Project Portfolio Management Process - Essay Example

New Position is to develop a Project Portfolio Management Process and then Use this Process to Select Projects for your Strategic Business Units Portfolio To The Vice President Strategic Business Unit of the ‘Company’ Tampa, Florida ______________________________________________________________________________ EXECUTIVE SUMMARY The primary objective of this essay is to form and develop an effective project portfolio management process, which might enable the company to acquire necessary funding and adopting adequate measures for enhancing its each Strategic Business Unit (SBU). In this regard, the discussion includes a clear view and understanding about the aspects associated with project portfolio management activities and their relevance to provide adequate support to the company in attaining the aforesaid objective. Moreover, the discussion also incorporates a brief analysis regarding the project recommendations and time-based plan in accordance with the factors and activities linked with the SBUs of the company. INTRODUCTION Project Portfolio Management (PPM) is regarded as an effective set of practices that enable organizations to gain the capability of managing projects. The set of practices within the PPM ensures to make proper alignment of different required project activities and working elements in accordance with the postulated goals and objectives of the projects that undertake by a particular company (Morris & Pinto 94-112). PART 1 1. A BRIEF DESCRIPTION OF THE PROPOSED PORTFOLIO PROCESS With respect to the predetermined business goals of the company, the proposed portfolio process has been characterized into few major stages including project initiation, planning and execution along with controlling stage. The following discussion briefly discusses these key phases of the proposed PPM procedure. Project Initiation Stage. The initiation stage of the project will focus on identifying its potential scope regarding the products and/or services offered by the company to the clients (Levine 85-108). In relation to the business practices of the SBU, the activities in the initiation stage will help the company to recognize the project scope along with the objectives while expanding business to the markets of Europe and Alaska. Project Planning Stage. The planning stage of the respective project will focus on three major key areas such as scheduling activities, resource planning and cost planning associated with different operational services linked with production/selling actions of the SBU (Levine 85-108). With regards to the proposed PPM process, the activities relating to the determination of potential risks, quality related issues and different change management obstacles can help the managers of the company to formulate effective decisions. Executing and Controlling Stage. During this phase, all the processes, plans, activities and schedules are properly utilized, ensuring that the respective project proceeds according to the plan designed (Levine 85-108). In relation to the proposed PPM process, the activities including continuous monitoring of the project activities and executing effective measures can provide active support to the company while seeking to achieve both operational as well as financial targets. 2. JUSTIFYING RATIONALE OF THE PROPOSED PORTFOLIO PROCESS PPM ensures deliverance of numerous benefits to the companies including effective formation of project activities and prioritization of each project activity in line with the organizational targets (Morris & Pinto, 94-112). In relation to the proposed portfolio process, it can be stated that the activities can play an essential role for the company while intending to expand its business subsidiaries and controlling costs while providing services to the cruise ships and major hotel chains in the European or Alaskan business industry (Morris & Pinto, 94-112; Levine 85-108). The process of planning diverse strategic measures with respect to the changing demographic trend of the customers would also facilitate the company to successfully expand its business to the target geographical locations such as Europe and Alaska. The strategy would certainly enable the company to gain a major understanding about the local markets in terms of analyzing the trends persisting within the hotel and travel business industry, which is one of the key essential factors for the marketers to be taken into concern while entering into a new business location. 3. DESCRIPTION OF THE PROPOSED SELECTION CRITERIA The proposed selection criteria relating to the development of an effective PPM process for the company can be described with reference to the above discussed stages. In the context of the project initiation stage, the strategy will help the SBU to stimulate the existing products and/or services, complying with the desires of the customers located in different new markets (Morris and Pinto 94-112; Levine 85-108). Moreover, the activities selected within the project planning stage define a set of strategic measures towards reaping several business opportunities of the overseas business markets. In this similar context, the planning stage would highly focus on identifying the purchasing trends along with the current demographic changes observed in the overseas business markets (Morris and Pinto 94-112; Levine 85-108). Correspondingly, the strategy of planning effective PPM activities will further enable the company to target huge figure of customers in the fiercely growing travel and hotel industry of Alaska and Europe. In order to accomplish the goal of increasing revenue by 10%, the adoption of penetrating pricing strategy will be beneficial for the company. Specially mentioning, the strategy of evaluating PPM activities by monitoring their efficacy levels in different project activities can also be duly considered as a major set of practices that can improve the strategic decision-making procedure of the company at large (Morris and Pinto 94-112; Levine 85-108). 