The Project Portfolio Process (PPP)
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The Project Portfolio
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The Project Portfolio Process (PPP)
Links projects directly to the goals and
strategy of the organization
Means for monitoring and controlling
projects
Assumption: Organization has already
identified its missions, goals and
strategies by some formal analytic
method like SWOT analysis
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SWOT Analysis
2-4
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2-6
Symptoms of a Misaligned Portfolio
More projects
Inconsistent determination of benefits
Projects that don’t contribute to the
strategy
Competing projects
Costs exceed benefits
No risk analysis of projects
Lack of tracking against the plan
No client for project 2-7
Purpose of Project Portfolio Process
Identify nonprojects
Prioritize list of projects
Limit number of projects
Identify the real options for each project
Identify projects with good fit
Identify co-dependent projects
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Purpose of Project Portfolio Process
Continued
Eliminate risky projects
Eliminate projects that skip the formal
selection process
Keep from overloading the organization
To balance the resources with needs
To balance returns
To balance short-, medium-, and long-
term returns
2-9
Project Portfolio Process Steps
1. Establish a project council
2. Identify project categories and criteria
3. Collect project data
4. Assess resource availability
5. Reduce the project and criteria set
6. Prioritize the projects within categories
7. Select the projects to be funded and held in
reserve
8. Implement the process
2-10
Step 1: Establish a Project Council
Senior management
The project managers of major projects
The head of the Project Management
Office
Particularly relevant general managers
Those who can identify key opportunities
and risks facing the organization
Anyone who can derail the PPP later on
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Step 2: Identify Project Categories and
Criteria
Derivate projects
Platform projects
Breakthrough projects
R&D projects
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Step 3: Collect Project Data
Assemble the data
Document assumptions
Screen out weaker projects
The fewer projects that need to be
compared and analyzed, the easier the
work of the council
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Step 4: Assess Resource Availability
Assess both internal and external
resources
Assess labor conservatively
Timing is particularly important
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Step 5: Reduce the Project and Criteria
Set
Organization’s goals Use strengths
Have competence Synergistic
Market for offering Dominated by
How risky the project is another
Potential partner Has slipped in
desirability
Right resources
Good fit
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Step 6: Prioritize the Projects Within
Categories
Apply the scores and criterion weights
Consider in terms of benefits first and
resource costs second
Summarize the returns from the projects
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Step 7: Select the Projects to be Funded
and Held in Reserve
Determine the mix of projects across the
categories
Leave some resources free for new
opportunities
Allocate the categorized projects in rank
order
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Step 8: Implement the Process
Communicate results
Repeat regularly
Improve process
2-19
Project Proposals
The project proposal is essentially a
project bid
Putting together a project proposal
requires a detailed analysis of the project
Project proposals can take weeks or
months to complete
A more detailed analysis may result in not
bidding on the project
2-20
Project Proposal Contents
Cover letter
Executive summary
The technical approach
The implementation plan
The plan for logistic support and
administration
Past experience
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