University Project Portfolio Management Implementation Report Analysis

This report delves into the intricacies of project portfolio management (PPM), evaluating its strategic value and potential impact on various aspects of an organization. It examines the situational context of a company, assessing its investment strategies, resource optimization, execution effectiveness, and ability to absorb change. The report analyzes the methods used for portfolio evaluation, including the justification for the chosen method (Meisterplan) and potential challenges in a global environment. It explores how project portfolio management ensures alignment with strategic objectives, the role of a Project Management Office (PMO), and the effectiveness of tools and techniques. The report also assesses the organization's maturity level in PPM, suggesting best practices and implementation strategies. Furthermore, it considers the impact of corporate culture and change management initiatives on the success of PPM. The report emphasizes the importance of benefits management, its lifecycle, and its role in meeting project goals. Finally, the report provides a comprehensive overview of the subject, offering valuable insights into PPM implementation and its strategic significance.

Running head: SUSTAINABILITY IN PROJECT PORTFOLIO MANAGEMENT
Sustainability in Project portfolio management
Name of the student
Name of the university
Author note

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Table of Contents
Introduction:....................................................................................................................................3
Situational Context:.........................................................................................................................3
Is the organization investing in the right projects?......................................................................3
Is the organization optimising its capacity?.................................................................................3
How well is the organization executing?.....................................................................................4
Can the organization absorb all the changes?..............................................................................4
Is the organization realising the promised benefits?....................................................................4
Portfolio Evaluation:........................................................................................................................5
What method is the organization using to evaluate its overall project portfolio?.......................5
What is the justification of using the chosen method in comparison to some of the others that
are available?...............................................................................................................................5
Are there any challenges that the organisation might face in using the current method if it were
to operate in a global environment?.............................................................................................6
Is the benefits management lifecycle incorporated in the evaluation process?...........................6
How might benefits management be helpful in successfully meeting the deliverable goals of
the organisation’s projects?.........................................................................................................6
Portfolio Management:....................................................................................................................7
How is project portfolio management ensuring that the organisation’s collective projects are
aligning with its strategic objectives?..........................................................................................7

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Has a Project Management Office been introduced into the organisation and, if so, has it
played a role in terms of standardising practices and increasing project success rates? If not,
why not? What alternative approaches are available?.................................................................8
What quantitative and qualitative tools and techniques is the organisation currently using to
manage its project portfolio and are they effective?....................................................................8
Maturity Levels:...............................................................................................................................9
At what maturity level do you believe the organization is at in terms of its approach to project
portfolio management?................................................................................................................9
What are the key best practices which can be adopt to improve the maturity level and which
model (e.g. PRINCE2, OPM3) do you think would be appropriate?..........................................9
How might you go about implementing this change and what assistance from the organization
would you require?....................................................................................................................10
Corporate culture:..........................................................................................................................11
Corporate culture of the organization:.......................................................................................11
Change management initiative:.................................................................................................11
Different aspects of corporate culture for supporting project portfolio management:..............12
Challenge of project portfolio management:.............................................................................12
Conclusion:....................................................................................................................................13
References:....................................................................................................................................14

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Introduction:
The aim of project portfolio management is to identify the resource mix in the optimal
level for the delivering along with scheduling activities to achieve the operational as well as
financial target of an organization. In this final report, the value of the project portfolio
management will be evaluate by displaying specific attention given to the potential impact on the
project management’s life cycles, change management and organizational change along with
resource management. Another aim is to display the understanding as well as taking initiative in
the project portfolio management tools along with processes for achieving well-structured
business practices. It will also develop arguments for and against the implementation of the
project portfolio management.
Situational Context:
Is the organization investing in the right projects?
It cannot said that the company is doing investment on the right projects all along. This is
because the company has completely different areas to provide project services. It is difficult for
the Watpac Company to receive the data from one format and compare everything. Moreover,
the accuracy of forecasting is difficult that is also the reason behind investing on unfruitful
projects.
Is the organization optimizing its capacity?
The company is recently utilizing the PPM technique to align the needs of the projects,
trying its best to optimize the resources and the projects for ensuring the quality of work and
returns to the organization. It is also evident that the company is facing certain issues in this

