Project Portfolio Management: Bridging strategy and operationalization
Project Portfolio Management (PPM) is the bridge between your strategy and operationalization. A Project Portfolio Manager that manages a portfolio of projects runs into multiple challenges: How do you know what decisions to make to most effectively execute the organizational strategy? And how do you stay in control of running daily business? How to connect change to your day-to-day operations, without the risk of losing business continuity?
Project Portfolio Management offers compelling answers to these questions. Organizations are increasingly aware that collaboration between departments and business units needs to be improved in order to break down silos and work on projects from a holistic perspective. Projects often influence each other and depend upon deliverables and resources of other projects. Therefore, it’s important to get a good understanding of the exact dependencies to know how to prioritize and order these projects to maximize Return On Investment (ROI). PPM ensures that the organization can effectively improve project prioritization, based on key metrics and decision ready dashboards.
Project Portfolio Management is all about doing the right projects at the right time to help the organization to achieve her business goals. PPM keeps track of an organizational strategy to improve its core capabilities supporting their value chains, and the implementation of this strategy via its projects.
Return On Investment
One of the key words in PPM is Return On Investment (ROI). With PPM, organizations can estimate the potential return on investment of a project based on various metrics that can be analyzed in relation to each other. This helps them to determine or adapt the strategy, to prioritize projects and to make informed decisions on which projects can start or continue or which projects aren’t viable and will have to stop or pause.
Next to the strategic benefits to make the right decisions on which projects need to start (or end), combining PPM with Project Management is an effective way to improve communication over the different layers in an organization, and between (project/agile) teams within an organization. Having a clear insight in the portfolio of projects and their impact on the business as well as the ROI functions as leverage for getting buy-in on projects, helps to create transparency throughout the organization. Stakeholders will base their decisions on the same informational insights, are enabled to see the bigger picture and are guided to drill down to detailed implementation information when required. This way, strategy and operationalization can constantly be monitored for projects, designs and their dependencies.