1) An effective Project Portfolio does not just happen. There is a process that must be developed and then followed to help ensure a successful portfolio. Let's start this discussion by examining what decisions must be made before a project is actually looked at or considered. So where do you start in the preprocess stage?
2) Define overhead costs in relation to a project, and explain why it is important to the project manager.
3) The process that is used for budgeting is as important as the source of the details of the cost estimates. There are two fundamental processes: Top Down performed by upper management, and Bottom Up performed by representatives of the project team that will be doing the work.
Describe the two processes. Which do you favor and why?
1) An effective Project Portfolio does not just happen. There is a process that must be developed and then followed to help ensure a successful portfolio. Let's start this discussion by examining what decisions must be made before a project is actually looked at or considered. So where do you start in the pre-process stage?
"Project portfolio selection is the periodic activity involved in selecting a portfolio, from available project proposals and projects currently underway, that meets the organization's stated objectives in a desirable manner without exceeding available resources or violating other constraints" (Archer & Ghasemzadeh, 1999, p. 207). Selecting the right project portfolio can often lead to direct success or failure of an organization depending on the financial gains or expenditures required for the projects themselves. The following are a list of steps to take and factors to analyze prior to selecting the right portfolio (taken from Archer & Ghasemzadeh, 1999)
• Determine whether or not the projects within the portfolio all align with the company's strategic goals (short-term and long-term) - In this step, it is recommended that a grouping of individuals from many different departments should look at the same projects to determine which align the most with each of their goals as well as the company's. The notion is that all work being done in each department is also in line with the strategic goals of the organization.
• Determine the Economic Return (Return on Investment) of the project - The company's bottom line is always the most important consideration for any project portfolio. Once it has been determined that ...
The effective project portfolio is examined. The decision to be made by a project is given.