Introduction to Organization and Project
Each organization needs to focus on different aspects for being successful at international level. P3M (Portfolio, Program and Project management) is one of the important aspects which plays an important role in each and every organization (Greasley, 2007). The current research report is based on P3M performance of AFM bank. It focuses on a case study which shows that bank is facing the problem of poor P3M performance. So, research will describe the major reasons for poor P3M performance of AFM. It will critically evaluate the different options of bank for improving the performance. Further, research will also include appropriate recommendations for improving the management of Portfolio, Program and Project of AFM bank (Kloppenborg, 2011).
AFM is a global bank which is operating its business in different countries but its main headquarter is in South Africa. It has a shared service centre (SSC) for finance and HR in South Africa. But, for reducing the cost of back office, CFO of the bank has decided to relocate its SSC to India or China. Along with this, organization has number of key projects which needs to be completed in order to comply with new banking regulations. Overall, AFM bank is facing the problem of poor P3M performance which is the major research issue of this study.
1. Reasons for poor P3M performance in AFM bank
Portfolio, Program and Project management P3M Framework:
P3M framework can be defined as a set of policies, procedures, tools and different models which are designed to support different functions of organization to attain strategic and tactical benefits from their investment in projects, program and portfolios (Kathy and Deborah, 2007).
As per the given case study, AFM bank is suffered from poor P3M performance. There are different reasons of poor performance which are described as under:
AFM Bank is operating a Shared Service Center for finance and HR in South Africa which supports its global operations. But, requirement of high cost and time is one of the major problems of SSC which has negative impact on portfolio of global operations of bank (Kumaraswamy, 2011).
Bank has an extensive portfolio of projects; however, performance is poor in terms of delivering projects on time and in budget.
As per the given case study, AFM bank has a very large project which poses particular serious risk to future revenue and profit. Therefore, it is also one of the major reasons behind poor P3M performance because it has the negative impact on future performance of organization in international market.
Worse relationship with business users is also one of the major reasons which can decline Portfolio, Program and Project management of AFM bank (Martin and Guerin, 2006).
CIO (Chief Information Officer) of bank has started to introduce Agile Methodology for improving the system development and performance of project. But, after implementation, this methodology has failed to gain necessary commitments from the system users. So, it is also one of the major reasons which affect entire performance of the organization (Zwikael, 2009).
Project manager of bank has left so; lack of standardized project management process across the organization is also one of the major reasons behind poor P3M performance.
Bank does not follow a consistent way to chose profitable investment for firm so; it increases unnecessary cost of company.
As per the case study, there is no appropriate way of monitoring and controlling the project performance (Minney, 2012).
It is an international bank, so differences among culture of each nation also lead to inappropriate management of organization’s culture which also affects the performance of company.
There are different factors of macro environment such as political, legal and ethical issues; environment and economic fluctuation as well as social inequalities are also considered as one of the major reasons of poor P3M performance.
Therefore, all these are the major reasons behind poor P3M performance of AFM bank.
Organization needs to pay specific attention towards projects, programs and portfolios for improving its overall performance (Dey, Clegg and Bennett, 2010).