What is Project Portfolio Management?

Project Portfolio Management (PPM) is the name of a methodology which facilitates the prioritization of projects within an organization. Because several divisions of a company may be engaged in a variety of projects at any one time, it is important to have a strategic tool to help prioritize ongoing and upcoming projects.

PPM Implementation

The proper sequencing and timing of projects within an organization can help feed the success of company-wide goals and profitability. PPM tools are typically software applications that help managers elucidate metrics, enabling them to make more informed decisions about the pacing and investment in company-wide projects. Overall, the tools can assist in seeing projects through more efficiently from the idea stage through completion.

Strong IT coordination is necessary for making the most out of PPM tools and strategies. The metrics inherent in the process can create better visibility, streamline projects across divisions and provide data necessary to make on-going improvements and adjustments.

Benefits of PPM

The benefits of PPM strategy include:

• Better utilization of available resources to support profitability goals
• Increased effectiveness and efficiency of project tasks
• Data driven results leading to more insightful decision-making
• More effective forecasting and better project timeline performance

PPM strategies allow project managers to see a more comprehensive view of the progress needed to reach corporate goals across projects. In addition, with strong metrics, the decision-making process is data driven which can enable risk reduction.

Challenges of Using PPM

Some of the challenges related to implementing PPM include the realization that teams need time to receive proper training and education related to the processes for which they will be responsible. In addition to this challenge, which can be mitigated with proper planning, there are other challenges to keep in mind:

• Some industries are more driven by the whims of consumers who have a key role in pushing deadlines for innovation; this can make it hard to collect and respond to the metrics needed to make a fully informed decision
• Corporate cultures will differ as to the overall acceptance of the PPM methods. Keeping detailed performance and process data can be perceived as intrusive to employees who are more used to working alone; education is critical for proper PPM strategy to be accepted across organizational divisions
• Because project proposals, processes and investments are examined in a more objective manner, some leader’s “pet projects” may no longer have the priority that was previously given to them

Many of the challenges of PPM can be offset with proper training and an organizational commitment to the projects that will serve the company’s competitive edge most directly. While PPM is not an error-free process, it is a strong strategic tool for prioritizing projects and examining the resources needed to help push the company to the next level.

Successful project managers possess multiple tools through which to build and maintain strong project management skills and apply them to novel situations in multiple industries. Project managers who invest in attaining the most attractive skill sets show potential employers that they are willing to take the risks needed to be effective organizational leaders throughout the evolution of their career.