The surveys from the Project Management Institute and KPMG depicts the importance of successful projects to strategic commercial goals, highlighting the role of Project Portfolio Management (PPM) in delivering those projects. Project portfolio management (PPM) refers to a process used by project managers and project management organizations (PMOs) to analyze the potential return on undertaking a project. Capture and research requests and ideas 3. Lastly, PPM also makes a company more nimble and able to adapt to change with minimum fuss or disruption. IT portfolio management and project portfolio management in IT are similar, however, in some cases IT portfolio management will step beyond projects and initiatives to also examine the applications and infrastructure related to those projects. So should access to data, as a delay in getting data can impinge on your decision-making ability, as well as your ability to comply with regulatory requirements. At the beginning of each stage the responsible party evaluates the business case, asking whether it is still relevant and able to deliver the organisations' objectives. Collect Project Data. Categorize these, consider where projects are in their lifecycle, identify your company’s strategic goals and business objectives, and determine if these projects support those strategic objectives, and if so, which ones. DPO can be contacted at, 5 Tips for Developing an Innovation Framework, IT Strategic Planning: Managing Change in the Realm of Digital Transformation, Strategic Management as Usual Is Inadequate Today, Map Your Product Portfolio Toward Success. Let’s first take a look at what PPM is before examining the process elements behind it. PPM considers the big picture of all projects grouped together—past, present, and future—and calculates the optimal prioritization and sequencing of projects to maximize ROI. Companies should create a business unit to oversee portfolio management processes and coordinate efforts across the whole organization. In the process, it will remove inefficiencies and be better able to focus on appropriate strategies for achieving goals. They can provide strategic insight and visibility into the most important projects that make sense for an organization, prioritize the most valuable work, and help deliver project initiatives on time and on budget. Obviously, collaboration is absolutely critical before making these decisions to make sure you end up with the right portfolio. While project portfolio management services began as a set of tools and approaches in support of the IT organization, business executives—under pressure to deliver results in a more agile and seamless manner—realized that many of PPM’s methods could be applied more broadly across the enterprise. Here’s some of the best project portfolio manager tools on the market: Project portfolio management refers to the centralized management of one or more project portfolios to achieve strategic objectives. Evolve your PMO: Deliver business results, Manage your idea portfolio and foster innovation, Advance capabilities and technology for digital business, Optimize your business flow to deliver more value, Drive a culture of innovation and employee engagement from idea to impact, Create organizational focus on the outcomes that matter, Enterprise-wide strategy to delivery spanning PMO, Product Development, and Enterprise Architecture, Enterprise work management that advances PPM and project delivery capabilities, Digital workspaces that empower teams to deliver their best work, no matter how they work, Enterprise Kanban for Lean and Agile delivery that visualizes work, scales teams-of-teams, and promotes continuous improvement, Project-centric collaborative workspaces that brings teams together to support everyday project delivery across the enterprise, Be the CIO that drives innovation and accelerates digital transformation, Elevate Project Management Office success and deliver business value, Become an adaptive enterprise portfolio management office, Reinvent enterprise architecture for digital business, Advancing the gated process for new product development managers, Solutions for all types of project managers managing all kinds of work, Solutions for resource managers improve utilization of resources for project and non-project work. The management principle At it simplest, portfolio management is a question of managing and balancing earnings, investments, and risks. First, you record all running projects with their … Progress reports from time to time. A strategic portfolio management system requires a portfolio management process. In this section we will cover the processes of managing specific portfolio risks. At the same time, it’s clear that not all projects are of equal value to an organization. Don’t forget to subscribe to our DPM newsletter for more guides and tips. Of course, the interpretation of these titles depends on the organization. Fast access to the information you need, including articles, documents, reports, videos, blog posts, and more, Hear what our customers have to say about our products, In person and online opportunities to learn how Planview helps you solve your business problems, Insight from the subject matter experts on PMO, product innovation, enterprise architecture, and more, for