LECTURE ON What is Project Portfolio Management.pdf

This document, part of the Research Seminar, introduces research concepts across 204 pages, emphasizing its role in business areas like Marketing and Management. It outlines learning outcomes, including defining research, discussing its scientific process, and exploring methods like observation and experimentation. Key reasons for conducting research include observation, description, prediction, explanation, and investigation to address phenomena and test hypotheses. Multiple definitions from scholars highlight research as a systematic inquiry for knowledge and problem-solving. The guide stresses research's importance in daily life and its structured approach, making it a vital resource for understanding research processes and methods in an academic context.

1. 1
What is Project Portfolio Management (PPM)
Project Portfolio Management (PPM) is a procedure of supervision of an assembly of projects and
programs that are aligned with organisational strategy and objectives. It focuses on optimising
project selection and ensuring resources are appropriately allocated to maximise value and manage
risk. PPM ensures that projects do not operate in silos but instead complement each other and work
towards the common goals of the organisation, providing a holistic view of every project’s
performance, costs, and benefits. This allows organisations to make data-driven decisions and
adjust their portfolios based on changing business needs.
Who is the Project Portfolio Manager?
A Project Portfolio Manager is a pivotal figure in an organisation, responsible for the
comprehensive management of the project portfolio. This professional provides the strategic
oversight necessary to align projects with corporate objectives, optimise resource distribution, and
ensure that all projects collectively drive the targeted business value. Their role involves extensive
collaboration with stakeholders to assess the viability of projects, mitigate risks, and prioritise
efforts by the dynamic landscape of business needs and market trends. A Project Portfolio Manager
endeavours to craft a balanced portfolio that promotes growth while adhering to budgetary
constraints and timeframes.

2. 2
Project Management VS Project Portfolio Management
PROJECT PORTFOLIO MANAGEMENT PROJECT MANAGEMENT
Focuses on a collection of projects and
programs.
Focuses on the execution of a single project.
Aimed at strategic alignment with business
goals.
Aimed at delivering specific outputs or
deliverables.
Involves high-level resource allocation
decisions.
Involves detailed resource scheduling and
utilisation for a project.
Requires prioritisation based on business
impact and risks.
Requires planning based on project scope, time,
and cost.
Key decisions are driven by organisational
strategy.
Key decisions are driven by project objectives
and constraints.
Manages dependencies between multiple
projects.
Manages dependencies within the project tasks.
Emphasis on portfolio balance and value
maximisation.
Emphasis on successful project completion
within constraints.
Addresses the overall risk of the portfolio. Addresses risks specific to the project.
Monitored and measured by aggregated
portfolio performance.
Monitored and measured by individual project
success criteria.
Often involves a more dynamic and flexible
approach to change.
Often follows a structured methodology or
framework.

3. 3
Why Project Portfolio Management is Important?
Project Portfolio Management (PPM) is a crucial facet of organisational strategy because it ensures
that a company’s suite of projects is aligned with its overarching objectives and delivers maximum
value. By providing a bird’s-eye view of all projects, Project Portfolio Management enables senior
management to make informed decisions about where to invest resources and how to adjust tactics
in an ever-changing business environment. This strategic alignment is essential for sustaining
competitive advantage, optimising resource utilisation, and achieving economies of scale.
Moreover, Project Portfolio Management facilitates risk management across the portfolio,
reducing the likelihood that individual project failures will jeopardise the organisation’s long-term
goals.
7 Key Benefits of Project Portfolio Management
1. Enhanced Decision-Making: Project Portfolio Management provides leaders with
comprehensive visibility into a portfolio, enabling better investment decisions and
prioritisation in line with strategic goals.
2. Resource Optimisation: Efficient allocation and utilisation of resources across projects
prevent over-commitment and underutilisation, leading to cost savings and higher
productivity.
3. Strategic Alignment: Ensures that every project undertaken contributes to the overall
business strategy, keeping the organisation focused on its most important objectives.
4. Risk Management: Identifies and mitigates risks at the portfolio level, minimising the
impact of individual project failures on the overall health of the organisation.

4. 4
5. Performance Measurement: By evaluating projects collectively, Project Portfolio
Management allows for more in-depth performance analysis and the ability to take
corrective action where needed.
6. Balance and Diversification: Maintains an optimal balance in the project portfolio, much
like an investment portfolio, to stabilise returns and reduce risk exposure.
7. Improved Delivery: Promotes the consistent and successful delivery of projects by
applying a uniform management approach and sharing best practices across the
organisation.

3 Best Project Portfolio Management Software
1. Microsoft Project & Portfolio Management (PPM):
This tool offers robust project management features that integrate seamlessly with the Microsoft
ecosystem. Users benefit from its familiar interface, advanced analytics, and rich project and
portfolio management functionalities that align with various business strategies.
2. Oracle’s Primavera P6:
Ideal for large enterprises, Primavera P6 excels in handling complex, large-scale projects. It
provides detailed resource management, scheduling features, and powerful reporting capabilities,
all of which are crucial for maintaining control over large project portfolios.

