Project Portfolio Management has, without a doubt, become an essential tool and concept for many IT departments across all industries. In this article Sourabh Hejela, a management consultant and trainer with over 20 years of experience, helps readers cut through the hype, so that they can use this tool. In his introduction Hejela states that PPM and Project Portfolio Rationalization are terms that have been abused and that these buzzwords are used more than they are understood. He has created this series of article to help readers understand the extremely important concept and tool for IT management: Before we dive into the definition and frameworks for PPM, we need to understand some underlying concepts. These concepts are best understood in the historical context that they developed in. For the longest time information technology was treated as a cost. You “buy” computers. You “buy” applications. You have IT Payroll. Etc. In other words, one “pays a price” for IT ““ with little or no thought on why that cost is being uncured or what is the benefit other than “we need computers” or “we need reports”. Looking cool or keeping up with the Joneses was the order of the day for the first 2-3 decades of IT. Yes, there was a time when just having a computer made you look cool and who does not want to look cool! Companies also bought computers because “my competitor has a computer so I must also have one” was the motivating factor. After a bring history of IT as a cost, Hejela goes on write about a few flaws in this concept. For instance, one of the flaws he writes about is finding a right spending level when there is no connection with anything that tell you how much is enough. The author feels that these flaws are the reason there was a move to treat IT as an investment and the reason PPM was created.