A project portfolio management software is a tool which is designed to take care of the various products, projects or programs displaying the various details of the projects as they progress. The various updates include the resource allocation, the demands as well as the performance and even the dates when projects are supposed to be bid for. This is a formal approach adopted by an organization to orchestrate the various components of a project as well as prioritizing them to reap the highest benefits from each project. A PPM tool helps an organization examine the available resources, an idea about the risks and rewards giving them a fair idea of the duration of a project and what can be expected. Similar to Agile architecture PPM is a flexible and easy structure of processes that help build an organization.
The difference between Project Portfolio management and Project management.
The one major difference between the two is the number of projects, while project management focuses on a single project at a time PPM considers every project that helps meet the overall business goals. This is where the two differ on a basic level, while one focuses on the completion and the road of a single project the other ensures that every project is taken into consideration so that the overall business succeeds.
The main objective of PPM is to prioritize projects and allocate required resources most efficiently along with keeping the parties up-to-date about the status of the projects and any other information of the projects. Its job is also to monitor the various ongoing projects following a top-down approach.
Certain approaches guarantee more success to a business that include some key elements some of which are mentioned below:
The first key element required to be successful with PPM is having common procedures, applications and training that help distribute relevant info that helps with easy portfolio analysis and decision making.
Setting goals with prioritizing projects and also information about the available resources which can be designated to various projects or also the consumed resources in the various projects of a business.
What does a PPM include?
- Streamlining and prioritizing projects.
- A robust reporting system that provides executives and managers with a perspective which allows them to predict the requirements of a project and highlight circumstances that may act as impediments to the overall goal of the organization.
- Maintaining communication with the parties involved.
- Allocation of available resources while having a firm idea of the capacity of the resources. When it comes to human resources, managing, planning and staffing them accordingly in terms of projects and keeping up with the skills of employees.
- Monitoring the evaluation of different projects.
- The budgeting and forecasting with the analysis of the risks and the rewards with a project.
- Helps organizations see the potential impact of overbudget projects on the whole organization.
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