Reference no: EM13217279

Portfolio management addresses processes and strategies for project prioritization, effective resource usage, and contribution to measures of strategic goal achievement (IPMA, 2007; PMI, 2006). This means that project portfolio management (PPM) process identifies the steps for selecting projects into the portfolio in line with the organization's strategy.www.investopedia.com defines corporate culture as "the beliefs and behaviours that determine how a company's employees and management interact and handle outside business transactions."

PPM has emerged in today's project management (PM) practice as an effective tool that enables organizations generate significantly more value from their projects by cutting costs. This is because it enables organizations make better, more informed, and more cost-effective decisions on a regular and ongoing basis. I work for a company that has grown in the last two and a half decades into multi-faceted business conglomerate but with its hands also in construction activities. I work for the construction division and our project management practice has evolved into a global integrated project management structure with POs, divisional PMOs and a central PMO at the head office. Because of this, our company has remained largely a project-driven organization. Consequently, we have developed a corporate culture that adapts easily to the changing dynamic environment that is the construction industry. This is borne out of the desire to be able to cope with changes occurring in real-time and having regard for the attendant risk factors occasioned by the changes.

Knowing how important the buy-in of senior executives is on such matters, our organization empowered senior executives of the construction division - headed by the conglomerate's senior executive director - to take key decisions on matters concerning the division. This arrangement enabled rapid decision-making, facilitated the rapid growth of the division, and earned the confidence of its growing clientele. This flexibility transcends its operations including its communication systems across the various PMOs, regions, project management teams, stakeholders, and so on which has ensured effective dissemination of information across the various levels of the organization and its clients and customers. Our projects, programs and portfolios are selected and prioritized in alignment with our strategy, and coordinated and managed to fit into the company's overall business objectives. Our present system and corporate culture strongly supports project portfolio management - a sharp departure from what it was two decades ago when the company was still trying to perfect the system. Today, top executives speak the same language; teamwork, team approach and "team thinking" is the new refrain based on overall company interest. All project management levels are linked through strategic PPM, portfolio planning, project control and execution.

McElroy Translation Company exhibited the following cultural barriers to adopting PM:

Individual departments operated independently.

In the 1980s, tracking and oversight of work flow was done by project coordinators.

Independent planning and tracking methodologies were carried out by individual departments, with little communication between divisions.

Project scope and turnaround were determined by management without staff input.

Line managers were responsible for specifications and deadlines.

Projects were discussed with clients in terms of what the client wanted and not in terms of what the client needed, leading to unusable deliveries.

There was a general lack of information regarding client's business needs and critical requirements for the deliverables were largely overlooked.

There was no coordinated or integrated project management process in place.

Steps taken by senior leadership of McElroy Translation Company to get PM embraced:

Developed proprietary software which enabled real-time tracking of project activities, including access to project information, customized reporting and planning tools enabling line managers and PMs to coordinate staff/project activities more efficiently.

Facilitated electronic sharing of project information, planning assumptions, etc., and created an enhanced database system which enabled more flexible and effective communication with global vendors and clients.

Made project materials readily accessible through the merger of departmental folder structures into a single structure.

Created an interface between PMs and clients to facilitate interaction and problem solving; drew technical expertise from line staff; and greatly enhanced sales personnel's understanding of projects, challenges and internal problems.

Project teams held brief daily meetings involving representatives from all departments who had the opportunity to make inputs in problem solving, valuable for high-risk projects.

PMs operated an open-door policy and communicated freely with staff on all issues. Staff feedback was a valuable source of information for current and future project plans. Management's consideration for employees' technical experience boosted their morale and trust and helped PMs proactively renegotiate deadlines.

Projects were prioritized using a simple coding system designed to show the relative urgency of deadlines. A project management structure was developed.

A dedicated customer service department was created to enhance understanding of client's needs.

Senior management's commitment to PM culture, effective communication and information dissemination, teamwork and collaboration, helped tremendously in transforming the company which had ultimately become a vendor of choice for extremely high-risk projects that other companies cannot handle due to complexity or the need for customized solutions.