Controlling

With a PPM there should be few surprises. Project sponsors can now look a project health throughout the life of the project. Through automated and manual means, time and resource information is collected about each project.  
 

To control timelines, a PPM application must take into consideration the entire population of projects. A major requirement for any PPM systems is the need to capture and update Work Breakdown Structures (WBS) and project plans. A way of automating this is by uploading a Microsoft project file or creating the project plans directly in the PPM software.  
 

With the use of timesheets, users of the software can log there time to specific projects.  This controls project overruns by diminishing the “overbooking” mentality that can happen when projects are controlled in an individual manner.  
 

Time tracking has the following characteristics:

PPM systems track resources besides time also. The collection of data about each resource provides valuable knowledge for future use. Some examples are resource searching, performance evaluations, utilization monitoring and recruitment.  Figure 2 shows a dashboard from PlanView that gives information on resource utilization. 
 

Figure 2: Source: PlanView 
 

Here are some other benefits of resource tracking (Source: Compuware):

Figure 2 provides a one-page view of the current health of strategic project in the portfolio. With one glance, an executive can see where each project is so there will not be any surprises.  
 

Figure 3: Source Compuware

Evaluating

Evaluation is an important role with PPM software. The saying “If you forget the past you are doomed to repeat it”.  A characteristic of portfolio management systems is the collection of information about the project and capturing the valuable knowledge that was gained from it. There are three major categories of evaluating a portfolio; business cases, financials and priorities. 
 

To measure strategic initiatives business cases are used. During the evaluation process, projects with highly aligned objectives to strategic goals will show up as likely candidates for project funding. 
 

The road to project funding inevitably relies on strong financials. Costs are gathered for each individual project. A balanced scorecard or ROI report will provide insight to what projects will produce the highest return. The Prosight provides financial information in a single report so that a decision maker prioritizing potential projects can evaluate the strongest ones (Figure below) 
 

 With the use of business cases and financial information, various tools and dissections can take place. This provides value information to help the decision makers reach a decision on funding particular project. Prioritizing projects help maximize utilization of scarce resources in an IT Organization.

Conclusion

Project portfolio management organizes a series of projects into a single portfolio. Several reports capture project objectives, costs, timelines, accomplishments, resources, risks and many other factors. Executives can then regularly evaluate entire portfolios. In addition, an executive can control and spread resources appropriately. Finally, a decision maker can select projects to produce the highest departmental returns. A PPM application can help select, control and evaluate IT initiatives.

Examples

There are many example of project portfolio management applications. These companies are categorized into four quadrants. Figure 4 from Gartner Group shows the various companies in this space. 
 

Figure 4: Source Gartner

Example 1

Powersteering is a Cambridge based company providing a hosted solution to Project Portfolio Management. An advantage to Powersteering is a top down approach to Project Portfolio Management. This way the project managers are devoted to delivering results while the decision makers stay focused on the business drivers.

Example 2

Primavera is considered a leader in the Gartner’s Magic Quadrant for Project and Portfolio Management in 2005. They provide a pre-packaged product that runs on both Solaris and windows systems.

A large list of example companies that have PPM offerings:

Portfolio Software Companies

•  IBM
• Mercury
• Compuware
• Primavera
• Computer Associates
• PlanView
• Artemis International Solutions Corporation
• Sciforma Corporation
• ProSight
• Pacific Edge
• UMT
• TenRox
• Augeo Software
• eProject
• PowerSteering Software
• Automation Center
• Project Arena
• Atlantic Global