As per the definition, project management is a the process of initiating, planning, executing, and controlling as well as closing set of activities assigned to team members, to achieve specific objectives/goals during a stipulated time, within applicable constraint or limitations to meet specific criteria of success.
The outcome of the project can be a product, services or both, which needs to be delivered within agreed time frame. Project management consists of team collaboration, task management along with management of issues, risks and changes. Typically a given project has project manager, team members, clients and other stakeholders (such as sponsors, auditors, etc).
Project Portfolio Management (PPM) is a specialised process used by executive management along with project management professional to analyse and optimise business value from selecting and executing right projects. The objective of project portfolio management is to set strategic alignment of projects with business goals and drive maximum business value through optimisation of resources, investment.
Using project portfolio management, Project Management Office (PMO) along with portfolio managers organise, consolidate, analyse information of proposed as well as ongoing projects. Portfolio managers use forecasting data along with tracked project progress to decide whether company should invest or continue to invest in new or existing projects respectively.
Typically following important stakeholders are involved in project portfolio management
Know more about what is project portfolio management, advantages of project portfolio management, common project portfolio management mistakes, how project portfolio management tool can help you manage portfolios better.
Start your 30-day free trial. No credit card required. No strings attached.
Explore guides to best practices of project management, tools, processes, project management office setup , etc published on ZilicusPM blog.