Programme and Pro Folio Management - Coursework Example

Introduction Organisational strategy is a key consideration in forming any organisation or It can be described as a plan initiated by an institution/ organisation to enable it achieves its laid down objective. An organisation strategy carries a detailed assessment of what need to be done to achieve the intended goals. A portfolio is a collection of assets or objects held by an organisation. According to Mahajan (2009), portfolio management is the art/process of decision making on investment to work in line with the organization’s objectives and control risk against performance. Effects of organisational strategy on a programme An organisational strategy lays down the foundation for attaining the intended objective of a programme (Jenner, 2010). A number of benefits accrue to a good organisational strategy. For instance, focus on the mission is maintained, enhances efficient use of resources, mistakes are reduced and effective organisation is promoted. An organisational strategy ensures commitment of all stakeholders to the attainment of the programme’s vision. An organisation strategy is based on a mission. The mission specifies why a programme has been initiated. This keeps reminding the stakeholders that there is a project awaiting completion. A mission outlines the interest and capabilities of the stakeholders involved in a programme. An organisational strategy lays the foundation for structuring a programme, in fact, it is the roadmap for any programme. Organizational strategy entails growth, stability, divestiture, retrenchment among other elements. Each of these components bears considerable effect on a programme. Growth strategy is employed by management to increase the quantity produced towards in a programme. Successive application of growth strategy has the effect of speeding up accomplishment of the mission for the programme. Organisational strategy enhances stability of a programme. The management might adopt stability strategy to maintain or sometimes to improve the amount of task generated towards accomplishment of a project. However, the management must be careful not to deviate from the objective of the programme while maintaining stability. Retrenchment is yet another organisational strategy. Retrenchment facilitates the strengthening and protection of the values of a programme. Retrenchment helps save the resource that would have been used to purse an unproductive programme. When it is realised that a programme will result to unfavorable outcome the resource deployed to it are suspended. Organisation strategy facilitates comprehensive planning of a programme. A comprehensive plan clearly outlines the path to be followed in the attainment of the stated objectives in a programme. Effects of portfolio management on a programme Good portfolio management bears the effect of maximizing the value of a programme and minimizing the risks associated with the whole process of completing a programme (Fabozzi, 1998). Portfolio management facilitates grouping of various similar objects together in a systematic order. Grouping eases the policy implementation process and makes adoption of changes more effective and less complex. Grouping of items together provides a smooth path to purse the programme’s aim. Portfolio management promotes transparency and accountability in pursuing a programme. This is so because all related information is grouped together and thus making a follow up of any item is clear and less costly. Portfolio management enhances easy access of information about a programme which facilitate quick decision making speeding up the process for achieving the goals of a programme. Information presentation on project portfolio emanates from the top management. This enhances order in dissemination and receipt of information in various departments of an organisation. The central source of authority (top management) ensures that information get to the right people. In addition, portfolio management facilitates quick and consistent allocation of human resource to a programme. Proper portfolio management leads to timely completion of a programme (Jenner & Kilford, 2011). Additionally, the programme ends up being economical and there is an increase in return on investment. In fact, efficient portfolio management program can result to attainment of up to 20% more revenue from an investment. From this assessment it is clear that proper portfolio management lead to a profitable programme. Efficient portfolio management is essential for governance of an enterprise or programme. An effective governance model is instrumental for enhancing accountability, alignment and proper decision making. Strong governance can assist in alignment of communication and other core strategies across the entire programme. Portfolio management involves regular review of the portfolio performance. This is important for sound decision making. Reviewing the portfolio ensures that any deviation from the path heading to the attainment of the programme’s objective is corrected on time. In fact, portfolio management acts as the objectives’ watchdog, that is, keeps watch over the trends of towards achievement of goals. Efficient portfolio management aligns a programme’s investments with the central strategic objectives (Dinsmore & Cooke-Davies, 2006). This is very instrumental in synchronizing resources and the programme’s schedule. Additionally, cross functional coordination between different actors is enhanced. Through this, the various units are able to work consistently and more effectively. Methods a programme manager can establish to ensure effective collaboration and reporting at all levels of an organisation One method a pogramme manager can adopt is establishing an effective and efficient communication system (Sanwal, 2007). Communication is the core drive to effective collaboration and reporting at all levels in an organisation. The main objective of the organisation must be outlined and communicated so that everyone understands the laid down goals and the avenues for decision making. The program manager should establish an effective communication infrastructure that enhances proper receipt and dissemination of information in different units of the organisation. All departments in the organisation should be linked to a central communication system to facilitate easy transfer of information. Additionally, the manager should take time and listen to the juniors. In essence, Information should not be applied as a weapon, which is, the manager should communicate concisely and