Project Portfolio Management - Joint Research Paper with eacg and Cass Business School

In these economic times, discretionary spending needs to be focused on delivering the right projects. The projects that will deliver the most benefit to the enterprise, not just a specific operating unit.

Only through rigorous management of the Project Portfolio will companies achieve this. Recent research conducted by ea Consulting Group in conjunction with the Cass Business School, part of London's City University, suggests that not all firms in the financial services sector operate best practice in this vital area.

25 predominantly large UK-based organisations, covering retail and investment banking, insurance and funds management, participated in the research, which assessed their state of maturity in managing project portfolios.

Some of the findings were surprising - the more mature organisations tended to deliver a significantly smaller number of projects; however, they probably achieve this by amalgamating projects into a smaller number of well-aligned programmes.

We also found a general perceived inability to cut projects from the portfolio. This inability is nurtured by operating cultures wherein project resources are stigmatised by association with terminated projects.

And we found a relatively ineffective use of portfolio management tools, despite - in many cases - substantial investment in software products and their implementation. Often, however, insufficient attention was paid to generating an operating culture which maximises the benefits of such tools.

More detailed information can be found in the report from the research project, which can be downloaded here.

For more information, contact Peter Andrew or Steve Robson on 020 8898 0734

Peter Andrew

Principal Consultant
ea Consulting Group

May 2009

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