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respect. Hence, the company needs certain techniques to see the impacts so that they can adopt
new projects.
How well is the organization executing?
After following the project portfolio management strategies, the company is now
executing good and incurring proper benefits. The project benefits the cost scope, which has
become more visible now. Now, the projects of the company are all in place, Watpac can easily
compare the projects in an effective way that helps the operations of the company to become
agile in achieving the organizational strategy accurately.
Can the organization absorb all the changes?
After understanding the benefits of PPM, the organization is ready to absorb all the
changes. The PPM tools have helped the company to make proper resource planning. It also has
the quality of informing the company about the availability, skills and capacity of the employees.
Is the organization realizing the promised benefits?
Yes, it is realizing the promised benefits and opportunities of the company. Now the
company can easily make planning decisions and forecast the incoming demand for the future
requirements. As per the annual report of the company, the portfolio consists of an extensive
portion of life stage. It is concentrated on projects which meet the customer expectations. The
company’s growth and development have been facilitated through the adoption of strategies
related to PPM.

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Portfolio Evaluation:
What method is the organization using to evaluate its overall project portfolio?
For evaluating its overall project portfolio the company is taking the help of Meisterplan, which
will be helping the company in both the portfolio management as well as resource planning
(Project Management Institute, 2013).
What is the justification of using the chosen method in comparison to some of the
others that are available?
Meisterplan will be helping the company in seeing the original scenario of the project as
well as the work, which is been done to help in determining the accomplishment of the
organization. There are many portfolio methods that could have been follow by the company like
key descriptors, Key Performance Indicators (KPI), portfolio balancing, Project Management
Lifecycle (PMLC) but looking at the structure of the company it will be safe to say that
Meisterplan is the best portfolio management structure the company can follow (Cooper, 2009).
Key descriptors helps the company in categorizing the components which are needed for
decision making but the company will not be able to get the information regarding the
employee’s skills, availability as well as the capacity of the concerned employee. Portfolio
balancing determines the project scope, the schedules, budget as well as the KPI, class, category
and the evaluation scores (Hubbard,2009).
KPI is a set of parameters that will measure the performance of the portfolio management
and how it has helped in the success of the organization. PMLC is used for collection,
identification, categorization, evaluation, prioritization and reviewing the contents of the
portfolio management (Hubbard,2009). However these kinds of tools creates the scope of various

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kinds of selection challenges like the process of identification and defining the KPI as well as
PMLC is not a considered as a learning model and there is a major criticism about it ( Smith&
Sonnenblick, 2013).
Are there any challenges that the organization might face in using the current
method if it were to operate in a global environment?
If the organization keeps following the Meisterplan as its key project portfolio method it
will not be facing any kind of challenges in the global environment. With the use of Meisterplan,
the company will be able to form a realistic portfolio plan and roadmap, which will help the
organization to achieve its goals as well as fulfill its objectives.
Is the benefits management lifecycle incorporated in the evaluation process?
No, benefits management lifecycle has not been included in the evaluation process since
the company has been following an effective management in meeting the requirements of the
company in getting a desired outcome
How might benefits management be helpful in successfully meeting the deliverable
goals of the organization’s projects?
Benefits management lifecycle is consider a structured approach, which helps an
organization in maximizing the outcomes of a good business, and is a fundamental aspect for the
successful delivery of an effective program and project management (Smith& Sonnenblick,
2013). Watpac can be benefitted from following the benefits management cycle since it aims in
making sure of the specific desired benefits in a measurable and realistic time limit. Benefits
management connects the programmer and the delivery of the report and the successful change
in management. The benefits profile of the benefit management cycle includes a unique

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identifier, a benefit tittle for the organization, as well as a benefit risk along with the benefit
dashboard and realization plan of the company which will help in the management of Watpac in
their global market growth.
Portfolio Management:
How is project portfolio management ensuring that the organization’s collective
projects are aligning with its strategic objectives?
Project portfolio management (PPM) is a strategic alignment process through which the
various projects of a business organization are analysis and evaluated in order to decide upon the
purpose, the relevance and the various advantages as they are related with the company`s target
along with purposes. The various projects of a business organization put together into a group of
programs, which is derive from the theory of “relevance and similarities”. All the different
programs as well as their relevant projects should come under the portfolio strategy as structured
by the project management officers (PMO) in order to comply by the objectives of the business
organization. “As such, the Project portfolio management (PPM) is not only a process to align
projects with the strategies, but to align project policies along with the processes which are
involve in the organizational objectives”.
It is to make sure, that the organization`s collective projects are on the same line with the
strategic objectives of the business organizations. With the help of Project Portfolio Management
(PPM), the project management officers (PMO) must at first select all the important projects
among all the various projects, without which it is impossible to create effective project portfolio
management (PPM) strategies. It would also help in determining “how each project will impact
company-wide strategy”. Then the project management officers (PMO) prioritize the various

