Establishing a Portfolio within an Organisation - Essay Example

Advantages and Disadvantages of Establishing a Portfolio, Programme and Project Governance Structure within an Organisation Institution Date Introduction Establishing effective management and operations of a multi-project or programme environment depends largely on the portfolio, programme and the governance structure. A portfolio denotes the collection of programmes, operations or projects that are managed as a group to achieve the desired goal or objective. As such, portfolio management is critical in aligning organisational strategies by selecting the appropriate programmes or projects, prioritising work and availing the required resources. Portfolio management also balances the conflicting demands between projects and programmes in terms of allocating resources by considering priorities and the capacity of an organisation (Reiss & Rayner, 2012). On the other hand, a programme in an organisation refers to a particular set of similar projects or plans that can deliver the defined objectives. The main aim of a programme involves placing the objectives or goals of an organisation at a strategic level for purposes of realising benefits and improvements concerning the business operations (Reiss & Rayner, 2012). In most cases, managing a programme is almost similar to managing a project because an organisation’s programme consists of projects or plans that can only succeed through effective management. In this sense, programme management plays a role in the coordination or integration of an organisation’s strategic goals (Byrne, Keys, Schaffer, & Solic, 2014).Concerning governance structure, effective management of programmes or projects depends on the established system of governance. This may include the structure of authority, the responsibilities or roles of each member and the values and beliefs that drive an organisation towards achieving its defined objectives or goals (Marquis & Lee, 2013). Advantages and Disadvantages of Establishing a Portfolio within an Organisation Establishing a portfolio in an organisation helps in maximising profits when projects are grouped properly (Neveraukas & Ciutiene, 2011). In essence, a properly established portfolio helps an organisation to avoid repeats and remove unneeded items. As such, time and money are saved by establishing the correct portfolio for managing projects or programmes in an organisation (Teller, 2013). A portfolio in an organisation also plays a role in minimising risks and balancing the needs of projects and programmes in terms of allocating the available resources. Most organisations today are focused on downsizing in order to save money; however, establishing a portfolio in an organisation facilitates the spreading out of resources (Bansal, Kumar & Verma, 2014). As a result, an organisation can obtain positive results from personnel, suppliers and other resources. Establishing a portfolio also increases the chance of resolving performance issues that may exist in the implementation of a programme or project. Creating a portfolio for an organisation also enhance communication and proper coordination of projects (Teller, 2013). Consequently, improvement of communication skills results in an efficient handling of management issues. In addition, portfolio also improves corporate and project governance which is important to realising success in project delivery. Establishing a portfolio also allows organisations to adopt an efficient management of processes, finances and the defined objectives (Bansal, Kumar & Verma, 2014). Conversely, the disadvantages of establishing a portfolio in an organisation include lack of clarity whether it is a project or a programme. There is also a lack of a consistent approach in terms of establishing uniform processes for portfolio management (Reiss & Rayner, 2012). Most portfolios are also limited in terms of addressing operational, financial and strategic objectives of an organisation. Establishing a portfolio in an organisation can lead to a concentration on one project and ignores other sections of the business. A portfolio can also lack strategic alignment in terms of not aligning the delivery strategy to an organisation’s strategies, and operational factors are also ignored (Reiss & Rayner, 2012). Advantages and Disadvantages of Establishing a Programme within an Organisation The advantages of establishing a programme within an organisation include providing a direction concerning the identified strategy. In an organisation, a programme plays an important role in enabling an organisation to focus on how to achieve the defined objectives or goals. Through a programme, an organisation can plan its activities effectively from initiation, implementation and completion (Nasholm & Blomquist, 2015). A programme further helps an organisation to plan and structure how operations or activities are managed. Establishing a programme within an organisation is also beneficial in terms of improving efficiency and performance in the implemented projects. Where there is an established programme within an organisation, it is easier to forecast for the future in terms of improving business operations (Byrne, Keys, Schaffer, & Solic, 2014). On the other hand, poorly implemented programmes may affect the overall performance within an organisation. In addition, it is difficult to match programmes with the identified strategy within an organisation. Such a process requires knowledge of previous programmes that have worked within an organisation (Byrne et al., 2014). Advantages and disadvantages of establishing governance structure within an organisation In an organisation, a structure established for running business affairs is critical to achieving success. In this sense, the governance structure used within an organisation is a determining factor in the direction that an organisation takes (Marquis & Lee, 2013). Governance structure in an organisation may encompass management and leadership, accountability, transparency, reliability and social responsibility. The benefits of establishing a governance structure for an organisation are that, it helps to improve management and leadership (Margquis & Lee 2013). Depending on the governance structure, the management can improve its relations with other employees. For example, an organisation that focuses on innovation can embrace a governance structure that is democratic. As such, openness and communication between other employees and the management improve because there is a sense of inclusiveness in the decision-making process rather than the adoption of a principal-agent relationship (Adungo, 2012). The governance structure adopted by organisations also can enhance accountability, reliability and transparency. Successful organisations tend to develop a governance structure that is based on sound ethics. As a result, efficiency in terms of management and the relationship with