From static project budget to dynamic management tool
Traditional project forecasting often fails to gauge the long-term viability of projects implemented by growth-driven organizations. This paper explains how these organizations can use a dynamic budgeting tool--one based on indicators and growth ratios--to measure project success and viability, to measure costs in relation to a business unit’s growth ratio. In doing so, it identifies six drivers of change in the project management office (PMO) and the project portfolio information executives need when making project decisions. It then overviews a valuation process for quantifying business impact, a process that goes beyond measuring cost reductions, a process that is based on dynamic portfolio management. It also lists three questions for assessing portfolio management and five measures for gauging portfolio management success.