5 Major Benefits of Implementing a Project Portfolio Management Solution
What is Project Portfolio Management?
Project Portfolio Management (PPM) is used by organizations to strategically identify, select, and manage their portfolio of projects in alignment with key performance metrics and strategic business objectives.
What are the major benefits of implementing a PPM Solution?
Encourage business leaders to think “team” not “me” and to take responsibility for projects
Looking at all possible project investments in a portfolio and not as individual projects will provide a balance when prioritizing, selecting, and sustaining projects. By comparing the projects as a portfolio, factors of the portfolio can be managed by tweaking the projects within the portfolio (macro) instead of trying to make the changes at the project level (micro).
Maximize the value of project investments while minimizing the risk
One project’s mix of high risk with high potential return may not be acceptable by itself, but when mixed with other low-risk projects, it may become acceptable to the company; especially when considering the alignment with corporate goals or the need to bring a new technology or product to market to stay competitive. If projects are treated as corporate investments in a portfolio, then corporate approval and standards occur at the portfolio level and not at the project level.
Reduce the number of redundant projects and make it easier to kill or put projects on hold
Looking at all possible project investments in a portfolio will allow you to see redundancy across the portfolio. Looking at projects by department, division, or line of business won’t provide this clarity. With this view of the portfolio and considering other factors such as alignment with corporate goals or the need to bring a new technology or product to market, it will be easier to kill unnecessary projects, reclaim the investment where possible and release resources for more necessary projects.
Improve communication and alignment between departments and business leaders
Looking at your portfolio of projects and not individual projects will not only provide a balance when prioritizing, selecting, and sustaining projects; it will improve communication within corporate management by talking about the portfolio as a whole and breaking the barriers between sub-portfolios. It will also diminish looking at a few projects aligned to a department or a business leader and widen the view to the portfolio and encourage management to work as a more cohesive team.
Allow planners to schedule resources more efficiently
No company has the resources to meet all its business needs in the best of times and even more importantly when times are tough. Having the view of your resources across your project portfolio and being able to prioritize where to apply those limited resources is a key aspect of a PPM solution. The corporation will have the ability to see where the resources are being applied and apply a prioritization and approval process to ensure the right projects will provide the most value. When projects are completed or are cancelled, resources can be redeployed to focus on new priorities.