Portfolio Management Office Setup
Many local and international institutions have realized the key role projects play in achieving strategic objectives. Therefore, many have started linking projects and strategic objectives in such a way that allows senior management to avoid any harm that might be caused due to the absence of such a critical step. Some of this potential harm include: lack of financial resources to fund projects, delays in the decision- making process, not selecting the right projects that are consistent with the...
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Many local and international institutions have realized the key role projects play in achieving strategic objectives. Therefore, many have started linking projects and strategic objectives in such a way that allows senior management to avoid any harm that might be caused due to the absence of such a critical step. Some of this potential harm include: lack of financial resources to fund projects, delays in the decision- making process, not selecting the right projects that are consistent with the strategic plan, lack of human resources and projects cancellation after launch, etc. To solve this issue, many global bodies have begun implementing what is known as "Portfolio Management", that is, to compile a number of projects and initiatives to be managed as a single portfolio. It’s an approach to achieving strategic objectives by selecting, prioritizing, assessing and managing projects, programs and other related work. While project management and program management have traditionally focused on “doing work right,” portfolio management is concerned with “doing the right work”, meaning that Portfolio Management Office is more concerned with making the right changes that align best to the strategic objectives and at that particular time attract the acceptable risk, complexity and cost on business.
In order to guide “the Management of Authorized Programs and Projects,” Organizations started setting up PMOs. PMO can stand for one of the following: Project Management Office, Program Management Office or Portfolio Management Office. Portfolio offices are usually permanent and align with the organizational financial governance structures and decisions. For enterprises facing some problems such as resource limitations and achieving strategic objectives, the PMO plays the role of “Portfolio” Management Office, advising on investment opportunities and achieving the strategic objectives.
This office consists of a manager, who should be appointed with accountability for the success of the entire portfolio, and a supporting team that is responsible for verifying cost, value and risk estimates provided in support of project proposals and requests for resources. A successful PMO leader needs to have a combination of talents including: soft skills; detail oriented; experienced but able to think outside the box.
An organization that establishes a PMO demonstrates commitment to reaching high ROI through the achievement of the strategic business goals. Therefore, and in order to setup a successful Portfolio Management Office, you need to adopt a successful Portfolio Management Process.
What is a Portfolio Management Process? It's an on-going way of managing a client’s portfolio of assets to achieve client's specified goals. Implementing Portfolio Management Process aids your organization in meeting its investment goals.
What are the components of a successful PMO process?
There are four major components. First, a structured process is used to acquire key information about all projects and to organize project data into one or more portfolios. Second, consistent methods are employed to analyze projects and compare their risks and benefits. Third, resource demands are compared with capacity. Finally, the last component consists of tracking portfolio performance for ongoing assessment and adjustment. The management of these components is the responsibility of the PMO team.
With our help your organization will soon be able to achieve its Portfolios’ financial rewards and grow its business to include many other successful projects, programs and initiatives.
Bakkah team for training and consulting