Applying effective PPM practices is becoming increasingly critical to business organizations. All organizations, large and small, must select and manage their investments and execute their projects wisely to reap the maximum benefits from their investment decisions. PPM enables businesses to:
• Provide a structure for selecting the right projects and eliminating wrong ones
• Allocate resources to the right projects, thus reducing wasteful spending
• Align portfolio decisions to strategic business goals
• Base portfolio decisions on logic, reasoning, and objectivity
• Create ownership among staff by involvement at the right levels
• Establish avenues for individuals to identify opportunities and obtain support
• Help project teams understand the value of their contributions
Although there is compelling evidence to justify the use of PPM, few organizations today have established a mature project portfolio management process. Recent research from the Center for Business Practices (CBP) found that only a small percentage of organizations actively manage their projects as a portfolio (see Figure 10.5-2).
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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.