Project portfolio management (PPM) outlines how to manage the usually-confusing mix of interrelated, subservient and related projects. PPM rates the big picture of all projects altogether- past, present and future then calculate the categorization and progression of projects to maximize ROI. There is a part in portfolio management called online reputation management which basically manages the image by crafting strategies or change the public perception of the organization.
In this article, we will discuss what is PPM and its three phases, and the difference between project management and portfolio management that you need to know to get started with it.
What is project portfolio management?
- Portfolio management focuses on the centralized management of more than one project portfolio to achieve diplomatic objectives. It bridges the gap between strategy and implementation and makes sure that an organization can grip its project selection and performance successfully.
- PPM is usually is used by organizations to identify the likely returns on a project. For companies that want to invest in new projects, PPM makes it possible for them, also for competing projects to anticipate risk original in each and make an informed decision.
- PPM promotes team communication and makes it clear that all parties included are on the same boat.
- When PPM is properly done it becomes an estimable tool for obtaining buy-in from all shareholders in an organization and allows them to see the wider picture understand, manage and decrease risks.
- PPM also enhances clarity, governance and liability with stakeholders. The channel management helps to make marketing techniques as well as sales strategies to reach a wide range of customers.
Three phases of PPM
1. Create an index and establish a strategy
Identify all the projects in the duct, including potential projects, key projects and organizational information. Prioritize these, consider they have schemes in their lifestyle. Mark your company’s business objectives and strategic goals. Find out if the strategic objectives are supported by the projects.
Business strategies are the source of project portfolio management. It is important to plan a strategy in mind before moving forward. Do prepare answers to the questions you will get in the process.
Build a fulfilling team after you have the strategy ready to present. Your team must include technical team members to help with new systems and portfolio managers including business management software. Give your team a governing body that is made up of senior management.
2. Examine
Start looking into the strengths and weaknesses of your project portfolio, appraise each project individually potential ROI, resource granting, reporting schedule and project milestones. After collecting data, organize it by category. These categories are necessary but include done and rejected projects categories. In running this analysis, a question should arise whether there is any duplication or some existing projects are not better combined for efficiency or even completely halted.
Access the risk of the project portfolio as a whole by juxtaposing the probability of technical success upon the predicted benefit from the project. Remember to have good communication skills so that all key changes are thoroughly discussed.
3. Management
In the third step, comes the management character of the process. In the management step, there is a need to view the project portfolio and taking decisions to reallocate budgets and resources as well as work again on the information you moved the cover from the previous legs of the process. Rescheduling projects which you have decided to keep should be worked on, but first, make sure rescheduling risk gets straighten with your strategy.
Talking about collaboration is very much critical because the decision should end up with the right portfolio. At the end sit with your portfolio to check that do you have the criteria that are needed like a healthy brew of risk and reward and meet internal requirements.
Difference between project management and portfolio management
Project and portfolio management have the same general skills, still, with their similar-sounding name, project and portfolio management are very different from each other. Project management is the application of knowledge, tools, skills and techniques that design activities in order to make project requirements. PPM doesn’t look into running a project, rather it chooses projects that should be involved in to know to fund them, based on whether they are or not carrying the goal and intentions of the company.
Projects that do not get marked in the scope’s companies’ objectives are removed from contention. if you are dealing with a technology companies’ portfolio you will look for the alignment with the proposed building project and the company’s stated strategy, or else it simply won’t work. look for small business management.
Benefits of project portfolio management
Project portfolio management has many gains, which cover…
- prolonged success in project delivery
- more reliable decision making
- the intelligence to prioritize high-value projects
- avoid overspending on little things
- manage dimes more efficiently
- remove carelessness’s
Notwithstanding how high profit and success a project may be, it could still be a dupe of overspending. Again, PPM helps a company to dodge this; it allows handlers to nibble overspending in the bud as it is easy to point where supplies are being over-allocated.
PPM can also become a genuine tool in organizational change management; with an active PPM strategy, a company can reform and refine its methods for a project doing as part of a more open process to change the company’s operational or strategic way.
This process, will remove wastefulness and be better able to focus on the right strategies for achieving goals. Lastly, PPM also makes a company more graceful and able to transform to change with the least fuss or interruption.
Conclusion
The following article has told what project portfolio is all about, it explained why people need it and how it works. We have also described the three phases that will help to build project portfolio management. The difference between portfolio management and project management has been discussed to make people understand. There are benefits of project portfolio management.
Source: What are the Three Phases of Project Portfolio Management?
