Discuss about the Sustainability in Project Portfolio and Program Management.
Westpac Corporation Banking that is located in Sydney Australia with branches in different countries such as New Zealand, Australia, and the Pacific. Some of the projects proposed within the project portfolio include digitization of the banking services, ad-hoc reporting, data security, compliance to the recent regulations, infrastructure development. In addition, the project seeks to incorporate sustainability as key aspect global goal of UN. At the first stage of the project portfolio management which was planning, there are some aspects of the project that were introduced mostly in the sustainability per view. Upon the implementation of the project various company staffs also are involved and hence express their perspective on the benefits, effects, and outcomes of the project. Some key aspects of the project that are revealed in this report are situation analysis, project evaluation, portfolio management, corporate culture and possible outcome of the project. Various analysis of the project is, therefore, necessary to review some other benefits that can be realized. The following report documents findings that will be presented to executive management giving the project portfolio management review.
Situational Context
Westpac Corporation Banking (WCP) investing in Project Portfolio Management project is a good idea as most organization currently working on the model as the right business project. Some of the reasons supporting the choice of project portfolio management (PPM) are a minimal risk on the overall performance of the organization, maximized resource, prove the value to stakeholders and enable repeatable success. With the call from UN that organizations need to implement sustainability projects that expresses the corporate social responsibility and environmental concerns. In addition, the project works to transforms the organization on service delivery with digitalization (Schrodt, 2002). The project also benefits general public due to climatic mitigation project that forms part of sustainable development as this solemnly helps the community.
Optimism of the project portfolio management
Secondly, the WCP is optimizing its capacity since one of the main objectives of the company is to invest in a sustainable development project and incorporating sustainability in project portfolio management proved optimism. (Mesly, 2017).
Project portfolio management execution
Thirdly, the organization is executing the project since some reasonable amount of money has been dedicated to the project. The company has already set a huge amount of funds in executing the project and this is evident by $10billion and $25billion that the company has devoted towards implementation of the environmental project being a critical aspect of sustainability.
Project absorption
Fourthly, the organization can absorb all the changes though slowly since the implementation follows steps that involve staff training. In addition, Stakeholder Advisory Council works to ensures that the company stakeholders are involved in the implementation of the project hence they absorb the project (Zhang, 2009).
Benefit realization
Finally, it is worth noting that the company is realizing the promised benefits. The company had convinced the stakeholders on the benefits of portfolio project management and some of the initial benefits of the project are the implementation of sustainable practices (Ravasi & Schultz, 2006).
The method the organization uses to evaluate portfolio is convention and risk-adjusted method. The portfolio evaluation within the company takes two directions that can be divided into conventional and risk adjusted method. Conventional portfolio evaluation method is the evaluation method that takes into account the performance of portfolio according to set standards. Risk-adjusted evaluation method evaluates the risk and risk mitigation to ensure that the project is managed.
Justification of project evaluation
Secondly, the justification of using the portfolio evaluation methods lies in the ability of the method to evaluate both general performance and risk (Goergen, 2012). This gives the overall goal of the evaluation that is needed both major stakeholders and management. Thirdly, the challenge that the organization is likely to face in the course of using this method can be coordination between management and project managers in case of evaluation.
Incorporation of management cycle into the project
Incorporating management cycle in evaluation process has the benefit of accountability since the investors need to know the progress of project portfolio. The management needs to take part in managing the project, especially through project managers (Ross, Ellipse & Freeman, 2004).
Meeting desired objective
The evaluation process assists the management to meet the desired objective or goals of the project since it ensures that the project is implemented in the right manner. Moreover, the evaluation process gives the accountability aspect of the project to management and company owners that need the full responsibility of project managers (Rajegopal & McGuin, 2007).
Project progress
Portfolio management gives the progress and continuous update in the activities of the project. Project management is also important since it raises the need for assessing the project consistency with the preset objects or goals.
Introduction of Project Management Office
Project Management Office has been introduced into the organization (Hamilton, 2004). The Project Management Office does not play role in terms of standardizing practices and increasing project success rates since the project managers are still under training.
Quantitative and qualitative skills
Quantitative skills that are used in the portfolio management include collection and analysis of data that consist of financial (McNeil, Frey & Embrechts, 2015). Qualitative skills on the other hand, take into account various reporting techniques used in portfolio management so as to deliver quality project in line with company’s objectives. Moreover, the project managers need to first understand their primary role even before managing the project (EPMC & Michael, et al 2009).
Level of maturity
I believe the maturity level for the organization level 2, that is basics level. This project portfolio level that is characterized by planning with limited performance forecasting. Within this level also project interrelationship are reorganized into different managed projects. Moreover, at this level risk analysis is conducted and evaluation process also continues at this level.
Improving maturity
In order to improve the maturity level of the organization a model that can be adopted is OPM3. OPM3 provide the framework for the organization to understand PPM process, practice and predictability. The model focus on the training staffs in ways to strengthen project performance with the ability to predict the outcome. This enables all to be fully aware of the portfolio project hence are able to bring changes to where there are gaps.
Implementation of changes
In implementing changes, the project managers identify the gaps especially in the performance that need improvement. The model also enables the project management team set the target and the strategy to meet this target (Marquis & Tilcsik, 2013).
