Page 437 - Global Project Management Handbook

21-10 MANAGEMENT OF THE PROJECT-ORIENTED COMPANY

Project 2 Project X
Project 1

Project Y
Program
office Program Business
manager process
owners
Program team
Program
Program organization
owner team

FIGURE 21.7 The role of the business process owners in the program organization.

BUSINESS PROCESS MANAGEMENT AND PROJECT
PORTFOLIO MANAGEMENT

Business processes of project portfolio management include assignment of a project or a
program, coordination of the project portfolio, and networking between projects (see
Chap. 7). These project portfolio management processes, as well as the control of an
investment (initiated through a project or a program), are the context of the project
management and program management processes. The relationships between these
business processes are shown in Fig. 21.8. This graphic presentation of chains of

business processes promotes appropriate management of the relationships between
the business processes (e.g., transfer of knowledge from the assignment process into the
project start process).
A central instrument for project portfolio coordination is the project portfolio score
card (see Chap. 7). Based on the aggregated view of all projects and programs held by the
project-oriented company at any point in time, it is possible to draw conclusions regard-
ing the quality of the underlying business processes. If, for example, the relationships to
suppliers do not score favorably, the underlying procurement process might not be ful-
filled appropriately. If required, optimization measures can be defined for the business
process.
An explicit consideration of the quality of business processes of a project-oriented
company is possible if the project portfolio score card of Jankulik and Piff is applied (see
Chap. 19). In this model, the business processes “project management,” “engineering,”
“procurement/logistics,” “assembly/supervision,” “initial operation/training,” and “pilot
operation of contracting projects” of an engineering construction company are scored
(Fig. 21.9). Interventions by the project portfolio group for the improvement of single
business processes are possible.