Introduction
A well-developed project portfolio management method can help you create a balanced portfolio that meets your organization’s strategic needs. Project portfolio management aims to optimize the value of projects in the portfolio, which brings in the importance of balancing a portfolio and ensuring that all projects are completed efficiently and on time. Managing projects and other strategic initiatives is part of project portfolio management. From a strategic point of view, it is also important to decide which initiatives to carry out.
What are the benefits of balancing a project portfolio?
A well-balanced portfolio ensures that all critical initiatives are being worked on while still leaving room for new projects that may arise. There are a few key benefits to keeping your portfolio balanced:
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Ensuring the timely completion of important initiatives: If your portfolio is not balanced, some initiatives will likely be neglected in favor of others. This can lead to delays in completing important projects and even cause them to be cancelled altogether.
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Allocating resources efficiently: When projects are balanced, it’s easier to allocate resources efficiently. This is because resources can be distributed among projects in a way that ensures that all initiatives get the attention they need.
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Maximizing the benefits of projects: If all projects in the portfolio are important, it’s essential to ensure that each one is given the opportunity to succeed. By making sure the portfolio is balanced, you’re more likely to get the most out of each project.
How do you balance a project portfolio?
Balancing a project portfolio is an essential assignment for any organization. You need to ensure that you are investing in the right projects and not over-investing in any area at the expense of other business areas. You must also ensure that your projects align with your organization’s strategy.
There are several methods you can use to balance your project portfolio. One common approach is to use a weighted scoring system. You can assign a weight to each criterion and then calculate the total score for each project. The projects with the highest scores are the ones that you should invest in.
Another approach is to use a decision matrix. This matrix helps you compare projects and make decisions based on several measures. Also, several software tools can help you balance your project portfolio. These tools can help you visualize your project portfolio and identify any gaps or overlaps.
Lastly, it is essential to frequently evaluate and update the project portfolio. This can aid in ensuring that the initiatives in the portfolio align with the organization’s strategy and that the allocated resources are still sufficient. This brings to mind an interesting quote by Charlos Ghosn, former CEO of Nissan, about the need to set priorities. “The role of leadership is to transform the complex situation into small pieces and prioritize them.”
About the Author:
Loay Dirar, educates, writes, and advises on strategy development and implementation, as well as change management and risk management for major regional organizations in the Middle East and North Africa. He has 19 years of management experience, including ten years as a manager in multinational subsidiaries of organizations based in the Middle East and North Africa (MENA).
