Projects are the primary way of executing an organization’s strategy. The projects that align their objectives with organizational strategy are more likely to be successful. The organizations that use project portfolio management (PPM) techniques to determine the IT project investments have better business planning and ROI than those with ineffective PPM practices. In this article at PMWorld 360, Francesco Pecoraro explains how PPM is expanding beyond project-based business.
PPM is a blend of management disciplines that combines:
- General Management Focus: Helps in managing an organization’s resources and risks.
- Project Management Focus: Assists the managers in reviewing, managing, and assessing projects and programs to ensure they are meeting or exceeding their planned contribution to the portfolio.
- Business Management Focus: Helps in ensuring that all projects and programs align with the portfolio strategy.
Combining project management disciplines with business and general management practices at the portfolio level provides organizations with the ability to:
- Regularly assess how projects and programs contribute to portfolio health.
- Select projects that are aligned with the organization’s strategies.
- Keep the portfolio in compliance with business objectives.
PPM’s goal is to improve customer satisfaction, reduce the number of risks and problems, and increase the project success rate.
Role of PPM in Resource Allocation
“PPM provides companies with a process that allows project portfolio managers and executives to react to the business environment,” explains Francesco. Further, PPM helps the managers assess how a single project affects the portfolio when measured against the organization’s strategic goals. PPM helps companies understand how to allocate resources and enhance trust and collaboration across the organization. What often happens is that senior managers allocate the resources to speed up their projects. By doing so, these managers use resources that could have been used to reach the organization’s goals and strategy. PPM helps companies allocate resources at a higher level by considering projects and the enterprise’s environment.
To read the original article, click on https://www.pmworld360.com/blog/2020/10/15/how-ppm-is-expanding-beyond-project-based-business/.