Projects and portfolios can take up sufficient resources and time for any business. The key is to optimize these resources to make the most out of them. That is where PPM comes in, and here is everything you must know about this.
Project Portfolio Management (PPM) Explained
PPM is a process where businesses analyze and optimize the cost, resources, processes, and technologies used for projects within a portfolio. The portfolio managers are responsible for carrying this out. The primary aim of PPM is to guarantee that the outcomes of the portfolio support the business goals and objectives.
PPM involves business analysis, budget reviews, budget forecasting, minimizing risk, managing stakeholder expectations, and much more. Many businesses use various PPM tools to collect and analyze data required for the successful execution of the process.
The Process Of PPM
The PPM process involves various steps that all portfolio managers must take. These include:
1. Identifying Business Aims And Objectives
The first of the PPM process is to understand the business objectives ad align them with portfolio management. Your project portfolio must align with your organization and its aims. That is why it is best to check your customer values and financial objectives.
It will help you understand the project’s strategic goals and the stakeholders. After that, you can proceed to create a valuation criterion for the best project selection.
2. Idea Collection
Once you have the aims and objectives, it is time to start building on them. Of course, for this, you will have to begin an idea collection of projects. These can include the projects in progress or project ideas that teams can manage simultaneously. The organization must gather data and prepare a valuation criterion to choose the best ideas.
3. Project Selection
As a project manager, you must determine the best projects for the PPM. To do this, you will need to do a cost-benefit analysis using your valuation criteria. It will be helpful in measuring the amount of value that each project will bring to the portfolio.
4. Feasibility Study
Once you have all the projects that are best suited for your portfolio, you must conduct a feasibility study. Such a study takes into account resource management, financial risks, and much more. All of this will give you deeper insight into the projects that are best for your portfolio.
5. Execution And Management
Finally, you must execute and manage your project portfolio. You will have to coordinate the execution of each project simultaneously by working with your team, program managers, and other project managers. Collaboration, communication, and coordination are crucial to successfully manage the project portfolio for a long time.
Final Words
That was your complete guide to PPM and all the processes involved in this that will help you manage your project portfolio. If you handle a lot of projects and programs, PPM must be the most important aspect of your organization. It will help you fulfill all the goals of the portfolio and the projects within.