The management of a collection of projects is known as Project Portfolio Management (PPM). It’s easier to make better business decisions if you put them together and generate numerous reports on objectives, risks, expenses, and resources, whether you’re a PMO or just somebody overseeing multiple projects in an organisation.
What is Project Portfolio Management?
Let us spend a little more time understanding PPM and why firms manage linked projects under a portfolio umbrella before we get into the benefits.
Managers can use project portfolio management software to organise a succession of projects or programmes into a portfolio, allowing them to collect relevant data from several initiatives. This provides critical insight into the portfolio’s projects and resources, allowing management and the executive team to assess the overall status of the organization’s projects. When making crucial financial and business choices, reviewing data from a project portfolio can help, as can ensuring that teams are aligned with business and organisational goals.
As a result, project and programme portfolio management reduces risks, maximises resources, prepares for future success, and leads to better decision-making. In summary, it’s a great way to improve project execution, improve strategic alignment, and demonstrate project value to stakeholders.
Benefits of Project Portfolio Management
As you can see, there are numerous advantages to managing a group of projects. In the following paragraphs, we’ve identified five of them.
- Alignment of Projects to Business Goals: Making ensuring your project falls inside the scope of a company’s strategic plan isn’t often a top priority, but it’s an important part of every project.
- Communication of Project Insights to the Executive Level: While you may report to stakeholders on a specific project, you’re mostly just updating them on the status of the project. When managing a project portfolio, you can collect more advanced data to present executives with more in-depth insights.
- Allocation of Resources: You can reallocate resources in a project portfolio in the same way you can in a project. You get a broader perspective of where resources are being over- or under-allocated with a portfolio.
- Identification and Correction of Performance Problems: When managing a project portfolio, any issues that develop over the process of managing a large number of projects can be quickly identified and addressed using portfolio analysis.
- Identification and Assessment of Project Risks and Impacts: What are the risks associated with your project portfolio? How will you recognise them if and when they appear? And then, what are you going to do about their impact on your project’s progress? When managing a project portfolio, all of these questions should be asked so that you can respond quickly.
Pro-Tip: Without the right tools, managing a project and programme portfolio can be difficult. Using makeshift and antiquated tools to store, analyse, and report on that much data is a formula for catastrophe. There are several online PfMP Course and project management tools that can assist your team while managing a portfolio of projects. A real-time ppm dashboard that provides accurate data across all projects in your portfolio is one of the most crucial ppm tools you should be employing.