Corporate culture for the company
Corporate culture for the company is based on the beliefs of satisfying the customer’s financial needs and involving the local community through offering sustainable practices. When implementing the project while using the model, the corporate culture is most likely to change with the adoption of the project portfolio management. The initial corporate culture for the organization was mostly based on the areas of operation. As a monetary institution, most of the dealings were in financial transactions. As the company implements the sustainability criterion that is based on moral and ethical responsibility within the community, the company will need to diversify employees and resources to cover other areas of operation such as climate, environment and community involvement (Vincenti, 2016).
The company intends to apply the PPM to all its offices within Australia and other countries. This, therefore, means that corporate culture in terms of management will affect internal stakeholders such as management and technology manager, human resource manager, project managers, accountants and public relation officers. As the company implements the project portfolio within the organization, the company will expand in terms of infrastructure, employees number, funds that are required to fully implement the project and good will to implement the project without resistance (O’Donovan, 2006).
Stakeholder’s perspective
Most stakeholders have individual perspective as that can be based on each stakeholder’s profession. The amount of money allocated to an accountant to manage will influence the view of accountant and finance managers since there is a need for proper utilization and management of these funds. Human resource manager will have to reclassify job categories since project managers will have new training on project portfolio management. Projects managers are some important stakeholders that play important role in PPM and give continuous progress in the performance of the project portfolio performance. Public relation officers, on the other hand, connect the company with the public especially the implementation of sustainability (Keating, Quazi, Kriz & Coltman, 2008).
Stakeholders concerns
Stakeholders have different concerns that will be raised in the course of implementation of PPM (Sanwal, 2007). Proper allocation of funds to the project is most likely to be the concern of accountant. While human resource managers are most likely to raise the concern of employees number required to fully implement the project. This is based on the fact that as the project begins the implementation stage the company will have to hire more employees since more work will be added to employees currently within the company payroll. Technology and asset managers also will express their concern about the capacity of the company’s machines to digitalize all the required functions according to the portfolio (Kester, Griffin & Hultink, 2011).
Corporate culture that will support PPM
The aspect of corporate culture that will support the project portfolio management changes the culture. The management both from the junior to senior management should accept change without resistance. On the sustainability, it is important to note that culture of change is particularly important for implementing the environmental sustainable strategy (Hofstede, 2001).
Challenge of adopting project portfolio and sustainability
The challenge that still stands in the way of adopting project portfolio and sustainability are resistance to change, lack of enough information and project implementation efficiencies. Firstly, most staffs within the organization especially the senior management often are resistant to change which in this case introduction of a new project (Paul et al, 2005). Implementation inefficiencies often cause slow decision-making that eventually retards the progress of the projects and if such care is not taken the project will fail (Lukomnik, 2016).
From the staff perspective, various staffs have different view on the possible benefits of the project. (Hatemi & El-Khatib, 2014). Some of the positive effects of the project are a minimal risk due to diversification brought by portfolios, improved decision making due to the reorganization of the department, improved customer service due to the introduction of digital services and improved public relation (Denney, 2005). The negative views specifically come from most internal stakeholders who feel the need to stop project implementation
Conclusion
In conclusion, project portfolio remains an important aspect of organization especially with the need to increase customer service delivery and community involvement. The key project portfolio management is the evaluation, portfolio management, and corporate culture. Maturity level clearly gives the characteristic of the organization and the most likely level of maturity within the organization is basic level 2. Another critical aspect of the project portfolio management is the situation analysis that gives the context and the situation of the project. Some challenges and benefits that will be realized after implementation projects are also highlighted in the project.
References
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Denney, R. (2005), Succeeding with Use Cases: Working Smart to Deliver Quality. Boston, Mass.: Addison-Wesley.
EPMC, Inc.; & Michael, J. S. et al (2009), Project Portfolio Management: A View from the Management Trenches. Wiley.
Goergen, M. (2012), International Corporate Governance, Prentice Hall, Harlow, January, 2012, Chapter 3
Guidelines for Managing Projects from the UK Department for Business, Enterprise and Regulatory Reform (BERR)
Hatemi-J, A. & El-Khatib, Y. (2014), Portfolio selection: An alternative approach. Economics Letters, 135: 141–143.
Hofstede, G. H. (2001), Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Sage Publications.
Keating, B; Quazi, A; Kriz, A; & Coltman, T. (2008), In pursuit of a sustainable supply chain: insights from Westpac Banking Corporation, Supply Chain Management: an International Journal, 13 (3): 175–79
Kester, L.; Griffin, E.J. & Hultink; K.L. (2011), Exploring Portfolio Decision Making Processes. Journal of Product Innovation Management (28).
Lukomnik, J. : Thoughts on the Origins and Development of the Modern Corporate Governance Movement and Shareholder Activism (chapter 22, p. 450–460), in The Handbook of Board Governance: A Comprehensive Guide for Public, Private and Not – for – Profit Board Members, edited by Richard Leblanc (John Wiley & Sons, Inc., 2016)
McNeil, A.J., Frey, R., & Embrechts, P. (2015), Quantitative risk management: Concepts, techniques and tools. Princeton University Press.
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Mesly, O. (2017), Project feasibility – Tools for uncovering points of vulnerability. New York, NY: Taylor and Francis, CRC Press. 546 pages.
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