Why portfolios are effective
Maria Stepien Bath 21/11/18
Entrepreneurs Society, University of Bath
It doesn’t matter whether it’s a start-up or a well-known corporation – all companies nowadays LOVE projects.
It seems to be the easiest way to organise a firm: set up the main purpose, create smaller goals, assign responsibilities to everyone, and make sure that in the end the effect is aligned with the company’s purpose. The new hot potato has therefore appeared: the influence of project PORTFOLIOS on companies’ performance.
What is a programme?
According to the Association for Project Management (APM), it is a set of projects that have the same purpose, they all exist until the final goal is achieved. They begin with a vision that’s later transformed into strategy.
What is a portfolio?
Several projects grouped together for management convenience. They differ from programmes in that they don’t necessarily need to have a common purpose, but they are often linked by usage of common resources. Although they don’t have the common goal, they all work to improve general strategic objectives of the company.
So why are project portfolios so popular nowadays?
The Project Management Institute (PMI) defines success of portfolio management as portfolio’s contribution to the strategic measures of the organization. As such, strategic focus and great organisation skills are desirable among fresh employees and recent graduates.
1. Portfolio selection is crucial
We can’t just randomly connect several projects. Careful analysis of projects conducted by the firm should be done and those that fit the surrounding organization’s characteristics should be considered relevant.
2.Project reporting and information availability are the most important
The need for information is self-explanatory, but its importance is not stressed enough. Portfolios allow for regular reporting on stages of work to other employees fluently.
3.Decision-making style needs to be adjusted to circumstances
Decision-making means taking under consideration all uncertainties and possible consequences.
4. You cannot predict everything
Circumstances and contextual factors are always able to ruin even the best work done by most dedicated individuals. Market dynamics, weather conditions, industry news – all of these can suddenly surprise you and a back-up plan should always be ready to be put into action.