Project portfolio management is often neglected, if not totally absent, in many organisations. The most common justification given is lack of time or the complexity of such an approach, whereas in reality it is often a question of a lack of awareness of the importance of this aspect in running an organisation.

Why does an organisation carry out projects?

An organisation can be represented schematically by a pyramid structure divided into three distinct parts.

Strategy. The top of the pyramid symbolises the mission, the reason for being and the strategic objectives of the organisation. These terms define the general direction and the framework within which the organisation operates.

Processes. Processes are at the heart of the organisation’s activity. They represent its business, its know-how, as well as the tacit knowledge and collective expertise accumulated over time. Continuous and repetitive, they generate value for the organisation and its customers. This value can take many forms, including financial benefits, reputation, comfort, social responsibility and sustainability.

Projects. Projects are temporary initiatives designed to stabilise or increase the added value generated by organisational processes. Acting as drivers of change, projects play a crucial role in an organisation’s ability to adapt to its environment and, consequently, to maintain or even increase the value generated by its processes.

Why manage a project portfolio?

Organisations often have a good command of their business processes, given that they represent their source of revenue. Without such effective management of all its projects, the organisation risks encountering difficulties in achieving its strategic objectives, innovating, adapting to its competitive environment and responding to changing market needs. This lack of project portfolio management can compromise its competitiveness and long-term survival.

What’s more, the financial and human resources needed to carry out these projects are often limited, as they are already largely used up by existing processes. Consequently, effective project portfolio management enables the organisation to optimise the allocation of its resources, prioritise initiatives that feed the strategy and maximise returns on investment.

How do you manage a project portfolio?

Defining strategy. Strategy is responsible for setting the broad direction and priorities of the organisation. In a well-managed organisation, all processes and the project portfolio are adjusted to meet this strategy.

Measuring consistency. Before authorising a project within the portfolio, it is important to measure its consistency with the organisation’s strategy. If a project is in line with the objectives and vision, it will make sense within the portfolio. If it is deemed too inconsistent, it will have to be adapted, put on hold or abandoned.

Prioritising projects. Prioritising projects is essential to ensure optimal management of the project portfolio. It ensures that limited resources are allocated wisely and that projects contribute effectively to the organisation’s overall objectives.

Project planning. It is crucial to plan the implementation of projects according to the availability of resources and their priority. This involves drawing up a realistic timetable, taking into account time constraints, team capabilities, available budgets and dependencies between projects.

Appoint a PMO. The PMO (Project Management Officer) will be responsible for overseeing the organisation’s project portfolio. In addition to this supervision, the PMO can also play the role of ‘guardian of the project methodology’, ensuring that best project management practices are followed consistently, and offer coaching to project managers.