When Project Portfolio Management is devised within the project handled by an organization, the organization gathers or accesses the potential of transforming its approaches towards handling a project completely in terms of the ways by which the projects are managed to assist the business growth in a much larger way than it had been previously. Project Portfolio Management methodology ensures that an organization follows all the correct steps to progress its projects and all the projects are completed with finesse at the exact estimated times.
This helps the businesses to hold on to or further improve its business value by delivering the customers with their required products at the exact given time (Kendall and Rollins, 2003). Project Portfolio Management is the primary key for any business organization for helping the company with reaching a conclusive decision making for gaining the maximum competitive advantage in comparison to its contemporary market competitions. The context of the IBM Corporations has been considered as the organization to study since it would help in understanding of the concepts if implementing the Project Portfolio Management methodologies within the organization and its operations.
IBM is an organization that mostly deals with the development of software and IT capturing methodologies as well as the application of knowledge which are particularly unique in terms of the business organization. IBM has previously welcomed the idea of introducing or implementing a Project Portfolio Management methodology in order to improve the operations of the business organization as a whole in managing all the projects it handles (Hadjinicolaou, Dumrak and Mostafa 2017).
The Project Portfolio Management methodology has also been accepted by the executive managing body of the organization, however, the employees are not being able to understand the changes and opposing the implementation process as they believe that it would harm their day to day activities (Martinsuo and Lehtonen 2007). The report would focus on the analysis of the entire organization with the help of the situational context of the organization, the evaluation of the portfolio management of the organization, the analysis of the Project Portfolio Management methodology, the analysis of the maturity level of the organization and the effect of the Project Portfolio Management methodology on the corporate culture of the organization.
Situational Context
Justification of the right investment of the organization
IBM is an established organization that generally deals with the development of software, capturing of IT as well as the application of knowledge which are absolutely exclusive to the business organization. Currently, the organization has focused on the process of innovation, where the innovating of their business operations and projects would help in the proper and limited usage of the resources, thus saving time as well as assets for the company (Archer and Ghasemzadeh 1999).
This is where the organization required to implement the Project Portfolio Management methodologies to introduce the innovative strategies within the organization and at the same time it would enable the IT operations within the organization and link them with the developmental process, projects, initiative and resources of the project that would enable them reaching the estimated goal and would also support the organization in monitoring and measuring the IT assets to the financial assets to justify their return on investments. Therefore, it can be justified with the information above that the idea of IBM Corporations to invest into a Project Portfolio Management methodology for strategizing the development process is rational and advantageous.
Optimizing capacity of the organization
IBM is one of the leading IT organizations in the world, therefore, the ways in which IBM would want to limit their investments and resources (Killen, Hunt and Kleinschmidt 2008). This is the reason why IBM had invested in a Project Portfolio Management methodology to make sure that the ideology that IBM has anticipated in goes in the correct path of implementation. Since IBM is an IT organization, it has the ability to use its own IT infrastructure to optimize the Project Portfolio Management methodology in the implementation process.
The organization has so far been able to proactively manage its projects with the help of effective management procedures and approaches. The procedures have been sustainable in terms of the benefits and the utilized cost, but the organization requires more limited use of resources and expenditure of assets but at the same time handling the projects would be as feasible and effective as possible to let the customers have the best experience of establishing a business relationship with the organization.
Execution levels of the organization
Although, the organization is known to deliver sufficient projects to their customers, there are still several scopes for improvement and there are also ways by which the organization could easily utilize the management of its projects. The way by which the projects are handled right now can experience a sea change in the ways all these projects can be managed in order to make sure that there are limited utilization of the resource and financial assets of the organization (Rose 2013). The sustainability criteria that the organization has been focusing on to achieve with effective decision making methodologies would only be possible to deliver with the estimated low use of the resources and financial assets of the organization with the correct methodology utilization from the Project Portfolio Management techniques.
Ability of the organization to absorb all the challenges
There indeed are challenges within the organization and there are also challenges for the organization in housing the changes that it has been willing to make with the implementation of the Project Portfolio Management methodology for handling the multiple projects the organization wants to deliver their clients. The Project Portfolio Management methodology would enable the organization with innovative operations and decision making processed that would make the organization use as limited source as possible but present an effective product to the client.
It has been found that the organization indeed has an organizational structure which is not well defined as per requirements and as per the specifications of the projects it handles one after another (Morris and Pinto 2007). Therefore, the organization is open to the adoption of a Project Portfolio Management methodology that would help in the improvement of the organizational structure and also to the challenges that are associated with the implementation of the Project Portfolio Management methodologies.
