Project Portfolio Component Evaluation and Approval
Evaluate and approve project portfolio components (projects, programmes, and sub-portfolios) based on their strategic contribution, and their ranking and rating versus alternative components. Evaluate the potential impact on cash flow of prioritizing the portfolio.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Project Portfolio Component Evaluation and Approval at each level of maturity.
- 1Initial
- Practice
- Rely on staff expertise.
- Outcome
- Basic evaluation and approval mechanisms are in place.
- Metric
- Number of staff with project portfolio component evaluation experience.
- Practice
- Leverage professional networks and emulate successes.
- Outcome
- Known good practices can be put in place quickly.
- Metric
- Number of adapted methods for project portfolio component evaluation.
- 2Basic
- Practice
- Approve project portfolio components based on ranking and rating scores and established thresholds.
- Outcome
- Projects are approved on merit.
- Metric
- Number of project portfolio components approved without consideration of merit.
- Practice
- Adjust acceptance threshold for each strategy thread or set of objectives.
- Outcome
- Project filtering and approval is tailored to the strategy.
- Metric
- Number of strategic objects without portfolio acceptance thresholds.
- 3Intermediate
- Practice
- Set the project run-order based on ranking, rating, priority, organization and resource constraints, and the level of risk to which the component exposes the portfolio.
- Outcome
- A viable execution run order for projects emerges.
- Metric
- Number of objections to published and proposed run-orders for project portfolio components.
- Practice
- Ensure efficient and effective use of portfolio resources and staff in determining the run-order of projects.
- Outcome
- Under utilized resources are released back to the business or their contracts are terminated.
- Metric
- % utilization of project portfolio resources.
- 4Advanced
- Practice
- Review and regularly improve processes and procedures for project acceptance and prioritization.
- Outcome
- Business case evaluations, ranking, rating, and approval cycles get shorter.
- Metric
- Number of improvements implemented in a time period (e.g. 6-months).
- Practice
- Evaluate the impact on cash flow of prioritizations and any associated rescheduling.
- Outcome
- Analysis of cash timings avoids shortages and unused surpluses.
- Metric
- Available Euro-days and borrowed euro-days.
- 5Optimized
- Practice
- Leverage research outputs to identify the best approaches to project portfolio component selection and prioritization.
- Outcome
- Project evaluations are comprehensive, and poor or high risk projects are indicated for exclusion from the portfolio.
- Metric
- Number of innovations in project portfolio component evaluation methods innovations over a defined time period (e.g. 6 months).
- Practice
- Leverage research outputs for resource balancing techniques that best maximize the effective use of portfolio resources and staff.
- Outcome
- Portfolio project throughput is enhanced by more effective use of available project portfolio resources.
- Metric
- Number of research-informed innovations in project portfolio component evaluation methods innovations over a defined time period (e.g. 6 months).