Project Portfolio Management Is Key to CEO Success
By Sylvie MacKenzie, PMP on Jul 20, 2012
New research reveals that turnover rates for CEOs are higher than ever, and that the most common reason for replacing a top executive today is failure to execute. This finding comes from a recent succession report1 by the analyst firm Booz & Co. that shows that chief executives in project-intensive industries are under especially high pressure to deliver complex, lengthy projects within predetermined schedules.
Now a new white paper, In the Firing Line: The Impact of Project and Portfolio Performance on the CEO, delves into these numbers and looks at the direct link between the health of the portfolio and CEO performance.
The paper was written by the EPPM Board for Oracle Primavera, a new international steering committee established by Oracle, and offers examples of high-profile projects that failed to follow project management best practices. It also explains why CEOs must create a culture of accountability to enhance the chances for project success.
“CEOs looking to both create and proactively drive results must also work with their executive boards to develop a standardized project and portfolio governance system,” according to the EPPM Board. “This structure needs to incorporate reviews, decision-making criteria, and change management strategies tailored specifically for their organizational model—actions that need to be consistently synchronized with project delivery teams.”
In the Firing Line offers a range of advice designed to help CEOs mitigate portfolio risks, including the need to
- Establish greater oversight into key operational and financial parameters
- Gain insights into financial and delivery obstacles
- Create a consolidated view across the entire portfolio
Read the white paper.
1. Booz & Company, CEO Succession 2010: The Four Types of CEOs, Issue 63, Favaro, Karlsson and Neilson