Today, companies are constantly under pressure to innovate and grow. To reach these objectives they need to find an efficient way to implement their strategies. Nevertheless, in many organizations a gap exists between the development of strategy and its successful implementation. Project Portfolio Management (PPM) contributes to close this gap.
Project portfolio management (PPM) can help closing the gaps between an organization’s strategic plan and its implementation. In fact, it is important to remember that the implementation of the strategic plan is essential for achieving and sustaining a competitive advantage.
Executing the strategy
Portfolio management is a management practice of one or more portfolios that aims to achieve the organization’s strategic objectives. In fact, it represents a plan of linking the projects, programmes, and portfolios to the organizational strategy. Since organizations execute their strategies through the creation of strategic initiatives, they must become vehicles for executing the organization’s strategy.
Managing the complexities
Project Portfolio Management (PPM) helps managing the complexities of multi-projects. In fact, it has the objective to assist an organization in achieving this competitive advantage through the implementation of business strategy and balancing portfolios. In fact, the implementation of the strategy and portfolios, maximizes value and ensures a sustainable use of company resource.
Meet the objectives
Project Portfolio Management (PPM) represents a managerial approach. In fact, it does not only focus on techniques, tools, and methods, but it also includes aspects on how PPM is implemented. In addition, it is crucial to establish the goals and benefits of portfolios before the selection of any projects can take place to meet the overall objectives of the company.
Keep in mind
The top management of a company creates the strategy. Then is filtered downward the portfolio level, and finally to the project level. Basically, organizational survival depends on a constant stream of successful new products. The most important goals of PPM are to effectively implement organizational strategy through a portfolio of projects, and improving the long-term value of the portfolio.