Project Portfolio Management (PPM) is a strategic process that organizations use to identify, select, and manage a portfolio of projects that aligns with their business goals. PPM can help organizations optimize their project portfolios to achieve maximum value and return on investment.
By planning out each individual project as well as the overall scope of a business portfolio, it's easier for companies to stay organized and allocate resources accordingly. Here are some tips on how businesses can utilize project portfolio management:
Project portfolio management can offer a number of benefits to organizations, such as:
-Identifying and prioritize high-value projects – PPM helps organizations identify which projects will have the greatest impact on their bottom line. This allows organizations to prioritize these higher-value projects while also reducing costs associated with lower-priority ones.
-Improved alignment between resources and project goals – Allocating resources can be complex for organizations with many different projects running at once. PPM helps ensure that resources are well aligned with project goals and objectives by mapping out how each resource will be used in each project. This reduces wasted time and effort, resulting in increased efficiency and productivity across the organization.
-Increased visibility into project progress – With so much going on at once, it can be difficult for executives to keep track of how each project is progressing. PPM helps provide visibility into the progress of each project by providing real-time data on performance indicators such as cost, scope, timeline, etc., allowing executives to make informed decisions about which projects should receive more attention or additional resources if needed.
-Better decision making – PPM provides executives with better insights into which projects have the highest potential return on investment (ROI). By identifying high-value projects early on, executives can make better decisions about where to invest their resources for maximum benefit.
Project Portfolio Management (PPM) and project management are complementary but distinct disciplines. While project management focuses on the successful execution of individual projects, PPM takes a higher-level perspective and focuses on managing and optimizing a collection of projects as a portfolio. PPM involves selecting and prioritizing projects based on strategic objectives, allocating resources across projects, monitoring project performance and alignment with organizational goals, and making decisions about project initiation, continuation, or termination.
Common challenges in Project Portfolio Management include: