Project Portfolio Management: A View From The Management Trenches

7.3. KEY 3: MOVING BEYOND BENEFITS REALIZATION TO VALUE CREATION

"Hi, John, how can I help?" asked Chris.

"I really appreciate this, Chris. I've been talking to Bill about the benefits paradox—we all invest in projects to realize benefits and yet we all seem to struggle to demonstrate that those benefits have been realized. Bill's been explaining to me that the answer lies in ensuring that a focus on benefits underlies our portfolio management processes with the objectives of ensuring that all benefits claimed are robust and realizable, and that all potential value is captured—I've got that right haven't I, Bill?"

"That's a pretty good summary, John."

"Okay, good, but Bill suggested there was a third key and that you're the expert to advise me, Chris."

"I'll see if I can do justice to Bill's confidence in me," joked Chris.

"Keys one and two have laid the basis for a value-driven approach to Project Portfolio Management. Ensuring we realize the full value from our portfolio, however, requires that we go further in shifting the focus from reactive benefits tracking to proactive value management. This in turn requires:

• "First, effective leadership that embeds the expectation that value will be actively managed in a constant search for ways to leverage investments. Portfolio management is a change program—senior management needs to 'walk the talk,' if you'll pardon the cliché.

• "Second, we need to change the organizational incentives. This includes realignment of the reward and recognition ...