Whereas the focus in the Identify and Authorization groups were to do the right things, the main goal in this process group is to do the things right.
The way the projects are progressing has a direct impact on the allover value of the portfolio and hence the portfolio manager should have a close grip on this.
The are mutiple impacts on the value side of the portfolio
- Higher costs are reducing the ROI and NPV.
- Delayed projects will deliver their value at a later point in time hence affecting the two KPIs mentioned above. Furthermore it can impact dependend projects which themselves can only start later. If the major value is generated by these dependend projects, the impact on the portfolio value is even larger.
- Another not so obvious impact is the trust of the stakeholders into the portfolio. If projects are not progressing well key stakeholders and influencer start questioning the value of the portfolio, which then can lead to reduction of the volume (budget cuts) or at the end to the closing of the portfolio.
It is very important that the portfolio manager has tools in place to measure the project progress. Unlike the project manager who is trying to keep his or her porject within the magic triangle (time, cost and scope) the portfolio manager is measuring
on a different level to control the progress of the portfolio. Read more about this in the specific sections.
During the execution phase the portfolio is impacting by the progress of the projects. Changes in scope can impact the timing, costs and resources, hence the portfolio manager always needs to stay on top to initiate the right descisions like bring additional projects to approval in the case projects are underspending or the opposite postpone planned projects. Dependencies between projects are even increasing the complexity of this activity so the importance should not be underestimated.