What's in it for You?
In the past I've presented a detailed model of how Project Portfolio Excellence can result in a yearly savings of one quarter of 1 percent of your annual revenues. It doesn't sound like much but, for many companies it's equivalent to increasing annual sales by almost 5% which is not too shabby (See "The 19% Solution" for more on this).
Every dollar, minute, or thought spent on a project that has no chance for success is wasted and can never be recovered. (PPE Truth #7)
Saving money will always important, and implementing Project Portfolio Excellence is a good way to pursue that goal. But in today's environment, where there are always more initiatives to choose from than there are resources to apply to them, it's even more important that we not waste time, money, and energy on projects that have no chance for success! After all, resources that are not wasted on projects with no prospects are resources that can be put toward more profitable ventures.
Tremendous savings await companies that stop ignoring reality. (PPE Truth #58)
The reality is that some projects are doomed to fail before they even start. Signs that these projects are hopeless are usually easy to see. Ignoring the signs leads to frustration, disappointment, and worst of all, waste.
Often a compelling business case is put together, showing tremendous potential benefits from the project. But:
It doesn’t matter how great the potential benefits are if a project has no chance for success! (PPE Truth #10)
Part of achieving Project Portfolio Excellence is developing an understanding of the requirements for project success and developing an unflinching eye when it comes to evaluating your organizational capabilities and constraints when considering new projects and initiatives.
Because, when you get right down to it:
You can negotiate scope, budget, or schedule. You can’t negotiate reality. (PPE Truth #57)
NEXT: Learn about the tools, strategy, and methodology of Project Portfolio Excellence