Managing a large portfolio of projects and programs comes with its own challenges. PMO leaders working with large corporate portfolios face a number of pitfalls. This is especially where the project management maturity has grown over time and the portfolio has evolved and scaled almost organically.
There comes a tipping point where it’s important to start thinking of yourself as managing a large portfolio. And when that time comes here are 5 pitfalls to watch out for. We’ve also included advice below on how to deal with those situations. Whether you are already managing a significant portfolio in a large enterprise or on the cusp of finding your existing processes no longer fit for purpose, these tips should help you address the challenges you find for your team.
1. Lack of Standardization
The more projects covered by your portfolio, the more likely it is that different tools and approaches are in use out there by the delivery teams. When your portfolio is small it’s easier to manage this variation. You can pull data out of the project manager’s report and present it in a standard way. It’s far more difficult to do that when you’ve got dozens of reports, each a slightly different format.
Manage by: Encourage and drive standardization. For example, require a standard format for reports and have a standard timetable for data submission.
You’ll also want to encourage stakeholders to use the information that comes out of the PMO to replace any ad hoc reports or data analysis that they do locally. No one should be tracking progress or creating status reports outside of the PMO structure as that positions your team as the guardians of the truth about the portfolio. Make sure that the reports you provide to executives meets their needs so they don’t have to ‘go outside the system’ to get the information they require for their jobs.
2. Ineffective Communication
Communication in the PMO team is quite easy when there are only two of you sitting next to each other in the office. As your portfolio expands and you’re suddenly managing a larger team, based in various offices, the communication needs change. Your PMO should appear to be joined up and comprehensive – you definitely want to avoid one part of the team asking stakeholders for information when another member of the team has already asked them for something else just that week.
Manage by: Staying close to your team. Define what your communication needs are, especially around how you ask stakeholders for information and input. This should be a regular discussion in your team.
You may want to set standards around who can email project leads with requests for information, or use a team email account that is managed by a single person.
3. Lack of Accountability At Project Level
When you’re only managing a small portfolio and you know all the project managers personally, it’s easier to update your records with what you know to be the case. For example, if a project manager is on holiday and you happen to meet another person on the team who gives you an update, it’s relatively straightforward to incorporate that in your weekly reporting cycle.
However, when your portfolio grows you can no longer know everything that is going on to the same level of detail. You might not even know the project managers personally and you most likely won’t know the team members. Your portfolio team has to rely on the quality of the data being provided by the project managers. If they aren’t providing you with accurate, relevant and timely information you won’t have the time to source it, and you certainly won’t know enough to fill the gaps yourself.
Manage by: Being clear on accountability. The PMO is there to manage the portfolio and report on the programs of work. It isn’t there to deliver the projects; that’s what the project teams are for. You shouldn’t take responsibility for managing their workloads. They remain accountable for the output of the project, including reporting progress and anything else required through the PMO.
4. Growing Complexity
As your portfolio grows, so does the complexity of the work you have to do. There are more moving parts. More decision makers involved. More project managers and delivery teams reporting to you. More people to chase for information!
Equally, there are more people relying on the PMO’s output – some of whom will regularly ask for extra reports that are slightly different from the standard ones you provide today.
Manage by: Encourage simplicity as far as you can. Keep processes simple and engineer your work for the level of maturity you’re at. This is particularly appropriate in communications. Take the time to review what you’re sending out. Make sure it’s easy to understand as this will cut down on queries and ad hoc requests for more information.
5. Lack of Tools
Many PMOs start small, without the budget or desire for enterprise-wide project management tools. That approach can work with a handful of projects and a few stakeholders. But as the portfolio grows, it becomes harder and harder to manage without the tools to support you.
Manage by: Invest in project management software that will give you the ability to do what you need to do. Ideally, choose tools that will scale with you. If your PMO is on the up and growing, it’s likely that trajectory will continue! Your requirements next year may be even more sophisticated than what you are being asked to do this year. So plan for that too.
Look for software that gives you the functionality to dig into the data so you can produce different views. Dashboards can be helpful for presenting information in a visual way. And if you can pull the data from the underlying project management software you won’t have to create any pie charts in spreadsheet packages!
A large portfolio normally means that the value of portfolio management is well-understood and valued in your business, and that’s a good place to be! Grow from there by adopting some of the practices above. This will ensure your management approaches stay relevant and effective regardless of the size of your portfolio.