PPM 101: Why You Need a Portfolio Decision Gate Framework

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This video is based on the blog post: https://acuityppm.com/ppm-101-project-portfolio-decision-making-framework/

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The project portfolio decision making framework is a governance structure to evaluate, authorize, and monitor projects as they pass through the project lifecycle and is a critical component of project selection and portfolio oversight.

How can the project portfolio decision making framework enhance project portfolio management? A winning portfolio must contain winning projects, therefore the portfolio governance team must be able to discriminate between good projects and great projects. This process enables the governance team to review projects in a consistent way based on defined criteria for each gate.

What is a project portfolio decision making framework?
A project portfolio decision making framework includes two or more phases such as: Discovery, Planning, Develop, Execute/Control, and Closure. For each phase of work, the project team has a set of tasks to complete before returning to the governance team for a gate review. At each gate review meeting, important information is provided to the portfolio governance team to make a go, no-go, hold, or modify decision related to the project. Without a phase-gate process, unnecessary or misaligned projects can enter the portfolio and significantly reduce the benefits from strategic projects in the portfolio. Project deliverables and metrics further ensure that the projects are done right. Together, a successful project portfolio decision making framework ensures that the right projects are done right.

What are the results of a project portfolio decision making framework?
A successful project portfolio decision making framework filters out poorly aligned projects. Every organization will have more projects than it can execute, which requires the portfolio governance team to carefully select the best project. Some projects may look good on paper but are completely misaligned from the organizational objectives and strategies. When organizations have well established evaluation criteria, gate reviews are an excellent way of filtering out these misaligned projects.

What are the benefits of a project portfolio decision making framework?
Steer the Scope of Project Work
Portfolio reviews afford the portfolio governance team an opportunity to direct the scope of projects. Without gate reviews, project work can continue for months without executive oversight. Successful organizations review the statement of work for each project and identify “must have” versus “nice to have” components of scope. This is important because it gives the portfolio governance team options when reviewing and selecting projects and does not force them into making “all or nothing” decisions.

Better Monitoring of Project Progress
The project portfolio decision making framework not only allows greater visibility of work, but also provide a mechanism for tracking progress and status of projects at different phases of the project lifecycle. Projects that have been stalled in a particular phase or are in difficulty can receive help from senior management faster because the projects are being monitored.

Improves Communication Throughout the Organization
Solid organizational communication is a success factor for good portfolio management. Having a project portfolio decision making framework strengthens and improves communication throughout the organization by providing greater visibility of projects in the portfolio. By utilizing a common project language and having a consistent process, employees will better understand the work being done across the company.

Provides Structure to the Project Management Process
Finally, the project portfolio decision making framework provides structure for the project management process by determining a minimal set of project deliverables needed for gate reviews.

Видео PPM 101: Why You Need a Portfolio Decision Gate Framework канала Acuity PPM