the role of executives in project portfolio management

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1、TheRoleofExecutivesinEffectiveProjectPortfolioManagementK.C.YelinICSGroupPPM1(c)ICSGroup2002Statingthatexecutivesneedtobealignedwithourportfoliomanagementstrategyseemsintuitivelyobvious.Buttakingthatfromanintellectualstatementtoabehaviorcanbeachallenge.Ifanalignmentisnottrue,wesoonfind

2、thatnewprojectsarebeingchampionedandinterjectedatopourcurrentportfoliocommitmentsandwearespendingtimedefendingapositionratherthandeliveringuponit.2©ICSGroup2002Assumption:ExecutiveswillimpactProjectPortfolioManagement(PPM)Naturalroleinorganization-decision-makerFormallyorinformally,execu

3、tiveswillmakedecisionsonportfoliocontentThosedecisionswillimpacttheportfolioDirectionAbilitytoresource,todeliver3©ICSGroup2002InformalexecutivedecisionsmoretypicallyincreasetherisktoachievinggoalsofPPMApprovinglobbied-forprojectsoutsideoftheprocessRedirectsinvestmentofassetstospecialinte

4、rests,notnecessarilyinstrongestalignmentorinbalancewithorganization’sstrategybehaviorallyreinforcesthatPPMishersalone,ensuringfuturecircumventions“Piling-On”-deciding/demandingmoreprojectsbelaunchedthancanberesourced,resultinginlackoffocuslower%ofprojectscompletedandbusinessobjectivesmet

5、employeeexoduswheneconomygood4©ICSGroup2002OptimizationofexecutiveimpactonPPMProvideaspecificroleforexecsinPPMFirst-haveaclearstructureforPPMClearlydefineroles,accountabilities,sourcesofinformation,review&decisioncalendarsRoleforexecs:InvestmentManagement-iMLinkage:iMisthedriverofPPMBoun

6、dscopeofexecutivedecisions(strategy,alignment,investmentcategoriesmix,fundingofinvestment,externalimplications)TransparencyPublicizetheprocessPublicizedecisions5©ICSGroup2002Leveragingexecutivedecision-makingabilityWhatis“appropriate”executivedecision-makingcontributingtoeffectivePMM?Wew

7、anttotapintothatabilityanddirectitattheappropriateissues,attheappropriatelevel,inanappropriateforumthatisconsistentwiththestrategiesandobjectivesoftheenterprise.6©ICSGroup2002Natureofdecision-makinginorganizationswithhighlyeffectivePPMAtthetop,anInvestmentManagement(iM)Te