What is Project Portfolio Management?
Project Portfolio Management (PPM) is recognized as set of practices to be considered in project management technology.
The management of projects are seen as critical to success in all three sectors: public, private, and non-profit. This is evident through improper selection of projects or their improper formulation within organization. To deal with this challenge, the solution is to be found in project portfolio management (PPM).
According to the PMBOK® Guide, Project portfolio management is a set of business practices that brings the world of projects into tight integration with other business operations.
Project Portfolio Management differs from Project management…
Project Portfolio Management (PPM) differs from Project Management (PM) in their life cycles, activities, objectives, focus, and benefits.
There are a lot of misconceptions that PPM is enterprise project management, managing multiple projects, automation in project process. Those are expansion of project management and though PPM addresses it but it has primary and unique aspect in formulating and assist in selection of projects.
Why Do we need PPM?
During Project management, project team limit their focus to the critical measures of project success. When they meet project objectives and satisfy the project stakeholders, they consider the project to have been successful but most of executives in organization are interested in the areas of measurement about profitability, return on investment and delivery of benefits.
There is always been gap between project functions and operation functions as both groups are off in their own world, working to do the best that they can but not knowing if their efforts are effective or efficient.
Bridging the gap between Operations Management and Projects Management, Project Portfolio Management addresses the project selection issues, deciding on project termination, facilitating reallocation of resources, changing of priorities, and evaluating alternatives.
Fortunately, PPM requires very little in way of acquisitions in terms of skills, set of practices and some small additions to management software which is simple and inexpensive. There will be significant impact on the way the organization deals with projects and business initiatives by incorporating PPM culture.