Updating Critical Parameters

The EVA data provides information about project performance against the plan. With this information, the team can evaluate whether certain deficient performance warrants consideration of terminating the project prior to completion, changing the priority of the project, or reallocating resources to other work.

However, there will generally be an additional set of factors to consider. Has there been any change in the need for this project? Is the window of opportunity still open? Has critical technology changed? Have the firm's strategies changed? On a periodic basis, all of the criteria that were examined when putting a value on the project should be validated and updated.

The project management office (PMO) will publish reports indicating where defined targets, limits, and thresholds have been violated. The PPM governance council will consider this information, together with the updated critical parameters, to evaluate all projects for continuation or termination.

There is a special case where a structured reevaluation of the projects in the portfolio against the selection criteria is of paramount importance. This is when there is a major departure from the published strategic plan, such as when there is a merger of two firms. In this situation, the newly merged entity will publish a revised strategic plan and the PMO and GC will review the entire portfolio for alignment with the new plan. It would not be surprising to find cause to eliminate 5 to 25 percent of the project volume due to duplication of efforts or nonalignment with emerging strategies.

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Project Management Made Easy

Project Management Made Easy

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.

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