Project Portfolio Management (PPM) is a process which is engaged by Project Management Organizations (PMOs) to study the potential outcomes (return) while doing a project. Project Portfolio Manager goes through all the areas of data regarding the project and provides detailed business analysis for companies planning to invest in projects.
PPM provides a clear picture of the project to organizations and managers. A team of executives, project managers, team members and stakeholders are involved in the functioning of portfolio management.
Often the PPM is surrounded by business risks which are important to reach bigger rewards. PPM prepares companies ahead of time, to reach better results. Project portfolio management consists of the following questions:
- Do we have the sources to take up the project?
- Have we done any previous project which can be used as a model for the new project?
- Is there any other project which is hindering the competition of this project?
- Are stakeholders willing to compromise in realistic situations?
- Is the project helpful for the goals set by an organization?
The PPM management and its tools work on all aspects of the proposed projects. They divide it into various segments related to budget, resources, tasks, timelines, and goals. The management explores the pros and cons of the current project against the risks and rewards of a company. By using certain indicators, PPM management ensures the smooth flow of efficiency and team efforts.
The PPM helps its managers have a clear view of each project. A global perspective is of prior importance as it helps in overcoming project challenges ahead of time. The PPM process provides a ‘futuristic view’ of potential risks and helps in building necessary measures. It also allows members to stay realistic about the estimated potential delays and work on preventive options.
There is a basic difference between PPM and PM based on the number of projects. PM focus on individual performance to completion and PPM studies all projects and ensures that overall business goals are met properly.
PPM sets the foundation of the PM process in a much smarter way. It indicates good projects and predicts its value for the company in the future. Members can prioritize their work and budget is set in a defined manner.
Overall, Project management outlines methodology and predicts the potential result for the company. The PPM team studies problems, review operational procedure and manage all the concerns of stakeholder with a promise of a fruitful result in the end.
Sadia Maqsood is the author of training and personal development blog. She usually writes about leadership and project management training courses. You can also follow her on Twitter @ikluae.