According to McKinsey & Company, Project Performance facilitates the following components of capital-productivity excellence:

Aligning capital strategy and allocation – Project Performance helps enterprises ensure their capital strategy is aligned with their overall corporate strategy. It helps companies evaluate each project through the lens of the value it creates for the organization. Project Performance also enables enterprises to monitor capital spendings on a regular basis.

Portfolio optimization – Project Performance enables management teams to weigh the value of one project over another. It helps organizations perform business case evaluations for each project. Project Performance allows companies to make refined tradeoffs in the selection of projects.

Streamlining project concept and design – World-class enterprises streamline their project concept and design by selecting projects that complement each other, as well as by optimizing projects for cost and value. How many projects can be replaced with lower-cost alternatives? How many projects can be adjusted to cut capital spending? How does a specific project compare to past ones? Project Performance arms organizations with the information needed to confidently tackle these critical decisions.

Applying flexible project governance and stage-gate processes – Project Performance replaces a singular, rigid approach to project management with tailored portfolio management methods and workflows depending on the size and complexity of the project. Smaller projects might have fewer stage gates, while more complex projects might include more stakeholders, stage gates and evaluation criteria.

Establishing organisational enablers – Organisational enablers involve the structures, processes, and communications that affect intended outcomes. These are central tenets of a Project Performance platform, where people, processes and tools are interconnected. Within Project Performance, work processes are institutionalised within the system. The software is not only training for best practices but also serves as a tool that ensures compliance. Everyone works from the same set of data, whilst approvals are built in and fully auditable. Executives and project teams are always on the same page. Your Project Performance will ideally have the flexibility to assign different processes, methods, coding structures, thresholds and governance based on what is most appropriate for that particular project class. Subsequently, it allows you to enable organisation-wide reporting.