5 common mistakes in project portfolio management and how to avoid them.

5 common mistakes in Project Portfolio Management

A project portfolio is a method of tracking your company's activities. It helps you define and achieve your strategic objectives. It can also help you identify the expenses and investments needed to achieve your goals.

In this article, we propose to evaluate your project management strategies by identifying the 5 common mistakes in Project Portfolio Management and how to avoid them. 

1. Common mistakes in project portfolio management

Are you in the process of establishing a Portfolio Management project? Or are you already involved in a PMO ? In either case, you should definitely read this article.

Not integrating the objectives of the various projects

When doing a Project Portfolio Management project, it is important to ensure that you consider the objectives of each project. This will ensure that you do not risk tying different projects together.

This will also ensure that you don't make any mistakes in your calculations. Just make sure that you take all the objectives into account, and you'll be fine.

Not integrating elements of the organization's strategy

One of the most common mistakes you need to avoid when it comes to project portfolio management is not integrating the elements of your organization's strategy. This can help you understand the reasons why you need to implement such a process.

Indeed, you must take into account the different priorities of your organization. This will allow you to know which projects should be prioritized.

Not integrating elements of the organization's policy

When creating your PPM, you should also consider your organization's policies. This will allow you to define the different elements that can affect your project. This can allow you to avoid many drifts, such as not taking into account the fact that your project is in compliance with your company's policy.

Do not integrate the elements concerning the different projects

When developing the portfolio management project, you must take into account all the projects you manage. This is especially true for ongoing projects. You must make sure that they are perfectly integrated into the portfolio management. This will allow you to better manage them.

Do not include elements concerning the sector of activity

When working on a project, you need to make sure that the industry, customers and suppliers are taken into account. If you don't do this, you may not be able to meet their needs. So you need to make sure you take these things into account.

Not integrating the elements concerning the structure of the organization

When you include your project in your portfolio, you should also include elements about your organization. This will allow you to better understand the impact of your project on your organization. An example could be to integrate the different positions in your organization that you will hire on the project, but also the positions that you will eliminate. This will allow you to better evaluate the real impact of your project on your organization.

Do not include information about the project team

One of the common mistakes in project portfolio management is not to integrate the various information concerning the project team. This can include the number of employees, their profile, their skill level, etc.

All this information can help you better understand the different needs of your project team. This will allow you to better manage the project, but also to better advance it.

Do not include information about the partner in charge of the project

To ensure that all partner information is present, you must take into account that the partner information is embedded in your project. This will ensure that you do not have the wrong contact person and that all information is up to date.

Do not include information about the project budget

One of the main problems you may encounter when working on a project portfolio management project is not integrating your budget information.

It is important that you know exactly how much money you can spend. This will allow you to set an accurate budget and stick to it. You need to make sure that you stay within your budget and that you don't go over it.

2. Project portfolio management, a tool for better project management

Project portfolio management, or PPMis a system for creating an overview of the company's projects and highlighting the associated priorities and risks. Project management is a crucial aspect in any company.

When projects come to fruition, they can increase the productivity and efficiency of your team. They can also generate significant financial benefits. Poor project management, on the other hand, can lead to delays, financial losses and loss of image.

Choose priorities

To choose priorities, you need to start by defining the objectives of each of your projects. This will help you determine which projects are most important.

This will also allow you to determine which projects can be put on hold if you do not have sufficient resources.

Reduce the number of projects in progress

When using project portfolio management, you should make sure that you do not have too many projects in progress. This will allow you to better manage these projects and have them all completed on time.

If not, you may have work delays and projects that are not completed on time. In this case, you may lose money.

3. Mistakes not to be made during project portfolio management

It is important to have control over projects. You need to control the budget and progress, make sure the team is working efficiently and avoid wasting time and bugs.

One of the most common ways to manage the project portfolio is through project portfolio management (PMO). Here are some mistakes not to make when using PMO.

Not allocating enough time to properly select the projects on which the company will invest

In order for your project portfolio management project to be as effective as possible, you must choose the projects you will include. To do this, you must devote sufficient time to this step.

In particular, you need to make sure that you have enough information about the project. This will help you determine if you can afford to incorporate it into your project.

Not ensuring that the various projects are well coordinated

When managing your project portfolio, you need to ensure that all projects are well coordinated. This allows you to ensure that they do not conflict with each other. It also allows you to ensure that you are not doing two projects that will require the same resources or materials.

Not ensuring that the project has an attractive return on investment

When determining the return on investment of a project, you need to make sure that you do not overlook its impact on your company's bottom line. This can also be important if you want your project to be funded by a third party.

Not empowering yourself to deal with budget issues

When you are working on a project, you need to make sure that you have the financial means to deal with budget problems. Indeed, if you lack the means, you may not be able to handle various unforeseen events. This may cause you to not be able to finish the project on time.

Not clearly defining the project objectives

When developing a project, you need to make sure that you have clearly defined your goals. It is important that you are clear about what you want to do and why you want to do it. This will help you to define your project and ensure that you achieve your goals. It will also give you a better understanding of your project and ensure that you don't run the risk of failing.

Not ensuring that the various departments involved in the project are well coordinated

For your project to be successful, you must ensure that everyone involved is well coordinated. This will help you reduce the risk of malfunctions in the project. It will also ensure that you have all the necessary information. This will ensure that you do not end up with a project that has gaps.

4. Best practices in project portfolio management

When we talk about the project portfolio management (PPM) approach, we often think of a more general approach to project management that is applied to several projects. Such a view is not wrong, but it does not do justice to the complexity of this subject.

There are many different and complementary approaches that can be applied, and they are all closely related to each other. In fact, their strength is that they are all inseparable from each other.

A list of priority projects

When you are working on a major project, you need to make sure it has priority. This means choosing the right project hierarchy.

This way you can make sure that you have a priority list, which you can use to ensure that the projects that are prioritized are also the most important ones.

An action plan to define the projects to be excluded

When you define the projects to exclude, you must also define the method to use. This will ensure that you do not have to repeat the same procedure when a new project is to be excluded. If you want to exclude a project, you must make sure that you can do so in a clear and easy to understand way. This will help you avoid challenges.

More limited expenses

With project portfolio management, you can also reduce expenses. This is especially important when you are working on a large project. You can avoid having to spend too much money on this project. This allows you to free up resources for other projects. However, project portfolio management also allows you to devote more resources to certain projects. This way you can handle them better and improve them.

Conclusion

Setting up an efficient and cost-effective project management system is not always easy. However, there are certain rules to follow to avoid misunderstandings, cost overruns and bad decisions during the various stages of the process.

It is therefore essential to be able to rely on professionals and experts in the field at every stage. Indeed, they are the ones who will know how to make the right decisions when a difficulty arises or an opportunity presents itself. Moreover, they will help you to be effective while remaining profitable.

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