What is Project Portfolio Management about?
(Project) Portfolio management is a dynamic, decision-making process in which new projects and programs are evaluated, selected, prioritized in the context of the existing project and programs within the portfolio. The goal of portfolio management is to align with strategy, to maintain a balance in various project types within the portfolio, and to ensure that the portfolio fits with resource capability so that the organization sustains the maximum value project investment.
PPM has largely developed around the following elements: providing a centralized view of all the projects in an organization, enabling a financial and risk analysis of projects, modelling interdependencies between a family of projects, incorporating constraints on resources shared between projects, enabling prioritization and selection of projects, ensuring accountability and governance at the portfolio level, allowing for portfolio optimization and providing support in the form of standardized processes and software tools.
Key elements that constitute PPM:
PPM allows for the collection of every company project to be organized into a single portfolio. Projects can easily be studied and monitored for progress and reviewed whether the project had quality execution. The end goal is to minimize the time and resources spent on each project to provide greater organizational success.
There are different ways of differentiating the aspects of PPM. One way is to look at the lifecycle of a project. This typically starts in early phases as an idea or demand (Demand Management), is added to a portfolio (Portfolio Management), and finally converted into a project and executed (Project Management). Two functions that are typically mentioned to accompany the whole process are definite financial planning (Financial Management) as well as a proper resource plan (Resource Management).
There is no silver bullet—no single product solution that has all the functionality you require. The Project Portfolio Management tools have matured and similar functionality is now available across several tools.
Just as important to the PPM process as asking the right questions and using the right techniques is selecting an excellent PPM tool.
The right PPM tool not only gives you insight into every detail of your portfolio as a whole, it supports and strengthens the people and processes involved. It does so by aligning project selection with your organization’s budgeting processes, ensuring that projects match priorities and (organizational) goals, that they support fiscal budgets, and that they’re achievable with the available workforce.
Some of the must-have attributes and functions for PPM software include:
The data that comes from these functions gives you real-time, objective insights into what’s happening across projects. It allows you to make informed decisions by evaluating “what-if” scenarios like:
Select a toolset that that fully integrates with your supporting systems. Make sure the portfolio can be sustained with a minimum amount of manual effort yet does not depend on the uniform, enterprise-wide adoption of detailed planning tools.
With Capture SmartStart you can jump-start your PPM processes with our experts, pre-configured processes from best practice, proven implementation methodology and sustainable support services - no matter where you are on your PPM journey. You benefit from no financial risk – no product risk – no methodical risk.
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