Project Portfolio Management features projects of similar nature. Though projects seem independent of each other, they are interconnected by budget, schedule, or resources. As an agency owner or a project director, you are worried mostly about resource utilization and project direction and prioritization. In this article at the Digital Project Manager, Ben Aston discusses some basic tenets of PPM to help you implement it successfully.
PPM Guide to Help You Start
PPM is the control room of project portfolios to help you lessen the gap between strategy and execution. It predicts risks before a company invests further in a project and establishes a proper communication channel among involved parties. You can convince buy-ins from stakeholders, continuously improve processes, and reduce risks through proper visibility, governance, and responsibility facilitated by PPM.
Project management differs from portfolio management in the purpose it serves. Project management deals with running projects by applying information, resources, tools, and methods, Portfolio management, on the other hand, concentrates on the projects fit for investment and the percentage of budget to be allocated for them if they align with company objectives.
The basic objective of PPM is to derive benefits from the projects. It also focuses on balancing out the entire portfolio by including short and long-term projects with high and low risk capabilities to achieve company goals in functionalities and finances.
Your role as a PPM manager includes management of multiple project portfolios. You also must lock down the business model that aligns best with your company’s strategy. Setting up management standards is crucial to reach that goal.
PPM involves several processes. It involves creating an inventory, analyzing the current strengths and weaknesses of your project portfolios, understanding how aligned they are, managing them, and testing your portfolio before going live.
For a successful PPM implementation, keep a few things in mind. It is crucial to have accurate data to identify and mitigate risks and make decisions on time. Remove projects that are not beneficial to the company. Break down tasks efficiently and provide your architects, planning teams, and executives with an efficient work environment. Keep track of your project’s progress but avoid micromanaging teams.
You can utilize PPM optimally by selecting the right tools. What is best in the market might not suit your purpose well. List down factors like if your PPM software needs to be web-based as well as feature a user-friendly interface, number of people and type of stakeholders that need its access, etc. Go for the free trials before investing in it.
PPM has many benefits. It increases project success, gives you better decision-making abilities, and prevents you from overspending even for high-value projects and over-utilizing resources, to name a few.
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