Project Portfolio Management - a quick definition
Throughout this blog you will hear us refer to project portfolio management on many occasions. For those of you new to the term or those researching it's suitability to your business - here is a quick definition from our recent webinar How PM, PPM and the PMO Work Together that we think sums up PPM quite nicely.
Project Portfolio Management is not only about ‘doing projects right’; it is about ‘doing the right projects’. But this is more than simply individual project selection, its about the entire mix of the business’s portfolio of projects.
PPM is also concerned with creating a balance within this mix.
- Covers short, medium and long-term projects
- Covers low risk and high risk projects
Remember that there is a fine balance between the actual detailed management of the projects themselves and the portfolio perspective required to inform the business of their impact.
PPM allows you to gain visibility into failing projects before its too late and to make mid-course corrections on under-performing projects. It also helps you make subjective and rational ‘go/kill/hold/fix’ decisions – and eliminate those pet projects with perceived rather than actual value.
Above all, PPM is about maximizing the contribution of projects to the overall welfare and success of the business.