Project Portfolio Management is a dynamic process that enables management to make data-based decisions about the best possible use of company resources in order to focus on projects that are feasible on the one hand and strategically aligned with the company’s goals on the other.

Since it is possible that some projects within a project portfolio are in competition with each other, the overarching task of portfolio management is to select and carry out the suitable ones for implementing the organizational strategy. Of further interest is the reduction of the resulting cross-project risks and to achieve a more realistic resource capacity planning.

Another important goal of project portfolio management is to create a coherent and transparent view within a company.

Project Portfolio Management is not to be mixed up with a company's financial portfolio although your IT projects are also investments that fall into a (project) portfolio in which you control risks and increase both your return and your value.