Managing your Optimization Project Portfolio

TALKING ABOUT PROJECTS

Having successful projects means:

• A satisfied customer

• Complete the scope agreed between the parties

• Meet deadlines, budgets and quality

• Work with human resources committed to the project

• Do not make interpretation errors due to poor communication.

• Prevent rather than repair, with good risk management

• Do not wear ourselves out with procurement and contracting processes that hinder the project

• Correctly manage the multiple stakeholders of the Project

• Generate benefits and/or create value

But what is a Project?

“Temporary effort undertaken to create a unique product, service or result “.

But we must not confuse the temporary project with the repetitive product or service that the project will produce. For example, the construction project of a factory could end with the start-up of that building and the goods that the factory will produce will be repetitive tasks that are maintained over time.

All projects have the ultimate goal of obtaining some benefit for the organization or society. These benefits could be tangible, such as making money, saving lives, or improving market share; or intangibles such as increasing reputation or obtaining personal satisfaction for doing social good.

Then, what Project Management is? The application of knowledge, skills, tools, and techniques to project activities to meet project requirements.

We must consider that project management is different from general business administration. While business administration is maintained over time, project management manages finite undertakings with specific objectives. Both business administration and project management use planning, execution and control to achieve objectives. Therefore, knowledge of general management processes is necessary, though not enough, to ensure successful project management.

PROJECT MANAGEMENT CONTEXT

Projects are included within a larger context. First of all, the projects, programs or portfolios should be aligned with the company's strategic plan to facilitate their management and success, or put in another way, generate value.

A portfolio can include different programs and/or projects aligned on the same strategic objective. Can be generally described as a group of programs to achive a specific strategic business goal. For example, a Holding could have programs and projects organized under portfolios according to different business units such as: water systems and Infrastructure Construction, among others.

A program is a group of related projects. This coordination may provide decreased risk, economies of scale and improved managemen that could not be achived if the projects were not maganed as parts of a program. A program includes more than work requierd to complete each individual project in the program.

For example, a “Productive City” Program could be made up of complementary “Infrastructure”, “Training” and “Financing” projects. It should be noted that a large project involving billions of dollars of investment is not necessarily a program, but rather a megaproject.

Not every project always belongs to a program or portfolio. For example, there are independent projects that are part of a portfolio without being linked to a program; or cross-organizational projects (ex. changing a computer system) that do not belong to any portfolio or program.

When organizations implement their strategies in a structured way, through projects, programs and portfolios, they are said to work with an Organizational Project Management (OPM).

In this blog …. We will be sharing experiences and methods to manage “Business and Operational Excellence Portfolio” to succed in your targets, i.e. our Route to Excellence (ROUTExc 3) titled Excellence Belt – Optimization Project Portfolio Management ...

Sources:

1. Pablo Lledó – Project Director - Pablo Lledó, 2017

2. PMBook Guide – Sixth Edition – PMI, 2017

3. Ben Aston – Digital Project Manager and founder thedpm.com – 2022