Most organisations would state that they have a defined set of strategic objectives and a finite amount of resource in terms of capital and human, on that basis project approval and prioritisation should be objective.
When considering which projects should be approved, a number of factors should be considered, including:
- Strategic Alignment; will the project help the organisation to reach the defined strategic goals?
- Cost Analysis; will the project provide some ROI or deliver against another cost constraint?
- Resource Analysis; do we have enough required resources to complete the projects?
Most organisations however do not have an objective way in which to review, prioritise and approve projects. Project selection tends to be a subjective endeavour with organisations typically running too many or the wrong projects.
With Microsoft PPM (Project Online or Project Server) you can transition from a subjective project selection approach to one that is objective, helping ensure that the organisation is running the right projects.
Within Portfolio Analysis, you can on board and objectively weight your business drivers. This allows users as part of the business case development to highlight to what extent their projects will help the organisation reach its strategic objectives and enables the senior team to easily identify the key priorities.
The senior team can as part of the selection and prioritisation process easily access information on the total cost of the portfolio, as well as the ROI or total benefit offered by the projects and ensure that the driver importance and total cost is not misaligned. Before committing to a portfolio, users can also revise budgets and use Microsoft PPM to recalculate and create varying scenarios for comparison to help the senior team to make an informed decision before progressing on to resource analysis.