Project Management

The Practice

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One afternoon in the 1950s while reading The Theory of Investment Value by John Burr Williams, Nobel laureate Harry Markowitz developed the basic concepts of portfolio theory that investors diversify because they are concerned with risk as well as return. His subsequent article “Portfolio Selection”, published in 1952, changed the way investors make investments decisions. Prevailing practice was to select individual investments based upon their risk-reward characteristics. Markowitz suggested that investors should select portfolios based upon their overall risk-reward characteristics rather than the risk-reward characteristics of individual securities.
A few decades later, the pioneering work of an economist in the area of stock market found its way into the IT governance and management field.
Project Portfolio Management
The business environment is becoming competitive, the resource constraints are increasing and IT is playing a greater role in all operational areas. Technology has become essential to managing business transactions, information and decision-making. This means that organizations are dealing with a number of IT projects to address their business issues, giving rise to many challenges and concerns--including aligning IT projects with business goals and strategy, providing structure for their execution and implementation, and measuring their …

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