Project Portfolio Management and the PPM Tools Workspirited Staff Sep 26, Project portfolio management is all about doing the right projects, managing resources, prioritizing or terminating tasks in order to deliver high productivity and survive this economically challenged, risky environment. The act of evaluating, directing and selecting the process, resources, methods, technology, budget and time is termed as project portfolio management PPM. This process is followed by the PPM officers and managers in every organization. Project portfolio management is a term used to describe the different approaches towards treating the various processes in project management as a part of a project investment portfolio.
The Advantages and Disadvantages of Project Portfolio Management David Goulden on Tuesday, October 10, The primary objective of project management is to assess a job and break it out into digestible tasks to accomplish a set goal.
The ability to manage a project and see it through from conception to completion is generally a skillset that is learned through experience. A successful PM has the ability to look at the bigger picture to organize and delegate accordingly. These are people that always have an end goal in mind and are the ones responsible for making sure it is reached in the timeframe promised.
Therefore, at times, moving a business to portfolio management can be the wisest choice. What is Project Portfolio Management? To gauge the scope of a project, a project manager must set a time frame. In order to do so, it is sometimes necessary to view the business as a whole.
This includes looking at every project on the table and prioritizing tasks within them. Projects can then be grouped into programs, which eventually form a portfolio.
Project portfolio management is often already performed during daily operations, it simply lacks the label. Any time a company aligns projects and programs with a common goal, it is practicing PPM. This process creates a hierarchal relationship of various elements that can be defined as: Tasks form projects Projects form programs Programs form portfolios The entire idea is to group projects and programs together in a portfolio in just the right way as to maximize the profit margin and increase overall ROI.
Prior to taking the leap, it is wise to consider the pros and cons of active portfolio management before fully diving into the process. Advantages There are an incredible amount of benefits to active project portfolio management. The following are just a few reasons to consider why it may be the right choice: Inventory When there are a variety of programs going on, it is tough to pinpoint exactly what resources are available where.
The entire process is fragmented. PPM allows a company to gain a common visibility of the bigger picture. Everyone knows exactly what they have to work with in the early stages of planning. Alignment spurs a company to speed up some projects and make choices based on strategic direction.
Involvement PPM allows for a greater depth of involvement across all verticals. Portfolios tend to gain the attention of senior management, and having them involved from the very beginning ensures a greater level of success across all projects.
This type of alignment also makes performance issues entirely more visible and easier to address. Risk Whenever you open up a project to sharing resources in a portfolio, you lessen the risk of that project failing.
Lumping multiple programs together and allocating resources allows a company to take on more work, while ensuring their current projects will reach success. Disadvantages Although it seems like PPM is a no-brainer, when it comes to the benefits a company can reap, there are ways in which it can go drastically wrong or upset daily operations.
The following are just a few ways in which PPM may not be right for your business: Resources Just as resources can be an advantage when program responsibility is shared, that can also be the downfall of project portfolio management.
If the wrong person is assigned to allocating resources, there is a chance they could be misappropriated. It is critical that resources are distributed evenly and accordingly, in order for PPM to work.Project prioritization is one of the most common topics in portfolio management literature.
Within the context of project prioritization is the matter of scoring models because scoring models are the most widely used approach to prioritize projects.
Although there are a lot of opinions on the effectiveness of common scoring models, they are nonetheless the most common method for prioritizing.
Every project should support your company's strategic plan. Prioritize projects to align with strategic plan. the number of small and large projects in a portfolio exceeds the available. Strategic Project Prioritization Worksheet.
Quick Summary An Excel template for analyzing and ranking project candidates under consideration for inclusion in a project portfolio. Rankings are based on the degree to which each project contributes to the organization s overall goals and related strategies.
Prioritizing the IT Project Portfolio Paper. Write a 4- to 5-page paper, prioritizing the IT project portfolio. This is an opportunity for you to be creative in this assignment..
Identify the IT projects for a real or made up company of your choice. You can draw . Prioritizing Projects: Advanced Portfolio Management II Once you’ve collected project information and gathered some information about project value, whether through a simple scoring process or in the form of complex financial metrics, you have enough information to build a prioritization (what we call a “bang-for-the-buck curve”)—see.
Prioritizing projects is one of the most challenging jobs of every employee involved in a project or organization. If you don’t put priorities on your given tasks, it becomes a chaotic result and you lose work progress altogether..
People dread the notion of prioritizing projects.