How a project portfolio grows your people and your organization

"My company isn't mature enough in project management to move to project portfolio management."

It's the sentence we hear most often during AirSaas demos.

As a reminder, AirSaas falls into the PPM (Portfolio Project Management) category, but we prefer to define ourselves as a project governance tool. -> see our complete guide: "Portfolio project management: the top 10 best practices".

In this article, we'll revisit the most common arguments in favor of standing still on governance processes and confront them with the arguments of a software vendor firmly committed to implementing a modern governance tool!
You'll hear the prosecutor and the defense! It's up to you to reach your own verdict at the end. ^^

We'll also share real-world feedback on setting up the PMO function — a project management office — in an organization with low project maturity.

Happy reading.

Five levels of project management maturity for a company:

1. Initial level: At this level, the company has no formalized project management processes yet. Projects are managed ad hoc, with no established objectives, standards or procedures.
2. Basic level: At this level, the company has established basic project management processes, but they are not yet applied consistently across the company. Project management is still seen as a secondary activity.
3. Intermediate level: At this level, the company has solid project management processes applied consistently across the whole organization. Project management is seen as a key activity and is integrated into the company's overall strategy.
4. Advanced level: At this level, the company has built a strong project management culture, and project management is considered a key skill for employees. The company uses advanced project management methods and the role of the PMO is seen as strategic. It is able to handle complex, large-scale projects.
5. Cutting-edge level (aka Ninja!): At this level, the company has achieved excellence in project management and uses state-of-the-art methods and tools. Project management is embedded in every company process and is seen as a competitive advantage.

Of course, as soon as we talk about culture we're deep in subjective territory. It's important to note that every company has its own pace and its own development path in project management, and that reaching each maturity level can take time.

The arguments against a project portfolio approach in an organization that isn't "mature" enough in project management

Here's a selection of the 7 arguments that could be raised against moving to portfolio project management (PPM) in a company that isn't mature enough in project management:

1. High costs: Moving to PPM can involve high costs, particularly in terms of training teams, acquiring new tools and setting up more complex processes.
2. Resistance to change: Teams might resist the change and struggle to adapt to a new project management approach.
3. Added complexity: PPM can be perceived as too complex and hard to implement, especially if the company doesn't yet have a solid project management culture.
4. Implementation time: Rolling out PPM can take time, which could delay ongoing projects.
5. Adaptability: PPM may not suit every type of project, and some companies might need a more flexible approach.
6. Loss of control: Teams might feel they're losing control over their projects, since management is centralized at a higher level.
7. Need for organizational change: PPM may require significant organizational changes to be effective, which can be hard to pull off in a company that isn't mature enough in project management.

It's important to weigh these counter-arguments before deciding to move to a project portfolio. Some of them may be more relevant to your company than others.

The arguments for a project portfolio approach in an organization that isn't "mature" enough in project management.

1. High costs: Yes, if you compare a governance-alignment tool to collaborative software... sure. Except that here we're touching your company's operating system! And while implementing PPM may involve upfront costs, the long-term benefits can largely justify the investment — better performance, lower costs, talent retention and strategic alignment!
2. Resistance to change: whatever you do, don't talk about change! It's true that change can be hard for some teams to accept, but clear communication and proper training can reduce resistance and ease the adoption of the new governance approach. To change is to still exist tomorrow! Just ask Kodak and BlackBerry! (On this point, we recommend giving a click to the Knoster matrix for successful change — see the Pro de la Transfo blog and its article on what changed in project steering in 2023.)
3. Added complexity: While PPM may seem complex at first, quite the opposite — taking a step back is a 100% natural process. What's complex is managing projects at the micro level! And once the setup and the first three weeks are behind you, with the tool, processes and roles in place, project management itself can become simpler, more effective and less prone to errors and delays.
   
4. Implementation time: While rolling out PPM can take time (count 1 to 2 months on average), it helps build a solid foundation for more effective, more efficient project management over the long run. Gaining clarity over the entire process and automating reporting to leadership bodies will ultimately let you declutter your project managers from certain toxic chores and free up time and bandwidth for them.
   