give real information. The manager should ensure proper application of information technology in record keeping to enhance quick accessibility. A program manager can adopt an integrated programme management method. This operating custom will ensure that all projects are evaluated in the same way. In fact, this method provides visibility into the project in progress. Its adoption can create openness in the running of a programme/ project .This will rally people in the organisation to collaborate with the manager. Adoption of integrated management programme method gives all people in the organisation equal chances. Therefore people can freely give their views or report any changes to their departments for viable decision making. The program manager should encourage team building. When people operate in a team, they become like members of the same family. The unity brought about by team building will enhances collaboration. In fact, reporting will be made more effective since socialization in the team will make people feel free to each other. Additionally, the project manager can also establish an effective project portfolio management. A proper project portfolio management will ensure quality decision making. This way, effective collaboration and reporting will be encouraged as everything is on light. The program manager can consequently practice several methods of monitoring the progress of various projects in an organisation for instance, application of system engineering, maintaining an interface control documentation, developing a staff management plan among others. Interface control documentation can help the programme manager communicate technical requirement and interface between various departments of the organisation. However, the program manager must put into consideration the risk of each sub-project and the overall risk of the entire project in order to properly define the interface. The program manager assesses the strengths and weakness of the project plan and communicates the decision through the interface control documents. For effective collaboration and reporting at all level, the programme manager should establish an effective staffing management plan. This will help optimize the resources shared across the several levels of an organisation. A staffing management plan is essential for strategizing resource allocation at different stages of a programme. In addition staffing enhances division of labour and provide several places for reporting, making it more effective. The programme manager needs to ensure good remuneration to all the workers. Remuneration motivates the workers and makes them remain committed to the achievement of the goals of the organisation. Additionally, good remuneration creates a good image of the manager to the subordinate. The good image can lure the subordinate to collaborate. In fact, good reputation compels people to collaborate. For effective collaboration, the program manager should minimize network inefficiencies and costs (Dubey, 2009). This will help reduce the confusion between the different departments in the organisation. It will be clear for everyone in the organisation in regard of where to report and at what time. Additionally, the programme manager should promote education of the staff members and the subordinate. Education will keep everyone in the organisation informed. Innovation will also be encouraged due to acquisition of new knowledge and skills. Disadvantages of programme management office Establishing a progrmme management office is a very expensive venture (Maizlish & Handler, 2013). A lot of money is required in the structuring process. The PMO requires employment of skilled and professional staff. A support staff is consequently needed to aid the executive staff in the management process. Both professional and support staff require to be paid for the service they offer. Therefore a lot of money is spent on payment of salaries. Lengthy communication process is another drawback for establishing PMO. The many functional units in PMO delay transfer of information from one unit to another. Delays in disseminating information hinder quick decision making. In addition, there is insufficient communication among the different units. Complexity in organisation and establishment of PMO is yet another disadvantage. Several large organizations have small PMOs established for running some project. Collecting resources together in a large organisation requires sound understanding of the influences of constituent groups to the changes. The PMO teams that have had no encounter of operating program offices in large institutions will face a great challenge in their operation. Establishing PMOs in small organisation might result to insufficient utilization of the program managers. Proper utility of program managers realizes the benefits offsetting a PMO. Unfortunately, if program managers are not fully utilized the objective of establishing the PMO ends up not attained. Establishing a PMO usually takes a considerable long duration. On addition of long establishment duration, PMOs are sometimes over staffed and end up delivering little benefit from the expected. Additionally, portfolio management offices are not operational in all offices. For example, the manufacturing and mining organisations have limited or no use of a PMO for daily operations. Such organisation is better served by management consultants. Conclusion For the portfolio management and organisational strategy to bear the intended fruits, everyone in the organisation must work as a unit. Reference list: Dinsmore, P. & Cooke-Davies, T. (2006). The right projects done right! : From business strategy to successful project implementation. San Francisco, CA: Jossey-Bass. Dubey, S. (2009). IT strategy and management. New Delhi, India: PHI Learning. Fabozzi, F. (1998). .Active equity portfolio management. New Hope, Pa.: Frank J. Fabozzi Associates. Jenner, S & Kilford, C. (2011).Management of portfolios. London: TSO. Jenner, S. (2010).Transforming government and public services: realising benefits through project portfolio management. Farnham: Gower Pub. ; Burlington, VT: Ashgate Pub. Mahajan, A. (2009). Portfolio management: theoretical and empirical studies. New Delhi: Global India Pub. Maizlish, B & Handler, R. (2013). It (information technology) portfolio management step- by-step: unlocking the business value of technology. Hoboken, N.J.: Wiley. Sanwal, A (2007).Optimizing corporate portfolio management: aligning investment proposals with organizational strategy. Hoboken, N.J.: John Wiley & Sons. Read More