Project Portfolio Management Model:
The project portfolio management model that the company should apply is the maturity model. In maturity model the organization implements higher level of organization behavior, improving the project’s success and organizational performance. With the help of the maturity model the company can implement the best practices for determining portfolio maturity, setting short term priorities, improving portfolio management process and tracking the progress. The maturity model presents a comprehensive framework for improving the organization’s process.
Implementation:
I would follow the key element which are necessary in developing the plan and then I would implement the steps which are mentioned above to ensure that the plan is implemented according to the steps defined. Through these proper steps, the main idea should be to track these steps and implement what is required by the project to succeed.
Tools and Objectives for Managing Different Types of Project Portfolios
There are several numbers of analytical tools available that are used by the professional to do the project portfolio analysis. Whereas there are three main and major categories of these tools and objectives which are, Value/Cost Performance, Continuous Improvement and Strategic Alignment. Company can use two or more than two tools at a time, if the project is to be evaluated on the basis of both financial and strategic fit. Before the usage of these tools, we will first examine the importance and implications for achieving objectives using each of the three tools.
Value/Cost Performance Metrics
This tool helps the company to build the understanding about the company’s spending of money for the particular project, the returns associated with the project, comparison of spending with that of company’s history and competitors and finally to find out how the value/cost relationship of the project stands in comparison with that of overall portfolio of projects in the company’s portfolio.
Continuous improvement metrics
It is related to analyzing the level of operational efficiency that a company can achieve in managing its overall portfolio by undertaking the project. This helps either in identifying the opportunities in improving the project or any project in the portfolio.
Strategic Alignment metrics
Evident from its name, this tool is used to determine the overall strategic fits of the project with that of portfolio. By using this tool, scoring is done about the projects being evaluated based on some objectives as mentioned below:
- How much the project will improve the product line of the company?
- Is the project able to help the company in maintaining its competitiveness in the market?
- How much will it decrease the operating cost?
- The ability of the project to increase the capacity of the company.
The primary objective of this tools is measure of the value of the project and the portfolio. Both are very important to consider because this will help company in evaluating the project’s worth in comparison with that of other projects. Further the portfolio level view helps the company in identifying the right mix of the projects.
In case of Toyota, all three tools are very vital and important for evaluating the projects in its portfolio, because the company has the global existence so it’s important for the company to evaluate each project on the basis of Value/Cost Performance, Continuous Improvement and Strategic Alignment. This is because Toyota has global presence and its single project failure can impact its global sales, moreover, it has the larger competitor’s which can take benefit from its single mistake. Therefore, Toyota should use the these tools to evaluate any project in its portfolio, as this will help in determining the cost and benefit of the project, along with its strategic fit and ability to bring the continuous improvement in the company..........
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