What are the critical elements of Project Portfolio Management?
Is Project Portfolio a new term for you?
Then we have you covered, right?
Businesses strive to work on building their portfolio. It may seem daunting in the initial phases, but the difference it can make for your business is enormous. It acts as a proof hub for your brand.
Through this blog, we strive to cover a gist of:
-What is Project Portfolio Management (PPM)?
-Why is PPM important for your business?
-What are the core objectives of a PPM?
-What are the critical elements of PPM?
Let us see it in detail.
What is Project Portfolio Management (PPM)?
The two main aspects – the top-down and bottom-up portfolio management are the two vital factors necessary for the proper functioning of the PPM execution. The concept of PPM was initiated by Gartner while integrating the project management that included planning, scheduling, and organizing with the most preferred top-down portfolio management. The main idea behind this was to help the organizations find the right investments aligned with the proper strategy.
Why is PPM important for your business?
Today’s world is so changing and adapting to the changes. How do we keep up with the trend? Portfolio Management plays a key role here. It helps organizations to succeed with rising numbers. The main function of PPM is to keep track of investments and ensure the project’s smooth functioning to drive it towards success.
A good portfolio increases business value by ensuring your projects align with the organization’s strategies with the limited resources and building synergies for success.
#1 It gives you a completely structured approach
It helps you rationalize the working methods used to manage projects and all related activities. Project assessments can be properly configured. It defines proper working standards and a reporting structure to ensure the projects meet the scope and that project deadlines are met.
#2 Learning and skill Development
PMM provides coaching support, mentoring, and training services. It gives you an excellent opportunity to learn and develop your skills. Hence it acts as a center of excellence for your organization.
#3 Powerful Systems
PPM Software ensures that you have a powerful infrastructure system to deal with project management. They consolidate the information related to resource allocation, task dependencies, risks, and more. It helps you centralize the data and provide real-time project visibility. Moreover, it helps you to make decision-making more effective.
#4 Boost Productivity
One of the major reasons why businesses need to rely on PPM is the need for automation to boost work productivity. When you consider a project, it would be inclusive of the lifecycle, resource costs, time, and more. You can enhance business growth by keeping a close eye on productivity goals.
#5 Manage your Resources Effectively
With proper PPM Software, you can implement and access a standard process to check for resource availability, utilization %, and more. The right resources with the right competencies will be allotted for the project completion. That will help you achieve a higher utilization rate.
Some Objectives of Project Portfolio Management
Whatever the business niche, portfolio management is critical. The core objective of a PPM system is to ensure your company yields maximum benefits from the projects it handles. It is important because every project is a necessary factor for business growth. Not just that, it also helps you to deal with your resource allocation effectively and align with the business strategies effectively.
Projects can be short-term or long-term. Based on the priority, you can decide on which one to allocate more resources and so on. With PPM, you get a clear picture of how to achieve the objectives of the projects to get optimum results.
IT Portfolio Management is very Crucial. Do you know why?
Well, you take the business. The core element in it would be the Information Technology or the people behind the IT team that matters a lot in handling the technological part of it.
Ever thought about what Portfolio Management means for IT?
Well, it can be depicted in three key aspects:
Having said that, the core objective of IT is to ensure that individuals rely on the process and comply with it so that most communication gaps can be avoided. Compliance with different SLA’s also to be ensured for the smooth functioning of the organization. In a nutshell, the IT portfolio manager holds the ownership of bridging the gap between the strategy and its execution for the company’s growth.
In terms of financial aspects, they define the investments, potential risks associated with them, project fitment, and much more.
Some factors to keep in mind before you choose the best Project Portfolio Management Software
Finding the right software for your business is always daunting, No doubt about that! Choosing the best from a list of many is always time-consuming. Here, we have simplified it for you to get a new experience.
As we know, the key to successful PPM is choosing the right software that aligns well with your business goals and objectives. So, before making a final decision, you should check for the demos and trials to get a clear idea of how suitable they will be for your business. All your focus should be on getting a perfect Project management tool for your business that works on a no-code platform so that the technical expertise is minimal.
