Let us begin understanding the benefits with the definition of portfolio management and the various types. It is the art and science of the selection and overseeing an organization’s programmes and projects that meet the long-term objectives and the capacity to deliver. There are four types of portfolio management viz. Active, passive, Discretionary and Non-Discretionary portfolio management. With the help of various Enterprise architecture tool, a business can increase its response to changes quickly and adapt while not making costly changes/ amendments.
Let us dive straight into the various benefits of portfolio management for business architecture.
1. The first one is the improved selection process for projects: it gives priority to the selection of the right projects keeping in mind criteria such as the business goals and the availability of resources, picking the most rewarding projects by careful evaluation is the first benefit in the list. This feat is achieved by with the help of a combination of quantitative and qualitative techniques that are well-defined rather than ambiguous factors.
2. Focuses on business goals: by creating an open culture, one in which managers can interact with other levels and ensure that business has the top spot in the priority list. When the goals are defined to a crisp and the roadmap is put in front to reach the destination it ensures that all the demands of the business are met on the way in the most efficient manner. The lack of well-defined goals is a major reason for the failure of projects as it can lead to side-tracking by a smaller project or trends. It prevents you from falling into the statistics of the ones which were not able to achieve the set goals. According to Value Blue, BlueDolphin is a great example of tools that have helped organizations achieve their set goals without losing sight of the bigger picture and having pinpoint focus.
3. Gives a holistic view of the bigger picture: this is helpful as when organizations have a lot of projects in the sack, they tend to lose the long-term road-map as things get more chaotic and complex with the addition of newer projects that are necessary for the growth of the business and more focus is poured into executing the short-term projects. The perception that the business has at the beginning of the project might no longer be relevant after a certain period leading to the losing sight of the bigger picture. It helps by assisting in taking the right decision at the right timekeeping in perspective the long-term goals of the company.
4. The most efficient usage of the available resources: when the resource availability of an enterprise is taken into consideration right at the beginning when picking the projects this allows for a more rounded approach and also provides clarity on the usage of the resources optimally across the various projects.
5. It gives you a better idea of the available skill at hand so that you know where to designate particular resources according to their skill level also making sure that there is no shortage of resources when you need them the most at peak levels. This is done by scanning the capacity and redistributing talent across various projects also known as resource profiling.
6. Better decision making that is well-informed: making a ground-breaking decision is only possible when there is accurate data that can be extrapolated from, in essence, you are as good as your data. These decisions then serve as inflexion points in an organization. Making the best use of data-centric tools that enable leaders in taking the right and shrewd decisions is another way it benefits an organization. This is because of the unlimited visibility of the project metrics of the past and the ongoing ones.
7. Meeting timelines better than ever: this is one of the hardest feats to achieve simply because of the complexities involved in large projects and also simply because there is a lot that could go wrong because of unforeseen factors. Timely project delivery is still a struggle for as high as thirty-two percent organizations and most of which do not take the assistance of such tools.
8. Reduced risks: having a holistic view of the projects keeps you a step ahead and prepared to face any upcoming impediments with ease. The chances of stumbling into something that goes unforeseen is almost eliminated and even if such a situation does arise the organization is able to adapt quickly and find a resolution. The risk management strategy helps prepare for contingencies and has backup plans just-in-case.
9. Minimized risk resulting in maximum profits: shooting an arrow in the dark might get you in a lot of trouble, especially if you are shooting it in an area with a lot of valuable resources, the risk is just too much to let the arrow slip from the grip of your fingers. Similarly, there are ways you can avoid negative impacts which can sometimes be inevitable but a majority of the times can be calculated and avoided. Through the various risk management plans it ensures that you stay on track and are not derailed, it minimizes the impact to the lowest.
10. Higher return on investments: profits is what keeps an organization running and is the ultimate goal for the majority of the organizations. With increased predictability comes shrewd decisions that are taken in favour of the organization and also are cost-saving that translate to increased return on investments. Also, better forecasting of projects pertaining to their demands and a clear idea of the resource availability lets you use the valuable resources wisely without exhausting them entirely.
Portfolio management is the set of eyes that you need to oversee the seamless running of a project and also the set of policies and help that you need in taking the right decisions to avoid the unforeseen circumstances or at least minimize the impact caused. Portfolio management ensures that you get a high ROI with the best allocation of your resources.