Enterprise Kanban for Agile Delivery Teams, : Evolve into a Multi-Faceted Strategic Partner, : The PMO Leader for Planview Enterprise One, trending topics in the Planview Resource Center, Enterprise Kanban for Agile Delivery Teams, Enterprise Portfolio Management Office (EPMO) Teams, Planview Product Reviews and Testimonials, visibility executives need to make informed decisions, organization that supports project management professionals, a business unit to oversee portfolio management processes, a PPM solution that can increase cohesion and visibility, Project Management Office: PPM Best Practices, All Data Subject Access Requests (DSARs), and requests of “Do Not Sell My Personal Information” according to the CCPA, must be submitted through the Planview DSAR portal located here, Planview has appointed a Data Privacy Officer (DPO) for ensuring processing is lawful. Monitor activity and resource information 1. Often, the role of a project portfolio manager revolves around managing one or more portfolios and working with different financial algorithms and financial models to align projects to the company’s strategic objectives. To accomplish the many goals laid out by PPM, there are a variety of software tools that automate processes (to reduce manual calculations and labor). Enable architects, IT planning teams, and C-suite to align execution with business strategy. He continues to work closely with Sales, enabling on messaging, positioning, and how to best serve our customers. Resources need to be planned. Too many projects for the limited resources available, Whether the project drives business goals, What the expected tangible outcomes will be, Whether the outcomes can be achieved by a project already underway, What the project’s risk-return profile is, What resources are needed to complete the projects. After collecting data, it’s generally a good idea to organize it by category. Project Portfolio Management (PPM) is the centralized management of the processes, methods, and technologies used by project managers and project management offices (PMOs) to analyze and collectively manage current or proposed projects based on numerous key characteristics. Costs and the benefits need to be kept on track. They analyze, understand and report on the potential risks and returns of a new project. You will need to adapt and make changes in real-time. For example, a program led by a nonprofit to provide clean drinking water in a rural area might comprise an infrastructure project, a research project, and an education or PR project. Select best project for sponsorship 2. Establish a process for prioritizing projects. Put simply, a program is often the driving and managerial force behind a set of projects. The PMO can work with business leaders to create project evaluation criteria, which will help the organization review, evaluate, and authorize projects to ensure that they align with strategic objectives of the enterprise. Manage and monitor the portfolio This process identifies the most imp… Exhibit 3 shows the five primary steps of the portfolio management process. Many companies use a Project Management Office to handle all activities related to PPM.The PMO is the central hub for all projects in the business, driving PPM on a largely strategic level. Access to information as and when its required. Our list of the best project portfolio management software will help you find the best one for your situation and how many projects you have. Before diving into PPM software or project portfolio management tools, check out the demos and free trials offered by many portfolio tracking software providers. Your implementation team should include technical team members (to help with new systems) and portfolio managers, to name a few. Our process for project portfolio management is clearly specified. 7. Managing project portfolios ensures that an organization can leverage its project selection and execution success, according to the Project Management Institute (PMI), an organization that supports project management professionals worldwide through collaboration, education and research. Elimination of redundancy 3. Even so, IT portfolio managers will still follow the same types of portfolio management processes listed above. The objectives of PPM are to determine the optimal resource mix for delivery and to schedule activities to best … Great article, I’ve started a job recently as a PM, but its turned very much into a PPM role, and this is a great piece to help me consider where to focus and upskill. What adaptation means is quite different for every company, as it should be, but it’s generally a good idea to test your new portfolio with a few stakeholders, taking feedback as needed. Our project portfolio management process is divided in clearly defined phases. Companies need to evaluate each project’s inherent and potential risks to the overall portfolio, rather than just comparing project initiatives side-by-side. They do this through the use of five key capabilities. The project portfolio process is a method which can maximize the output potential of all projects undertaken by your organization at a given time, subject to limited resource constraints. According to PMI’s Standard for Portfolio Management, there are four primary portfolio risk management processes: Identify portfolio risks—Portfolio risks may come from several directions. Accurate identification of risks and associated remediation strategies is critical and should be prioritized. PPM is the art and science of gaining command over the work and resources in one's project delivery organization. This inability to focus invariably results in: Organizations need to deploy a process that continuously validates and prioritizes the strategic and financial value of projects: the PPM process. This necessarily involves selecting only those projects that offer the right amount of value, taking into consideration the resources that need to be allocated vis-a-vis the available resources, as well as the strategic fit with the company’s goals. Project Portfolio. 