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Beginner’s Guide to Project Portfolio Management (PPM)
Beginner’s Guide to Project Portfolio Management (PPM)
Chapter 0:

Introduction

If you work in a large organization, you’re no stranger to project overload. The demand is there, but the question is, should you bite?

Is the project aligned with the company’s goals and objectives? What are the risks vs the rewards? Do you have the necessary resources to successfully execute and deliver on this project?

Project Portfolio Management (PPM) examines all of these questions and more.

PPM analyzes current projects and those coming down the pipeline based on numerous criteria. It’s a formal approach that organizations use to determine the benefits, returns and prioritization of projects in a way that maximizes the company’s capital and human resources. PPM chooses which projects to run and how to fund them, which projects to put on hold and which to say no to all together.

To understand PPM more clearly let’s start by pointing out its holistic nature. The practice combines business management and project management. PPM doesn’t just look at one individual project, as in the case of project management; it looks at the health and performance of all the projects within the portfolio. Decisions are then made based on the overall portfolio success, even if this means dropping or pausing a project that may have initially seemed attractive.

Project management asks the question of are you doing the project right? Project portfolio management asks, are you doing the right projects?

 

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