Overview
This metric is particular to project and product work pipelines and is about re-enforcing that proper business
justification needs to be presented and considered as part of the organization's portfolio investments decisions.
A frequent but not necessarily best practice approach within organizations
is to initiate projects or products that are perceived as critical -- for purposes
of urgency or expediency -- without ensuring that the requirements of the
portfolio review and investment process will be met. The unfortunate reality
is that this frequently represents back-door entry to fund executive pet projects
and bypass the need to develop and present the justification to other members
of the executive team.
Aside from closing the back door to the firm's funding process, this metric
emphasizes that providing proper business justification is a pivotal step to
optimizing the use of funds to maximize the overall portfolio value.
Measurement method
Total number of proposals compared to total number of business justifications.
Measurement analysis
Depending on the technology in place to manage the portfolio investment process,
some of this monitoring can be achieved in a semiautomatic manner through data
extracts and trending, or it can be done manually through project peer reviews
or project phase gate review audits.
Examples
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