Project Portfolio Management Analysis

This assignment delves into the crucial aspects of Project Portfolio Management (PPM). It examines decision-making processes in selecting projects, analyzing risks using quantitative methods, and understanding the impact of organizational culture on PPM effectiveness. The assignment incorporates real-world examples, case studies, and various tools used in PPM analysis. It requires students to critically evaluate different perspectives on project selection, risk management, and the influence of organizational factors.

Running head: PROJECT PORTFOLIO AND PROGRAM MANAGEMENT 1
Sustainability in Project Portfolio and Program Management
Student Name
Institution

PROJECT PORTFOLIO AND PROGRAM MANAGEMENT 2
Table of Contents
Introduction.................................................................................................................................................3
Situational Context......................................................................................................................................3
Portfolio Evaluation....................................................................................................................................5
Portfolio Management.................................................................................................................................5
Maturity Levels...........................................................................................................................................6
Corporate Culture........................................................................................................................................7
Effects of the implementation of project portfolio management and outcomes.........................................10
Conclusion.................................................................................................................................................10
Reference...................................................................................................................................................11

PROJECT PORTFOLIO AND PROGRAM MANAGEMENT 3
Introduction
Westpac Corporation Banking that is located in Sydney Australia with branches in
different countries such as New Zealand, Australia, and the Pacific. Some of the projects
proposed within the project portfolio include digitization of the banking services, ad-hoc
reporting, data security, compliance to the recent regulations, infrastructure development. In
addition, the project seeks to incorporate sustainability as key aspect global goal of UN. At the
first stage of the project portfolio management which was planning, there are some aspects of the
project that were introduced mostly in the sustainability per view. Upon the implementation of
the project various company staffs also are involved and hence express their perspective on the
benefits, effects, and outcomes of the project. Some key aspects of the project that are revealed
in this report are situation analysis, project evaluation, portfolio management, corporate culture
and possible outcome of the project. Various analysis of the project is, therefore, necessary to
review some other benefits that can be realized. The following report documents findings that
will be presented to executive management giving the project portfolio management review.
Framework
A. Situational Context
Westpac Corporation Banking (WCP) investing in Project Portfolio Management project
is a good idea as most organization currently working on the model as the right business project.
Some of the reasons supporting the choice of project portfolio management (PPM) are a minimal
risk on the overall performance of the organization, maximized resource, prove the value to
stakeholders and enable repeatable success. With the call from UN that organizations need to
implement sustainability projects that expresses the corporate social responsibility and
environmental concerns. In addition, the project works to transforms the organization on service

PROJECT PORTFOLIO AND PROGRAM MANAGEMENT 4
delivery with digitalization (Schrodt, 2002). The project also benefits general public due to
climatic mitigation project that forms part of sustainable development as this solemnly helps the
community.
Optimism of the project portfolio management
Secondly, the WCP is optimizing its capacity since one of the main objectives of the
company is to invest in a sustainable development project and incorporating sustainability in
project portfolio management proved optimism. (Mesly, 2017).
Project portfolio management execution
Thirdly, the organization is executing the project since some reasonable amount of
money has been dedicated to the project. The company has already set a huge amount of funds in
executing the project and this is evident by $10billion and $25billion that the company has
devoted towards implementation of the environmental project being a critical aspect of
sustainability.
Project absorption
Fourthly, the organization can absorb all the changes though slowly since the
implementation follows steps that involve staff training. In addition, Stakeholder Advisory
Council works to ensures that the company stakeholders are involved in the implementation of
the project hence they absorb the project (Zhang, 2009).
Benefit realization
Finally, it is worth noting that the company is realizing the promised benefits. The
company had convinced the stakeholders on the benefits of portfolio project management and

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some of the initial benefits of the project are the implementation of sustainable practices (Ravasi
& Schultz, 2006).
B. Portfolio Evaluation
The method the organization uses to evaluate portfolio is convention and risk-adjusted
method. The portfolio evaluation within the company takes two directions that can be divided
into conventional and risk adjusted method. Conventional portfolio evaluation method is the
evaluation method that takes into account the performance of portfolio according to set
standards. Risk-adjusted evaluation method evaluates the risk and risk mitigation to ensure that
the project is managed.
Justification of project evaluation
Secondly, the justification of using the portfolio evaluation methods lies in the ability of
the method to evaluate both general performance and risk (Goergen, 2012). This gives the
overall goal of the evaluation that is needed both major stakeholders and management. Thirdly,
the challenge that the organization is likely to face in the course of using this method can be
coordination between management and project managers in case of evaluation.
Incorporation of management cycle into the project
Incorporating management cycle in evaluation process has the benefit of accountability
since the investors need to know the progress of project portfolio. The management needs to take
part in managing the project, especially through project managers (Ross, Ellipse & Freeman,
2004).
Meeting desired objective

