What Is Implied By Project Portfolio Management?
PPM or Project Portfolio Management is a method used by Project Management Organizations (PMO’s) as well as project managers to assess the potential benefit of undertaking and completing a new project. PPM organizes and consolidates all pieces of data with regard to current and proposed projects.
PPM managers do business analysis and forecasting for companies who considering investing in new projects. PPM gives managers and companies a view of the bigger picture. PPM helps all stakeholders as follows:
- Project managers: get better access to members of team
- Executive: are aware of which project managers to connect with
- Stakeholders: kept updated by consistent and reliable feedback
- Team members: better communication with team members and leaders
PPM involves the following:
Taking Of Informed Risks
An inherent part of all businesses is the element of risk. But while taking a risk, it is crucial to remember that a bigger risk does not always imply a bigger reward. The key factor is not risk or reward but good decision-making.
Reap Big Rewards by Understanding Risks
PPM helps companies predict plan and outcome of projects which promise best results. Some of the questions with which it deals are:
- Does the company have budget/ resources ready for the project?
- Can it model the new project on an older project in its portfolio?
- What are the barriers to the new project from current projects?
- Are there realistic expectations formed by stakeholders?
- What are the potentials for compromise?
- Will these projects be useful to achieve overall objectives of an organization?
PPM tools help companies split every detail of a project on the anvil: goals, timelines, tasks, resources and budgets. Making use of in-depth analysis of potential projects and comparing it to current projects, a company can identify what risks provide the most rewards.
Making use of key indicators which depict cost versus returns, companies are able to determine whether to carry forward a project. This permits creation of replicable and fluid workflows which provides optimal performance of team and efficiency.
Mitigation of Risks
By making use of PPM, PMO’s and project managers have a global view of every project. Whenever every element of a project is fully presented, potential problems can be identified.
PPM gives organizations the foresight to realize potential risks and put suitable measures in place. Using these, a company manages risks pro-actively, permitting teams to estimate realistically potential delays.
Risk mitigation involves:
- Aligning of each proposed project with overall goals of the organization
- Provision of measurable data used to evaluate rewards and risks.
- Determining of potential blockages and flaws in design at more than a single level
- Reconciling of team bandwidth with amount of required work
PPM versus Project Management
At the fundamental level, Project management and PPM differ by number of projects. PPM project management considers potential project or every project about its viability to meet overall goals of business. Project management focuses on the road to completion of an individual project.
PPM is a process which lays the foundation for more effective project management. Efficient PPM helps in making project management an easier road to travel. Both are invaluable to the organization, when used in tangent.