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projects keeping the business organizations strategies in mind and allocate and manage the
various resources accordingly (EPMC, 2011).
Has a Project Management Office been introduced into the organization and, if so,
has it played a role in terms of standardizing practices and increasing project
success rates? If not, why not? What alternative approaches are available?
The Watpac which is one of the leading national constructing company in Australia
founded in the year 1983. A project management officer (PMO) is appointed in the Watpac
company. It has helped in description standardizing the practice and increase project success
rates. The Watpac Company implements modern portfolio theory as well. Since the Watpac
company operates in different portfolios and uses various different assets and resources, modern
portfolio theory is also very effective. Modern Portfolio Theory helps in analyzing the different
ratio of various assets chosen as well as combined it in the portfolio for the maximum returns
and risks. (Kerzner, 2010).
What quantitative and qualitative tools and techniques is the organisation currently
using to manage its project portfolio and are they effective?
There various tools along with techniques that are been used by the Watpac Business
Organization to manage the portfolios are very effective. Those various tools and techniques are
the key descriptor, KPI, portfolio balancing, PMCL, prioritization and Mesiterplan software. Key
descriptor is use to determine various decision making components such as the project scope,
schedule, budget and KPI, class categories and evaluation score. However the most effect of the
tool is the Mesiterplan software which is most helpful in PPM and resource planning (Project
Management Institute, 2013).

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Maturity Levels:
At what maturity level do you believe the organization is at in terms of its approach
to project portfolio management?
The organization, that is at the fifth level of maturity level with respect to its approach to
project portfolio management as in recent times they have become program and project oriented
organization. This is said so because they are focusing on the building projects in the near future.
The company has suffered a lot in the year 2018 financially (Skaik, 2016). Therefore, the
company is targeting to achieve success in the next coming years by picking up the projects or
tenders. In this level of maturity, the company is responsible for delivering a quality outcome in
the end and Watpac’s motto is to deliver a quality outcome to their clients. Hence, it can said that
they are at fifth level of maturity in recent time.
What are the key best practices which can be adopt to improve the maturity level
and which model (e.g. PRINCE2, OPM3) do you think would be appropriate?
The best key practices which can be adopted by the company to deliver a high quality
outcome is by
 Taking all the responsibility divided equally with the different department in the
organization (Crawford, 2006).
 Enhancing the system and making sure that the quality output is being deliver to the
client.
 Utilizing the resources in such a way that the project can be done in less possible cost
(Swanson, 2012).

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 Maintain focus on the projects that have taken by the company so that they can meet
timeliness.
These are the key practice the Watpac need to adopt in their organization to justify the
maturity level.
The company Watpac follows two different type of business model such as DBFM (Design,
Build, Finance and Maintain) and BOOT (Build, Own, Operate and Transfer) as their business
model. This is the best possible model that is being follow by the organization.
How might you go about implementing this change and what assistance from the
organization would you require?
The changes, which is implemented by the organization, are namely, management
support, communication change, implementation of plans that have been structure, involvement
of the employees and removing the barriers along with follow up done to deliver quality output
(Flynn, Pan, Keil & Mähring, 2006). These few changes need to be implement by the
organization.
The organization Watpac need to stick to the plan that have been structure by them. If
this plan can be follow by the organization then they will be able to receive huge amount of
profit from the market. These will also enable the organization to deliver a high quality output to
the customers, which will automatically increase the productivity of the company.

