Analysis of the components of project portfolio management and impact on project managers.
Organizations with mature portfolio management practices have higher rates of resilience to overcome business challenges (Rise above the competition with portfolio management, no date).
Project portfolio management (PPM) is a centralized management of practices, processes, methodologies and measuring techniques used for strategic pipeline flow, project prioritization, change management, resource management, portfolio evaluation and risk management.
The objective is to ensure that the strategic business objectives such as revenue growth, cost reduction, regulatory mandate, business ...view middle of the document...
Project managers have little to do with these processes. Executive managers are engaged the most in those processes. ( Beringer, Jonas, and Georg Gemünden, 2012).
Change requests may lead to new technical, resource and operational requirements or cause constraints. Therefore, it is essential to manage those change requests through a hub which will have the ability to monitor and communicate effectively and apply the resources within the budgetary and operational constraints of each project. PPM requires project managers to promptly apply change request and perform integrated change control.
The process of managing resources is considered a vital skill in project portfolio management. This includes financial management of resources. PPM requires managers to constantly evaluate the resource needs per project to ensure optimum resource utilization and accurate estimate of future resource gaps. However, mid-level managers who control resources are engaged the most with those processes. ( Beringer, Jonas, and Georg Gemünden, 2012).
The evaluation process validates the progress of every project within the portfolio by monitoring projects against measures, known as Key performance indicators (KPIs). Examples include the increase in revenue, change in net present value (NPV), return on investment (ROI), cost reductions, risk reduction, resource utilization, time, budget, the degree of strategic alignment the ability to monitor and control the common risks identified across the portfolio. PPM requires project managers to collect information and report progress status accurately and promptly ( Beringer, Jonas, and Georg Gemünden, 2012).
The integration various types of risks such as cost risk, schedule risk, operational risks and external risks enable organizations to gain an impartial assessment of project uncertainties. PPM requires...