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Project Management
Vs
Project Portfolio Management

Is Your Business Ready to Manage Portfolio of Projects? 

First, understand differences between project management & project portfolio management (PPM)

Project Management Vs Project Portfolio Management - Difference

What is Project Management?

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).

Characteristics of Project Management

  1. First of all, project management is about doing things in right way
  2. Stipulated time frame to perform temporary endeavour
  3. Set of tasks assigned to project team members
  4. Has limited budget, resources and quality constraints to meet the scope
  5. It has phases like initiation, planning, execution, monitoring and closing
  6. There are best practices to manage project more efficiently, collaboration, productivity of project team, stakeholders as a whole.
  7. Project management aims to improve its best practices

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

  1. Portfolio manager
  2. Project manager
  3. Executive management
  4. Project sponsors
  5. Customers (in case of customer driven portfolios)

 

  1. First of all, project portfolio management is about doing right things (projects) and seeing projects on a bigger picture/landscape
  2. It aims to select and align projects to strategic goals of the organisation
  3. It consist of use of high level project information, portfolio data to make decisions
  4. Typically focuses on constraints of portfolio budget, resources, RoI
  5. Usually, does not get into finer details of task scheduling or micro management of resources

Project Management Vs Project Portfolio Management

Differences - Project Management vs Project Portfolio Management

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Project management guides, best practices

Explore guides to best practices of project management, tools, processes, project management office setup , etc published on ZilicusPM blog.