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Project Portfolio Management

In: Business and Management

Submitted By waqasjeral
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Project Portfolio Management

Project Portfolio Management is a methodology to manage a company’s projects in a similar way that financial manager manages the company’s cash flow and related finances. According to Rouse (2013), “PPM (project and portfolio management) is a strategic prioritization methodology employed to analyze and manage current or proposed projects within an organization”. The purpose is to determine the best available sequence and group of projects to achieve organizational strategic objectives from concept to conclusion. Project Portfolio Management aims to align the projects, investments and resources with organizational priorities. Project Portfolio Management is a continuous process which comprises of project data collection, evaluation of each project, optimizing the performance of projects in portfolio and resources of company and execution of portfolio work. Companies have deployed project portfolio management solutions for establishing efficient processes to advantage of their IT infrastructure for achieving organizational objectives. Perry and Hatcher (2003) identified four categories as Ad hoc, structured, standardized and optimized on the basis of maturation level of IT. According to them, majority of organization had adopted Project Portfolio Management on ad hoc basis rather than a continuous process. Ad hoc is the level when use of IT, other resources and project priorities are not aligned with organizational objectives. In this stage, the organization does not have processes for evaluating the business value of projects and is lacking catalog for IT demand resulting in funding of projects without research and complete information. When an organization operates on ad hoc basis, there is no list of approved projects and are not aligned with portfolio objectives due to lack of required information, and outcomes of the projects are...

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