Method123 has just released aPortfolio Management Module for MPMM for $195.Order Now!What is Project Portfolio Management?
The Project Management Institute (PMI) defines project portfolio management -- or simply portfolio management -- as the “centralized management of one or more portfolios that enable executive management to meet organizational goals and objectives through efficient decision making on portfolios, projects, programs and operations.” Note that this is an interrelated organizational processes by which an organization evaluates, selects, prioritizes, and allocates its limited internal resources to best accomplish organizational strategies consistent with its vision, mission, and values.
This ideally means that PPM should drive the execution of strategy. It is the means by which the organization aligns its investments with its business strategy. The concept is similar to that of managing a stock portfolio. And as anyone who has ever played the markets can tell you -- picking the right investments is the key to success. While project managers are focused on "getting the project done right" Portfolio Managers must focus on "getting the right projects done". This places the role of the Portfolio Manager in a very key position that helps drive strategy in an organization. So how does the Portfolio Manager accomplish this?
1- Develop a process for prioritizing all projects across the organization
A key technique for doing this is to develop a scorecard that is aligned to the organizations strategic objectives.
Force ranking the project list utilizing the above mentioned scorecard
2- Ensuring that the portfolio has the best chance of success by allocating the organizational resources required to successfully deliver the projects
3- Balancing the portfolio in such a way that short-term, mid-term, and long-term objectives are addressed in a reasonable mix that satisfies project sponsors.
4- Track the implementation and benefits against initial estimates
5- Manage the portfolio with an end-to-end governance process that periodically reviews and reassesses the direction of the portfolio.