The surveys from the Project Management Institute and KPMG depicts the importance of successful projects to strategic commercial goals, highlighting the role of Project Portfolio Management (PPM) in delivering those projects. This article digs a little deeper into PPM and putting together project management and project portfolio management that would ultimately mean doing the right projects right. Agile portfolio management takes the concept of build-measure-learn cycles used by agile teams for greater success. Agile Portfolio Management employs an Agile mindset for business to add value to their results:
- Shorter releases
- Reprioritize when needed
- Highly transparent
- A mindset of continuous improvement
- More productive
- Happier people
Suppose, your organization has got 45 projects on the go, and they’re all overlapping because of any random reasons. As a project manager, how do you make a good decision? How do you know if your team is focusing on the right things? What should you really be doing? How can you focus our resources most efficiently? And many more questions come into mind. Project portfolio management (PPM) enables us to answer these questions to successfully implement PPM to achieve the greatest returns from projects.
Table of Contents
- What is Portfolio Management in Project Management?
- What is the Difference Between Portfolio Management and Project Management?
- “Portfolio” in Project Management
- Benefits of Project Portfolio Management
- Portfolio Project Management (PPM) Features of ProofHub
- How Do You Build a Project Portfolio Management Process?
What is Portfolio Management in Project Management?
A portfolio is a generic term used for a grouping of things. It can be a collection of assets, products, and other items depending on the industry. A portfolio in project management includes other project related activities and responsibilities. The purpose of a portfolio is to set centralized management for many projects and/or program and to make sure that you are taking on the right projects that align with the company’s values, strategies, and goals.
According to the results of the annual Project and Portfolio Management Landscape survey:
- 73% of organizations don’t have enough resources to meet the demand
- 55% of organizations state that their projects and resources are not well aligned with business goals
- 49% have gone through a project failure in the past 12 months
Project portfolio management (PPM) is a holistic management strategy used to align an organization’s software, portfolios, and projects for analysis and collaboration. Project portfolio management gives organizations and managers the ability to see the big picture. Let’s see how?
- As an executive, you’ll know which project managers to reach
- As a project manager, you’ll have easy access to team members
- The team members will have improved communication
- The stakeholders will be in the loop with consistent feedback
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What is the Difference Between Portfolio Management and Project Management?
According to project manager Bob Buttrick, project management is about executing ‘projects right’, portfolio management is about executing the ‘right projects’.
Project management and portfolio management are actually quite different. As you know project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements. On the other hand Portfolio Management is a portfolio.
“Portfolio” in Project Management
A project portfolio is a combination of projects and programs grouped together to achieve strategic objectives. There can be one or several portfolios in a project. According to PMI and its PMBOK Guide, a portfolio includes, “Projects, programs, other portfolios, and operations managed as a group to achieve strategic objectives.” The PMO( Project Management Office) is a group defined in large organizations where project managers work in or with a group that defines standards for how projects are managed within the organization.
The primary goal of the PMO in an organization:
Project and Portfolio Management Landscape surveyed that almost half of PMOs are subject for both maintaining operational work and driving strategic projects for business value.
Often times, organizations are limited by how many projects can be done, requesting the question, “Are we doing the right projects?” In order to be effective, for instance, a portfolio manager should understand what project management is. Thus the portfolio manager should ask the right questions of the program and project managers and interpret the information in the most effective way.
Inter-relationship of Portfolio Management, Program Management, and Project Management to Drive Strategic Objectives
Benefits of Project Portfolio Management
Collaborative Decision Making
To make good decisions, what you need is reliable data and making visibility crucial from various perspectives. For project managers and program managers, PPM can help stimulate a culture of collaboration when choosing projects. As project portfolio management highlights data-driven decision making, team members can collaborate which will strengthen relationships and promote trust over time.
Every project requires a risk management plan blended with the scope of effort, budget, schedule, communication, and WBS. It is extremely necessary for companies to create portfolios that diminish any risks. Portfolio project management tools provide the estimation capabilities to ensure that projects are estimated more accurately and the right resources are put on the right work at the right time to minimize any risks.
Faster Project Turn Times
Portfolio project management has processes that allow team members to keep the work flowing and will always give an answer to “what do I do next?” typically increasing productivity.
Project Delivery Success
In recent years, the Project Management Institute (PMI) survey results show that successful PPM tools enable organizations to execute on approximately 30% more projects and reduce project failure rates by up to 60%. Project failure can be a result of factors such as cost overruns, schedule delays, poorly defined requirements, lack of strategy alignment, unresolved issues, and many such. PPM tools provide organizations with the functionality they need to more accurately deliver their projects.
Streamline Data and Increase Collaboration
Many businesses are still using excel worksheets or manual tools for project management. Project transparency is important for proper decision making and improved project performance. PPM gives the insight a project manager needs to get work done.
Pro-Tip: It is difficult to manage a project and program portfolio without the proper tools. Online PPM tools can help your team to manage a portfolio of projects. One of the most important PPM tools you should be using is ProofHub that offers accurate data across all projects in your portfolio.
Portfolio Project Management (PPM) Features of ProofHub
ProofHub, a project management software is one of the best portfolio management tools that help to keep your workspace streamlined and at one place. Below are some key features of ProofHub that can help project managers in being as productive as possible.
Price: ProofHub is available at $89 per month for unlimited users, unlimited projects, and 100GB storage.
Scalability: ProofHub offers scalable features and pricing to fit your needs and allow as many users as possible.
Mobile friendly: PPM software must be mobile friendly. With ProofHub Android and iOS, mobile app managers can update their team with tasks, team activities, and more, anywhere and anytime.
Effective collaboration: A project management software like ProofHub ensures collaboration to streamline engagement both within and across teams, organizations, and regions.
Centralized communication: With various team members on board from multiple locations, ProofHub ensures effective communication to deliver projects on time and in the budget.
When communication is streamlined through one central hub, you can:
- Connect and coordinate with all team members
- Track files and share data
- Provide real-time status update
- Solve problems faster
More transparency: With project management tools like ProofHub, it ensures more transparency and encourages teams to be more accountable towards the work.
Reporting: Customizable reports available in all of the major dashboards and within projects.
Online Gantt Chart: Gantt charts are an intuitive way to visualize progress in projects and tasks, set dependencies, view critical path, and track progress across the portfolio.
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How Do You Build a Project Portfolio Management Process?
Project Portfolio Management process usually involves a step-by-step process which includes:
- Identify strategic objective
- Identify all project and organization objective, budget, project attributes, and priorities
- Categorize projects
- Identify gating projects
- Map projects to strategic goals
- Establish metrics
- Summarize project schedule
- Organize business values, objective, etc.
- Classify and organize projects
- Finalize gating process
- Eliminate redundancies
- Balance resources
- Mitigate risks
- Align projects with goals
- Delay, cancel and reschedule projects
- Cancel contracts
- Revise project budgets
- Initiate new projects
- Launch the portfolio projects
So, now that you know why do we need project portfolio management for overall project success, as a responsible team or project manager, embrace the principles of the agile method for the success of the company’s projects.
Project portfolio management (PPM) software gives an opportunity to teams and organization to make better decisions, to improve PMO performance, prioritize work, make a business strategy, and improve visibility into the portfolio of projects.