Project Portfolio Management: How to Craft a Portfolio in 5 Steps

TL;DR

Learn how to assemble a strategic portfolio that balances value and delivery by following the DDAPM framework.

Transcript

a strategic portfolio of programs projects and initiatives has balance and delivers value but how do you assemble a strategic portfolio that can do both these things i want to share with you a framework i learned long ago called d d a p m ddapm stands for destination direction alignment prioritization and management so we're going to talk about tho... Read More

Key Insights

• 🏛️ Understanding the organization's strategic destination is crucial in building a strategic portfolio.
• 💱 Changes in policies, processes, capabilities, and more are necessary to align with the organization's direction.
• ❓ An aligned portfolio minimizes overlap and conflict, but strategic redundancy and misalignment can provide resilience and flexibility.
• 🧑‍🏭 Prioritization is essential to allocate resources effectively, considering factors like importance, urgency, value, and risk.
• 🤩 Scheduling projects and allocating key personnel are vital management tasks in portfolio development.

Questions & Answers

Q: What is the first step in building a strategic portfolio?

The first step is to understand your organization's strategic destination by analyzing mission statements, vision statements, and high-level strategic planning documents.

Q: How should alignment be ensured within a portfolio of projects and programs?

Alignment can be achieved by creating an outline for all projects and programs, ensuring they are all pointing in the same strategic direction and avoiding overlap or conflict.

Q: Why is there sometimes a justification for strategic redundancy in a portfolio?

Strategic redundancy can be beneficial when tackling difficult projects or programs. By having different approaches, the risk of failure is reduced, ensuring that even if one project fails, another may succeed.

Q: What factors should be considered when prioritizing projects?

Factors such as value, risk, strategic importance, and the need for flexibility should be considered when prioritizing projects. Urgency and sequencing should also be taken into account.

Summary & Key Takeaways

• Start by understanding your organization's strategic destination using mission statements, vision statements, and strategic planning documents.

• Determine the necessary changes in policies, processes, capabilities, staffing, and more to align with the organization's direction.

• Create an aligned portfolio of projects and programs, avoiding overlap or conflict, with options for redundancy and misalignment to mitigate risks.

• Prioritize projects based on importance and urgency, considering factors like value, risk, strategic importance, and the need for flexibility.