Dimension 5

Vertical Process Integration

Vertical process integration ties projects to program management, portfolio management, and ultimately to the corporate strategies. Portfolio management acts like a funnel setting priorities and evaluating projects, while program management is on the tip of a pyramid of projects. This leads to the "hourglass" depiction of how the projects of an enterprise are managed.

On a high level, vertical process integration can be gauged by looking at budgeting processes, tools, and KPI-based management of project portfolios.

Integrated Top-to-Bottom Budgeting
To ensure effective budget and fund control, corporate budgets are to be seamlessly integrated into the overall corporate budget process. This involves budget development and budget management.

Multi-Tier Project, Program, and Portfolio Integration
A condition for vertical process integration is the existence of a multi-tier (typically 3-tier) project management structure. It requires comletely integrated project, program, and portfolio applications that tie into corporate strategies.

KPI-Based Project Prioritization and Evaluation
This aspect looks at how effective vertical project integration is applied. Ideally, all projects are authorized, measured and gate-controlled, and evaluated using key performance indicators (KPIs). One of the better known KPIs to assess actual project cost and time performance is consistently applied earned value management.

More detailed analyses can be performed by looking at specific aspects of the tools, methods, processes, and KPIs used to link individual projects to corporate strategies.

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