Project portfolio management has turned out to be one of the most critical strategies, which help in bringing out the best of everything that is happening in the market. The success of any project is dependent upon various factors.
Project portfolio management is also known as PPM is a procedure that is used to analyse the probable returns within all the project portfolios. Project portfolio management is mostly used by larger companies.
Whenever there is a new project or program the project portfolio management is used to prioritise control, identify, authorise and manage it properly.
All the related activities to a project or a program should be included within the project portfolio management. The main goal of the project portfolio management is to make certain that all the activities mentioned earlier within the project are established and get completed as soon as possible.
All of this should be completed concerning all the available resources. Portfolio management also helps you in evaluating the current and preferred initiatives to contribute the most so that your company gets closer to its goal. It gives high priority to all the initiatives of your company.
What all is included in Project Portfolio management
Managing time needs a lot of planning, monitoring, controlling and scheduling of both the secondary as well as the primary program activity.
To manage demand for any product or service it is important to plan and manage all the demands.
Resource management refers to making the most systematic use of all the resources provided within the project which includes equipment, finances, people as well as space.
Financial management within any project refers to making a plan organising and directing the financial aspects as well as controlling all the initiatives.
Program and Project management
The program and project management within the program refers to coordinating the individual tasks as well as looking after other related projects.
Risk management refers to continue processing the registers as well as to keep identifying the risk to control the impact in any negative way. It is also used to maximize opportunity positively.
The major difference between project management and project portfolio management
There are a lot of people who think that project portfolio management and Project management are the same things. However, it is just a misconception.
Even a lot of companies claim that they have applied the major difference between project management and project portfolio management but they don’t know the difference between the two things. This misunderstanding arises from the fact that many people use project portfolio management and project management as synonyms.
The main difference between project portfolio management and project management lies in its scope. Project management deals with a single project but on the other hand, project portfolio management focuses on all the new initiatives within the company.
Project portfolio management operates from a strategic standpoint and focuses on the totality of all business goals. While project management only focuses on the operational superiority of a singular project. Project portfolio management focuses on the bigger picture.
Benefits of project portfolio management
There are a lot of aspects when it comes to project portfolio management and ways it can benefit a company. The benefits of project portfolio management are as follows:
- Project portfolio management helps in selecting the correct set of projects considering all the business risks, goals and available resources. It also considers all other criteria within your business.
- It helps in viewing the bigger picture. Without project portfolio management organisations usually lose focus from their goal while tackling small issues.
- Project portfolio management focuses on the objective goals of your business. Organisation by creating an open culture where everybody is involved in the process of prioritising business.
- Project portfolio management focuses on collaboration rather than competition. when it comes to big enterprises a lot of different groups can have different goals which could lead to rivalry. Project portfolio management helps in avoiding that complication.
- It makes the work more efficient by using all the resources provided. It also uses all the resources optimally across all the projects.
- Project portfolio management makes sure that your project performance data is accurate and it continuously monitors and controls the performance.
- It also helps in laying the foundational framework for your project and applies a good management strategy to decrease the organisational risk.
Project portfolio management is the process of grouping projects into portfolios based on their characteristics and then managing them in terms of their benefits to the organisation, risk levels, and so on. Valueblue.com aims to ensure that the organisation is investing in the right projects at the right time. This blog has discussed how to go about project portfolio management and its benefits.