Project Portfolio Management (PPM)

Definition

“PPM is the management of the organization’s projects so as to maximize the contributions of projects to the overall welfare & success of the enterprise subject to internal & external constraints by maximizing the project value, balancing the portfolio and aligning it with overall company strategy.” (PPM in theory & practice)

PPM shouldn’t be confused with:

  • Management of multiple projects – Program management
  • Enterprise project management – 360 view of the organizations’s efforts
  • Automation – software is not going to choose the right projects regardless of how good it is.

3 Pillars of PPM

  1. selected projects must maximize the VALUE for the company
    • Financial models
    • Scoring models (more comprehensive)
  2. selected projects must constitute a balanced portfolio
    • by product type
    • risk versus reward
  3. the final projects portfolio must be strategically aligned with the company’s overall business strategy
    • Top-down approach
    • Bottom-up approach
    • Combined top-down & bottom-up
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