5 Step Plan For The Best Portfolio Management - image

5 Step Plan For The Best Portfolio Management

Team Onstro on March 21, 2024 in Project Management

Key Highlights

  • 70% of projects fail due to poor project portfolio management.
  • Project portfolio management is the process of analyzing current projects to improve overall business performance.
  • Onstro is a portfolio management software that helps you to adapt to multiple project management methods.

Nowadays, portfolio management is one of the biggest challenges faced by project managers. Many managers struggle to select projects that align with their organizational goals and eventually end up with losses.

Even though the importance of project portfolio management is on the rise, only 61% of companies use a project management methodology. And the result? 70% of all projects fail in some way. So, how can you avoid such a situation? The answer is effective portfolio management. Read on to know what are the 5 phases of portfolio management.

Also Read: 5 Best Tools For Resource Management For Your Business

What is project portfolio management?

Project portfolio management is the process of analyzing current projects in such a way as to improve overall business performance. The main aim of portfolio management is to maximize the return on projects and optimize business activities.

5 Simple Steps of Portfolio Management

Individual projects give maximum output to the company when they are connected together like pieces of a puzzle. Only portfolio management best practices can ensure that. Here are the portfolio management stages:

  1. Identify your Goal

    The first step to portfolio management is to define your business goals. Keep in mind that goals stay like the base, and the entire project portfolio management is based on that. So, make it as clear as possible to avoid any confusion. Consider setting up Key Performance Indicators (KPIs), such as profit, productivity, etc. as business objectives. Only a clear goal can ensure that all stakeholders are on the same page.

  2. List out your projects

    The next step in portfolio management is to figure out all your current projects. Also, include projects that you are considering taking up in the future. Then, note the category, resources required, and profitability of each project.

    Use these data to assign a score to every project. You can sort it out in accordance with the business goals set in the prior step. Filter out projects that require more resources but have less profitability. Craft the project portfolio in such a way that the company’s return on investment (ROI) is maximized.

  3. Analyze your portfolio

    Upon preparing the final list, it’s time to analyze the projects. The first thing you have to consider is feasibility. Does the project have the potential to succeed? Do you have the necessary resources to complete the project in the specified time? Proceed with a project only if the answer is ‘yes’ to both questions. You can reduce the chances of bottlenecks and resource burn-outs by analyzing your portfolio.

    It is better to have a mix of projects that satisfy your short-term as well as long-term interests. An effective portfolio management plan is one that ensures returns to maintain the current growth rate as well as helps you reserve funds for the future. Through analyzing your portfolio, you can reduce the chances of bottlenecks and resource burn-outs.

  4. Manage the projects

    As soon as you select the best projects, allocate the available resources to each of them as per the requirements. Divide the work among the team members along with the task deadlines. Consider setting up portfolio management software to allocate tasks and resources effectively.

    However, there is a problem with adopting software. Your projects must be of a diverse nature and may require different methodologies. Unfortunately, most software tends to be rigid and only some may support different types of project management methodologies. Onstro Projects is one such tool that you can consider due to its adaptability to all approaches like Agile, Traditional, or Hybrid.

  5. Adjust your Portfolio

    Continuous monitoring is required for effective portfolio management. Always keep a keen eye on the Key Performance Indicators(KPIs) to ensure that every project gets completed within the fixed budget and timing. In this step, you need to focus on adapting the strategies to the changing conditions. Regularly review your goals and performance to stay on the right track.

Final Words

The 5 stages of portfolio management that we have mentioned are just the tip of the iceberg. In reality, even the most experienced project managers grapple with portfolio management. That’s why most companies opt for software help.

Onstro Projects is an all-in-one software tool that guides you throughout the project life cycle. The user-friendly dashboard shows you the real-time progress of all current and upcoming projects. It helps you to plan an optimized project portfolio from scratch with the help of in-depth data analytics. Contact us now for all-in-one software.

Team Onstro