Every business must implement some form of project management. It is the discipline through which teams completes tasks and projects. But it will be challenging to find the best project management tools if you aren’t equipped with the right vocabulary. So, what is the difference between project management and portfolio management? In this article at project-management.com, Kayla Matthews explains how project and portfolio management are different.
Difference Between Project and Portfolio Management
Portfolio management is closely related to project management, and often these words are used interchangeably. However, there are stark differences that separate these two terms.
What is Project Management?
Project management involves the coordination, planning, and oversight of a specific project from the beginning to the end. Here, the project manager is responsible for running a project from the inception to its completion within a specific budget, time, and quality standards. One of the most crucial steps of the project management process is project planning – defining, timelines, budget, and objectives of the project. This helps team members remain focused on their goals.
What is Project Portfolio Management?
Project portfolio management has a broader scope and aim than project management — selecting and executing the right projects successfully for the organization. Here, the manager has a comprehensive view of all the organization’s projects. Project portfolio managers evaluate the project’s performances, examine how each project contributes to the company’s overall objectives, and investigate the ways projects could be improved. An organization often implements project portfolio management when it brings together a project with a common goal, aims to maximize the project margin, and boosts the overall return on investment.
Project portfolio management is a form of centralized control that aims at identifying, prioritizing, and authorizing the projects an organization is undertaking. Both project and portfolio management focus on achieving goals in a timely and resourceful manner. But, “project managers have to look at the scope of an individual endeavor, portfolio managers look at numerous projects and piece the connection between them,” says Kayla. To learn more about the differences between project and portfolio management, click on https://project-management.com/key-differences-between-project-and-portfolio-management/.