Ringing in Your New Year with Project Management

While a financial institution’s project portfolio is continuously reassessed as new projects come up, the beginning of the year is a good time to ensure that the current portfolio aligns with the overarching strategic plan and projects are prioritized accordingly. It’s also a good time to update procedures and governance documents and assess Project Management Office (PMO) staffing needs.

Reassessing the project portfolio and realigning as necessary based on resource availability and priority of the initiative is typically the role of a PMO Director. According to PRI Director of Project Management Sue Schmiedeler, organizations often start new projects with great enthusiasm but soon fail to achieve project goals. Why? It’s often because they don’t have the necessary resources to accomplish their goals, they fail to properly scope the project, their vendors are not aligned or they simply run out of time. These challenges can be addressed and overcome by continuous project portfolio review and realignment.

Does a Financial institution Need a PMO?

In the PRI white paper Project Management in Banking: Is it a thing? Schmiedeler says that it depends.

“A large institution with in-house development staff should have a fully staffed, centralized PMO. A medium-sized institution may be able to get by with a small staff of project managers that reside within a business line and report to business line managers. A small or medium size institution may benefit from outsourcing project management to a reputable consulting firm.”

Implementing an Effective Project Portfolio

Whether an institution has a formal PMO or not, to ensure a balanced, effective project portfolio, a good project management team should:

• Prioritize projects that achieve business goals and maximize ROI. Select projects that contribute to organization growth, efficiency and customer benefit. Identify and reduce any disconnects between the people saying “go” and the institution’s long-term strategic plan.
• Consider project planning software if there isn’t one used currently. Some of the more well-known software programs include MS Project, Planview, Monday.com, Smartsheet, Asana and Jira.
• Explore utilizing Artificial Intelligence tools. According to ProjectManagement.com, AI could have the ability to enhance project management activities by analyzing resource allocation, automating task scheduling and repetitive tasks, estimating costs, managing documents, assessing project risks and monitoring team performance[SS3] .
• Implement a project scoring model if there isn’t one currently. A scoring model allows the project management team to rate every project request in terms of variables such as risk, how long it will take to accomplish, how many resources will be needed, how many different departments it will impact, 3^rd party vendor needs, regulatory implications and cost. The model weighs each factor and produces an overall score, which helps the project manager decide where it fits in the overall portfolio. Scoring models can be purchased or the team can design its own according to its organization’s unique needs and goals. 
• Maintain a balanced mix of projects, keeping in mind how they each impact the institution’s resources and bottom line. A balanced, effective portfolio will feature short-term, mid-term and long-term projects with different levels of risk to ensure the workload is spread sustainably throughout the year. 
• Break down work silos. Collaborate with managers and executives to ensure all known and potential projects are accounted for. Ensuring buy-in by the business on project priorities is prudent. 
• Be prepared to shift as more projects are introduced or current projects encounter roadblocks. Remember that institution circumstances can change suddenly, and an effective project manager will be ready to pivot. “Always have a contingency plan,” Schmiedeler said. “Use the ‘If, then’ method. If this happens, then _______.”

Reassessing your project portfolio ensures that project work aligns with strategic objectives, projects are prioritized appropriately and resource needs can be met. The new year is a good opportunity to conduct a thorough analysis of the project portfolio and create a roadmap for the year ahead.  

Resources 

Project Management in Banking: Is it a thing? – PRI

Tips and Best Practices for Managing a Project Part 1 – PRI

Tips and Best Practices for Managing a Project Part 2 – PRI

Project management improvement using AI – Projectmanagement.com

PRI specializes in identifying profitability improvement areas for financial institutions through revenue growth, cost control, streamlining processes, and effective use of technology. Contact us to learn more about our personalized approach to propel growth and improve profitability.