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Project portfolio management is a hot topic, and there is no shortage of advice on how to do it. Consulting companies and software vendors are offering tools for the job. Organizations can benefit considerably from improving the processes used to select and manage projects, but "caveat emptor," let the buyer beware. Much of the current advice on project portfolio management is incomplete, inexact, or flat-out wrong. Available software provides good data management and reporting capabilities, but most current programs lack sound algorithms for identifying optimal project portfolios. Making the wrong project recommendations is worse than making no recommendations at all. The weak link for most tools is the lack of a quality decision model for recommending projects. This 5-part paper identifies available tools, describes the model that must be included within the tool if it is to make valid project recommendations, suggests criteria for evaluating tools, and provides recommendations for organizations interested in acquiring tools . Before purchasing a tool, potential buyers are advised to familiarize themselves with established theories for valuing projects and to reject tools that cannot be properly tailored to correctly apply these theories to their situations. Armed with understanding, organizations can avoid being "burned" by unsuitable and inadequate tools for project portfolio management that are being pushed in the marketplace. |
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