PPM 101 - What is Project Portfolio Management?

In this video we cover the question "what is project portfolio management?" This corresponds to the original Blog Post: https://acuityppm.com/ppm-101-what-is-project-portfolio-management/

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What is a project portfolio?
A project portfolio is a defined set of projects and programs within an organization that is better managed as a collective set of work to accomplish strategic goals.

What is project portfolio management?
Project portfolio management is a senior leadership discipline that drives strategic execution and maximizes business value delivery through the selection, optimization, and oversight of project investments which align to business goals and strategies.

What is the portfolio management lifecycle?
The portfolio management lifecycle includes four essential elements.
1) Define the Portfolio— Processes to define portfolio parameters and select projects that align with strategic objectives. This results in the portfolio containing a higher percentage of winning projects.
2) Optimize Portfolio Value—all the steps necessary to construct an optimal portfolio given current limitations and constraints (e.g. prioritization, resource capacity planning, portfolio planning, etc.)
3) Protect Portfolio Value—during the execution of an optimized portfolio, the aggregate project benefits (portfolio value) must be protected. This occurs by monitoring projects, assessing portfolio health, and managing portfolio risk.
4) Deliver Portfolio Value—Ensure that portfolio value is delivered by comparing expected benefits with actual benefits. Improving PPM maturity translates into a greater realization of the benefits of portfolio management.

What are important project portfolio management capabilities?
The full breadth of project portfolio management includes several important capabilities including: ideation, work intake, Stage-Gate, prioritization, portfolio optimization, portfolio planning, resource capacity planning, portfolio risk management, portfolio communication, portfolio reporting and analytics, portfolio value management, project monitoring, and portfolio governance.
What are the benefits of project portfolio management?
Companies that do successfully implement project portfolio management (PPM) reap several benefits:
1) Greater strategic execution resulting in the accomplishment of more business goals and objectives of the organization
2) Maximized portfolio value for the organization
3) Enhanced decision making processes resulting in better decisions
4) Successful management of organizational change
5) Greater visibility of projects in the organization
6) Higher success rate of projects within a complex environment
7) Reduced organizational risk
8) Balanced project portfolio workload

Project portfolio management (hereafter referred to as “PPM”) is a critical component for executives and senior managers to execute strategy. According to Mark Morgan, “there is simply no path to executing strategy other than the one that runs through project portfolio management”. In fact, projects are “the true traction point for strategic execution”. First, portfolio management must be defined. Several definitions of PPM from authoritative resources are given below and provide a balanced view to the subject of portfolio management (note: please see the bibliography at the end of this document for a complete listing of resources used). Without a complete understanding of PPM, the benefits mentioned above will be reduced.

According to the Project Management Institute (PMI®), project portfolio management is the “centralized management of one or more portfolios that enable executive management to meet organizational goals and objectives through efficient decision making on portfolios, projects, programs and operations.”

The Stanford Advanced Project Management series offers a concise definition of PPM: “Portfolio management is the strategy-based, prioritized set of all projects and programs in an organization reconciled to the resources available to accomplish them”.

Gaylord Wahl of Point B provides another angle of portfolio management: “Project portfolio management applies the tools and discipline of financial management to product/project management, taking into account: investment strategy, risk, ROI, growth/profitability, balance, diversification, and alignment to goals.”

Acuity PPM defines project portfolio management as “a senior leadership discipline that drives strategic execution and maximizes business value delivery through the selection, optimization, and oversight of project investments which align to business goals and strategies”.

For more information about Acuity PPM software, visit: https://acuityppm.com

Видео PPM 101 - What is Project Portfolio Management? канала Acuity PPM