4 Game Changing Trends in PPM
According to PMI, most organizations could do better when it comes to Project Portfolio Management. Only 9% of the organizations rate themselves as doing excellent PPM. Moreover, a mere 42% of all projects are aligned with the overall corporate strategy, and on average 89 cents of each dollar invested in projects is well spent.
Based on PMI’s report and our own research, we foresee four game-changing trends for Project Portfolio Management, to be effective by or before 2017:
1. PPM is a true competitive differentiator
In 2017, there will be much less room for mistakes. Organizations have little or no financial reserves left, so cannot risk a faulty project. Besides, the pace of innovation is still increasing and with ubiquitous social media the importance of ‘reputation’ – or rather: the avoidance of ‘loss of face’ – is more important than ever. This requires well-orchestrated PPM processes in order to make the right investment decisions and protect current assets.
2. PMO is represented at board level
In 2017, the only constant is change. As the number, size and impact of projects increase, it becomes increasingly important to lay down a solid project infrastructure. There’s no room left for ‘bleeder projects’. The Project Management Office is the spider in the web to coordinate all project portfolio management processes, ensuring the right data is available on time, and setting thresholds for further project improvements.
3. Benefits management is de facto standard
Investments in projects are done to realize one or more business benefits. With margins being under pressure and (international) competition increasing, the emphasis will be more and more on the actual business value – instead of just keeping the traditional set of time, cost & scope variables under control. In addition, the desire to have full (project) accountability will increase over the next three years. This means that project ROI will become more important, together with constant monitoring whether the originally defined benefits have been realized.
4. Project automation is a no-brainer
The complexity in project management has increased in 2017 due to more interdependencies between projects. Moreover, projects have more impact and become more costly. This will strongly increase the need to keep grip on portfolio processes and project execution. Immediate insight and more transparency is therefore required. Keeping all dependencies between projects aligned, avoiding human mistakes and automating reporting cycles to save on resources (thus) requires advanced automation of PPM processes.
In 2017, ‘changing the business’ will be equal to ‘running the business’. Organizations will be in a state of constant change to stay ahead of competition. To address this, they will execute upon an on-going series of business projects. These projects help them keep up with the large influx of new business models, continued pressure on margins and on-going globalization. So, over the next 2-3 years, organizations need to radically professionalize their PPM processes to be ready for the future