A project portfolio refers to the collection of tasks or projects that need to be done in
order to execute the strategy. Project portfolio management (PPM) helps companies
select, budget, prioritize, and evaluate their strategic objectives.
Organizations that use project portfolio management effectively ensure proper alignment
of the company’s interest with the short-term and long-term projects. It helps bridge the
gap between project implementation and strategic planning.
Here are the standard steps involved in project portfolio management:
• Inventory: The first step entails the organization of portfolio and project data.
• Analysis: In this step, the company prioritizes certain projects, examines risks and
profits while aligning the everyday projects to the business strategy.
• Planning: After making a list of things that need to be done, the organization must
allocate funds for each project while creating a schedule for the business plan.
• Execution: All the planning is only useful if it’s put to action. Once the organization
allocates resources to each project, they can get more work done in a timely and
efficient manner.
• Monitoring: After setting a portfolio in action, companies must also track their
performance. It’s better to use real-time tracking systems to monitor the execution of
projects.
• Portfolio Management: Along the way, companies should make required adjustments
to their portfolio, including re-alignment of the strategy, based on the information
received from tracking and monitoring platforms.
Michael Porter, the acclaimed guru of strategy planning and execution, said, ‘’The essence
of strategy is choosing what not to do’’. Keeping this in mind, organizations must use their
performance reviews to determine the changes that need to be made in the project
portfolio.