Welcome back to PMOCast, your go-to resource for all things project management! Today, we’re navigating through an exciting facet of project management that’s gaining traction in the industry – Project Portfolio Management, often abbreviated as PPM.

Understanding Project Portfolio Management

Project Portfolio Management isn’t a novel concept, but its strategic role in aligning projects with an organization’s business strategy is increasingly being recognized and utilized in project management circles. This appreciation is backed by the insights of several industry thought leaders, including the acclaimed Harold Kerzner.

So, what is Project Portfolio Management? In essence, PPM is a strategic discipline enabling organizations to manage and assess their projects from a bird’s eye perspective, as opposed to examining them individually. This elevated viewpoint facilitates better prioritization of projects, effective resource allocation, and an alignment of projects with overall strategic objectives.

As Harold Kerzner elucidates in his book, “Project Management: A Systems Approach to Planning, Scheduling, and Controlling”, project portfolio management is about executing the right projects, not merely executing projects correctly. It’s about ensuring your organization is channeling its resources into the most strategically aligned and beneficial projects.

The Benefits of Project Portfolio Management

Project Portfolio Management yields several benefits:
Strategic Alignment: PPM ensures that all projects contribute to the strategic objectives of the organization.
Resource Optimization: PPM allows organizations to distribute resources effectively across multiple projects, avoiding overutilization or underutilization.

Risk Management: Providing an overview of all projects, PPM paves the way for effective risk management and offers opportunities to balance risk across the portfolio.

Actionable Tips for Effective Project Portfolio Management

Here are some practical tips to ace project portfolio management:

Establish Clear Criteria: Develop a consistent set of criteria for evaluating and selecting projects. These criteria could be related to financial return, strategic alignment, or risk level.
Prioritize: Remember, not all projects are created equal. Prioritize them based on strategic alignment, potential value, and risk.

Regularly Review: Periodically review the portfolio to ensure it remains aligned with strategic goals, especially as business environments and priorities can shift rapidly.

As Kerzner states, project portfolio management is an evolving discipline. It’s “not a one-time activity but a continuous process”. It’s about being adaptable to changes in the strategic landscape and maintaining the agility to redirect resources when necessary.

In our forthcoming content, we will delve into project management in the digital age, exploring how technology is reshaping project management. Stay tuned!

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Until our next deep dive, stay productive, and embrace the power of strategic project management!