A competitive advantage for organizations now is doing the right projects and making sure that there are resources to complete those projects. Project Portfolio Management (PPM) is a set of business practices and a process that allows organizations to manage projects as a strategic portfolio, ensuring the alignment of programs and projects with organizational objectives. Executives need to regularly review entire portfolios and programs, determine why projects are or are not necessary, see where money is spent, prioritize projects, stage the start of new projects, spread resources appropriately and keep tabs on progress.
Portfolio managers have a very tedious task of analyzing every aspect of the project like, cost, resources, time, etc. the managers study all these aspects in detail and then help the company to make wise investments. Strong analytical and financial skills are the trademark of a good portfolio manager.
The discipline of project management applies constantly evolving principles, concepts, tools and techniques to improve project performance and organizational effectiveness. When properly aligned with company goals and objectives, project management adds value by improving your ability to consistently deliver the right products - on time and within budget - while increasing client satisfaction and employee retention.
1. Do the right work
2. Do the right work faster
3. Use the right resources
4. Do the work right
5. Identify problems and solve it easily.
The above stated points are the most essential elements that suggest and support the use of project management portfolio. These points help us understand why there is a need for a particular portfolio in the project. The main objective here is to increase the efficiency, get the optimum results and at the same time develop techniques and methods that save time, reduce cost and maximize profits.
The goals of PPM :-
1. assists the organization in making effecccient use of the resources.
2. helps maintain the projects undertaken in the form of a list.
3. enables the removal of low value or less efficient projects
4. ensures that the projects undertaken fall in line with the goals and the strategy of the company.
5. creates a deep understanding and brings a holistic view to the project
6. maintains a healthy balance between different projects , in terms of their cost,duration,complexity etc.
The selection of PPM software system should be purely based on the needs and objectives of the organization. It is always wise and advisable to use the various elements of portfolio management on an individual. The reason being, some features might seem very lucrative in the beginning but might turn out be less effective only because of its wide functionality.
These are the key features of Project Portfolio Management.
1. the project methodology
2.costs and benefit management
3. communication of key project data
5.cost and benefit pursuit
Portfolio management software helps the management to carefully review a particular portfolio in detail and help them in taking some of the key important financial and business decisions. As stated earlier the objective is to augment the results and provide maximum benefit to the company in terms finance.
A project methodology tells you what you have to do, to manage your projects from start to finish. It describes every step in the project life cycle in depth, so you know exactly which tasks to complete, when and how. Whether you're an expert or a novice, it helps you complete tasks faster than before.
Costs and benefit management:-
Project management’s one of the main aspect is it cost. The purpose of the financial cost benefit analysis is to assess the financial viability of the project ie…is the project financially incorporating the entity’s viewpoint. The cost...