An Overview of the Project Portfolio Management Processes

PPM is more than an extension of project management to deal with multiple projects. Although it addresses different needs, it is very important to have full integration with traditional project management capabilities.

As more and more firms adopt project management office (PMO) methods, it would not surprise us to see responsibility for PPM thrust fully into the hands of the chief project officer. This, too, would be a mistake. PPM requires governance at the executive level. And the tools need to be optimized to support these changing roles.

The core mistake is to think that PPM is fundamentally the management of multiple projects. This definitely is not so. PPM is the management of the project portfolio so as to maximize the contribution of projects to the overall welfare and success of the enterprise. What this means is:

• Projects must be aligned with the firm's strategy and goals.

• Projects must be consistent with the firm's values and culture.

• Projects must contribute to a positive cash flow for the enterprise.

• Projects must effectively use the firm's resources—both people and other resources.

• Projects must not only provide for current contributions to the firm's health but must help to position the firm for future success.

We repeat this list here so that we can think about the impact of these attributes of PPM on tool support for the process. Our application of traditional project management processes and tools has focused on managing projects. Now we need to extend our practices and tools to support project prioritization and selection. We also have to integrate the project management tools with the portfolio management tools.

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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