SUPPORTING SKILLS

Establishing Project Priorities

When managing multiple projects it is important to view the collection of project work as a portfolio of projects. The project portfolio includes all possible projects – including those that are not currently underway.

Priorities for projects can be established through a four-stage project portfolio management process: 

  • Project submission
  • Project screening
  • Project prioritization
  • Project registration

Project Submission

During the project submission stage, the project requestor must document the idea and provide the high-level business case for the project. Most submissions require some type of analysis of benefits versus investment for the project, as well as a high order of magnitude estimate.

If the decision is made to proceed with the project, the project goes to project screening. If the decision is made not to proceed, the requestor is notified.

Project Screening

In the screening stage, a Project Review Committee or an Executive Steering Committee determines if the project is worth pursuing. The examiners review the business case to:

  • Determine its value to both the client and the organization
  • Conduct a formal cost/benefit analysis
  • Calculate the return on investment (ROI)

Once the project is assessed against predetermined screening criteria, an informed decision can be made whether or not to pursue the project. Certain projects may be eliminated from the portfolio because they won’t be worth the investment value.

Project Prioritization

During the prioritization stage, each project is ranked against all other projects to establish its overall position within the portfolio. The same screening models can be used in the project screening stage, can also be used to prioritize projects. Other determining factors include:

  • Appropriate timing
  • Congruence with other projects that run simultaneously
  • Ability to utilize excess resource capacity

Project Registration

Once a project reaches the project registration stage, it is an approved and prioritized project. Information about the project needs to be registered in a project database. Here, key information is assigned such as the project sponsor, the project manager, and any inter-project dependencies.
© 2006 Eviton LLC