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    • Project Portfolio Management Strategy Guide​

    In today’s business landscape, project portfolio management (PPM) has become an increasingly crucial practice for project-oriented firms. For those businesses looking into the approach, this Project Portfolio Management Strategy Guide aims to clarify the difference between project and portfolio management, cover PPM basics like methodologies and capabilities, and offer insights into effectively implementing PPM. Serving as a valuable resource for project teams, leaders, PMOs, and executives, it addresses challenges, provides an overview of PPM tools, and introduces the next step — Enterprise Project Portfolio Management.

    Table of Contents

    What is Project Portfolio Management (PPM)?

    According to The Project Management Institute, project portfolio management aims to bring crucial insights about projects and organizational goals together into one centralized system. In other words, project portfolio management involves planning, monitoring, and adjusting project tasks to fit an organization’s strategy and needs. 
    PPM
    project portfolio management

    Why is Project Portfolio Management Important?

    The need for a structured PPM approach usually arises when an organization starts struggling to meet project demand. Under pressure, project management leaders may try to bite off more than they can chew. For lack of sufficient resources, they end up with a backlog of projects. This often results in significant delays and eventually impairs the organization’s ability to fulfill its mission. 
     
    This is where businesses can implement PPM. PPM helps align projects with strategic objectives, prioritize work more efficiently, and optimize the use of the organization’s resources. 

    Project Portfolio Management Goals

    PPM encompasses an incredibly wide array of processes and activities. Let’s focus on some of the most crucial components of the PPM process. 

    PPM project portfolio management
    project portfolio management

    Project Selection and Portfolio Building

    An organization’s precious resources should only be committed to projects that offer great return and align with key business objectives. PPM provides a structured approach to selecting the new projects it will invest in.  

     

    The goal is to accurately assess the potential returns and possible risks of multiple competing projects. This enables project leaders to make the best trade-off decisions instead of selecting projects based on gut feelings. 

    Monitoring Value and Risk

    Value and risk analysis should be performed during project selection, then revisited throughout its completion. Interrelations between projects can cause any shifts to snowball and impact the whole portfolio. PPM aims to minimize unexpected obstacles and give team leaders a look at how these challenges may change over time.  

    Fostering Organization-Wide Alignment

    Portfolios may encompass very diverse projects impacting many individuals, all while sharing a limited pool of resources. An objective, value-based approach to the selection and prioritization of projects helps minimize conflicts, thus improving alignment between stakeholders. The PPM discipline also connects project activities and the long-term goals of the business, further aligning all team members around a common vision.

     

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