The Project Portfolio Planning (P3) Methodology provides an organized and comprehensive process for developing project portfolios that support the business. The methodology is most appropriate for organizations that continually generate myriads of projects and project ideas that compete for a limited number of available resources. Issues addressed by the methodology include harvesting new project ideas, documenting the business case, evaluating projects on a consistent basis, prioritizing projects, selecting the best portfolio, and planning required resources.
Project Portfolio Planning Methodology
Alignment of information technology (IT) with the business is a major priority for many organizations. Selecting an appropriate portfolio of projects is an important part of effective IT alignment. The Project Portfolio Planning (P3) Methodology provides an organized and comprehensive process for developing project portfolios that support the business. The methodology is most appropriate for organizations that continually generate myriads of projects and project ideas that compete for a limited number of available resources. Issues addressed by the methodology include harvesting new project ideas, documenting the business case, evaluating projects on a consistent basis, prioritizing projects, selecting the best portfolio, and planning required resources. The P3 Methodology employs the following techniques:
• Program planning to develop a stream of projects that align with business objectives and move the organization to where it wants to be
• A defined project idea harvesting process to capture and capitalize on ad hoc project ideas
• Customized project scoring and ranking methods as well as a predefined scoring and ranking method: the BAR Score
• Risk-adjusted estimation using Monte Carlo techniques to provide cost justification
• Binary integer optimization to select portfolios that maximize total portfolio utility subject to budget and other constraints
• Time-phased resource planning to proactively identify and rectify resource imbalances that might jeopardize the portfolio
