The troubled global economy has forced companies big and small to reevaluate their project portfolios, zeroing in on those projects that bring real value and cutting everything else. “Companies aren’t just slashing the top 25 percent [of their portfolios], they want to cut right 25 percent—trimming the fat and focusing their emphasis on projects that support the business more efficiently,” says Margo Visitacion, analyst with Forrester Research, Marlton, New Jersey, USA.
At global IT services firm CPM Braxis, based in São Paulo, Brazil, portfolio manager Renan Guedes, PMP, is taking a hard look at his project portfolio and rethinking where his organization invests its capital. “We are focusing on the big projects, making sure the payoff is at least what we expected. And we are cutting the smaller ones where the potential payoff is not enough,” he says.
Mr. Guedes is quick to point out that even though some of the company’s projects must go, they weren’t bad choices when they were launched.“But now everything has changed. We can’t bet on high-risk projects in this economy. We need to follow a safer path,” he says.