Building an enterprise-level project management system (07)-limited resources, must make a choice

Each project originates from a project proposal, but not every project proposal is converted into a project.In a world where resources are scarce, selection is inevitable.Blind investment of limited resources (people, time, money, and equipment) into unselected projects may result in the following:

* Resources used in this project do not bring much value, which is a waste;

* The project has not been completed, and resources have been used up;

* Project failures and poor reputation;

In order to prevent the project from encountering the above situations, in order to maximize the value of the Organization's limited resources, each project proposal must be carefully evaluated. The three main factors of attention are as follows:

* Value: after the project is completed, what value can the Organization bring? Is it profit or customer influence?

* Strategic consistency: Does the project support the strategic objectives of the Organization? As our Company Advocates: healthy and sustainable development.

* Possibility of success: does the organization have the ability to successfully implement and deliver the project? For example, does the project contain impossible goals?

* The price for success: How many resources do I need to invest in the Organization to achieve the project goal?

 

For the above reasons, PMO evaluates the project selection stage in the Organization (for external projects, the contract is signed). Generally,PMO selects a projectYou need to do the following:

1. Identify new projects:For internal projects, new projects should include project reports or project proposals. For customer projects, new projects include those with bid intentions, those preparing for bidding, and those under contract negotiation. While improving the project list, PMO also needs to record the relevant information of the new project for future selection and decision-making.

2. classify new projects:If it is a new product project that opens up new markets, the profit margin may not be used as the basis for selection and approval. However, for products or projects of profit categories, the selection criteria include the project profit margin, if the profit margin is required to be greater than 15%, different types of projects support different strategic objectives, and different types of projects have different selection and approval criteria and procedures.

3. Review and primary election of new projects:PMO organizes review meetings to analyze the relevant information of the new project and determine the project selection. The evaluation method can use a multi-factor weighted scoring model to compare the project score and review opinions with the established project selection criteria of the Organization, so that preliminary decisions can be made on the project.

4. Sort new projects by priority:The resources and budget of each organization are limited. Therefore, when multiple projects meet the requirements, the Organization may have to select only some of the projects and discard other projects. Projects are prioritized to help organizations make quick and reasonable decisions on project trade-offs under resource constraints. Therefore, PMO needs to develop a priority Evaluation Standard for project selection. The following factors need to be taken into account when establishing this standard: the level of support for the organizational strategy, the length of the project implementation cycle, and the project risk-to-benefit ratio. PMI's portfolio management standard recommends that you consider new projects and old projects that have been approved when determining the priority of projects.

5. Balance the project portfolio:Balance needs to be made based on human resources (implementation, development, services, etc.), investment, proportion of various types of projects and other levels to ensure that the project portfolio meets the company's strategic requirements: for example: there are too many projects in the emerging market and too few projects in the mature market, resulting in too much resource investment, but the company's profit is not guaranteed. In this case, we need to consider balancing the choice of the project.

6. approve the new project:This step is for PMO to officially announce approval for the new project and notify relevant persons in charge of the organization (such as the project sponsor and Finance Department) to allocate resources and budget for the project. After the project is officially approved, it will enter the project initiation and planning phase to start the project implementation plan and preparation.