To: James Anthoney Hanks
From: Team Even (Dan Lepadatu, Sendhil Palani, Jason Reams, and George Samarripa)
CC: John Smith
Date: August 21, 2011
Re: Part I Team Paper- Portfolio Management Process for Network Development
New Project: 4G LTE Technology
Telecommunications play an important role in the world economy and the worldwide telecommunication industry's revenue was estimated to be $3.85 trillion in 2008. The service revenue of the global telecommunications industry was estimated to be $1.7 trillion in 2008, and is expected to touch $2.7 trillion by 2013.
Among those an important player in this global industry is Verizon Wireless being the second largest provider of ...view middle of the document...
The PMO is responsible for the oversight of all projects, including monitoring the progress, operation and financial efficiencies of the projects that has been undertaken. The PMO is using the established selection criteria and is advising the governance council of status and issues that would affect the planned benefits of any project. The governance council consists of senior managers from different SBUs; responsible for reviewing and approving major projects based on the data provided by the PMO. These projects will include the ones identified by top level management and other strategic projects as well. Also, the council can invite resources with no prior project management experience to provide the information and knowledge from a different perspective.
It is the PPM governance council that is charged with the responsibility for the key decisions that affect the project pipeline and provide the framework on the Portfolio Project Management Process (PPM) grouped into two phases as: Prioritization & Selection of Projects, and Pipeline Management. The key objective of the PPM process is to ensure that the projects bring / contribute most value to the firm. The value-add could be through the firm’s focus, strategy and/ or the type of projects that is being considered.
Phase 1: Prioritization & Selection of Projects
The objective of the PPM process is to devise guidelines to identify, evaluate, prioritize and select projects that are strategically aligned to company’s long-term goals and needs. The projects could be evaluated based on key performance indicators a.k.a KPI such as ROI, Estimated Cost Savings, and Expected Revenue Growth etc. Sometimes, these KPIs might not indicate or provide enough evidence to consider certain projects and in that case, the PPM process should have guidelines to undertake or complete ongoing projects, in order to justify the investment and commitment already have been made.
Evaluating Candidate Projects
The goal of the evaluation process is to ensure that the projects will promote Verizon’s strategic goals and plans to carry our organization into the future. The evaluation process should focus primarily on the financial indicators that will provide maximum benefits to the firm as stated above. So, in order to provide a fair evaluation process, there are systems in place to rank the value and benefits, estimate the total costs, assess risks towards the benefits, manage inventory of resources’ availability and allocation. The PMO has provided guidelines to set an acceptable/ reasonable size of the project pipeline to plan for resource and funds allocations.
The proposed project will also be assessed with respect to the ability of producing a significant impact on the company’s international investment climate, within a realistic time period, giving the opportunity to expend the business on new markets worldwide.
Estimate of Total Costs
With the cost projected for each project to completion, we...