Project Prioritization due to
OPEX Target Limitation
In large-scale project management, financial constraints often dictate the need for strategic prioritization. When operational expenditure (OPEX) budgets are reduced, organizations must evaluate projects based on strategic value, financial impact, risk management, and resource availability.
Objective
This case study explores how a structured project prioritization framework was implemented to align projects with business goals while operating under a 50% OPEX reduction.
Challenge
The company faced a significant budget constraint:
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OPEX Demand: €400 million (€80M for new projects, €320M for ongoing projects)
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Target OPEX: €200 million (50% reduction required)
Balancing Strategic and Operational Goals: Ensuring critical initiatives are maintained despite budget cuts.
Resource Allocation Optimization: Reallocating resources effectively to maximize impact.
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Risk & Compliance Management: Preventing regulatory risks by maintaining essential compliance projects.
Stakeholder Engagement & Communication: Keeping teams informed and ensuring alignment across all business units.
Process
Strategic Prioritization
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Strategic Alignment: Business objectives, market competitiveness.​
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ROI & Financial Impact: Cost savings, revenue potential
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Risk & Compliance Adherence: Regulatory & legal obligations
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Resource Availability & Constraints​​​
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Customer Impact & Market Necessity​​
​​​ Tools
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Data-Driven Decision Making: Utilized Power BI dashboards to analyze project feasibility, financial impact, and risk assessment.
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Project Classification Framework: Segmented projects into "Must-Have," "Quick Wins," and "Deferred Investments."
Must-Have and Quick Wins Identification
Must-Have" projects were defined based on strategic necessity and regulatory adherence while identifying "Quick Wins" that offered high impact with lower investment requirements. To optimize OPEX allocation, reductions were strategically implemented across all regions.
Communication & Stakeholder Engagement Plan
Communication Plan:
The objective was to ensure transparent communication about project prioritization decisions across all departments and leadership levels.
Objective
Transparent and accutate communication at all levels.
Stakeholder engagement:
Clearly define and list primary and secondary stakeholders impacted by the project changes. Collaboration includes actively involving stakeholders in discussions on resource reallocation and future planning to ensure smooth transitions. Dedicated support channels are in place to assist teams and departments affected by project changes, ensuring ongoing engagement and alignment.
Results
Opimized Portfolio
Retained high-value projects while meeting the 50% OPEX reduction goal
Increased Efficency
Focused resources on strategic, high-impact projects
Data-Driven Decision
Power BI dashboards provides actionable insights
Stakeholder Buy-in
Transparent communication maintains trust and collaboration