What is Project Portfolio Management? Project Portfolio Management (PPM) is used by organizations to strategically identify, select, and manage their portfolio of projects in alignment with key performance metrics and strategic business objectives.
1 – Encourages business leaders to think “team,” not “me,” and to take responsibility for projects
Viewing all possible project investments as one in a portfolio rather than individual projects will enable a balanced perspective when prioritizing, selecting, and sustaining projects. In addition, by comparing the projects together, factors of the portfolio can be managed by tweaking the projects within the portfolio (macro) instead of attempting to make changes at the project level (micro).
2 – Maximizes the value of project investments while minimizing the risk
One project’s mix of high risk with high potential return may not be acceptable. However, when mixed with other low-risk projects, it may become acceptable to the company, especially when considering the alignment with corporate goals or the need to bring a new technology or product to market to stay competitive. When projects are treated as corporate investments in a portfolio, corporate approval and standards occur at the portfolio level, not at the project level.
3 – Reduces the number of redundant projects and makes it easier to kill or put projects on hold
Looking at all possible project investments in a portfolio will allow you to see redundancy across the portfolio. Looking at projects by department, division, or line of business won’t provide this clarity. When viewing the entire portfolio and considering other factors, such as alignment with corporate goals or the need to bring a new technology or product to market, it will be easier to discontinue unnecessary projects, reclaim the investment where possible, and release resources for more strategic projects.
4 – Improves communication and alignment between departments and business leaders
Looking at your portfolio of projects as a whole will not only provide a balance when prioritizing, selecting, and sustaining projects; it will improve communication within management with an increase in collaboration on the management of the portfolio. It will also diminish preference for aligned projects to a department or a business leader and encourage management to work as a more cohesive team.
5 – Allows planners to schedule resources more efficiently
No company has the resources to meet all of its business needs. Having visibility to all resources across your project portfolio and prioritizing where to apply those limited resources are key aspects of a PPM solution. The corporation can track all resources to their assigned projects and apply a prioritization and approval process that maximizes the value delivered by a project. When projects are completed or canceled, resources can be redeployed to focus on new priorities.
Project Portfolio Management delivers centralized visibility to help planning, and scheduling teams identify the most suitable approach to deliver projects and programs.
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