PROJECT PORTFOLIO AND PROGRAM MANAGEMENT 6
The evaluation process assists the management to meet the desired objective or goals of
the project since it ensures that the project is implemented in the right manner. Moreover, the
evaluation process gives the accountability aspect of the project to management and company
owners that need the full responsibility of project managers (Rajegopal & McGuin, 2007).
C. Portfolio Management
Project progress
Portfolio management gives the progress and continuous update in the activities of the
project. Project management is also important since it raises the need for assessing the project
consistency with the preset objects or goals.
Introduction of Project Management Office
Project Management Office has been introduced into the organization (Hamilton, 2004).
The Project Management Office does not play role in terms of standardizing practices and
increasing project success rates since the project managers are still under training.
Quantitative and qualitative skills
Quantitative skills that are used in the portfolio management include collection and
analysis of data that consist of financial (McNeil, Frey & Embrechts, 2015). Qualitative skills on
the other hand, take into account various reporting techniques used in portfolio management so
as to deliver quality project in line with company’s objectives. Moreover, the project managers
need to first understand their primary role even before managing the project (EPMC & Michael,
et al 2009).
D. Maturity Levels

PROJECT PORTFOLIO AND PROGRAM MANAGEMENT 7
Level of maturity
I believe the maturity level for the organization level 2, that is basics level. This project
portfolio level that is characterized by planning with limited performance forecasting. Within
this level also project interrelationship are reorganized into different managed projects.
Moreover, at this level risk analysis is conducted and evaluation process also continues at this
level.
Improving maturity
In order to improve the maturity level of the organization a model that can be adopted is
OPM3. OPM3 provide the framework for the organization to understand PPM process, practice
and predictability. The model focus on the training staffs in ways to strengthen project
performance with the ability to predict the outcome. This enables all to be fully aware of the
portfolio project hence are able to bring changes to where there are gaps.
Implementation of changes
In implementing changes, the project managers identify the gaps especially in the
performance that need improvement. The model also enables the project management team set
the target and the strategy to meet this target (Marquis & Tilcsik, 2013).
E. Corporate Culture
Corporate culture for the company
Corporate culture for the company is based on the beliefs of satisfying the customer’s
financial needs and involving the local community through offering sustainable practices. When
implementing the project while using the model, the corporate culture is most likely to change
with the adoption of the project portfolio management. The initial corporate culture for the

PROJECT PORTFOLIO AND PROGRAM MANAGEMENT 8
organization was mostly based on the areas of operation. As a monetary institution, most of the
dealings were in financial transactions. As the company implements the sustainability criterion
that is based on moral and ethical responsibility within the community, the company will need to
diversify employees and resources to cover other areas of operation such as climate, environment
and community involvement (Vincenti, 2016).
The company intends to apply the PPM to all its offices within Australia and other
countries. This, therefore, means that corporate culture in terms of management will affect
internal stakeholders such as management and technology manager, human resource manager,
project managers, accountants and public relation officers. As the company implements the
project portfolio within the organization, the company will expand in terms of infrastructure,
employees number, funds that are required to fully implement the project and good will to
implement the project without resistance (O'Donovan, 2006).
Stakeholder’s perspective
Most stakeholders have individual perspective as that can be based on each stakeholder's
profession. The amount of money allocated to an accountant to manage will influence the view
of accountant and finance managers since there is a need for proper utilization and management
of these funds. Human resource manager will have to reclassify job categories since project
managers will have new training on project portfolio management. Projects managers are some
important stakeholders that play important role in PPM and give continuous progress in the
performance of the project portfolio performance. Public relation officers, on the other hand,
connect the company with the public especially the implementation of sustainability (Keating,
Quazi, Kriz & Coltman, 2008).
Stakeholders concerns

