Project Portfolio Management is a centralized method of planning and controlling all of the projects in a portfolio, in a business unit, or in an enterprise. That includes Capital Planning, Workforce Optimization, Project Selection, and Portfolio Analysis.With contractors there is another process which is Opportunity Management – selecting, understanding the projects which are most likely to be won, and seeing how that impacts your portfolio.
The Project Management Institute says that projects will deliver far more quickly and a lower cost if there are good PPM processes and systems.
Why is that? If you don’t have good PPM systems, what does that world look like?
First of all, you’ve got managers who are asked to approve projects and they know their world, but do they know the entire company and what’s most strategic and most critical? Often, they don’t and so they make sub-optimal decisions about what projects are needed.
Often there are redundant projects. You have each department which is doing its own thing, they’re creating their own reports, they’re doing their own analysis, and pulling together their own data.
You have tremendous inefficiency with people compiling a lot of the same information in different parts of the company, but at the same time you get these silos where finance doesn’t totally understand what the Project Management Organization is doing, and Engineering and Cnstruction are not necessarily on the same page either.
If we have a thousand projects that are quite small each one in particular doesn’t much matter in terms of cost overrun, but if they’re all over running it could dramatically impact the company. These are things we just don’t know without good PPM processes and systems.
McKenzie did a study that said there are billions and billions of dollars globally that can be saved just by picking the right projects and not performing projects which are unnecessary or less important.
Traditionally you find that there are some light easy-to-use tools which are good for selecting and scoring projects and picking which ones are most critical.
With EcoSys, we bring the industry’s leading Enterprise Project Control system to the table. With our PPM module you can select projects, you can manage opportunities, perform capital planning and workforce optimization, but in the context of this enterprise platform that’s fit for purpose for each role in the company, so everyone is collaborating.
With EcoSys, we say PPM with a pulse. It’s a living, breathing document and system. Data is flowing in from multiple sources, from hundreds, or sometimes thousands, of users all collaborating here.
Not only are we planning what we think makes sense, but it’s impacted by the real-time results in the field.
You know precisely what is happening on all the active projects and you have that total visibility. You’re looking forward. You’re looking at everything that we can do to evolve and innovate in our company and identifying what’s most important.
Traditionally you may have silos of information. All of it is brought together in the enterprise. That’s what’s uniquely powerful about EcoSys.
Another key benefit of PPM is scenario analysis. Not only understanding where we stand today with our overall portfolio, how are we doing on schedule, on the budget, on the project mix.
Also, being able to run any scenario that we can imagine. If a specific project is cancelled, what can we bring in to replace, what impacts if we use a different type of resource, what if the cost that we’re anticipating actually go up, how will that impact the portfolio?
Being able to just very quickly run these portfolio scenarios and then make a more informed decision is key to the PPM process.
What we’re seeing with the EcoSys customers today is in many ways is the future for the rest of the industry. You have organizations which have all their projects, all in a single system and they can access it from any mobile device, any browser with the right security access.
They have total visibility and the system itself is warning them where there are issues, is guiding them to the trouble spots and allowing them to drill down.
Now what we see even further into the future is now that you have these rich databases of historical information that’s specific to your company, how do we make use of that? That is truly where the future of PPM will be is making decisions with all that information at your fingertips