Manage Projects by Exception Using Fusion Project Portfolio Management
For an organization to remain competitive it is essential that the right portfolio of projects is selected which would ensure current and future profitability. Projects are selected based on the fitment with the strategic goals of the enterprise. During the initial stages of the project, the project manager's key responsibility is to prepare and present the business case to showcase the projects fitment against the long term strategy of the organization. Only after approval from the key stakeholders the project is selected for execution in the organization.
However, during execution of the project often the project team decides to monitor progress using a new set of parameters like margin percentage, revenue, and Schedule Variance, Cost Variance and quality standards. The link is lost with the organization strategic objectives the very reason project was selected. The best practices in project management suggest a uniform set of parameters during the entire project life cycle from Project Initiation to Project Closure.
Fusion Project Portfolio Management bridges this gap and provides the corporate, portfolio and project manager with a dashboard to monitor the portfolio progress on a real time basis based on uniform set of parameters across the organization - Key Performance Indicators (KPI's). The dashboard provides a snapshot of projects which are On Track, At Risk and Critical. The portfolio managers can immediately focus their attention on projects which are at Risk and Critical thus enabling them to manage projects by exception.
For example, a KPI can be defined that non-billable costs should be less than 10 percent of the overall project cost. The user will be able to immediately identify the projects in the dashboard which do meet the criteria and for a detailed analysis can drill down to the project transactions to analyze the reason. The applications come with embedded analytics that would help the user to identify the potential reasons. In this scenario it might be possible that the field users on the projects have not submitted the timecards for last week and once the timecards are submitted the project will be back on track. The project manager's observations can be captured as a note which can be viewed by all the stakeholders.
Projects are no longer managed and executed in silos. To ensure profitability and sustainability of organization, portfolios needs to be managed dynamically and PMO should be able to derive reports and trend indicators with a click on button in the modern application. Fusion PPM also helps the portfolio managers to suggest corrective action to bring the non-conforming projects back on track and make a rationale decision to terminate projects based on current and historical KPI's.