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Bridging The Gap Between Portfolio Management Metrics and Your Organization’s Strategic Solutions

Bridging The Gap Between Portfolio Management Metrics and Your Organization’s Strategic Solutions

Crucial and significant decisions are one of the things organizations face on a daily basis—facing these all mean the people in the hierarchy devote their time making certain decisions for their organization’s improvement, development, and growth. This also means constant procedures and solutions in order to stay afloat with the changes in the business industry.

The advent of technology has given companies various opportunities to decide easier and won’t get bogged down by too many decisions and issues that seem too complex to resolve. From this birth of a technology that the industry has witnessed the rise of Project Management Office (PMO).

One of the key areas of such discipline is the project portfolio management. Such management standard helps organizations return higher value in their projects by balancing these as well as their existing resources and cost.

For this to become as effective as possible, the market has since then devised more ways to help organizations identify and determine potential projects that bring value or team and efficient performances. Portfolio management metrics measure everything from performance to cost estimation and even to resource management. This certain metrics has been deemed as an effective tool to pinpoint the real issues organizations face so that they know what course of action to take to resolve those issues.

However, some portfolio management metrics don’t live up to the organization’s objectives, nor expectations. Some don’t affect the objectives at all, so it’s a waste of time, cost, and effort to embed such metric.

Before you start to implement portfolio management metrics, you have to know and understand what your organization needs. As such you have to break these into more specific points so that you won’t end up using portfolio management metrics that are not up to par with the organization’s objectives and needs. Yes, it sounds a lot of work, but think of the rewards you reap from it and not to mention the time being conserved.

There are certain factors to keep in mind when looking for and implementing portfolio management metrics. One of them is to evaluate their performance and the level of effectiveness.


Portfolio Management Metrics Factor: Assess The Performance

Do you latest project management metrics work to their full potential? If so, to what extent? In order to determine if the following portfolio management metrics that you have are doing the full throttle, the only way to do is to measure and evaluate their performance.

There is no single correct methodology metrics since every existing portfolio management metric has its different effect once it’s applied to a particular organizational structure. However, you can determine its efficiency by having a full grasp on the organization itself; the technologies, strategies, and procedures that are embedded in the system of that organization. That is why it’s emphasized that you need to know what your organization needs before jumping to find a solution to an issue.

On the other hand, there are ways and components to help your portfolio management metrics work on their overall performance and align themselves to the needs of a company. Below are these fields to keep in mind:



Portfolio Management : Value and Strategy


How Productive Are Your Portfolio Management Metrics?

Productivity is crucial to every metric. That being said, you need to determine your portfolio management metrics productivity levels based on their performance, as well as its effects on other areas such as projects, resources and project team members. You need to ensure that you receive expected value from those projects where portfolio management metrics are present.


Client Satisfaction

Another effective metric to determine if your projects are going on the right path is through client or stakeholder satisfaction. It’s no rocket science that a satisfied client means that you are doing your job right. Satisfaction is in the relation to expectations and this is a fairly important point. That includes aligning project objectives or goals. Another factor to keep in mind to maintain client satisfaction is to have constant and open communication with them, as well properly managing expectations and meeting them in the process.


Portfolio Management : Efficiency


Managing Resources

An efficient and effective project management equals a proper resource management. Resources are crucial and significant to a project’s success and when not utilized correctly, it can be the cause of its failure. Portfolio management metrics and resources should be able to work in harmony and become both effective from the project’s beginning stage down to its closure. When you are managing and utilizing your resources carefully, you are boosting your portfolio management metrics’ performance.


Return on Investment (ROI)

Numerous metrics measuring of ROIs have existed over time and they have been a big help for organizations to determine their projects’ investments since then. If you want a formula for measuring your ROI, you could start with Net Benefits and work your way in dividing the cost. Next, multiply that by 100. The Net Benefits are represented by different elements such as quality improvements, cost savings, and project profit contribution.


Quality Cost

Simply put, quality cost refers to the cost or fund your organization loses for not implementing the project properly. The measurements consist of team effort or labor, resources, and the following factors that you should have accompanied in your report for not meeting that project’s expectations.


Constant Measurements

At the end of the day, it depends on both your business needs and priorities. Organizations have various structures and work systems as well as practices so what might apply to one, might not to others. The point here is to continue measuring your metrics as to ensure that they are aligned to your organization’s latest solutions. Don’t waste your precious time measuring portfolio management metrics that don’t do justice to your organization’s infrastructure, projects, and resources. Opt to upgrading your metrics if it’s necessary so that your project and system’s performance function is at its full potential. Don’t forget to upgrade your PMO as well to make measuring metrics easier.



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About The Author

Management Square

Management Square is a service provider company specializing in Strategy Execution, Business Transformation, and Portfolio, Program and Project Management. Our mission is to create high quality trainings through professional excellence, and to provide a consultancy of choice through extensive learning experiences.


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