5. Adaptability: While PPM may not suit every type of project, it can be modular and adapt to different situations and contexts. Let's say it again: it's not reserved for start-ups, mid-caps and large groups — the moment you're competing in a market and running cross-functional projects, this concerns you! Whatever your industry, everyone is concerned!
6. Loss of control: now we're touching a nerve! Yes, by cracking open the horizontal and vertical silos, some "baron" project managers will lose part of their power in favor of an activity better shared with stakeholders — business experts, key users, executive leadership and sponsors. And while project management gets centralized at a higher level, this will help ensure better visibility, better resource allocation and better project coordination, which can ultimately improve project control and governance.
7. Need for organizational change: While PPM may require significant organizational changes, it can help align project management with the company's overall strategy and improve communication and decision-making at every level. Adopting a project portfolio approach and one of its companion software tools is a bet. The bet of growing your people and your organization.
   

Lessons learned from setting up the PMO function - project management office in an organization with low project maturity

Setting up a PMO function and portfolio project management: where do you start? How do you move from the "basic level" to the "intermediate level" of maturity?

Constance VIVIER, PMO and member of the Pro de la Transfo community, shares here a brief look back — more than a year on — at setting up a project management office.

1. Adopt a common language

First of all, you'll need to lay the foundation: create or formalize a project language shared across the whole company — the names and purpose of project deliverables, project phases and governance bodies… It's a good idea to co-build this project life cycle with a few experienced people. To then share it with the entire project community, running participative workshops (modeled on the Climate Fresk, where participants rebuild the project cycle and its deliverables, guided by the PMO) won over more than a few people for its playful way of "de-complexifying" the subject. These "Fresks" are also a way to answer project managers' questions and start instilling a new way of looking at things, by introducing PPM management and the necessary prioritization of projects.

1. Establish rituals

The PMO role should take hold gradually, and one way to embody it is by establishing rituals — steering committees and/or one-on-one check-ins with project managers. It's important to set a cadence adjusted to actual needs, but kept to: it gives the "tempo" to the project community… which can start small and then grow progressively in step with the company's project maturity. All these rituals must pursue the same goal: bringing value — otherwise project managers will show up dragging their feet and see them as a plain waste of time.

1. Formalize the processes

Once this foundation was in place, I leaned on the company's process management approach. I formalized and shared the project portfolio steering process, so stakeholders could understand the why, the how, and the RACI of implementing project portfolio management, the different project categories defined and their impacts (particularly in terms of reporting and governance).

After the process comes writing and sharing procedures, which help clarify blocking points for the whole project community. The PMO role shines brightest when ways of working get clarified and problems get solved!

1. Standardize project methods

On the basis of "the PMO proposes, project managers dispose" (to start with), the PMO provides the community with project deliverable templates — both to save project managers time and to upskill the whole group and harmonize practices. On these deliverable templates, don't hesitate to test&learn and to co-build with project managers you already know are well equipped on one area of project management or another. Likewise, to standardize project methods and the PPM process, get yourself the right tooling.

Like a tea bag in hot water, you gradually infuse the project culture into the company — from project management to PPM, toward operational excellence. Next step? Let it steep, add a splash of milk and stir to reach the advanced level…

The verdict: don't wait for your company to be "mature" in project management to launch a portfolio management approach — otherwise it never will be!

Yes — when it comes to transformation and managerial innovation, structure shapes culture... and vice versa.

In short, governance and execution processes are different AND complementary. Your transformation deserves an effective approach!

Of course, nothing is "black or white" when it comes to advice and human relationships. There are fundamentals nonetheless! Performance, market-share gains, cooperation and the processes for decisions, investment and project portfolios are not reserved for mid-caps!

Investing to implement a project management office — paired with governance solutions like PPM / PMO as a service — is an effort that will structure and amplify an approach already naturally in place. Your teams will get a clear view at a glance and free up precious time in their workload to focus on what matters: relationships and good cross-functional cooperation! Make your choices ^^

And to dig deeper into this key point, head to the article "Lean Portfolio Management to continuously align executive leadership, IT and the business."