08 Feb What your project portfolio management metrics are saying about your current solution
In business, we are frequently faced with important decisions, and it’s this ability to make the right calls that separate a great company from a merely good one. Thanks to the availability of cutting-edge technology, we can surround ourselves with the best information to make our choices a little easier. Along with this evolution of technology we have seen the rise of the Project Management Office (PMO) as a priority area for business strategy.
Project portfolio management (PPM) is one area where technology has evolved to enable better business decision-making, and allow you to manage resources more efficiently, while also ensuring your projects are returning their estimated, bottom line value.
Keeping on top of things
So, we can concretely say that project portfolio management is important, but is your current PPM solution working to the best of its ability? How do you know? One effective way to measure your project portfolio returns in a holistic manner is to measure and evaluate your project portfolio management metrics.
Our blog today will point you in the right direction to investigate your project portfolio management metrics to see if your current solution is firing on all cylinders.
It should be pointed out at this stage that there exists no single set of measures that will apply to all companies in every industry. How you decide to measure your project portfolio will depend on the specific strategy and technology your organisation employs. Having said that, below are several universal measures that should be evaluated for the best chance of accomplishing your project management goals.
Below are some areas to investigate to determine whether you are doing the right things with your PPM solution:
Business value and strategy
Are your current tools returning the required level of business value? To determine this, you will want to look at the current levels of productivity across your PPM. The pace and level of business data that we are required to analyse has moved beyond the capabilities of a single tool like Microsoft Excel. Nor does Excel provide the same level of visibility as project portfolios, which in turn hinders your project manager’s ability to do their job properly. And this will show up in your productivity levels. Are you getting out of your projects what you’re putting into them? Inputs including your employees and other resources used to complete your projects.
Another aspect of determining business value of your projects is looking closely at your customer satisfaction ratings. Customer or stakeholder surveys that focus on satisfaction are an effective way of measuring this. Customer satisfaction has a lot to do with expectation, and how you align your project goals with this perception is important to consider. Also important is keeping open communication, managing expectations, and defining customer roles.
One of the hallmarks off efficient project management is the ability to manage your company’s resources. Measuring this, therefore, is an important aspect to the overall operational efficiency of your PPM setup. Are you using your team in their most effective ways? Is everyone pulling their weight? Would certain resources work better on a different project entirely?
Return on investment
Need a formula for measuring ROI? Find your Net Benefits and divide by cost. Then multiply this by 100. This will give you the percentage return for every pound you have invested. A crucial part of this is determining the Net Benefits, which will be made up of numerous factors such as: a project’s contribution to profit, savings of costs, increase in output, quality improvements – you will need to put a monetary value on these things to effectively add them into your calculations.
Cost of Quality
This is basically the amount of money your business loses on a project by not executing the project (or service) properly in the first place. Included in this measurement is total labour, materials, and the overheads you could attach to not meeting expectations or the right specifications for your service.
How about upgrading your solution?
As mentioned above, depending on your business and its priorities, the metrics you choose to evaluate might be slightly different to this list. But it remains true that measuring certain metrics can tell you a good deal about the state of your current PPM solution.
Microsoft Project and Project Online is a state of the art PPM solution that takes a lot of the manual process of Excel and other more singular project tools out of the management of your projects. Giving your PMO full visibility of its entire portfolio, and making it easier to measure the above project portfolio management metrics, upgrading to a powerful PPM solution could be exactly what you need to make the most from your organisation’s resources and compete at a higher level in your industry.
For more on how you can up your project portfolio management game, get in contact with us at CPS today. As a Microsoft Gold Partner and Microsoft Partner global award winner, we are the experts at helping you get the most out of your Microsoft investment.Contact Us