Table of Content

• What is a Project Portfolio?
• What is Project Portfolio Management? (PPM)
• Project Portfolio Management vs Project Management
• Project Portfolio Management Process
• What Does a Project Portfolio Manager Do?
• Project Management Processes for PPM
• Conclusion
• FAQs

Aspect	Project Portfolio Management	Project Management
Focus	Project Portfolio Management looks at all the projects together as a whole to manage them.	Project Management focuses on handling one project at a time.
Scope	Project Portfolio Management considers the overall picture of all projects in the portfolio.	Project Management deals with the specific details of each project.
Decision Making	In Project Portfolio Management, decisions are made about which projects to prioritize based on strategic goals.	In Project Management, decisions are made about how to carry out and finish a particular project.
Resource Allocation	Project Portfolio Management allocates resources like money and people across all projects to meet overall objectives.	Project Management allocates resources within a single project to meet its specific needs.
Risk Management	Project Portfolio Management handles risks across all projects, considering how they affect the whole portfolio.	Project Management manages risks within the context of one project.
Performance Monitoring	Project Portfolio Management keeps track of the overall performance and progress of all projects in the portfolio.	Project Management monitors the performance and progress of each project.

Project Portfolio Management Process

Project Portfolio Management (PPM) is all about managing a bunch of different projects in a structured way.

1. Define Business Objectives

This step involves understanding the strategic goals and objectives of the organization. It includes identifying key performance indicators (KPIs), market trends, competitive landscape, and stakeholder expectations. The aim is to align project initiatives with the overarching business strategy to ensure that every project contributes to the organization’s success.

Example: If the business objective is to increase market share, PPM would prioritize projects that focus on product development, marketing campaigns, or market expansion strategies.

2. Collect Project Ideas for Your Portfolio

In this phase, project ideas are gathered from various sources such as stakeholders, employees, customers, market research, and industry trends. Idea generation techniques like brainstorming sessions, surveys, and feedback mechanisms are used to capture a diverse range of project proposals. Each project idea is evaluated based on its potential to contribute to the business objectives, feasibility, resource requirements, risks, and expected benefits.

Example: Project ideas may include launching a new product line, improving customer service processes, implementing a digital transformation initiative, or expanding into new markets.

3. Select the Best Project for Your Portfolio

Once project ideas are collected, they undergo a selection process to determine which projects should be included in the portfolio. Criteria for project selection may include strategic alignment, ROI potential, resource availability, risk assessment, market demand, and technological feasibility. Projects that align closely with business objectives, offer high ROI, and fit within resource constraints are prioritized for inclusion in the portfolio.

Example: A project to implement a customer relationship management (CRM) system may be selected due to its potential to improve customer satisfaction, streamline processes, and increase sales efficiency.

4. Validate Project Portfolio Feasibility

Before finalizing the project portfolio, each selected project undergoes a feasibility analysis to assess its technical, financial, and organizational viability. Technical feasibility evaluates whether the project can be successfully implemented given the available technology and expertise. Financial feasibility assesses the project’s cost estimates, potential revenue or cost savings, and ROI projections. Organizational feasibility considers factors such as alignment with organizational culture, resource availability, skills gaps, and change management requirements.

Example: The CRM system project undergoes feasibility analysis to ensure it can be implemented within budget, meets technical requirements, and aligns with the organization’s capabilities.

5. Execute and Manage Your Project Portfolio

Once the project portfolio is finalized and approved, the projects are executed according to their respective plans and timelines. Project portfolio management involves monitoring and controlling each project’s progress, managing resources, mitigating risks, and ensuring alignment with business objectives. Regular performance evaluations, status reports, and stakeholder communications are essential for effective portfolio management.

Example: The CRM system project is executed with regular progress updates, milestone reviews, and feedback loops to ensure it meets expectations and delivers the intended benefits.

What Does a Project Portfolio Manager Do?

A Project Portfolio Manager has a big job to make sure all the projects in a company are on track and working towards the same goals.

