Fundamentals of Project Portfolio Management (PPM)

The Fundamentals in this section provide a complete review of PPM that will help you decide if PPM is for you. This will help you understand what you need to do to set up a PPM capability for selection of project.

If a basic project management capability is in place and managed by a professional staff in an organisation, then PPM function can be set for standardization and consistency.

Where Do We Start PPM Process?

Assume that the objective of the PPM process is to prioritize work that brings the most value to the firm.

The process begins when evaluating candidate project proposals. Each project proposal identifies the specific business goals and objectives it will support.


Department will input basic information and determine whether to promote concepts to next stage through Ranking Value and Benefits for expected return on investment (ROI).


The ranking practice should use a balanced scorecard approach, with each of the factors listed and weighted. It is also Rank against other Projects and proposals in the organization.

The value/benefits ranking may be modified by risk and resource factors of the project proposal. Say, a new technology with a 20 percent chance of success may not fit with the strategy create potential risk. you can’t just increase resources as we have number of projects in the pipeline.


Assessing the impact of potential risks and availability of resource becomes an essential part of PPM to progress the business case.

The business case then progresses to planning by performing various planning scenarios comprising mix of projects. This involves the use of voting groups to create weighted rankings for project to meet multiple objectives.


Regardless of the techniques employed to weigh the selection criteria and prioritize

the candidate projects, you will eventually have to display and communicate these data to the decision makers for an optimum or acceptable size of the project pipeline.


The new perception is that a project is active as long as it continues to support the criteria that were established for its selection and acceptable performance. In this respect, projects are periodically evaluated against set criteria for maintaining the pipeline.

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