Project portfolio management (PPM) is a method of managing multiple projects simultaneously, in order to achieve strategic goals and objectives. It involves the centralized management of project planning, selection, execution, and delivery. PPM enables organizations to align project efforts with overall business strategy, optimize resource allocation, and deliver projects that provide the most value to the organization.
Here are some steps organizations can take to use PPM to manage projects:
Develop a project portfolio management plan: The first step in using PPM is to develop a plan that outlines the overall approach and methodologies that will be used to manage the portfolio of projects. This plan should include a clear definition of the project selection criteria, the process for evaluating and prioritizing projects, and the roles and responsibilities of the various stakeholders.
Define project portfolio governance: Governance is an essential aspect of PPM, and it involves establishing clear policies, procedures, and oversight mechanisms to ensure that projects are managed effectively. The governance structure should include a project portfolio management office (PPMO), which is responsible for the overall management of the portfolio, and project management offices (PMOs), which are responsible for the day-to-day management of individual projects.
Prioritize projects: One of the key tasks of PPM is to prioritize projects based on their alignment with the organization’s overall business strategy. This involves evaluating projects based on a set of predefined criteria, such as strategic alignment, financial return, risk, and resource requirements.
Assign resources: PPM also involves the efficient allocation of resources, including personnel, equipment, and funding, across the portfolio of projects. To do this, organizations need to develop a detailed understanding of the resource requirements of each project, and then assign resources accordingly.
Monitor and track progress: PPM also involves the ongoing monitoring and tracking of project progress, in order to ensure that projects are on track to deliver the desired results. This includes regular reporting and reviews, as well as the use of project management tools, such as Gantt charts and dashboards, to track progress and identify potential issues.
Continuously review and optimize the portfolio: The last step is to continuously review and optimize the portfolio of projects. This involves regularly reviewing the portfolio to ensure that it continues to align with the organization’s overall strategy and that projects are delivering the expected value.
By using these steps to implement PPM, organizations can effectively manage multiple projects simultaneously, ensuring that resources are allocated efficiently, and that projects are delivering the desired results.
In conclusion, Project portfolio management (PPM) is a powerful tool that organizations can use to effectively manage multiple projects simultaneously and align them with overall business strategy. PPM involves the centralized management of project planning, selection, execution, and delivery, enabling organizations to optimize resource allocation, and deliver projects that provide the most value to the organization. By following the steps outlined in this blog, such as developing a PPM plan, defining project portfolio governance, prioritizing projects, assigning resources, monitoring and tracking progress, and continuously reviewing and optimizing the portfolio, organizations can effectively implement PPM and achieve their strategic goals and objectives.