Portfolio Governance has to undergo a lot of convincing and a lot of planning. After you finalized your proposal, it’s time for you to convince the executive panel to make necessary changes in projects, strategies, tools, and principles; you have the urge to implement your portfolio governance the moment it has given a go signal. Impatience breeds us all, but you need to consider some factors before jumping all the way in.
How To Implement Portfolio Governance ?
To be able to implement proper portfolio governance, do the standard way—a project scoring model to help you with the project selection as well as prioritizing projects at the same time. Some organizations with a high level of mastery use this method to select their projects.
Portfolio governance and scoring model go hand in hand, but there are some drawbacks such as overshadowing the capability of portfolio governance if not done correctly. So here are some pointers to follow to have a successful portfolio governance journey.
- An efficient governance panel to pull the weight around. The presence of such panel will safeguard your portfolio governance from unwanted idea hawkers and issues.
- Constant engagement and communication with the governance panel; Coordinating your portfolio governance with the panel involves project scoring a well as developing portfolio elements, scoring models, and demonstrations and methods for higher value and ranking.
- Project scoring that is free from one-sided biases. It has to be constant as well and if possible, won’t be subjected to too many modifications.
- A proper authorization process to ensure that projects are prioritized.
Now that you know the crucial factors of scoring, what are the models you should use? Determining your standard scoring models mean understanding what you are scoring in the first place and the methods of each scoring. The most commonly used scoring methods are: pair wise ranking, financial models, Analytic Hierarchy Process (AHP), to name a few. Your portfolio governance should also determine what type of scoring model that is effective for your process and the organization. These scoring models are accompanied by reports, so you should include that in your portfolio governance as well.
With proper scoring, it will be easier to embed portfolio governance in the organization. It might be a little tricky in the case of organizations that are still making their way to a maturity level. Regardless, your portfolio governance must align the organization’s culture, structure, resources, and capabilities. From governance comes a myriad of incoming projects and programs that will also depend on the portfolio governance to be able to function properly.
The following scoring models create credibility with portfolio governance. While it may take a while for your project governance to take effect and make its way to the organization, you have to determine the risks, determine possible drawbacks, and choosing an efficient scoring model. Portfolio governance is a new branch of the organization—this means that you need to nurture that branch—maintain it for the success of an organization as well proper operation of program and projects. Convincing the executives is just the beginning of your battle. The one you are fighting for is proving to them that what you established is not another scenario of regret.