It is common for all businesses to start projects and take up initiatives to achieve their different business objectives. However, not all businesses utilize Project Portfolio Management (PPM) as a tool to take decisions regarding the projects to be undertaken and executing them to accomplish strategic goals. When PPM is used for managing projects, it leads to an improvement in the deployment of strategy.
For several organizations, there are a set of environmental changes constantly taking place, such as globalization, technological advancements, emerging economies and so on, which impact the operations of the business in many different ways. These are challenges as well as opportunities to learn, grow and expand.
How different businesses manage and lead with this kind of environmental change reflects on their strategy to deal with competition and various kinds of complexities in an effective way.
Role of PPM in providing strategy
The aim of PPM is to provide a methodology to transform strategy and goals into the most lucrative projects as well as deals. It also involves a focus on the management and implementation of projects so as to deliver the desired business goals and objectives.
With the correct PPM practice, managers can understand how to prioritize their focus and efforts on various projects so as to get the maximum positive impact on accomplishing core objectives.
A business decides to implement PPM based on an analysis of whether it meets the overall objectives of an organization. If the PPM tool is utilized correctly, it enables the firm to meet its corporate goals which ultimately contribute to the overall organizational strategy.
Having discussed the role and various benefits of PPM, it needs to be mentioned that putting it into practice may not be very simple. It is the job of the management to ensure that every project undertaken is delivering results, which are in line with the strategic goals. Another objective of the PPM is clubbing the various project initiatives into portfolios. This leads to more effective management of projects and greater efficiency. The decision on prioritization of projects and allocation of resources is also part of the PPM implementation plan.
Success can be achieved only when each stage is executed properly. Any incorrect move can cost funds and lead to wastage of time as well as resources. However, proper execution of PPM will bring increased rewards to the business.