workers and customers improves significantly (Adungo, 2012). Establishing a governance structure within an organisation also help to define the responsibility of employees within an organisation. This helps to improve productivity since everyone is aware of his or her duty in realising the defined objectives or goals of an organisation. Establishing a governance structure within an organisation can also help to improve social responsibility. For instance, developing policies aimed at improving incentives for employees. In turn, the employees can reciprocate by improving their performance and incidents of employee high turnover are minimal (Grant & McGhee, 2014). On the other hand, different governance structures in organisations also have their demerits. For instance, governance structure that is poorly constructed can lead to the collapse of an organisation. This is because an ineffective governance structure creates gaps for inefficient management of resources (Grant & McGhee, 2014). The type of leadership style adopted by the management can also impact on employee’s productivity. For example, an authoritative leadership style in an organisational environment that thrives on innovation can be counterproductive. Conflicts may also arise concerning the governance structure established within an organisation. This is evident in a situation where misunderstanding emerges between the management and employees (Margquis & Lee 2013). In some situations, change management is affected negatively depending on the governance structure adopted by the management. For instance, a governance structure for the management that does not include other employees in the decision-making process can slow the implementation of new changes in an organisation. The governance structure adopted in an organisation can also impede on the establishment of sound ethics. For instance, the management can use governance structures that favour their personal interest at the expense of other key stakeholders in an organisation (Grant & McGhee, 2014). The Governance Structure for Projects and Programmes In the contemporary business environment, large organisations are recognising the importance of good governance in aligning of major programme initiatives with business strategy and direction. On the other hand, the critical elements of a governance structure include organisational structure, roles and mechanisms (Reiss & Rayner, 2012). Case study: Governance structure for projects and programmes at Apple Inc. The governance structure at Apple Inc. consists of the board of directors, the CEO, senior management, middle managers and the frontline staff. While the CEO is responsible for everyday operations at the Company, the board of directors is in charge of overseeing the operations of the Company on behalf of the shareholders (Mitchell, 2014). Further, in managing programmes and projects at Apple Inc., the CEO the various departments at Apple Inc. use a collaborative strategy (Mitchell, 2014). The effectiveness of Apple Inc.’s governance structure for projects and programmes The decision-making process in the Company involves a management strategy that is collaborative in nature to ensure the generation of ideas and innovativeness is enhanced. The effectiveness of Apple Inc.’s governance structure is evident on how the management ensures that each employee is conversant with their role in improving overall performance (Mitchell, 2014). In the Company, everyone has a specific task to perform that is aimed at achieving the overall goal. Apple Inc. also tends to deploy its workforce effectively and allows the management to focus on important matters such as leading, motivating and improving customer care. The governance structure has created an environment where the management is not involved in micro-managing every single staff at the Company. The management at the Company also strives to make work meaningful. As such, an environment is created where there is minimal supervision since each employee understands the importance of the role they are undertaking in the Company, and there is an emphasis on sound work ethics (Marquis & Lee, 2013). The governance structure of the Company is also constructed in a manner that offers greater opportunities to employees such as a job promotion to enable its workers to advance within Apple Inc. Further, Apple Inc.’s management also maximises shareholder value either on a short term or long term basis. This involves allocating assets appropriately to realise maximum goal and mitigate anticipated risks. The Company’s operations are managed from different geographic locations across the globe. At Apple Inc., workers are grouped according to their area of specialisation and the available resources, thus allowing the Company to learn from its various functions (Mitchell, 2014). Overall, the collaborative structure for managing programmes and projects helps to generate different ideas that have led to the innovation of unique technological gadgets. As a result, the Company continues to grow stronger financially and is a leader in the manufacture of cellular devices globally. In this Company, programme management is in action as evident in the manner in which the operations are organised to improve efficiency and performance of employees. For instance, the Company’s main objective is the generation of ideas and innovations to ensure it develops a differentiation strategy in the cellular devices market globally. This is evident in the unique and innovative products from the Company covering iPhones, computers and tablets (Mitchell, 2014). Recommendations and Conclusion In a competitive business environment, a company can derive benefits from either establishing a portfolio, programme or governance structure. In this sense, the strategy that a company adopts should be effective in terms of meeting the desired objectives or goals. For instance, establishing a portfolio in an organisation is necessary for aligning organisational strategies. This process is enhanced by selecting the appropriate programmes or projects and prioritising work in the organisation to achieve the defined goals. On the other hand, programme management in an organisation is important in providing direction related to the identified strategies. In addition, a programme developed by a company should play a role in improving operations and the overall output. Governance structure on its part, require the adoption of sound practices to ensure the functions within an organisation are not impeded by other vested interest, for example, from the top managers. In establishing a governance structure, the key elements that require consideration include the organisational structure, roles and mechanisms. These elements ensure that the governance structure established in an organisation are operational and relate to the defined goals of an organisation. 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