This will be more beneficial for your business. Do you know why? When most minor technical expertise is required for you to work on a tool or a platform, your users can quickly adapt to it to deliver the best. This no-code platform also comes with a seamless integration feature so that you can connect all your regular apps to it. This will reduce the complication of storing different passwords to check the reports and other things. In the world, data retrieval has become more accessible.
How is a PPM the best option for you?
Well, as many businesses might be using it or not using it. In both cases, there are certain things in common. Let’s take you through this realistic example.
All of a sudden, your business started blooming. It started getting more projects on the go. One fine day, you get a bulk of 20 high-budget projects. Some of them are the same clients, overlapping projects, and some same resource mapping projects. Well, think of your project manager or portfolio manager. How will they deal with a situation like this?
- Resource allocation becomes problematic
- Project overlapping causes a lot of concerns
- Time management will be poor
- Project prioritization will be lost
- Project delivery misses the track and a lot more.
So, to deal with all these complicated situations, you need a standard system that can help you segregate and allocate resources to get the projects live on time. That‘s the main objective of a Project Portfolio Management Platform. If a good ROI runs in your mind, the first thing is to sort the gap between the business strategy and its execution. That will help you fall on track and elevate your business to different heights. That’s why you need to rely on a system like PPM. If it’s a no-code platform, it would be even sweeter as it would help you to get used to it quickly.
Benefits of Project Portfolio Management for your business
How can a PPM be of great help to your business? It helps you to become well organized and strategized. It helps you enhance your project’s overall efficiency with holistic, realistic updates.
Let’s take a look in detail:
#1 Ensure your projects are aligned well with the overall business strategy
As every business gears up to meet the business goals, PPM will assist you with a simplified approach to make things easy going for you. Every project you include in your portfolio must comply with your overall business goals.
#2 Take wise decisions
It is important to note that every project has a cost. If you need to get the best out of it, you must plan for it and use it wisely.
#3 Select the projects wisely
Every business has a set of projects to run with. How do you define project stability? While you choose the project, please be informed that never choose too many small or large impact projects. It is because if you do so, you will end up with the worst resource allocation. Once you have a handful of projects in hand, you must prioritize them based on their importance.
What are the Key Elements or Critical Elements Of Project Portfolio Management?
#1 Portfolio management
It is meant to ensure effective leadership while allowing the teams to be flexible enough to deliver the best possible outputs.
#2 Demand governance
This is one of the toughest aspects for most organizations as it helps you to work from the top down, ensuring the organizational strategies are properly aligned.
#3 Cost management
Well, this is what you need to ensure the costing factor is not becoming challenging at any phase. It gives you complete visibility of the planned, scheduled, and forecasted costs for a better idea.
#4 Resource Allocation
It involves avoiding communication gaps, forecasting the resource needs, and many more factors that would help you plan better.
#5 Schedule management
It helps you understand that the work schedule aligns with the organizational strategies and is fine.
#6 Status reporting
It helps you to ensure the proper task status is communicated to the stakeholders, which will help you evaluate the responsibilities.
#7 Team collaboration
It helps for effective teamwork and helps in effective decision-making in terms of collaborative efforts.
#8 Change Request Management
It helps you to deal with change requests in terms of costing, resource allocation, and more.
Project Workflow Roadmaps
The workflow based on which your projects work matters a lot. It harnesses the power of Gantt Charts to get you a clear view of the projects like Task performance, Calendar view, and request management.
Consolidated Projects and Process View
When you have many projects to manage, how will you ensure that you don’t get missed out on any? Yoroproject has process methodologies to ensure your projects fall on track.
Track Project Backlogs
There would be many dependencies for tasks and projects that might delay the way the project works. Identify them and take corrective measures to ensure the task dependencies are minimalized, and that project backlogs are not left behind.
Project Portfolio Management is key for every business, whether big or small. The better you manage it, the more your project becomes stable. Project Methodologies and project workflows are key to managing things effectively. Hope these Critical Elements Of Project Portfolio Management including other relevant factors of PPM was useful to you.