Benefits realization and business cases
all add up to increased profits.
BY SANDRA A. SWANSON osting thebottom line
n tough economic times—and the world has seen
its fair share of late—many organizations’ knee-jerk
reaction to maintaining profits is to cut under-performing projects (and the teams running them).
But that’s hardly the only path to profitability.
“It’s just as important to define the right projects based on a holistic vision as it is to kill projects
that don’t demonstrate measurable value,” says Jen L.
Skrabak, PMP, Los Angeles, California, USA-based
committee chair to update The Standard for Portfolio
Management. She’s also the director of operational excellence at the healthcare company WellPoint.
Although profitability is a highly desirable outcome,
it represents a complicated issue for project professionals.
“As a project management office (PMO) director, I
had little exposure to the profitability of projects once
they were completed and handed over to a receiving
organization,” says Yvan Petit, PMP, associate professor
in the management and technology department of the
Université du Québec à Montréal, Montreal, Quebec,
Canada. The focus, he says, was primarily on keeping
the project cost within the approved budget.
The best way to ensure the highest profitability
of portfolios is through the decision-making process,
says Steven Romero, PMP, IT governance and portfolio project management evangelist at the software
company CA Technologies in San Francisco, California, USA.