Agile Pulse Model – Project portfolio

Project portfolio objective is to increase the profitability and through-flow of projects. The project portfolio summaries information about the projects’ financial and strategic potential. By listing all projects and compiling a few important parameters, you can obtain an overall picture of projects in progress and thereby avoid overload and pay attention to needs for decisions. By prioritization of projects the operational management of resource conflicts is simplified.

Result from Project portfolio workshop

A compilation of all projects in progress and completed projects including important parameters that will be used for prioritization and evaluation.

How results are to be generated

Work method. Setting up a project portfolio for the first time (compile and prioritize projects in progress) is a team work with participants from the portfolio team.

To evaluate and prioritize new projects, follow up projects in progress and evaluate completed projects are then done regularly by the portfolio team and coordinated at portfolio pulse meetings.

Premises and material. Workshop room, whiteboard and pens/
markers to establish a project portfolio.

Compile projects in progress

Step 1.

To prioritize projects information about projects in progress must be compiled. The information will be used to assess economical and strategic significance and business risk. Use the example below as a
starting point and do changes needed to the parameters.

Project Delivery date Speed Project cost (MSEK) Work
(h)
Background information NPV(MSEK) Pay back Financial significance Strategic significance Business risk Prio
Alfa Aug ‘14 3.1 1.4 1200 New platform 2 0.5
Beta Jan ´15 1.5 0.6 600 Customer project 1 0
Gamma May ´15 2.2 2.5 200 Capacity 15 1.5
Epsilon 1 year 1.4 1.2 5600 New technology 1 1.0

Add all projects in progress to the list. Collect information about the projects. Indicate when the projects are expected to deliver and be concluded. Enter speed (see Synchronisation plan), calculated cost, work (remaining work if the project is already in progress) and profitability for the projects. Provide a very brief description of the purpose of each project. Add four columns for financial significance, strategic significance, business risk and priority. Make a large print-out in poster format so that the whole portfolio team can work together with the table.

Prioritize projects in progress

Step 2.

Project Delivery date Speed Project cost (MSEK) Work
(h)
Background information NPV
(MSEK)
Pay back Financial significance Strategic significance Business risk Prio
Alfa Aug 2015 3.1 1.4 1200 New platform 2 0.5 medium high medium 3
Beta Jan 2015 1.5 0.6 600 Customer project 1 0 high low low 2
Gamma May 2015 2.2 2.5 200 Capacity 15 1.5 high medium low 1
Epsilon 1 year 1.4 1.2 5600 New technology 1 1.0 low high high on hold

Make a common assessment of the projects’ financial significance, strategic significance and business risk. Give each project a unique
priority.

Sum up the speed (in this example: 1.4 + 0.6 + 2.5 + 1.2 = 5.7). Compare that with the number of resources available to do project work. Use that to determine the right number of projects in progress. Put the rest of the projects on hold.

Step 3.

Add prioritized projects in progress to the portfolio board in order of priority by drawing a timeline and enter each project.

Ongoing projects - Agile Pulse Model
Ongoing projects

 

Visualization of the project portfolio is to follow projects in progress. The visualized parameters should indicate the projects’
progress and signal when a project needs decision support.

Close projects

Step 4.

When a project has delivered all its handover points and they are approved, the project is closed by the portfolio team. The project is then removed from the visualized project portfolio. The project manager will then remove the project from the project pulse board.

Evaluate completed projects

Step 5.

Add completed projects to the project pulse board so that they can be evaluated during the next few years. Add parameters to be followed, for example profitability and number of claims.

Start projects

Step 6.

Once a project has been completed there is room to start a new project. The decision requires a choice of which project to start.

First, the project must be planned and their project pulse board put in place, which requires that a project manager is appointed, resources for planning is allocated and that a decision to start planning is made by the portfolio team.

When the project is planned, the portfolio team decided to start the project (or not). The project will then be added to the project portfolio and evaluated in terms of financial significance, strategic significance and business risk and the priority is set related to already ongoing projects. The project is then visualized among
projects in progress.

Visualize the results

Draw ongoing projects and completed projects on the portfolio pulse board.

Documentation of results

Document the project portfolio in a Excel file.

Go from here

Next step, use the visualized project portfolio in weekly Portfolio pulse meetings.

Back to Agile Pulse Model.

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Agile Pulse Model by Parmatur HB is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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