PROJECT PORTFOLIO AND PROGRAM MANAGEMENT 9
Stakeholders have different concerns that will be raised in the course of implementation
of PPM (Sanwal, 2007). Proper allocation of funds to the project is most likely to be the concern
of accountant. While human resource managers are most likely to raise the concern of employees
number required to fully implement the project. This is based on the fact that as the project
begins the implementation stage the company will have to hire more employees since more work
will be added to employees currently within the company payroll. Technology and asset
managers also will express their concern about the capacity of the company’s machines to
digitalize all the required functions according to the portfolio (Kester, Griffin & Hultink, 2011).
Corporate culture that will support PPM
The aspect of corporate culture that will support the project portfolio management
changes the culture. The management both from the junior to senior management should accept
change without resistance. On the sustainability, it is important to note that culture of change is
particularly important for implementing the environmental sustainable strategy (Hofstede, 2001).
Challenge of adopting project portfolio and sustainability
The challenge that still stands in the way of adopting project portfolio and sustainability
are resistance to change, lack of enough information and project implementation efficiencies.
Firstly, most staffs within the organization especially the senior management often are resistant
to change which in this case introduction of a new project (Paul et al, 2005). Implementation
inefficiencies often cause slow decision-making that eventually retards the progress of the
projects and if such care is not taken the project will fail (Lukomnik, 2016).
F. Effects of the implementation of project portfolio management and outcomes
From the staff perspective, various staffs have different view on the possible benefits of the
project. (Hatemi & El-Khatib, 2014). Some of the positive effects of the project are a minimal

PROJECT PORTFOLIO AND PROGRAM MANAGEMENT 10
risk due to diversification brought by portfolios, improved decision making due to the
reorganization of the department, improved customer service due to the introduction of digital
services and improved public relation (Denney, 2005). The negative views specifically come
from most internal stakeholders who feel the need to stop project implementation
Conclusion
In conclusion, project portfolio remains an important aspect of organization especially
with the need to increase customer service delivery and community involvement. The key project
portfolio management is the evaluation, portfolio management, and corporate culture. Maturity
level clearly gives the characteristic of the organization and the most likely level of maturity
within the organization is basic level 2. Another critical aspect of the project portfolio
management is the situation analysis that gives the context and the situation of the project. Some
challenges and benefits that will be realized after implementation projects are also highlighted in
the project.
Reference
Hamilton, A. (2004), Handbook of Project Management Procedures. TTL Publishing, Ltd.

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Denney, R. (2005), Succeeding with Use Cases: Working Smart to Deliver Quality. Boston,
Mass.: Addison-Wesley.
EPMC, Inc.; & Michael, J. S. et al (2009), Project Portfolio Management: A View from the
Management Trenches. Wiley.
Goergen, M. (2012), International Corporate Governance, Prentice Hall, Harlow, January, 2012,
Chapter 3
Guidelines for Managing Projects from the UK Department for Business, Enterprise and
Regulatory Reform (BERR)
Hatemi-J, A. & El-Khatib, Y. (2014), Portfolio selection: An alternative approach. Economics
Letters, 135: 141–143.
Hofstede, G. H. (2001), Culture's Consequences: Comparing Values, Behaviors, Institutions,
and Organizations Across Nations. Sage Publications.
Keating, B; Quazi, A; Kriz, A; & Coltman, T. (2008), In pursuit of a sustainable supply chain:
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McNeil, A.J., Frey, R., & Embrechts, P. (2015), Quantitative risk management: Concepts,
techniques and tools. Princeton University Press.
Marquis, C.; & Tilcsik, A. (2013), Imprinting: Toward a Multilevel Theory. Academy of
Management Annals: 193–243.
Mesly, O. (2017), Project feasibility – Tools for uncovering points of vulnerability. New York,
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role of organizational culture. Academy of Management Journal, 49 (3): 433–458.
Ross, P.H.; Ellipse, M.W. & Freeman, H.E. (2004), Evaluation: A systematic approach (7th ed.).
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Sanwal, A, (2007), Optimizing Corporate Portfolio Management: Aligning Investment Proposals
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Vincenti, J. (2016), Westpac Banking Corporation v Wittenberg (2016) 330 ALR
476. Brief, 43(11), 21.
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Cross Cultural Management Contexts. New York: Nova Science Publishers.