2. Capture and evaluate project ideas from anywhere within the organization. Many thanks. This website uses cookies to improve your experience while you navigate through the website. How can we focus our resources most efficiently? Project portfolio management or PPM can be understood as the process that the project managers of a firm use. This is done through a process of creating a manageable overview of all your past, on-going, and future projects. These tools can help create a historical project archive, which business leaders can draw upon when they make future investment decisions. Very clear and useful ! Portfolio Managers often develop management standards to guide the portfolio and they keep a high level overview of everything within the portfolio. Very clear and useful ! SEND US A MESSAGE I am about to take a new job as PPM and this article deeply increases my current knowledge. You should also assess the overall risk of the project portfolio as a whole by comparing the probability of technical success against the anticipated benefit from the project. This involves taking an inventory of all current projects and resources, including evaluating the current projects in the pipeline for redundancies, stalled projects and other potential areas for cost savings, and identifying skilled employees and their current and future availability to find out who’s available to work on high-value projects. I’ve been fortunate enough to work across a wide range of great clients; automotive brands including Land Rover, Volkswagen and Honda; Utility brands including BT, British Gas and Exxon, FMCG brands such as Unilever, and consumer electronics brands including Sony. An IT portfolio manager will generally look at three main things: The purpose of IT portfolio management is to ensure that the individual IT investments embedded in the organization’s processes, people, and technology are on track, bridging the gap between the organization’s overall strategy and the execution of that strategy. Don’t be afraid to cancel projects if they no longer align with company strategy. Common questions can be anything from “What is project portfolio management?” to “How much will this cost the company?” to “How will this benefit us?” and even “Why do we need project portfolio management?”. Business strategies are the basis of project portfolio management and as such, it is important to have a strategy in mind before proceeding. I’ve delivered everything from film to CMS', games to advertising and eCRM to eCommerce sites. It is important to take a broadly inclusive approach to risk and not only measure in financial terms, but include schedule, scope, resources, and technology risks. PPM is defined as the centralized management of processes, methods, and technologies used by project management teams to oversee and evaluate existing or proposed projects, based on several criteria. After you’ve set a strategy, you need to build an implementation team. Project Portfolio Management Formalization (α = 0.93) Essential project decisions are made within clearly defined portfolio meetings. Processes to consider during this phase include resource management, risk management, and change management. Assessing ongoing projects and the project pipeline against the organization’s … Utilize the right tools to keep on track and simplify the process. Establishing a PMO can protect an organization from “pet projects” coming from C-level executives, as well as headstrong project managers. Portfolio Risk Management Process. Many organizations might already have informal teams that support managers and projects. HP PPM. He concluded this after spending 2 years in Sales aiding strategic accounts and helping global enterprise customers address capability gaps and delivery challenges. You also have the option to opt-out of these cookies. The Project Managers – Once projects are evaluated and prioritized, and cost effectiveness issues are decided, project managers lead their teams but report to a facilitator of every project who maintains the database, continuity, success, costs, and timelines of each project. Next, analyze the current strengths and weaknesses of your project portfolio. Following are the essential features of those tools: 1. In short, it provides all the visibility executives need to make informed decisions about anything related to projects. Goals set at the portfolio level will give shape to different projects, programs, and operational activities. We also use third-party cookies that help us analyze and understand how you