Project Portfolio Management (PPM) approach to enable the organization to efficiently and effectively evaluate, select, invest resources, initiate and manage projects.
The PPM approach brings a discipline to the collection of projects or programs in order to facilitate more effective project management to meet specific strategic business objectives.
Typically, smaller companies do not use a Project Portfolio Management approach. This is often due to cost concerns - which would be out-weighed by ensuring the selection of the "right" projects. Likewise, some larger companies chose not to use a PPM approach, again it is usually a financial decision. Due to the number of project investments, implementing a PPM approach in a larger company, often requires the selection and implementation of a PPM software application.
As briefly described on other pages, larger project management applications, such as Microsoft Enterprise Project Management (EPM), Oracle's PPM (formerly Primavera) and Clarity, facilitate a PPM approach. There are several other software applications from smaller vendors, such as OpenAir’s Integrated PPM Suite, Micro Focus (formerly Serena Software) Portfolio Edge, Casewise’s ITA Accelerator, Planview PPM Pro™ software as a service (SaaS) solution, and others.
Although I am able to provide a recommendation based on your project volume and business requirements, my fundamental recommendation regarding your selection of a Project Portfolio Management software application is to follow a disciplined selection process with broad based participation and wider communication.
Selection of your PPM software tool should follow these guidelines:
Because of the high visibility of project selection and success in a PPM environment, your Leadership skills will be in more demand during project selection. If you are the PPM “Leader”, you will be interacting with your Senior Management Team on a regular basis. Your leadership qualities will need to extend across multiple functional teams – to Finance, HR, Operations, and into the Executive Offices.
You will need a thorough understanding of your organization’s business plan and objectives; financial metrics; resource utilization targets; cost accounting and time tracking; and revenue recognition practices – in other words, a more “strategic” understanding than with typical project management.
After several years of establishing PMO operations and running others previously established, I have found that a successful PMO provides:
Fundamentally, the PMO provides the centralized coordination of the project portfolio management discipline, rigor, and control for the organization.
So, PPM is the focus for project selection and investment alignment, while the PMO is the focus for project planning, resource utilization, training, project performance, monitoring, controls, reporting, and the liaison between business governance teams and project governance.
Unlike a PPM approach, there may be minimal relationship between the various projects and programs managed by the PMO. In some organizations, the PMO has delegated authority and is a key decision-maker on each project. In other organizations, the PMO is simply a monitoring and reporting vehicle to senior management on project progress and performance.
I have observed and participated in successful implementations of a PMO in a PPM environment. Implemented together, the PMO provides structure and the PPM approach provides the strategic perspective for project selection and involvement of the senior business management team.
Apply the Project Management Body of Knowledge for consistent project success!
Using the Project Management process and the lifecycle of projects to ensure your project’s success
Establishing a Project Management Office – Realize improved project performance and project ROI benefits
Project Initiation – Critical steps in starting the project which will ensure its eventual success
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