The centralized management of an organization’s projects is known as project portfolio management. While these initiatives may or may not be connected, they are maintained under a single roof, known as a portfolio, to oversee and manage any competing resources. Portfolio management in project management also includes the project intake process. An easy-to-use project portfolio management software like the one from Valueblue.com bridges the gap between company goals and project implementation, resulting in an efficient system with several benefits.
What is the significance of project portfolio management?
Portfolio management is a means of bridging the strategy execution gap. To maximize the company’s investment, it is the portfolio manager’s obligation to ensure that the right projects are finished at the right time. This is especially important in a corporation with a large number of internal initiatives. Project ideas can emerge from anywhere and at any moment, and it is normal for a company to have a long list of prospective projects to accomplish. However, there is rarely enough time, money, or resources to finish them all at once.
The Advantages of Project Portfolio Management
A holistic strategy that monitors project status and health, interdependencies, and the performance of resources assigned to the projects is one of the benefits of project portfolio management. PPM delivers real-time information on project indicators and improves overall process efficiency.
Align project objectives with company objectives
The ultimate purpose of any company is to achieve its long-term and short-term objectives. And every initiative a company takes on is a step toward that aim. As a result, project managers must verify that projects are in line with the company’s strategy and objectives. If the projects do not connect with the specified goals, it results in project overload, a waste of company resources, and a waste of employee efforts.
Improve departmental and corporate executive communication and teamwork
Considering your project portfolio as a whole instead of individual projects will also provide balance when valuing, selecting, and sustaining projects; it will also better communicate within corporate management by discussing the portfolio as a whole and breaking down barriers between sub portfolios. It can also be reduced by focusing on a few objectives related to a department or a company leader.
Reduce the number of superfluous projects and make it easier to cancel or postpone projects
When you review all of the possible project investments in a portfolio, you will detect redundancy. Looking at projects by department, division, or line of business will not provide this clarity. With this perspective on the portfolio, and taking other factors such as alignment with corporate goals or the need to bring a new technology or product to market into account, it will be easier to kill unnecessary projects, reclaim investment where possible, and free up resources for more critical projects.
Project Portfolio Management ensures that all projects have the necessary strategic planning, resource scheduling and management, and monitoring. Furthermore, departmental teams will be guided by a combination of experience and Project Portfolio Management guidelines to produce projects that add value to the business.