use this website. What projects should we be prioritizing right now? How does project portfolio management work? Project Portfolio Management (PPM) software can help create project plans with tracking tools and dashboards. MEANING : The portfolio management process is the process an investor takes to aid him in meeting his investment goals. It is mandatory to procure user consent prior to running these cookies on your website. Your implementation team may need a governing body, which is typically made up of senior management. If you were managing a technology company’s portfolio for example, you would most likely reject a proposed building project, because it doesn’t align with the company’s stated strategy of focusing only on some predefined type of tech projects. I’d love to hear from you. Planview has appointed a Data Privacy Officer (DPO) for ensuring processing is lawful. This, in turn, allows them to compare different projects using real metrics, only launching the one that provides the best ROI with the least risk. Alex now brings his experience to Solutions Marketing, focusing on PPM, EA, and Strategic Planning. 4. A project scoring … Project management, as you know, is the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements. These categories can be anything you think is necessary, but generally, include completed and canceled projects and growth and survival categories. Project portfolio management process is the key to success with PPM, because it defines how an organization approaches project prioritization, resource allocation, budgeting, scheduling, and other major project components. Weigh project proposals against strategic business drivers and consider the cost and resource constraints. Once your portfolio has been rolled out, it can be difficult to see where to go from there. So, project and program portfolio management minimizes risks, maximizes resources, sets the stage for repeating past successes and leads to better decision-making. Project portfolio management solutions: Not just about IT anymore. A program is composed of a set of related projects. Each of the projects in a portfolio should align with the organization’s strategic vision. Project portfolio management (PPM) describes how we manage the often-confusing mix of interrelated, dependent, and connected projects. Accurate data is absolutely critical and should be prioritized. It’s always good to be prepared. These cookies will be stored in your browser only with your consent. 5. Within most project portfolio management systems, there is a project evaluation process. Risk Management: Identifies risks in projects that make up the portfolio, and … The right project portfolio management process keeps projects aligned with strategic enterprise goals in a well-organized, efficient manner by outlining how the organization manages project ranking, resource distribution, planning, development, and other important elements. Integrated Project Management Company, Inc. (IPM) can help develop and improve your project management and project portfolio management (PPM) framework, allowing you to prioritize and execute strategic projects that will deliver tangible, sustainable benefits. I have attempted to give you a concise breakdown of what, in reality, can be quite a complex process. I am about to take a new job as PPM and this article deeply increases my current knowledge. At this point, you need to view the project portfolio and make necessary decisions about the reallocation of budgets and resources or reprioritize based on the information you uncovered during the previous legs of the process. The implementation of Project Portfolio Management (PPM) brings more openness to the authorization process and less ambiguity into the what, where, when, and how of the project delivery process. The probability that the end product will deliver the return expected. 5. Budgeting –What resources can be brought to bear on the project portfolio management effort? Strategic Drivers –What are the goals of the company with its portfolio of projects? These can be feature requests, operational constraints, regulatory, etc., based on demand, financial and operational constraints. This will help companies develop an action plan. But for PPM efforts to be successful, a team needs to be given recognition and support from senior executives. Yep, loved the article. Compare The 10 Best Mind Mapping Software of 2020, 10 Best Microsoft Project Alternatives Online [Free & Paid], 21 Key Skills For Your Project Management Resume in 2020, How To Make Your Project Management Socially Intelligent (With Kim Wasson From IvyBay Consulting LLC), How To Optimize Your Process With Workflow Management (with Marc Boscher from Unito), Beyond The Prototype (with Douglas Ferguson from Voltage Control). Without this, the system of checks and balances will not work. Change Control Management: Identifies and prioritizes change requests. In a large organization, IT or software portfolio management will draw not only from technology portfolios themselves, but also from related disciplines including enterprise architecture, business case analysis, program management, and performance management. This article digs a little deeper into PPM and putting together project management and project portfolio management that would