What is the ultimate objective of a business? Why is there a need for competition among enterprises? Why do companies try hard every year to hit the annual revenue mark? Why does everyone aim to achieve maximum profit despite limited resources? Each effort an enterprise initiates is to achieve business growth and high returns. Organizations are aware of the consequences of failure. Nonetheless, they take the risk of executing and delivering quality projects or products. In this article at Project-Management.pm, understand how portfolio management helps deliver successful projects.
Portfolio management is a set of projects arranged together to accelerate project management practices and achieve strategic objectives. It involves programs or project operations to assess, rank, and accomplish a specific goal. The elements of a portfolio give insightful knowledge that you can use to deliver desired outcomes. So, what is really going on in the portfolio? It signifies the strategic objectives of an organization encompassing past, present, and future necessities.
Portfolio management enables you to leverage the right project selection and execution plans to achieve business growth. It also allows you to operate more than one project portfolio and integrate supervision. Portfolio management is a correlation between project strategy and application. However, is a portfolio different from projects and programs? Let’s take a look at how.
The portfolio is a family tree that includes a range of programs and projects. It is not limited to just programs but also involves sub-programs, operations, and projects. All are grouped under one portfolio to efficiently manage and coordinate to meet the organizational benchmark.
What’s the Need?
Once an organization plans to achieve business growth and outlines essential specifics, actions, and policies, it needs focus and direction to execute it. The methods to achieve the business goals through well-planned activities are a part of the strategic planning. It helps in managing limited resources and capitalizing on emerging opportunities. Some organizations prefer to keep all the critical programs and projects under one portfolio. It helps them bridge the knowledge gap and stay competitive.
Portfolio Manager and PMO
Managers are skilled at initiating the key portfolio management processes and have the expertise to make the right decisions. Portfolio managers are officially appointed to gather information about the portfolio performance to align it with business strategies.
A PMO provides the benchmarks of portfolio management while executing projects. They monitor, address, and communicate governance compliance and identify risks and strategic development. The PMO serves a unique purpose which depends on the needs of the organization.
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