The Project Portfolio Management (PPM), developed by McKinsey in 1975, is a tool that optimizes the planning, management and supervision of development projects by integrating all elements. PPM allows you to use project portfolio management to achieve your goals. 

1. Why use project portfolio management?

The project portfolio management is a decision support method that allows organizations to design, implement and manage their projects more efficiently. It is widely used in areas such as project management.

Just as a company or an organization uses a project management system, the client can define one for his project

For a project, it is essential that the client determines a certain number of criteria to be met by the service provider. This avoids any disagreement between the two parties. For example, the client may require that the contractor perform the work according to a pre-determined set of specifications. This can reduce the risk of conflict with the client by over 70%.

2. How to implement project portfolio management?

Project portfolio management is a process for improving resource utilization, productivity and project performance. This requires the planning and implementation of project portfolio management as well as other processes to ensure consistency, transparency and proper prioritization of objectives.

Identify the different needs

When managing a project portfolio, it is important to take into account the specific needs of the clients. This ensures that all aspects of the project are managed. It is also possible to define performance, monitoring and quality objectives, in order to measure the progress of the project and ensure its quality throughout the process.

Define the objectives

The definition of objectives must take into account several factors. First, it is necessary to clearly define what the contribution will be and how it will contribute to achieving those objectives. It is also important to verify that the objectives will make an effective and efficient contribution to the project.

Determine priorities

To determine priorities, you must first assess the level of resources needed for each project. This will help you determine if you have enough staff available. Next, you need to determine if you have enough time to complete each project. 

Define the deadlines

In order to effectively manage your project, it is important to set deadlines for each task. This will help you stay on schedule and ensure that the work is completed within an average of 2-3 weeks for each task.

Define resources

It is essential to determine the resources needed to manage a project portfolio, such as a budget, a team and a time frame. To do this, it is important to define the different profiles of people who will be involved in the projects. As well as the time and skills required to complete them. This will allow you to determine which type of person to recruit.

3. The benefits of project portfolio management

Project Portfolio Management (PPM) is a process for assigning priorities to projects, prioritizing them and prioritizing resources.

This method helps identify the most relevant projects to achieve strategic objectives and plan and track project expenditures. Adopting the right approach to project portfolio management is critical to an organization and can increase profits by 15% to 20%.

The efficiency of a project is increased

The efficiency of a project can be increased with a proper project management system. This offers the possibility to identify the causes of failure and to avoid their recurrence. In addition, an effective project management system ensures that projects are well managed and that results are achieved on time and as expected.

Better cost control

When you manage your project portfolio, you can more accurately control the costs associated with each project, allowing you to limit unnecessary expenses. In addition, it allows you to ensure that you are not spending more than 10-15% of the planned budget on any one project, so you can avoid any cost overruns.

Greater transparency

The use of project portfolio management improves the transparency of individual projects, allowing for accurate tracking of their progress. It also helps to determine whether the necessary resources and time are available to complete the project on time.

Better use of resources

When implementing a project, it may be necessary to hire several professionals. This is especially true if you need to work with developers. In this case, it can be beneficial to use a single point of contact who is a project management professional. This also avoids having to manage the different professionals independently.

4. Some examples of project portfolio management

Construction monitoring is a crucial step in any project and is the source of many problems. Delays, missed budgets and disappointing results are common. These inconveniences can be avoided by applying good project portfolio management practices.

Analysis of your project and presentation of the different actors

To successfully complete your project, it is essential to understand the project's objectives and the impact of the different actors involved. To do this, you need to analyze the interests and roles of the stakeholders and their influence on the project, to better understand how they can contribute to the success of your project.

Define clear objectives for each actor

When determining your objectives, you should specify them precisely for each participating stakeholder. This will allow you to determine whether you are achieving them and whether you need to conduct a review of your project. To do this, it is essential to define specific objectives for each participating stakeholder.

Define a work plan and deadlines

In order to set up an efficient work plan, it is important to define a schedule. The schedule allows you to determine the different stages of the project, the tasks to be carried out and the associated deadlines. This allows you to create an accurate schedule and to ensure that all tasks are completed within the planned time frame.

5. Project portfolio management: a steering tool

Project portfolio management allows project managers to determine priorities, allocate resourcesmonitor costs, ensure deadlines are met, and provide reporting. This article examines the advantages and disadvantages of project portfolio management and describes the project portfolio management process in 7 steps.

A method for measuring performance

When developing a performance measurement method, identifying indicators to demonstrate the achievement of objectives is essential. For example, return on investment indicators are a good way to assess whether your objectives have been met.

Conclusion

The project portfolio management is becoming increasingly important, as it facilitates the development of communication and marketing strategies based on customer expectations. Above all, it allows you to to use project portfolio management to achieve business objectives.