Project portfolio management or PPM is a business process that allows and prepares companies to align a number of components like IT projects, application development, resources, and initiatives. Transforming companies to operate as project-oriented groups, project portfolio management allows you to treat IT as a financial asset. With project portfolio management, you can seamlessly integrate scope, pipeline, time, skills, cost, procurement, reporting, forecasting, communication, as well as risk management.
Similar to managing a portfolio of different types of investment like bonds, real estate, and stocks PPM allows you to easily manage multiple projects. This process allows your company to maintain a balanced portfolio, increase your rate or return, and minimize the risks involved in individual projects. Through PPM, managers and executives can closely manage and monitor project portfolios to align with the business objectives and schedules as well as to identify risks and address them immediately.
Why should your business adopt PPM?
Whether your business is an established one or a newly launched start-up, project portfolio management is equally beneficial. Here are some reasons your company should adopt PPM.
- Improved governance for IT assets: Many start-ups and IT companies lack accountable departments that handle consistency and decision making. Through project portfolio management you can create a framework, which ensures that all IT decisions are in alignment with the overall strategy adopted by your business. PPM allows you to set business goals, establish quality standards, as well as prioritize investments.
- Improved success rates for projects: It is a well known fact that clarified business objectives and support from the executives increases the success rate for a project. With project portfolio management you can achieve both these requirements and significantly improve the success rate of all IT projects undertaken by your organization.
- Limited resources and IT budget: If your company is a start-up, you may often face budget constraints as well as limited resources. By managing existing resources through project portfolio management, you can make the best of your situation and increase productivity. This improvement in productivity can be made in terms of tools as well as employees.
Some of the biggest advantages of adopting PPM include better governance of IT and resources, reduced cost, increased productivity, as well as predictable project outcomes. Additionally, companies can also align closely with the project requirements and make informed decisions that consider all important aspects of the project. PPM also allows you to make better decisions when it comes to staffing and allows you to monitor all developments in the project.