5. 5
3. Planview:
Planview caters to organisations looking for comprehensive portfolio management solutions. Its
features include strategic planning, portfolio and resource management, and enterprise
architecture. It’s particularly well-regarded for its ability to connect strategy with execution,
ensuring that teams are working on projects that fully align with corporate objectives.
5 Best Project Portfolio Management Tools
1. Gantt Charts:
Tools like Smartsheet or GanttProject aid in creating Gantt charts, providing a clear visual timeline
of project schedules, dependencies, and progress, which is essential for coordinating complex
project portfolios.
2. Mind Mapping:
Conceptual tools like MindMeister allow for the visual organisation of ideas and tasks, facilitating
brainstorming, strategy planning, and the breakdown of large projects into more manageable units.
3. Project Dashboards:
Customisable dashboards provided by platforms like Tableau or dashboard functions in Excel help
in monitoring key performance indicators (KPIs) and offer a consolidated view of portfolio health,
project status, and milestones.

6. 6
4. Resource Allocation Matrices:
Using specialised tools like Float or even spreadsheets, resource allocation matrices enable
managers to efficiently allocate and optimise workforce scheduling and utilisation across multiple
projects.
5. Kanban Boards:
Widely used for their visual task-tracking capabilities, Kanban boards such as Trello or physical
boards help teams visualise workflow, prioritise tasks, and manage project progress in real time.
Key Component of Project Portfolio Management
The fundamental components of Project Portfolio Management (PPM) include:
1. Governance: Establishing the framework for making decisions regarding project
proposals, resource allocation, and performance monitoring.
2. Portfolio Evaluation: Systematic assessment of potential and current projects based on
their strategic value, resource requirements, and risk.
3. Resource Management: Strategic forecasting and allocation of resources such as
personnel, time, and budgets across multiple projects.
4. Performance Management: Tracking and measuring the success of projects and the entire
portfolio against defined KPIs and strategic objectives.
5. Benefits Realisation: Ensuring that the portfolio yields the expected business benefits and
contributes positively to the bottom line.

7. 7
6. Risk Management: Identifying, analysing, and mitigating potential risks within the
portfolio to ensure successful outcomes.
7. Stakeholder Engagement: Managing communication and relationships with all parties
affected by or interested in the project portfolio.
8. Portfolio Reporting: Creating periodic reports and dashboards to provide stakeholders
with visibility into portfolio performance, resource utilisation, and strategic alignment
Project Portfolio Management Process Steps
The Project Portfolio Management (PPM) process typically involves several key steps to ensure a
balanced portfolio that aligns with the organisation’s strategic goals:
1. Strategic Alignment:
The Project Portfolio Management process begins with ensuring that all projects are aligned with
the organisation’s strategic objectives. This entails evaluating each project’s potential contribution
to the overarching goals of the company.
2. Project Initiation:
This step involves the formal start of new projects. Project charters are developed, outlining the
project objectives, scope, and resource requirements.
3. Project Evaluation and Selection:
All proposed projects are assessed based on predefined criteria such as strategic value, return on
investment (ROI), and risk level. Prioritisation and selection of projects occur during this phase.

8. 8
4. Resource Allocation and Scheduling:
Resources are planned and assigned to selected projects. This step requires careful consideration
to avoid over-allocation and to optimise the use of available resources.
5. Execution and Control:
With resources allocated, the project execution phase commences. Project Portfolio Management
includes monitoring progress, making requisite adjustments, and ensuring that the project remains
within scope, on time, and within budget.
6. Performance Measurement:
This involves evaluating project performance against KPIs and milestones. Regular reviews help
in recognising achievements and addressing any deviations from plans.
7. Portfolio Review and Rebalancing:
The entire portfolio is periodically reviewed to ensure it remains aligned with strategic objectives.
This may involve reprioritising, adding, or terminating projects based on performance and
changing business needs.
8. Communications and Reporting:
Regular and transparent communication with stakeholders occurs throughout the Project Portfolio
Management process. Reporting includes updating on the current status, progress, and issues that
may need stakeholder attention.

9. 9
9. Benefits Realisation and Value Delivery:
As projects are completed, the focus shifts to realising the benefits as laid out in the initial project
proposal. Value delivery to the organisation is assessed and measured.
10. Lessons Learned and Continuous Improvement:
In the final step, experiences and data from completed projects are reviewed to derive lessons
learned. This knowledge is used to improve future Project Portfolio Management processes and
project executions.
Examples of Processes and Techniques Used in Project Portfolio Management
Several processes and techniques are employed to ensure the effectiveness of Project Portfolio
Management (PPM). These include:
1. Scenario Analysis: This technique involves evaluating different potential future scenarios
to understand possible outcomes and prepare strategies accordingly.
2. Risk Management: Identifying, assessing, and mitigating risks is vital to maintain the
integrity of the project portfolio.
3. Resource Optimisation: Using software for resource management allows for more
efficient allocation and utilisation of resources across projects.
4. Change Management: Implementing structured processes to manage changes within
projects helps minimise disruption and keeps the portfolio stable.

10. 10
5. Portfolio Scoring and Prioritisation: Projects are scored based on specific criteria to
determine their priority within the portfolio. This aids in decision-making and resource
allocation.
6. Stakeholder Engagement: Continual engagement with stakeholders through workshops,
meetings, and feedback sessions ensures alignment with business goals and addresses
concerns proactively.
7. Earned Value Management (EVM): This quantitative project management technique
objectively measures project performance and progress.
These practices, coupled with the right tools and technology, enable organisations to drive their
Project Portfolio Management processes effectively, ensuring alignment with strategic objectives
and efficient delivery of results.