The benefits of project portfolio management are clear...

PPM can significantly increase the value derived from projects. The quality of information is improved. Failing projects are identified more quickly. Low-value projects stop squeezing out high-value projects whose benefits are less tangible.

...but don't underestimate the difficulty.

Off-the-shelf PPM tools rank projects based on "scores," not by comparing the consequences of doing vs. not doing projects. You need to learn how to compute project value. Executives need to understand and provide support. Stakeholders need to see the tool is an aid, not a threat.

The First Step — A Framing Workshop

Develop a comprehensive framework (model) for prioritizing projects in a 3-day workshop.

Outpus: (1) a clear scope and definition of the hierarchical relationships among your project portfolios, (2) types of project benefits to be measured, (3) metrics for assessing project value, and (4) logic for computing project priorities.

The model is validated in a separate, 1-hour meeting with senior executives. A pilot test is conducted to verify that the model correctly evaluates project proposals.

A framing workshop:

Can be accomplished quickly and at low cost.
Builds organizational learning and understanding of best practices.
Develops a logic for valuing projects based on estimated project consequences.
Creates a model that can be quantified and incorporated into a PPM software tool.
Generates essential understanding for developing or purchasing PPM software.