What Are the Main Problems in Project Portfolio Management?
The 4 Key Project Management Issues that a Proper PPM Strategy Will Help You Solve
- Among the most widespread business problems that may come in the way of successful project portfolio management are poor visibility into project-related data, productivity gaps due to insufficient task automation, collaboration and communication issues, and suboptimal project selection.
- Most of those pain points can be eradicated by a Project Management Office with the support of an industry-grade PPM software tool.
Project Managers and at fortiori PMOs can be described as problem solvers. As a matter of fact, Project Management Offices or similar project coordination structures are often created to solve specific pain points and issues.
Project activity is at the crossroads of a number of various business domains and challenges and requires the contribution of many different teams, functions, tools, and systems.
This mechanically increases the chances for problems to arise: any underlying issues in one of the areas involved will impact the efficiency of overall project management. What more, coordination and collaboration need to be optimized in order for the whole PPM process to work smoothly.
While the problems that may threaten to derail a firm’s project portfolio management are legion, the implementation of a solid strategy can not only prevent the occurrence of such issues, but also solve some of the long standing pain points that have been hamstringing the performance of the business.
Poor visibility over and into business- and project-related data is definitely one of the most common and vexing problems that project management professionals face:
- Which projects are in the pipeline?
- How are the various projects that are in-flight right now faring?
- Which specific issues might they be facing?
- How do these projects contribute to the realization of the firm's objectives?
- Who is working on what and when?
- Which share of the budget allocated to a project has been consumed?
Those are just a few of the nagging questions that your project managers, portfolio managers or project owners are obsessing about if your organization doesn't have the right process and right tools to manage its projects. Indeed, the cornerstone of effective and successful project management is a clear understanding of the status and situation of the projects in your pipeline. Simply put, you can’t manage what you can’t see!
So, what can the many businesses and PMOS out there who are suffering from suboptimal data visibility do to improve the situation and regain control over their portfolio of projects? In a majority of cases, the solution will be the adoption and implementation of a purpose-made PPM tool. More often than not, subpar data visibility is a symptom of toolset inadequacy. Some organizations just don’t have a proper tool to manage their project portfolios and are doing their best to connect the dots manually using makeshift systems or collections of spreadsheets. Others are plagued by a software proliferation problem, causing data silos and asymmetries of information. In any case, consolidating all project-related data into a single, central repository equipped with advanced analytics capabilities should make blind spots a thing of the past.
Such data visibility issues directly translate into lower-than-average productivity of work, as project managers are wasting valuable time hunting for information and making sense out of unconsolidated data. Besides, firms that manage projects and project portfolios without the support of dedicated software tools typically find their project teams tied up in time-consuming administrative tasks such as report generation and sharing, or manual administration of time sheets. All in all, the energy wasted on low- to non-value-added tasks can account for up to 90% of all the project work in some organizations. Add this to the lack of reliability of manually collated reports, and the performance gaps become too significant to be overlooked.
In addition to the gains and benefits derived from data consolidation in a single tool, automating all of this tedious, valueless work using the productivity features of a professional Project Portfolio Management platform can save 25% of project manager time. You do the math.
In the organizations that haven’t implemented a standard, structured PPM process, misalignments and disconnects between project managers and project teams can also get in the way of effective project management. When teams do not speak the same language and do not use the same tools, metrics, and baselines to produce reports and dashboards, the resulting inconsistencies can gnaw away at the value of your project portfolio.
Good collaboration across teams is indispensable to successful project delivery. The quantity and quality of interactions can be boosted significantly thanks to collaboration-friendly PPM tools with built-in communication, notification, and sharing features — and such features are becoming increasingly important with the spread of remote working, as geographically-dispersed teams are becoming the norm. But effective and fruitful collaboration also demands the support of shared standards and of a common PPM process, which are typically introduced and maintained by a Project Management Office or a similar structure.
Organizations and businesses invest their resources in projects because they expect to achieve specific results and benefits — whether financial or extra-financial. So, at the end of the day, the best way to assess the effectiveness of your project portfolio management is to measure your ability to realize those expected benefits. The reasons why the projects of so many firms miss the mark are manifold: inability to keep project costs under control, poor project execution and poor quality of deliverables, high project failure rates, longer-than-average project completion time… But most of the time, it is due to project selection issues. It is mission-critical to carefully analyze project ideas, demands, and propositions in order to make sure you consistently pick the most promising ones. While a PPM tool with robust demand management and portfolio management capabilities will considerably facilitate the process, good project selection also requires the strategic intelligence of an empowered PMO.
Other articles about PPM optimization:
- What is the role of a Project Management Office?
- What is a PPM tool?
- Simple ways to handle a complex portfolio