Project portfolio management is the process of gathering each piece of data of different projects, analyzing it, and then describing how much-estimated profit they will make and making sure that the projects are directly related to the company’s goals.

It is pretty common that at one time, a company is running more than one project. Some different people and teams are running various projects, but they all run under the same roof and in the same company.

Project portfolio managers provide bigger pictures to the company and show every aspect of different projects working in a company. They make sure that they are getting a return from the company’s investments. Project portfolio managers go through other statistical data and algorithms to analyze projects. They are also responsible for making sure that the project’s goals are related to the purposes of the company. Project managers are responsible for one project they are running. However, project portfolio managers take details of every project running in the company.

Why is Project Portfolio Management Important

Portfolio management is essential for any company or business because it makes sure every project is aligned and related. Project portfolio managers hold a lot of responsibilities and importance in the company.

Project portfolio managers look into every project and focus on the bigger picture. They make sure that the resources are going to the suitable projects and the company will profit from it. This helps in decreasing the risk of mistakes and waste of resources in the company.

In the latest research, 26% of the executive leaders agreed that resource dependency was a significant factor in the project’s failure. Portfolio management reduce the chances of failures because most of the mistakes and errors are detected even before the project starts.

Project portfolio management focuses on the company’s goals and objectives. Project managers are responsible for their projects and focus on achieving the goals of the project. The goals of the project can sometimes differ from the company’s goals. And that is why project portfolio management is available in the company. They make sure that each project is focused and working for the betterment of the company.

Project portfolio management also helps in the betterment of decision-making powers. Supervisors and stakeholders may not be familiar with every detail of different projects. They need someone to provide them with accurate data and estimated profits so they can make better decisions. Project portfolio managers do precisely the same. Every detail and statistics is presented of different projects to have a better idea and make the right decisions.

Project Portfolio Management Process

If you want your project portfolio management plan to be successful, you need to follow the following process to ensure that you are doing everything right. Project portfolio managers are experts in handling management. However, if you are looking for some help to function, here are some basic things that you should keep in mind. Let’s take a look at each step of the process.

Identify the Objectives of the Business

Every business has a primary objective or purpose they are working to fulfill. The first thing you have to do is to identify the objectives of your business. Is it related to customer satisfaction or generating more profit every year? You have to make sure what the goal of your business is.

Collect Data

After identifying the objectives of your business, you have to collect data on different projects working under the company. You can contact project managers of every project or observe by yourself to collect data for your analysis. Make sure that the information you have is accurate and authentic. Each figure is correct, and you are aware of every step of different projects.

Analyze

After collecting the data, it is time to convert it into useful information. Evaluate each project and mark its strengths and weaknesses. Analyze how much profitable every project will be and in what ways they are benefiting the company. During the analysis, you can also make sure that there are no duplicated projects running in the business. You should analyze the risks of the projects as well.

Prepare the Portfolio

The most important step is preparing the portfolio. Once the analyzing process is complete, it is time to prioritize some projects and remove some duplication. This step is crucial as you are talking about the whole company’s project, making sure that your analysis is accurate and willing to take the risk where there are fewer chances of failure. Don’t forget to make sure that all projects are aligned with the company’s goals.

Manage the Portfolio

At last, test your portfolio again and ask questions to make sure you are making the right decision or not. You can also ask your fellows and seniors to check the portfolio you created. When you believe everything is correct, start managing your portfolio. You can start from a few departments and then add other departments slowly. It is also acceptable to make changes in the plan according to the needs of the company.

Tips to Make your Project Portfolio Management Successful

After following the steps mentioned above, we are sure that you will make a successful portfolio management plan, but if you need a little more help, here are a few tips and tricks that can save you from some common mistakes and errors. Keep them in mind while working on the project portfolio management plan, and no one can stop you.

  • Make sure that all the data and information you collected is accurate. Otherwise, your whole portfolio plan can be a big fail.
  • Make sure to take notice of the time management of different projects. No project must be taking more time than needed.
  • Cancel projects if you see any duplication or significant risks of failures.
  • Use tools and software to keep track of every record. Using software also makes things more manageable and presentable.

Conclusion

Project portfolio management makes sure that the company is on the right project and each employee is working to achieve the company’s primary goal. Project portfolio management is essential to keep the company’s essence and make sure that the risks taken are worth it.

Try Premium Template: Project Portfolio Dashboard Template

Leave a Reply

Your email address will not be published. Required fields are marked *