The project management industry is vast and includes various techniques for delivering the desired results. Managers have to take different factors into account when building project layouts. A project portfolio is an effective technique that can help improve project results. Generically, a portfolio refers to the grouping of different items. If you want to know this term’s meaning in the project management industry, you’re in the right place.
Here is a complete guide that will help you understand the project portfolio.
Project Portfolio Definition
Project portfolio in the management industry refers to the collection of different programs and projects. It is designed to meet the financial needs of a project with ease. Additionally, it helps to focus on the strategic aims of the company.
A project portfolio includes structural management across the whole company. This is why it is not limited to individual projects and helps improve the overall position of the business. A key feature of a portfolio is to aid in scheduling, task assignments, and much more.
The top thing to note is that various projects within a portfolio do not have to be interlinked. However, they must serve the common purpose of improving the financial and basic position of the company.
Importance Of Project Portfolio
Here are the top features that enable a project portfolio to be important in the project management sector:
1. Allows Alignment Of Objectives
A key feature of a project portfolio is that it is a collection of different projects. That is why it helps with the alignment of various objectives to ensure they contribute toward long-term goals. Thus, the process can help improve management efficiency.
2. Offers Oversight
The primary purpose of a project portfolio is to ensure oversight for many projects. Various tasks can be observed at the same time and optimized to meet company standards. The continuous oversight also minimizes the potential risks arising during the development.
3. Allows Monitoring Of Resources
By aligning all projects under one criterion, managers can easily observe the allocation of resources. It also helps them to know when a particular resource will be available for a different task. This allows them to create timelines that will be synchronous.
4. Ensures Company Takes The Suitable Projects
A top thing to remember is that a company does not accept all projects. An intake process occurs, which allows a project manager to approve or reject client proposals. That is what a portfolio can help with.
The project portfolio includes the set of projects that are helping the company improve. This is why managers can use them as a reference to take on suitable projects in the future.
A portfolio helps the company to accept clients that can meet the business values and contribute to its goals.
This is everything you need to know about a project portfolio. It plays an integral role in the project management process. Without it, companies would not have a clear vision of how they want to improve and which clients to accept. A key feature of the portfolio is that it removes bias during planning.