![]() Put simply a program is often the driving and managerial force behind a set of projects. For example, a program led by a nonprofit to provide clean drinking water in a rural area might comprise an infrastructure project, a research project, and an education or PR project. What Is The Difference Between A Program And A Portfolio?Ī program is composed of a set of related projects. If you were managing a technology company’s portfolio, for example, you would most likely reject a proposed building project because it doesn’t align with the company’s stated strategy of focusing only on some predefined type of tech projects. Finally, projects that do not fall within the scope of the company’s objectives are removed from contention. Those decisions are based on whether or not they support the goals and objectives of the company. #PORTFOLIO ARTIFACT MEANING HOW TO#Instead, it focuses on choosing which projects to be involved in and how to fund them. PPM is not primarily concerned with running projects. However, the operative word in project portfolio management, on the other hand, is a portfolio. ![]() Its importance cannot be over-emphasized. Project management, as you know, is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project and portfolio management do require some of the same general skills, but despite their similar-sounding names, project management and portfolio management are quite different. What Is The Difference Between Project Management And Portfolio Management? The PMO’s role involves portfolio management and setting project management processes and standards for the whole department to follow.Īdditionally, the PMO can set out which methodologies are used in the organization, such as Agile or Scrum methodologies, and ensure that they are followed in each individual project. Often, project portfolio managers are part of a Project Management Office ( PMO). Portfolio Managers often develop management standards to guide the portfolio and keep a high-level overview of everything within the portfolio. These models align projects to the company’s strategic objectives and keep risk management in mind. Often, the role of a project portfolio manager revolves around managing one or more portfolios and working with different financial algorithms and financial models. What Is The Role Of The Project Portfolio Manager?Īs the person with oversight of an organization’s project portfolio, the portfolio project manager is integral to the successful execution of the organization's strategic objectives. By establishing an optimal mix of projects, PPM ensures a company is better placed to achieve its strategic objective and its operational and financial goals. Other objectives include achieving balance in the project portfolio by ensuring an appropriate mix of high and low-risk and long and short-term projects. Also, ensuring desirable project performance, considering the resources that need to be allocated vis-a-vis the available resources, and the strategic fit with the company’s goals. This necessarily involves selecting only those projects that offer the right amount of value. The primary objective of PPM is to maximize the benefits a company accrues from the projects it undertakes. What Are The Objectives Of Portfolio Management? ![]() PPM also enhances transparency, governance, and accountability with stakeholders. ![]() If they can understand, manage, and mitigate risks, it will minimize discord, which can often be the bane of successful project and work management. When done properly, PPM is a valuable tool to obtain buy-in from all stakeholders in an organization and enable them to see the bigger picture.It also facilitates best practices in team communication and ensures that all parties involved in projects are on the same page.It makes it possible for companies that want to invest in new projects (and often competing projects) to forecast risks inherent in each and make an informed decision during project planning. ![]()
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