1. Making Sure Projects Fit with Big Plans: They make sure all the projects fit with what the company wants to achieve in the long run. This means they work closely with the big bosses to understand what the company’s goals are and then figure out how the projects can help reach those goals.
2. Keeping an Eye on Problems: They’re always on the lookout for things that could go wrong with the projects. They check if the projects are on track if they’re using up too much money or time, or if any other issues need fixing. By spotting problems early, they can stop them from getting worse and keep the projects moving forward smoothly.
3. Dividing Up Resources Fairly: They make sure each project gets what it needs to get done. This means they divide up things like money, people, and time so that no project is left without what it needs to succeed. They have to balance things out so that all projects have a fair shot at being successful.
4. Talking to Everyone: They’re the ones who talk to everyone involved in the projects, from the big bosses to the people doing the work. They keep everyone informed about how the projects are going and listen to any concerns or ideas they might have. This helps make sure everyone is on the same page and working towards the same goals.
5. Always Trying to Do Better: They’re always looking for ways to make things run smoother and get better results. This means they’re always trying out new ways of doing things, like using new tools or changing how projects are evaluated. By always trying to improve, they help the company stay ahead of the game and get the most out of its projects.
6. Deciding What to Do: Ultimately, they’re the ones who decide which projects the company should focus on and how resources should be used. They look at things like what projects will help the company the most, what risks they might have, and if the company has enough resources to do them. By making smart decisions, they help make sure the company’s projects are successful and help it reach its goals.

Project Management Processes for PPM

1. Initiation and Planning: At the start, project ideas are identified and checked if they make sense. Once approved, detailed plans are made, including what needs to be done, who does what, and by when. For PPM, this phase ensures that projects fit with the company’s goals.
2. Execution and Monitoring: With plans in place, work begins. Project managers make sure tasks are done, resources are used well, and everything stays on track. They keep an eye on how things are going, fix any problems, and adjust plans as needed. For PPM, this means watching over many projects at once and keeping them in line with the overall plan.
3. Closure and Lessons Learned: When projects finish, loose ends are tied up, and the outcomes are handed over to the right people. Project managers look back on what worked well and what didn’t, so they can do better next time. For PPM, this is about looking at how all the projects were done together and figuring out what can be improved.
4. Integration with PPM Processes: Throughout the project cycle, project managers and portfolio managers work together closely. They make sure individual projects match the big picture and share updates regularly. This helps keep everything aligned with the company’s goals and makes sure resources are used wisely.

By following these steps, organizations can manage their project portfolios effectively, make the most of their resources, and achieve their goals smoothly. It’s all about keeping things organized, making smart decisions, and learning from experience to do better in the future.

Related Articles:

• Why Project Portfolio Management is Important?
• Servicenow Project Portfolio Management PPM
• Difference between Project Management and Portfolio Management
• Project Management Tutorial
• Phases of Project Management Process

Conclusion: Project Portfolio Management? (PPM)

In conclusion, Project Portfolio Management (PPM) is important for companies to reach their goals smoothly. By overseeing all projects together, PPM ensures resources are used well, risks are handled smartly, and projects match what the company wants to achieve. With careful planning, regular checking, and working closely with project managers, PPM helps companies make the most of their projects. By doing PPM right, companies can tackle problems, grab chances, and succeed in today’s business world.

FAQs: Project Portfolio Management? (PPM)

Q.1: What is Project Portfolio Management (PPM)?

Ans: Project Portfolio Management (PPM) is a way for companies to handle all their projects together. It helps them decide which projects are most important, how to divide up resources, and make sure everything fits with their goals.

Q.2: Why is Project Portfolio Management important for businesses?

Ans: PPM is important because it helps businesses make smart choices about their projects. It ensures they use their resources well, manage risks, and stay focused on what matters most for their success.

Q.3: How does Project Portfolio Management differ from Project Management?

Ans: While Project Management focuses on individual projects, PPM looks at all the projects together to see how they fit with the company’s goals and each other. It’s about managing the big picture.

Q.4: What are the key challenges in implementing Project Portfolio Management?

Ans: Some challenges include setting clear goals, deciding which projects to focus on, balancing different priorities, and getting everyone on board with the plan.

Q.5: What tools are used in Project Portfolio Management?

Ans: Tools like software programs, spreadsheets, and visual aids help companies organize their projects, track progress, and make decisions about resource allocation and prioritization.