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Project Portfolio Management, or PPM for short, is the continuous process of planning, prioritizing, overall control and monitoring of all projects in an organization and thus deals with the selection and administration of the optimal project-oriented initiatives that achieve the maximum business value or the highest possible return on investment.
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.
Project Portfolio Management can support your company in many ways and across several departments, while it reduces risks. It also helps with focusing on the most-valuable projects and provides necessary data to decide on an efficient usage of all your resources.
To dive into Project Portfolio Management, it is important to know the different main processes and what their main purpose is. Neither of these processes is less important than the other and they moreover influence one another and are dependent on each other to a certain degree.
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With our 10+ years of experience we know that successfully implementing a Project Portfolio Management solution is more like a journey than a sprint. In this journey we guide and support our customers by adding our expertise across all industries.
To support you all the way on the long journey and make you and your project portfolio management even more successful on the long run, we offer a variety of services for every PPM maturity stage. Regardless of whether you haven ́t started your journey yet, or you are already midway through to the finish line.
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Article by István Görgei - Experienced Project and Portfolio Management method and tooling expert with scaled agile knowledge