Concepts

Professionals with a Portfolio Management Professional (PfMP) certification are particularly adept at this, thanks to their training in identifying and implementing effective problem-resolution strategies. By effectively communicating recommended actions to key decision makers, PfMP certified individuals facilitate timely approval and successful implementation of proposed solutions, thereby ensuring the seamless progress of projects in a portfolio.

Identifying and Managing Issues

Skilled Portfolio Managers can analyze complex business operations, pinpoint potential issues and develop effective solutions. A major concern often revolves around effectively managing multiple projects and addressing inter-related issues which could significantly impact business operations. Articulating these problems to the key stakeholders effectively is critical. Hence, PfMP certified professionals are trained in techniques that ensure accurate, timely and effective communication.

For example, consider a software development portfolio. One of the projects in the portfolio is heavily delayed due to key employee turnover. The delay in this project would invariably affect the other related projects in the portfolio. Using sound project portfolio management techniques, the PfMP certified manager would identify this impending issue, analyze its potential impact and identify possible remedies.

Escalating Issues and Communicating Solutions

Once an issue has been identified, the next step is escalating the concern to the right decision-makers. This is where the communication skills of a PfMP certified individual come into play. It’s necessary to articulate clearly what the issues are, the risks they pose to the portfolio and business, and the proposed solutions.

The recommended solutions need to be clearly justified, thoroughly analyzed, and well-documented with potential risks and their mitigations also mentioned. For instance, in the previous example of the delayed software development project, the Portfolio Manager might propose hiring temporary resources or reallocating resources from less critical projects to expedite progress.

Risks Mitigation
High cost of temporary hires Choose less expensive contractors
Morale issues due to reallocation Ensure proper communication to teams
Delay in less critical projects Gain approval for revised timelines

All accompanying risks and mitigation strategies should be laid out just as clearly for the decision-makers to make an informed decision.

Securing Timely Approval and Implementation

Lastly, the aim is to get speedy approval for these proposed solutions and implement them effectively. This part requires negotiating and influencing skills to get the stakeholders on board as soon as possible, to prevent further negative impact on the portfolio. The Portfolio Manager needs to keep in mind the overall strategic direction of the portfolio while proposing these solutions.

The success of this step is also heavily determined by the rapport that the Portfolio Manager shares with the decision-makers. It takes repeated successful deliverables and reliable forecasting to build a sense of trust in these solutions. Regular communication and updates can also aid in making the decision process smoother and timely.

The PfMP certification not only equips Portfolio Managers to manage complex portfolios but also to address and escalate issues efficiently, ensuring the achievement of business objectives and strategy alignment. Their ability to diagnose problems early, propose optimal solutions and communicate them effectively makes them invaluable to any organization.

In conclusion, the PfMP certification goes beyond the basics of project management. It bestows both a granular understanding of managing individual projects and a broader perspective allowing for effective coordination and optimization across a portfolio. The competencies earned through this certification empower professionals to propose solutions, escalate for approvals, and implement them effectively, ensuring that the organization stays on course to achieve its strategic objectives.

Answer the Questions in Comment Section

True/False: The management of issues should only be handled by the portfolio manager.

  • True
  • False

Answer: False

Explanation: The portfolio manager is important in guiding the overall process, but issue management involves teamwork, including but not limited to other managers, stakeholders, or even a dedicated issue management team.

In the process of issue management, timely approval and implementation of proposed solution(s) is not important.

  • True
  • False

Answer: False

Explanation: Timely approval and implementation is key in issue management. Delay can lead to further complications, cost increase, or other problems.

Multiple Select: Who are the appropriate decision makers to communicate recommended actions to for approval and implementation?

  • a) Stakeholders
  • b) Sponsors
  • c) Project Team
  • d) Customers

Answer: a) Stakeholders, b) Sponsors

Explanation: While the whole team’s viewpoints can be considered during the problem-solving process, it is typically the stakeholders and sponsors who provide final approval for recommended solutions.

Single Select: What is the primary role of the portfolio manager in managing and escalating issues?

  • a) Identifying the issues
  • b) Performing the root cause analysis
  • c) Communicating the proposed solutions to the appropriate decision makers
  • d) Implementing the proposed solutions

Answer: c) Communicating the proposed solutions to the appropriate decision makers

Explanation: The portfolio manager ensures the proposed solutions are adequately communicated to the necessary decision makers for timely approval and implementation.

True/False: The process of escalating issues and communicating proposed actions can be bypassed if the portfolio manager thinks the issue is not significant.

  • True
  • False

Answer: False

Explanation: Regardless of perceived significance, every issue should undergo the management and escalation process to ensure a thorough and consistent treatment of all issues.

Single Select: What can be the consequence of failing to manage and escalate issues properly?

  • a) Increase in project cost
  • b) Delay in project timeline
  • c) Loss of stakeholder trust
  • d) All of the above

Answer: d) All of the above

Explanation: Proper issue management and escalation are key to maintaining cost control, schedule adherence, and stakeholder trust.

Single Select: Escalation in issue management refers to:

  • a) Increase in issue size
  • b) Increase in urgency or importance
  • c) Closing the issue
  • d) Identifying the root cause

Answer: b) Increase in urgency or importance

Explanation: Escalation often refers to elevating a particular issue in terms of its urgency or importance within the management process.

True/False: Communicating recommended actions for issue resolution to decision makers is a one-time process.

  • True
  • False

Answer: False

Explanation: The communication process is iterative and happens until the issue is resolved and the proposed solution implemented.

Multiple Select: A strong issue management and escalation process is characterized by:

  • a) Transparency
  • b) Timely Communication
  • c) Unnecessary Delays
  • d) Stakeholder Engagement

Answer: a) Transparency, b) Timely Communication, d) Stakeholder Engagement

Explanation: A strong issue management and escalation process must be transparent, ensure timely communication, and engage all relevant stakeholders.

Single Select: In issue management, the ‘appropriate decision makers’ refers to:

  • a) The people directly affected by the issue
  • b) The head of the organization
  • c) The people with the power/authority to approve actions and changes
  • d) Everyone in the organization

Answer: c) The people with the power/authority to approve actions and changes

Explanation: The ‘appropriate decision makers’ are those with the authority to ratify decisions, which is critical on the path of resolution to issues.

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Megan Oliver
7 months ago

Great post! Understanding how to escalate issues to the right decision-makers is crucial in portfolio management.

Angela Cano
8 months ago

Absolutely, timely approval and implementation can save a lot of headaches later on.

Palmira Vieira
7 months ago

I appreciate the detailed explanation on this topic. Communication is so often overlooked in portfolio management.

Emmy Pierre
8 months ago

Thanks for sharing this! Very informative.

Aitor Mora
8 months ago

I found this extremely helpful as I’m preparing for my PfMP exam.

Billy Allen
8 months ago

One area I think we also need to focus on is the follow-up process after escalation. Any thoughts?

Marilou Abraham
5 months ago

Does anyone have practical examples of effective issue escalation in their organizations?

Teresa Parra
8 months ago

I’m curious if anyone has used automated tools for issue escalation? If so, which ones?

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