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Corporate culture:
Corporate culture of the organization:
Building effective corporate culture is very much important factor in building morale and
productivity among the staffs which are the key factors in improving the performance of an
organization. This is the way, through which the financial health of an organization can also be
accelerated (Blomquist & Müller, 2006). Being one of the largest construction companies in
Australia, Watpac is highly committed towards building effective corporate culture with the
intension of generating positive vive among the staffs. As the employees are the key assets of
their organization, the higher authority of the organization always shows supportive attitude
towards the staffs which is the key of keeping them satisfied. One of the greatest aspects of the
corporate culture of Watpac is that, they inspire women in the construction activity
(Watpac.com.au. 2019). In addition, innovation and creativity are the key aspects of the
corporate culture of the company Watpac.
Change management initiative:
Change in the inevitable factor in sustaining in the highly volatile business environment.
As the requirements of the customers are diversifying in a rapid manner, Watpac has taken
significant change management initiative. It is imperative to note in this context that in order to
manage the project portfolio and integrate it with the change management activities, Watpac is
putting consistent stress on discipline (Müller, Martinsuo & Blomquist, 2008). This is the key of
attaining long term success from project. The project manager of Westpac is highly committed
towards executing the planning and ensuring the closure of the project. The project manager of
the organization also acts as the change manager and ensures the fact that the project has

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satisfied the predetermined goals and objectives. In addition, the change manager of Watpac also
holds the responsibility of using the skills of the staffs properly to complete a project within the
time and within the budget as well.
Different aspects of corporate culture for supporting project portfolio management:
The inclusion of appropriate organizational culture plays a major role in terms of
managing the portfolio of a project properly, which is very much require in order to complete a
project in a timely manner as well as in a cost effective manner. National, organizational, and
group levels of corporate culture are the key factors in terms of managing the construction
project effectively (Silvius et al., 2012). Thus, it can be said that the employees are the vital
aspects of an organization who can support and ensure appropriate project portfolio
management. The staffs are the key factor in terms of taking decision and implement
comprehensive strategy in order to complete a project successfully. In addition, the staffs also
create a planning culture inside the organization to explore the steps that are needed to be
followed to complete a larger project within the given time.
Challenge of project portfolio management:
There are multiple challenges, which Watpac might face in the way of managing the
project portfolio. Lack of appropriate internal politics and culture is the biggest barrier to adapt
project portfolio management policy. In addition to that, the staffs may also show reluctant
attitude which is also a biggest barrier (Knudson, 2013). The team members may feel queasy as
proper project portfolio management requires constant monitoring. At the same time, lack of
control over the employees who are resistant to change is another biggest barrier of project
portfolio management.

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Conclusion:
The project portfolio management might be consider as a senior leadership discipline
which drives the strategic execution as well as extends the business values through selecting,
optimizing and overseeing the project investments, that is align to the goals of the business and
the strategies. It is the centralized management of the methods along with various technologies,
which are been used by the project managers and the management offices.

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References:
Blomquist, T., & Müller, R. (2006). Practices, roles and responsibilities of middle managers in
program and portfolio management. Project Management Journal, 37(1), 52–66.
Crawford, J. K. (2006). The project management maturity model. Information Systems
Management, 23(4), 50–58.
Deloitte US. (2015). PPM Maturity and Organizational Transformation. [Video File].
EPMC (2011) Project Portfolio Management: A View from the Management Trenches, 1st
edition, Wiley, NJ.
Flynn, D., Pan, G., Keil, M., & Mähring, M. (2006, October). De-escalating IT projects: The
DMM model. Communication of the ACM, 52 (10), 131–134.
Kerzner, H (2010) Project Management Best Practices: Achieving Global Excellence,
2nd edition, Wiley, NJ.
Knudson, T. (2013). The portfolio track. Present perfect. PM Network, 27(12), 26.
Müller, R., Martinsuo, M., & Blomquist, T. (2008). Project portfolio control and portfolio
management performance in different contexts. Project Management Journal, 39(3), 28–42.
Project Management Institute. (2013). The standard for portfolio management (3rd ed.).
Newtown Square, PA: Project Management Institute.
Silvius, G., Schipper, R., Planko, J., van den Brink, J., & Köhler, A. (2012). Sustainability in
project management. Surrey, England: Gower Publishing Limited.

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Skaik, S. (2016). Taking Statutory Adjudication to the Next Level: A Proposal for Review
Mechanism of Erroneous Determinations. International Construction Law Review, 33, 287-311.
Swanson, S. (2012, May). Measuring maturity: An organization’s project management maturity
is a key success indicator—but only if companies know how to gauge it. PM Network, 26(5), 40–
45.
Watpac.com.au. (2019). Our People - Watpac Limited. [online] Available at:
https://www.watpac.com.au/careers/our-people/ [Accessed 22 Aug. 2019].