This case describes one company's approach to establishing a project portfolio management  capability. It focuses on the practical methods used by United Illuminating Company (UI), a  regional distribution utility that provides electricity and energy-related services in Connecticut,  to migrate from a traditional functionally based project environment to a dynamic, crossfunctional business environment that manages projects for strategic advantage. The migration  period addressed is approximately one year, which is the time it took to establish the  fundamentals of Project Portfolio Management (PPM) into the organization. In the spirit of the  continuous improvement approach to business, this effort is still in progress. UI, as a public electric utility, is transitioning to become a vital player in the new deregulated  utility environment. In 2000, UI's senior management recognized that sustaining shareholder  value called for improvement of business processes and the proper selection, prioritization, and  delivery of projects. To achieve this goal meant more had to be accomplished with fewer  resources, which often translated into overloaded personnel. Therefore, the limited resources  available needed to be confirmed and applied to the most important projects. These projects  would be noted by their clear objectives, strong business case and alignment to corporate  strategy. UI's new President believed that the future success of the company lay with establishing a  process-based organization with a network of internal centers of excellence, including project  management. To that end, UI's project management center of excellence began to take shape  in early 2001. An executive-level senior director was named of the newly formed process area  that would shoulder the responsibility and leadership for establishing organizational  competency in both project management and process improvement. The first challenges were  to staff the project management area and develop a plan for capability improvement. While the area would embrace the activities commonly associated with centers of excellence and project management offices, it was decided that this area would best serve UI known as the Program  Management Center (PMC). The success of UI's Project Portfolio Management System is based on several factors: • The business need was recognize by senior management, who endorsed change. • The value of the project management discipline had been proven in high-visibility  projects. • Program level planning helps formulate the big picture and provides incremental  direction for improvement. • Program activities are treated as short-term projects. • A common definition of project management terminology and straightforward procedures  helped forge a solid foundation for the PPM system. • A viable communications plan helps keep the program alive. • Change goes forward only with the consensus of those involved in the change. • Finally, the PMC is careful to practice what it preaches, while it balances capability  improvement with supporting major strategic projects. Source: Shaltry, P. E., Drew, E. J., & Horgan, B. (2002). Journey to project portfolio  management: a case study. Seminars & Symposium.      In the light of the project management challenges faced by United Illuminating Company in  setting up a project management centre, critically discuss the guiding process for strategic  and planning portfolio management.