Project Portfolio Management (PPM): tools for organizational strategy

Elizeu -

Effective PPM reduces the number of low value investments and increase the alignment of portfolios with strategic objectives through consistent project intake, evaluation, selection & termination practices.

However, this is a function of behavior change - all the scoring models, processes and tier 1 software products won't improve things if investment decision makers don't change how they work.

Kiron

Project portfolio management is a holistic approach that monitors project status and health, their interdependencies and available resources. It combines business and project management in the interest of becoming agile. Effective Project portfolio management measures the breadth and depth of your projects and collates it into a portfolio.

Benefits of PPM could vary from organisation to other, however in general benefits are
1. Project portfolio management follows both a top-down and bottom-up tactical approach, giving you unlimited visibility into past and current project metrics.
2. Minimize Risks, Maximize Business Impact.
3. Optimal Resource Utilization Across the Enterprise.

I am sure I can list a dozen of effective PPM benefits still.

Hello Elizeu,
My team has a practice focused in this area. The biggest benefits we see for clients that succeed with their PPM is:
1. They are able to make more data driven business decisions regarding their portfolios and related operations. For example, one of the biggest business problems we see organizations seeking PPM's to solve is that while they know their resources are busy, but don't know what they are doing. A well implemented and adopted PPM can help them understand this. One organization we worked with was able to increase billable utilization by 20%. Another found that they were under-capitalizing internal labor on some teams by as much as 40%.

2. They are also better able to control and prioritize project intake, the second most frequent business problem we see. With good PPM intake, portfolio managers and sponsors are able to prioritize new requests against existing projects and resource allocation.

In both of these cases, the tool alone won't solve the problem - it takes good project and change management to ensure they are implemented and adopted correctly, and that the processes and governance maximize the value of the tool.

Hope this helps!

Best regards,
Kim