Programportfolio planning and development system

The following are the attributes of a program/portfolio planning and development system.

■ Business planning system and strategic objectives. The integrated company has a business and strategic planning process that produces a statement of strategic objectives to serve as a guide for all planning and budgeting. Such a system helps to shape the project portfolio and ensures that the company invests in projects that are integrated with the direction of the business and its ownership.

■ Decision process. Some kind of decision process supports integration because open decisions, if prolonged, can lead to waste and ineffective work. Decision trees are used to assess the commercial value of various decision paths involved in defining the task structure and sequence of approved projects.

■ Budgeting system. A capital rationing system, or some way to allocate company resources in line with the priority of relative strategic objectives, is part of integration. After budgets are identified to carry out business plans, projects are planned and prioritized in the portfolio system; then costs are estimated. Finally, projects are funded according to their relative merit against business plans and available budget.

■ Risk management system. Some kind of risk management planning system that identifies and assesses risks, and generates risk contingency plans, is necessary in an integrated project management system. The risk matrix is the format for developing risk information that is used in scheduling and controlling the work.

■ Program definition. Programs are sets of projects with similarities in process, product, and customer base. Definition of longer term product lines help clarify the boundaries of a given program over time.

■ Portfolio pipeline system. A pipeline of approved projects is maintained so that as funds and resources become available, projects are quickly initiated. Project plans and schedules are produced for projects in the pipeline so that when authorized they can proceed quickly.

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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