Project Portfolio management

  • Organizations have business goals to achieve (say improve sales by 25% in the next financial year)
  • Business goals are supported by business strategies. For example;
    • Improved online marketing
    • New product development
    • Marketing existing products in new geographies
  • These strategies are supported by projects
    • New web site design, development and deployment
    • Search Engine Optimization (SEO)
    • Design, development, marketing, sales and support of new products
    • Setting up sales & marketing teams, tools and systems to address new markets
  • Organizations have very limited funds to spend, so they must allow only the best projects to proceed.

Project Portfolio Management (PPM) or Enterprise Portfolio Management (EPM) involves;

  • Identifying and selecting the best projects, programs and other work which are in true alignment to the organization’s strategy for growth
  • Funding and staffing those projects
  • Monitoring and controlling those projects (at a very high level)
  • Scanning the environment for environment related risks which may impact the current portfolio of projects, so that they can be optimized. For example, due to the pandemic (environment related risk) most of the organizations had to drop some projects from their portfolio and replace them with more suitable ones (physical store Vs online stores)
  • Portfolios are managed by portfolio managers
  • The program managers whose projects are part of the portfolio reports to the portfolio managers
  • Within portfolios, there can be stand alone projects which are not part of any programs, those project managers also report to the portfolio managers