To effectively manage methods and
processes within a project, managers need a centralized platform where they can
collectively manage and analyze current as well as proposed projects based on
their key characteristics. This is where project portfolio management programs
and tools are most useful. They allow project managers to see and track
existing projects as well as create a portfolio of existing and future projects
and project demand prospects. Project portfolio management is a recent
evolution stemming from enterprise project management, which provides a holistic
view of the organization. PPM gives project managers the ability to manage
existing and proposed projects depending on budget size, calendar year, the
budget year, business line, and other portfolio categories for easier administration.
Portfolio project management
programs allow businesses and project managers to efficiently study and analyze
specific projects and decide and select which ones to keep in the roster
because of their projected value, and which ones to discard because they will
not yield enough profit or are simply obsolete. Effective portfolio project management platforms
allow the creation of different scenarios that help project managers select the
best portfolio for a certain calendar year, budget, business line, etc.
Portfolio management, however,
does not stop at the selection of the best portfolio content, as individual
projects need to be constantly assessed, scrutinized, and evaluated in terms of
quality, schedule, and cost to see whether there is progress or regress. Generally,
the main objective of portfolio project management is to determine the most optimal
set of projects for the resource pool so that delivery of services and
scheduled activities are properly managed—all for the fulfillment of the
organization's financial and operational goals while also factoring in the
constraints dictated by strategic objectives, customers/clients, and other
external factors.
