Project Portfolio Management Strategy and Visibility
While project management is focused on the delivery of a unique product, service, or result, project portfolio management strategy focuses on the delivery of business benefits by coordinating and managing a group of projects to support the business strategy and to deliver benefits in line with strategic objectives.
An organization may well be delivering projects on time and within budget, but the value delivered from those projects may not be aligned with the organization’s strategy. In an economic environment where resources are limited and organizations look to maintain value, portfolio management provides the tools that ensure effective project deliverance and risk management.
Visibility of Projects in a Project Portfolio Management Strategy
Project portfolio management provides visibility that facilitates the executive decision making process by providing accurate information and a realistic perspective of the projects being executed within an organization. With the overall priority to deliver a project on schedule and within budget, decisions as to which projects should be continued or shut down can be better determined.
Project portfolio management can aid in ensuring that supply and demand are matched both in respect of external stakeholders and internal stakeholders. This is particularly important either when resources are involved with more than one project and there is a need prioritize or where project performance is under review. Inefficient and ineffective resource allocation will result in missed deadlines and the failed deployment of strategy.
It is important to align the portfolio with the corporate strategy and that the concept is well understood. Good governance will ensure that projects are aligned to one strategic driver and that decisions regarding project funding are made purely on merit.
Project portfolio management enables effective scrutiny of project business cases that report unrealistic benefits as well as identifying project s that may be managed outside the corporate portfolio. These inefficient projects are both costly and detrimental to the success of an organization. The success of any project contributes to the growth of an organization and should be the focus of any strategic plan.
Ensure rational, logical and justifiable project selection decisions with IMS' portfolio management solutions. We consider the strategic objectives of your organization, resource limitations and performance targets within a single process.
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About Jeff Collins
Hi there, thanks for reading! As the President of IMS, I’ve just about seen it all in the project management industry. I’m happy to share my experiences to help managers and organizations improve their project performance. Please reach out to our team if you’re struggling to achieve your goals. We’d love to work with you to discover the PM solutions you need for success.