4. THE METHOD FOR APPLYING THE SELECTION CRITERIA In order to effectively apply the selection criteria, the integration of a Work Breakdown Structure (WBS) can provide major insights with respect to the proposed activities in the PPM process of the company. The concept of Work Breakdown Structure (WBS) is regarded as one of the widely accepted analytical approaches, which is generally implemented to critically define the set of activities that are associated with any particular project. With regards to the proposed PPM process for developing the SBU of the company, there exists number of primary activities that will be established in order to increase the viability and relevance of the project. In this similar context, it can be justified that the selection of WBS is an appropriate choice, as it can enable the company to critically identify the project scope along with its priority in the overall process (Morris and Pinto 94-112; Levine 85-108). Determining and Evaluating Scores of the Selection Criteria. The following table represents the key activities associated with each PPM process stage along with scores and time-based plan. Tasks to be Considered Major Elements and Time Required Criteria Score/Criteria (1 to 5) 1. Project Initiation Stage Identifying project scope Priority of the key strategies Developing objectives in line with the scope and ultimate targets of the project Time required for these tasks is 2 months Time efficiency Cost effectiveness Testing relevance 3 5 5 2. Project Planning Stage Scheduling project activities Resource planning (internal and external resources) Cost planning activities Other planning activities linked with risks, issues, quality, communication and change management activities Time required is 2 months Justifying relevance with PPM goals Cost and time efficiency Scope of the activities in accordance with the project goals 3 4 3 3. Executing and Controlling Stage Identifying and presenting appropriate deliverables Evaluating performance of the deliverables and, Controlling and monitoring process of the deliverables Estimated time is 6 months Justifying relevance with PPM goals Cost and time efficiency Scope of the activities in accordance with the project goals 4 5 4 4. Project Closing Stage Review of the evaluated activities Reporting performance of each activity performed Post review process 1 month Justifying relevance with PPM goals Cost and time efficiency Scope of the activities in accordance with the project goals 5 3 3 PART 2 By taking into concern the allocated budget along with the limitation to utilize the same and maximum revenues obtained from the supply of support services like linen services to cruise ships, the Project Tableware can be selected. It is expected that the choice of this particular project might bring significant benefits to the company in terms of obtaining extensive amount of profits, expanding its business in Alaskan as well as European business markets and accomplishing superior competitive position in comparison with its chief business market competitors. It is worth mentioning that the Project Tableware would certainly support the company in becoming the leading provider of choice specifically for the cruise industry in its intended target business markets i.e. Europe along with Alaska. This particular project generally signifies expanding business of the company in the above described business markets more than supplying just linens. In order to expand its business successfully and attain superior competitive position as compared to others, the company would require not only supplying linen services to cruise ships but also distributing tableware to the cruise industry. Thus, the company needs to take into concern certain selection criterions based on which the above selected project can be executed in an effective manner. In this similar context, the company needs to follow the above discussed stages as a form of selection criterions so that it is able to conduct the project successfully. While undertaking the Project Tableware, the company will initially require to accumulate an idea about the demand of tableware in cruise ships. After accumulating the idea based on the demand subject matter, the company then needs to identify the purchasing trends of tableware in cruise industry operating in European as well as Alaskan business markets. Next, the company will require to recognize its intended target customers to whom tableware can be supplied. In relation to the Project Tableware, it can be affirmed that the targeted customers of the company will be the cruise ships that are operating in the aforesaid business markets. Finally, the company will necessitate evaluating as well as monitoring its entire process of conducting the project, making sure that no such lacunas prevail in the same that might hamper in smoothly executing the project. It has been ascertained that the Project Tableware will involve creating a Just-In-Time process in order to perform various functions effectively. Moreover, apart from these, the project will also engage the need for a minimum warehouse facility. Thus, with the incorporation of these aspects, the Project Tableware is like to cost $5.5 million dollars, which is quite sufficient with the budget allocated i.e. $24 million, which is to be spend on a quarterly basis. Thus, based on the selection criterions and the booming cruise ship industry in the Alaskan business markets, the Project Tableware will provide significant benefits to the company without exceeding quarterly budget of $6 million dollars. A plan for what quarter the selected project will start in has been presented in the form of the following pictorial illustration. CONCLUSION The implementation of an effective set of PPM measures perhaps demonstrates the major activities that enable the companies to effectively meet their desired project goals. In relation to the proposed PPM process, the essay summarizes a brief demonstration about various essential processes that can enable the company to successfully expand its SBU unit across different European and Alaskan business markets. Moreover, the application of penetrative pricing strategy can also be stated as a major aspect, which can further help the company to increase its revenue through wider execution of its predetermined strategic levels. The effective practice of the proposed PPM process would certainly facilitate the company to reduce its operating costs along with additional expenditures associated with its overhead and warehouse management functions. In this regard, it can be stated that the PPM process for the SBU can substantially help the company to achieve its intended project targets at large. Works Cited Levine, Harvey A. Project Portfolio Management: A Practical Guide to Selecting Projects, Managing Portfolios, and Maximizing Benefits. United States: John Willey & Sons, 2010. Print. Morris, Peter W. G. and Jeffrey K. Pinto. The Wiley Guide to Project, Program, and Portfolio Management. US: John Willey & Sons, 2010. Print. Read More