ultimately mean doing the right projects … The Project Portfolio Management Process. Simplify time and task management for project team members, ensuring they have the freedom and flexibility to capture task and time data as necessary. Stakeholders, in turn, can weigh new initiatives against the overall portfolio more accurately. And if you realize you don’t need a PPM tool but just a PM tool, you’ll find there are simpler project management tools that let you do many things like manage tasks and teams across multiple projects. Manage new initiatives or projects currently underway 2. You may also need to reschedule projects which you may have decided to keep, but first, ensure the rescheduling risk aligns with your strategy. To consent for cookies to be used, click accept. To avoid this, organizations should take the time to identify the business strategy as well as evaluate where projects stand in relation to business objectives. 1. Considering the date it was authored it stands the test of time pretty well I’d say. Learn More Evolve into a Multi-Faceted Strategic Partner : Master the 4 … Link – PPM Process & Firm’s Strategy Review / Revise Mission Inter Exte Ch Strategic Management -nal r-nal an eg New Goals & M an Objectives ag em Portfolio Management Portfolio of Strategic en Choices t Ap pr oa Strategy ch Implementation Program Management` Project Selection Project Management Projects 31 But developing an organizational risk management strategy is included as a best practice by itself because it’s so vital to PPM success. 6. PPM is not primarily concerned with running projects, rather its focus is on choosing which projects to be involved in and how to fund them, based on whether or not they support the goals and objectives of the company. Easily model different portfolio scenarios to determine the best strategic path. This website uses cookies to improve your experience. This cyclical, flexible nature drives project decisions with a steady eye on an organization’s objectives. 10 Best Project Management Dashboard Software Of 2020, PPM is generally used by organizations to, When done properly, PPM is a valuable tool for. PPM can also be a veritable tool in organizational change management; with an effective PPM strategy, a company can restructure and improve its methods for project execution as part of a larger process to change the company’s operational or strategic direction. Register now to take a look at the PMO LEADER experience – and the solutions you have within Planview Enterprise One. PPM can be quite a complex process, especially in the beginning. Not every project needs to be part of a program, but if it is, the success of a project is also considered on a program level—did it help achieve the overall program goals? An efficient and effective PPM process obviously isn’t going to happen overnight, but with the right tools and internal commitment to the process, it will happen. The holistic, closed-loop view of PPM feeds information to the portfolio level from the three more tactical PPM practices: Demand management, project/program management, and results management. A portfolio is concerned with the organizational strategy and how it affects the business itself. Preparing answers to common questions you expect to get during this phase is also advisable. 2. Earnings can be, for example, cost savings, a growth in The organization’s research has shown that PPM is a way to bridge the gap between strategy and implementation. Learn how your comment data is processed. Other objectives include achieving balance in the project portfolio by ensuring an appropriate mix of high and low risk and long and short-term projects. For example, giving your project team the ability to submit, the ability to prioritize high-value projects. HP PPM software provides the real-time information needed to standardize, manage, and … As a result, stakeholders need a way to manage projects and resources to ensure that the most strategically important projects will receive the attention and resources to ensure success. By establishing an optimal mix of projects, PPM ensures a company is better placed to achieve its operational and financial goals. Next, perform an alignment analysis that will show you whether your critical resources are working on critical projects and whether the projects you do decide to carry on with really align with all the strategic initiatives the company wants to undertake. Many thanks Cédric. Clarify business objectives 2. While many organizations have some type of disciplined approach to the identification and approval of new investment initiatives and their related projects, these decisions are often made with inadequate or inaccurate information about the impact new projects have on the existing project workload. But as an Agency Owner, Program Manager, or Project Director, how do you know if you’re focusing your teams and their projects on the right things? For example, there’s program portfolio management, which assesses programs from a portfolio level. Project Portfolio Management Process Steps : #4 – Have a Project Score Model. 2. Its importance cannot be over-emphasized. Again, PPM helps a company to avoid this; it allows managers to nip overspending in the bud as it is easy to see where resources are being over-allocated.