Realization of the promised benefits
The promised benefits present huge scope within the organization when it comes to the implementation of the Project Portfolio Management methodologies within the organization of IBM Corporation. Upon the introduction of Project Portfolio Management methodology, it can be made sure that the organization would be able to present an informed decision making framework for the better propagation of the projects it handles and also would minimize the risks as well as maximize the impact of the business to the clients. It also presents s the use of the organization resources to its optimal level and also helps in the arrangement of the portfolio in a scientific way (Crawford 2006). The introduction of the Project Portfolio Management methodology also ensures that the organization would be feasible enabling the repetition of success in the organization with the proper delivery of the projects to its clients.
Portfolio Evaluation
Method used by the organization to evaluate its overall project portfolio
The method that has been suggested to be put into use as per the present condition of the organization is the Project Portfolio Management Maturity Model that is supposed to help all the projects that are in line within the organization and its strategic goals and the model would also supposedly make the organization to reach its destines and estimated achievements (De Reyck et al. 2005). The overall project portfolio would be analyzed with the help of this Project Portfolio Management methodology and it would take care of the strategy required for the development of the software and would also help in the projection of a positive impact on the strategic goals that the organization has estimated to reach. This methodology will act as the key element to help the organization reach its goals as planned.
Justification of the chosen method in comparison to other available methods
This chosen method of the Project Portfolio Management Maturity Model helps the organization in managing all the projects within the organization to be carried on with the help of accurate methodologies and policies. Thus, it would help the organization in making all the people within the organization to generate relevant information about the project and it will also help the organization in making a unified plan that would be understood by every employee member associated with the project team directly or indirectly (Blichfeldt and Eskerod 2008). There are other ways or method of Project Portfolio Management methodologies that could have been utilized in the organization, but given the context of the projects that the organization has currently been handling and the way in which the organization works or is willing to work can only be supported with the help of Project Portfolio Management Maturity Model methodology.
Chances of challenges being faced by IBM if the current method is used at a global environment
IBM is already a global organization and functions for the projects that are to be developed and serve for the entire world. The clients that the organization has are also at a global level (Archibald and Archibald 2016). There are also impending challenges that the organization might face with the implementation of the Project Portfolio Management Maturity Model. These could be as follows:
Inclusion of the Benefits Management life cycle
The products that IBM Corporation delivers it clients are mostly software products and IT consulting technologies that have a specific life cycle for completion. In the same way the benefits realization of the organization with the help of Project Portfolio Management Maturity Model also has its confusion in understanding the Benefits Management life cycle of the organization. It is usually associated with the benefits realized by the utilization of the maturity model in the Project Portfolio Management methodology implementation (Blomquist and Müller 2006). It would help in assessing the benefits that the organization acquires after the completion and delivery of the project. The Benefits Realization life cycle can also be formulated with the feedbacks generated from the clients after the project has been delivered to them.
Contribution of the Benefits Management to the organization in meeting the deliverable goals for the projects
The deliverable goals and their success is only measured with the return on investments that have been achieved by the organization with the help of the utilization of the Project Portfolio Management methodology and the least possible resources and financial assets (Cooper, Edgett and Kleinschmidt 2001). In addition to that, the value added to the Benefits Management would also be justified with the feedback generated from the customers.
Portfolio Management
Contribution of Project Portfolio Management in ensuring the alignment of the collective projects with the strategic objectives of the company
The strategic objectives for IBM in managing the portfolio of the company is associated with the utilization of the least possible resources and financial assets within the organization but still the deliverables of the products to the clients would be completed within the estimated time and they would be accurate to the client’s requirements (Letavec 2006). For this, the organization is willing to take up strategic ways to incorporate their IT procedures. The various tools that are imposed by the Project Portfolio Management methodology of Maturity Models suggested by the organization as the feasible way to implement the strategies enables the assessment of the cost performance of the projects in alignment with the value added to the organization by the deliverable of the projects and also allows the tools of Strategic Alignment and Continuous improvement to be associated to add more value to the organization.
Introduction of PMO in the organization and its effects
After the Project Portfolio Management Maturity Model methodology is introduced within the organization, it has been found that the organization is strategizing ways in which every project can be handled in the best process possible for using the least amount of resources but at the same time delivering the projects at the pre-assumed time and while adding value to the organization (Silvius, Schipper and Planko 2012).
Tools for managing the project portfolio and their degree of effectiveness
The tools or techniques utilized as a part of the Project Portfolio Management Maturity Model methodology are as follows:
After the Project Portfolio Management methodology has been proposed within the organization, only the executive management bodies has accepted the fact of implying them for handling the multiple projects of the organization but the employees within the organization has been opposing the idea as it would affect their day to day activities (Thakur and Workman 2016). Understanding this situation, it can be said that the overall maturity model of the organization needs improvement as there has been discrepancy in the understanding of the Project Portfolio Management methodology and strategy.
Best practices to improve the maturity levels
The best practice that can be incorporated within the organization for achieving improvement in the maturity level of the company is the Project Portfolio Management Maturity Model itself that would enable every employee within the organization to understand the feasibility of the Project Portfolio Management Methodologies (Martinsuo 2013).
