The Importance Of Project Portfolio Management

1309 Words3 Pages

Introduction
Using most project management principles, there are many differences ways in which are applied throughout the business world. Moreover, almost all businesses are constantly in search of best practices and ways in which they can improve their respective processes. Most organizations often tend to make huge investments in technology, in both hardware and software. These types of project initiatives require enormous amounts of funding and in most cases the amount of funding is just not available in most businesses. Therefore, decisions are usually made in regards to which projects should get funding, also which should get limited funding and which should get no funding as well (Wysocki, 2012). The dollars funding to fund these …show more content…

Most of the time the commonality can materialize in various forms in different projects. For example, at most of the highest level, in an enterprise, the commonality most likely will be as simple as the realization that all the projects just belong to the same company. As one might deliberate about the entire structure it is important to realize where the Project Portfolio Management (PPM) is positioned and the distinct roll the project portfolio manager has in this process. The descriptions below provides a good representation of the multiple roles and position of the people involved with the project management strategic management process:
- Sponsor pays for the project
- Project manager – held accountable for the project
- Portfolio Manager – accountable for multiple projects that are linked
- Team – completes the work
Think of a project that you have worked on. Suppose your team and any contractors associated with your project do not have enough resources to complete the project as quickly as it could have been …show more content…

There is a long list of circumstances that can be contributed to the lack of resources at the time required by a project. The majority of the times it is a matter of available funds. There are not many known instances where funds couldn’t resolve resource issues (Wysocki, 2012). Now, let’s look at a worst case scenario, and it can be assumed that there just aren’t any more funds to be found for that project. In this sort of a situation is where the portfolio management becomes very important. Most projects have a Portfolio management whom is much more than simply managing multiple projects. One might say that because of the leadership of the project portfolio could be a determining factor in the success of a business. In a good portfolio management strategy it will ensure a company’s day to day operations with regards to people, programs and objectives. This can never be seen as a onetime endeavor but can be described as a on-going process that joins the strategy and operations with resources and timelines and priorities as a project might dictate. The a major fundamental challenge of portfolio management is in that a strong methodology will only take an organization or business so far (Wysocki, 2012). Normally a well-planned strategy combined with best practices would ensure a strong return on investment. Even as

Open Document