The AHP methodology supports and enhances PPM governance by enabling leadership to clearly establish and communicate organizational objectives, allocate resources responsibly, and measure performance accurately. In fact, a recent book on IT governance by Peter Weill and Jeanne Ross notes that good governance requires active design and involvement from senior executives, requiring them to take the lead in allocating resources and supporting the overall process.9
In the wake of recent corporate scandals, investors and regulators are scrutinizing both corporate and government leaders to ensure their organizations are in compliance. C-level leaders play an important role in ensuring that the organization is protected from mismanagement or negligence and that its efforts are delivering value. This concern for governance and stewardship of scarce resources is critically important to the organization's PPM processes. Since projects constitute a significant and increasing percentage of an organization's resources, sound fiscal management and decision making in the PPM process are essential to organizational success.
In an AHP implementation of PPM, an organization typically starts by:
• Establishing a proper governance structure
• Ensuring the right stakeholders are involved in the right steps in the process
• Undertaking a project or business case inventory to understand the extent of the resource demand and the types of investments in the portfolio
On the first point, establishing the proper governance structure is critical to PPM success. Matt Light, a Gartner analyst, has provided the following best practice governance structure for an organization's PPM process:10
• Investment council: Provides oversight; prioritizes and selects initiatives; typically includes the COO, CIO, CFO, strategic planning, and perhaps the CEO
• Business sponsor: The business executive responsible for and requesting approval for an initiative
• Portfolio manager: Manages the portfolio and keeps other stakeholders informed in their decisions
• Program management office: The competency center that coordinates all programs and projects
• Program manager: The person responsible for managing a program
• Project manager: The person responsible for managing a single project
Note that the PMO is typically the process owner for PPM implementations, and it is there that the primary knowledge of the AHP methodology must reside. The AHP underpins and supports portfolio governance process by enabling leadership to clearly establish organizational objectives, communicate priorities, allocate resources responsibly, and measure performance accurately.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.