Project Portfolio Management (PPM) allows companies to understand how to solve problems. In fact, It provides organizations with reliable information in order to connect the execution of projects to the fulfillment of their strategies.
PPM requires an understanding of the relationships between the development of the strategy of a company and its implementation.
PPM to achieve strategic goals
Today, executives are becoming more aware of the fact that an effective management of individual portfolios will allow companies to achieve their strategic goals and objectives. In fact, they use PPM to make better decisions about how to manage company’s resources effectively.
It is clear that having a robust PPM capability will give executives the chance to link projects to create value for the organization. Moreover, they will have the opportunity to reach strategic goals and build capabilities that will empower the organization.
At the same time, PPM can give senior leaders the ability to end projects that are not bringing value to the company. In fact, PPM provides leaders with the information to make the right decision at the right time.
PPM to reduce project failures
Project managers are crucial to PPM success. In fact, they are responsible for executing the portfolio management processes. They are also accountable for providing correct information that are not influenced by their opinions.
By using PPM, project managers will be able to reduce project failures, overruns, and inefficiencies.
In addition, to set up a good PPM capability project managers have to believe in the PPM goal. The goal is to help the organization be more effective at managing projects and resources.
Keep in mind
It is important to remember that PPM processes should be simple and clear. Project managers should not waste time in the project portfolio management details. In fact, organizations should try to find the right balance between the PPM theory and what is possible to do within their cultures.