How can an organization proactively manage the creation of value from programs and portfolios?
The topics of previous topics were about the portfolios and programs, this week’s topic is about the usefulness of portfolios and programs. The goals achieved by utilizing the portfolios and programs will be displayed in the topic of the day. The realization of value from the utilization is needed to be analyzed in a systematic way. The implementation process has a direct and indirect impact on the stakeholders of an organization. To predict the value going to be generated, it is vital to analyze the benefits realization on the programs and portfolios. In most of the cases, the project portfolios and programs are failed in facilitating sufficient benefit to the stakeholders. To avoid this probable circumstance, it is necessary to implement a systematic review of value realization after each step of the process. Defining the actual value an organization can get in executing the programs and portfolios is also a big task for the management failing to which may complex future business situation. The value identification is not only needed to analyze in the middle of the process, but it is essential to make a possible forecasting before commencing the programs and portfolios. The stakeholders are associated with the process in each step, which defines that the benefit derived from one step and satisfaction of the stakeholders decides the execution of next step. This task is not an easy task to manage and analyze the value realization from the beginning to the ending of the programs (Breese, 2012). Justifying the benefits and values to the stakeholders can be done if the project managers are efficient and skilled enough to handle the situation in a proper way.
The value can be of many types for the stakeholders, they are: –
Values related to efficiency,
Values related to effectiveness,
Values related to infrastructure and investment
These values should be understood by the staffs of an organization in categorizing at the execution of the programs and portfolios. Thiry and Diguire (2007) suggested the realization of value in a program or portfolio with their proposed model. Each step of the program execution should go through the proposed model of the authors to strengthen the communication and value realization effectively. The vertical process in the model is the creation of value by using corporate and business strategies where as the horizontal activities denote the delivery process of the values created. Overall the value realization process couldn’t be expected to be ultimately succeeded and errorless, but the efficiency of project manager may increase the possibility of succession. The program team may be ensuring about the succession at the beginning of the project, but a gradual complexity of the portfolio and programs creates unrespectable hindrances. If the staffs are facilitated with appropriate guidance, training and seminar sessions to discuss the changing trends of an organization may be proved as helpful for the organization. The efficiency level of the staffs may not solve the entire circumstances, but it would provide assistance in deciding the better options among the value realization alternatives (Peppard et. al. 2007).
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Reference List
Breese, R. (2012). Benefits realizations Management: Panacea or false dawn?, International journal of project management. 30, 341-351.
Peppard, J., Ward, J. and Daniel, E. (2007). Managing the Realization of Business Benefits from IT. MIS quarterly executive: University of Minnesota. 6 (1).
Thiry, M. and DIguire, M. (2007). Recent development in Project-based organizations. International journal of project management. 25, 649-658.