Project Portfolio Management: A View From The Management Trenches

1.4. PROJECT PORTFOLIO MANAGEMENT DEFINED

Okay, enough with the questions. So just what is project portfolio management? Rather than reinvent the wheel, we'll draw on what exists in the literature today for a succinct definition (Project Management Institute, 2006):

The centralized management one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work to achieve specific strategic business objectives.

PPM accomplishes its purpose by adhering to some fundamental actions. PPM:

• Ensures that projects and programs align with the strategies, goals, and objectives of the business

• Communicates project and program details, including costs and benefits

• Manages projects and programs as a whole, providing a holistic, systems approach to business projects

Foundational Principle PPM ensures the alignment of projects with strategies, communicates project details, and manages projects holistically.

Now wait a minute, you say. You've heard about portfolios, but have you heard about the different types of portfolios that can be found in business? And how are they different? Quite simply, from a management perspective, they aren't different. The bottom line is that it's all about effectively managing the work a business is doing that costs money with an eye toward fulfilling the strategic goals and bringing financial and nonfinancial benefits to the company.

The following are some of the many variations on ...