There is a disproportionately large number of projects that generally fail to deliver the desired results or target benefits for the organizations that launch and fund the projects. That simply means that a lot of money has been poured down the drain. A lot of these projects will end up destroying value rather than creating good value for the project owners. One of the major failure points for this failure is that the organizations that launch the projects simply lack the tools required to manage the project portfolios and they fail to invest in a portfolio governance service that can introduce a system of accountability that will ensure projects are executed according to specified objectives.
Through proper portfolio governance services as well as the right tools to oversee the projects, organizations can begin gaining control of their project portfolios and then steering them towards success rather than leaving them to veer off the objectives and waste a lot of money. A lot of senior managers will simply let their projects “fly blind” but this carries considerable risk during project implementation. Organizations must have a mechanism for oversight of their project portfolios as well as a system of accountability. A good portfolio governance service will unlock several benefits during the project management and implementation.
Better Decision Making
A top reason why many projects fail is that there is poor decision-making. Portfolio governance services can help drive better business decisions in the organization. Good decision-making requires good data as well as visibility both from a tactical perspective and a strategic perspective. Good governance enables you to predict and anticipate some important future project factors such as the resource utilization in the project. With that, it is very easy to evaluate or assess which projects are adding value to the business and which ones are taking value out of the business and you can thus have a cleared-eyed perspective on whether your project objectives are being met. Check Ross Garland for more details.
Project governance services enable the PMO consultant to cut down on risks in the project which may lead to project failure. Projects generally face several risk categories such as governance, utilization of resources, misfiring or misdirection of objectives along with financial risks amongst many others. Good project governance gives you the insight to carefully weigh the costs versus benefits of continuing or discontinuing a particular project. You will also be able to easily identify those projects that are contributing to the organizational objectives and maximize your efforts on these. Identifying the “wayward” projects early enough will help you in minimizing the project risks. At the governance level, incorporating an accountability framework will ensure that there is sufficient compliance level in every project lifecycle which will reduce the governance risk.
Good portfolio governance allows the PMO consultant to maximize on the use of resources. With greater project visibility at the micro as well as macro level will give you level of visibility that allows you to allocate resources as efficiently as possible. With a centralized approach in a PMO environment, it is possible to cut down on the project costs by getting rid of the duplicate efforts in the project execution, for example.
Create Repeatable Success
Incorporating project governance framework will create an environment that allows for predictable project success that is repeatable in many others areas. Governance system will provide a framework that will allow the PMO to consistently meet the project or business objectives. This kind of repeatable success is only achievable when you apply best practices such as gateway review as well as tested project management methodologies and then enforcing these throughout the project lifecycle. For more information, just visit us at HTTP://WWW.ROSSGARLAND.COM/PROGRAM-PROJECT-GOVERNANCE/