the Middle East are aware of its value. This is especially the case with PPM, as a more specialised approach to PM. The regional value of PPM would really depend on the industry and/ or project owners. In the oil and gas (O&G) industry, for example, PM is recognised as a must-have tool. O&G owners and contrac- tors all insist on the adoption of professional PM practices and the alignment of their performance with these practices. In the engineering and construction
fields, on the other hand, project devel- opers are exerting extra effort to better understand the operational value of PM. Unfortunately, many contractors apply PM only to the extent that the project owner requires. They would rather avoid PM as they regard it as an unnecessary over- head. More initiatives are thus needed.
MISUSING PM
Developers tend to make many mistakes in implementing PM as part of PPM, the most classic of which is to focus on its use only during the commencement of the construction stage. On the contrary, developers can get maximum value from PM during the initial delivery phases. More- over, PM can substantially influence project success during the early design stages. Another erroneous practice is to bundle
PM with engineering services. Engineering consultants are parties that have contrac- tual obligations; adding PM to their scope of services can thus create conflicts of interest that can affect the value of PM.
ENHANCING PM SKILLS
The optimal practice of PPM requires the acquisition of the proper PM skill set. PM proficiency can be improved by thoroughly educating those responsible for managing a project on what PM is and how it should be implemented. Professional certifications such as the Project Management Profes- sional program offered by the Project Management Institute provide an excel- lent means to ensure that those involved in project delivery are practicing PM based on internationally-accepted standards. But aside from understanding the
science of PM, practitioners should not overlook the importance of the manage- ment and leadership skills involved. Project success leans significantly on the quality of the team working on the project, and the level of this quality relies on the commu-
58 /
/apr-may 2010
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68