Project portfolio management (PPM) is intended to help your organization obtain and assess information about all of your projects, and prioritize each according to certain criteria. The criteria include the cost of the project, its strategic value, and its impact on revenues. In short, PPM seeks to answer the question, “Why aren’t your projects delivering as expected?” There are several questions PPM seeks to answer in your organization.
Are You Investing in the Right Processes?
Any task, project, or activity requires either cash, equipment, time, raw materials, and more. You can convert this into one measure – money. You have to use money in all the processes, which means that they form an investment for your organization.
PPM makes you understand what you are spending your money on and whether it is the right thing to do for the organization.
Are You Optimizing on Delivery?
Since you only have so much resource at hand, you need to understand whether you are using them in a way to get maximum return on investments. Optimizing on delivery means balancing demand for organizational revenue with the supply of resources. PPM helps balance management of your resources.
How Well is Your Implementation?
Implementation of any project refers to setting your plan in motion. PPM checks to find out how well you are realizing your plans and how well they are performing in terms of your set goals.
PPM informs you not only how well you are performing in your projects, but also gives you the information you need to decide what you can do to stay in line with the market demands and emerging business needs. For instance, you might realize that you need to switch resources from one project that isn’t working to one that shows more promise. This means you know when to stop wasting your resources on programs that are not working at all.
Can You Handle all The Changes?
Ideas for changes in a project come often. The changes might come in the business processes, products or in the system. However, not every idea is a good one.
Additionally, not every good idea should be made a priority. PPM determines what is the right thing to do at the right time to implement it to enjoy all the benefits.
Are You Realizing Your Goals?
Now that you have launched the project and it is in progress, is there a payoff to all the work you have injected in the project? However, you need to understand that the benefits might not come automatically. Effective PPM enables you to understand the benefits to expect from any project and to track the realization of the benefits as the project progresses.
In conclusion, your project needs to answer some pertinent questions in order for it to be a success. These questions help guide the project from start to finish, making sure you understand your goals and measure your results. Various PPM products help you achieve your project needs.