Which project-portfolio will a project enter

These criteria help to direct new project proposals to the right project-portfolio.

Criteria for entering a Global Project-Portfolio - Functional/Business

  • The project proposal has an intended global impact on customers, suppliers, markets or employees
  • To be successful, this project proposal needs approval and commitment from multiple countries or functions across the globe
  • The project proposal seeks to improve or change a key global process
  • The impact of the project will be across multiple countries and functions
  • The investment levels required to support this project proposal require the knowledge and approval of the global board and key global decision makers
  • The project proposal involves transformational change
  • The same change is required in each region/country/function across the globe, making it necessary to co-ordinate, standardise and support the changes centrally

Criteria for entering a Regional Project-Portfolio - Functional/Business

  • The project proposal has an intended impact in more than one market, country, distribution channel within a region
  • To be successful, this project proposal needs approval and commitment from more than one country, or from every functional head in the region
  • The project proposal seeks to improve or change a key regional process
  • The impact of the project will be across multiple business units/functions within the region
  • The investment levels required to support this project proposal require the knowledge and approval of the regional board and key regional decision makers
  • The project proposal involves transformational change within a region, but may leave other regions unaffected
  • The same change is required across all countries/functions in the region, making it necessary to co-ordinate, standardise and support the changes centrally

Criteria for entering Local Business Project-Portfolio

  • The project proposal is market specific - unlikely to move beyond one country/business unit
  • The business is taking the lead on a project - even though it has regional expansion capabilities
  • The project proposal is targeted to overcome or diminish the biggest threats to the current and future local business, and thus needs visibility and approval by the local board
  • The project proposal provides a significant opportunity to achieve one or more of the business strategies
  • The project cannot be allowed to fail, nor can the benefits fail to be maximised, because the cost to the business would be too high
  • To be successful, this project proposal needs approval and commitment from more than one director in the business unit
  • Board approval would be required to release the level of funding required
  • The team required to deliver the project, and/or the stakeholders impacted by it, are cross-functional
  • The project goal involves transformational or substantive change to the business
  • The project involves a legislative change or external deadline (for example moving to Euro Currency) and the consequences of failure are too serious to entrust to a functional director

Functional Project-Portfolio - Country Specific

  • The project proposal does not meet any of the above criteria
  • The project could start and be completed within a function, with little need to draw on expertise outside the function
  • The goal involves substantive or incremental change within a function
  • The function possesses the resources and authority to progress the project

Should a project belong to only one project-portfolio?

Ideally, and to avoid confusion, a project should reside in one project-portfolio - the portfolio where the authority exists to make decisions on stopping or starting the project. However, projects increasingly originate at a global or regional level and require the solution to be deployed in multiple functions and countries, or originate in one country and expand into others

In this situation the project remains in the project-portfolio where decisions are made, and can also be placed in all the project-portfolios where the project will be implemented and utilise resources. Such projects must be clearly identified as 'information only' projects, as opposed to those about which the project-portfolio board can make decisions.

The relevant boards still need to pay attention to these information-only projects in order to understand and track where their resources are being utilised and what level of change is taking place in the area of the business the portfolio relates to.

If these projects are not represented in the project-portfolio, the project-portfolio board will be working with an incomplete picture.

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