Corporate Culture
Assessment of the corporate culture of the organization
As per the assessment made on the Corporate Culture of the organization, it can be seen that the employees present within the project team are able to alter the decisions taken by the management of the organization (Wiersma 2017). It is to be made sure that all the employees within the organization also accept the changes influenced by the Project Portfolio Management methodologies.
Concerns expressed by the stakeholders
The stakeholders of the organization are concerned as the Project Portfolio Management methodologies are able to alter their day to day activities within the organization (Turner 2014).
Corporate Culture supporting the project portfolio management and its sustainability criteria
The Corporate Culture that supports the Project Portfolio Management and the sustainability criteria proposed by it is the Adhocracy Culture which would empower a dynamic and creative working environment in the organization of IBM Corporations.
Challenges involved in getting project portfolio management and its sustainability criteria embraced by the organisation
There are challenges associated with Adhocracy Culture as well but they have the potential to be eradicated as well with proper implementation of Project Portfolio Management methodologies. The challenges can be as follows:
Conclusion
In conclusion, it can be said that the organization of IBM Corporation has solely focused on the utilization of Project Portfolio Management methodologies and the tools and techniques associated with it to make sure that the strategic goal of the organization is achieved with finesse. The organization partially understands the importance of the Project Portfolio Management methodologies and why it should be utilized in order to improve the way the organization handles its multiple projects that are to be delivered to the clients worldwide.
The executive managers thus understands the utility of the Project Portfolio Management methodology but the company lacks in maturity level where the employees are unable to understand the benefits of the strategy and opposes the propagation as it alters their day to day activities. The analysis of the entire situation with regards to the organization structure thus helps in application of the Maturity Model in such a way that the situation would improve and the corporate culture of the organization would accept the changes implemented by the Project Portfolio Management Maturity Model methodology.
References
Archer, N. P., and Ghasemzadeh, F., 1999. An integrated framework for project portfolio selection. International Journal of Project Management, 17(4), 207-216.
Archibald, R. D., and Archibald, S., 2016. Leading and Managing Innovation: What Every Executive Team Must Know about Project, Program, and Portfolio Management. Auerbach Publications.
Blichfeldt, B. S., and Eskerod, P., 2008. Project portfolio management–There’s more to it than what management enacts. International Journal of Project Management, 26(4), 357-365.
Blomquist, T., and Müller, R., 2006. Practices, roles, and responsibilities of middle managers in program and portfolio management. Project Management Journal, 37(1), 52-66.
Cooper, R., Edgett, S., and Kleinschmidt, E., 2001. Portfolio management for new product development: results of an industry practices study. randD Management, 31(4), 361-380.
Crawford, J. K., 2006. Project management maturity model. Auerbach Publications.
De Reyck, B., Grushka-Cockayne, Y., Lockett, M., Calderini, S. R., Moura, M., and Sloper, A., 2005. The impact of project portfolio management on information technology projects. International Journal of Project Management, 23(7), 524-537.
Hadjinicolaou, N., Dumrak, J., and Mostafa, S., 2017, (September). Improving Project Success with Project Portfolio Management Practices. In International Conference on Engineering, Project, and Product Management (pp. 57-66). Springer, Cham.
Kendall, G. I., and Rollins, S. C., 2003. Advanced project portfolio management and the PMO: multiplying ROI at warp speed. J. Ross Publishing.
Killen, C. P., Hunt, R. A., and Kleinschmidt, E. J., 2008. Project portfolio management for product innovation. International Journal of Quality and Reliability Management, 25(1), 24-38.
Letavec, C. J., 2006. The program management office: Establishing, managing and growing the value of a PMO. J. Ross Publishing.
Martinsuo, M., 2013. Project portfolio management in practice and in context. International Journal of Project Management, 31(6), 794-803.
Martinsuo, M., and Lehtonen, P., 2007. Role of single-project management in achieving portfolio management efficiency. International journal of project management, 25(1), 56-65.
Morris, P., and Pinto, J. K. (Eds.)., 2007. The Wiley guide to project, program, and portfolio management (Vol. 3). John Wiley and Sons.
Rose, K. H., 2013. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Edition. Project management journal, 44(3), e1-e1.
Silvius, A. J., and Schipper, R. P., 2014. Sustainability in project management: A literature review and impact analysis. Social Business, 4(1), 63-96.
Silvius, G., Schipper, R., and Planko, J., 2012. Sustainability in project management. Gower Publishing, Ltd..
Thakur, R., and Workman, L., 2016. Customer portfolio management (CPM) for improved customer relationship management (CRM): Are your customers platinum, gold, silver, or bronze?. Journal of Business Research, 69(10), 4095-4102.
Turner, J. R., 2014. Handbook of project-based management(Vol. 92). New York, NY: McGraw-hill.
Wiersma, B., 2017. Project Portfolio Management and its Effect on Organizational Culture Through the Competing Values Framework.
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