Project Portfolio Management (PPM) is a strategic approach to managing an organization's projects and aligning them with its overall business objectives. It involves the centralized management and oversight of a portfolio of projects, programs, and initiatives to optimize resource allocation, prioritize investments, and maximize business value.
Key aspects:
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Prioritization: Assess project proposals based on strategic objectives, potential value, risks, and alignment with organizational priorities and return on investment (ROI).
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Resource Management: Allocate people, budget, technology, etc. across the project portfolio. Ensure projects are adequately resourced. Optimize resource utilization.
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Risk Management: Identify and manage risks associated with the project portfolio. This includes evaluating risks, implementing mitigations, and monitoring exposures.
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Governance: Define roles, responsibilities, decision-making processes, and oversight mechanisms for managing the project portfolio.
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Monitoring: Track the performance of projects and programs in the portfolio against predefined objectives, metrics, and key performance indicators (KPIs). Provide monitoring visibility and reports.
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Optimization: Continuously evaluate and updating the project portfolio to ensure it remains aligned with the organization's strategy and goals.