What is Project Portfolio Management (PPM), and what are best practices, tools and online templates for teams and organizations?
Definition of Project Portfolio Management (PPM)
Project Portfolio Management (PPM) is a method utilized by project managers to determine what the value would be of investing time and other organizational resources in a particular project. Ultimately, PPM aims to establish the ideal combination of resources and tasks for a project that will promote the financial and procedural goals of an organization. Generally, PPM is different from project managing because of the number of projects that are involved. More specifically, whereas project management requires overseeing the execution of a single project from start to finish, PPM more broadly examines how all proposed or currently active projects comply with the organization’s business goals. This tool is particularly useful for communicating the benefits of certain projects to organizational executives or presenting to potential project investors.
Description of Project Portfolio Management (PPM)
The process of Project Portfolio Management (PPM) involves a detailed inspection of every aspect of a project (i.e., budget, required organizational resources, timeline, assignments and overall objective) in order to make a prediction of project results. Further, PPM compares the results for proposed and current projects to determine which proposed projects are most likely to provide fruitful rewards and are worth pursuing. For those recognized to be profitable, consider if the organization has the resources to undertake this project, if a similar project already exists, if any present projects would inhibit successful completion of a new one, if the projects’ stakeholders have realistic expectations and if the project aligns with organizational goals.
In addition to estimating project benefits, the results of PPM can be utilized to determine prospective risks associated with each project. This is because PPM requires such a careful analysis of project details that it is easy to detect if a project as a whole or its specific parts are likely to pose problems. By detecting these issues before they arise, the project team can develop a strategy for addressing them. This strategy should include an analysis of the project design to identify flaws, a determination of how to allocate the work among project team members, a computation of the project’s risks and should ultimately ensure that, even with proposed changes, the project is in line with the organization’s values.
In addition to these two major functions, PPM serves three other functions.
- Pipeline Management: Creating a strategy to effect a series of projects in the project portfolio in a predetermined amount of time and with limited organizational resources in order to align with the strategic plan of the company.
- Resource Management: Specifying what resources (e.g., money, talent, technology, policies etc.) will be brought into play and the time frame for each for projects that are already being carried out. PPM also provides the ability to create a plan for resource deployment when projects are still dormant.
- Change Control: PPM is the central hub through which all suggested changes will pass. More specifically, requests from organization members who are interested in changing policies, laws, technological advancements, etc. will be included in PPM and, to the extent possible, applicable resources will be employed to enact the change.
Tools & Templates
There are several tools that can be used to do a Project Portfolio Management (PPM) analysis. These include, but are not limited to, project managing software programs, scenario analysis software, or spreadsheets.
upBOARD's Online Project Portfolio Management (PPM) Tools & Templates
Unlike most traditional Project Portfolio Management (PPM) techniques, upBOARD’s online Project Portfolio Management (PPM) collaboration tools allow any team or organization to instantly begin working with our web templates and input forms. Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.
Learn more about upBOARD’s portfolio of other project management best practice tools and templates including:
Action Item List, Agile Project Management, Benefits Realization Methodology, Critical Chain Project Management, Critical Path Chart, Critical Path Method, Event Chain Methodology, Extreme Project Management, Gantt Chart, Integrated Project Management, Issue Tracker, IT Roadmap, Lean Project Management, Lean Six Sigma, PMBOK Project Management, PRINCE2 Project Management, PRiSM Project Management, Process-Based Project Management, Program Management, Project Budgeting, Project Charter, Project Portfolio Management, Project Portfolio Timeline, Project Risk Management, Project Schedule, Project Scorecard, Project Timeline, Project Tracker, Requirements Breakdown Structure, SCRUM Project Management, Skills Requirement Checklist, Task List, Time Card, To Do List, Waterfall Project Management, and Work Breakdown Structure.