Driving project performance is not only about “doing projects right” it is about “doing the right projects”. Yet, doing the right projects is more than simply individual project selection, rather it is about how the organisation manages the entire mix of the business’s portfolio of projects. It is about achieving a level of visibility over project delivery that enables the business to make calculated Go/Kill decisions and ensure rational, accurate alignment with the business. It is ultimately about how the business sees projects as investments within the short, mediumand long term.
PPM can therefore be defined as the “…management of the project portfolio so as to maximise the contribution of projects to the overall welfare and success of the enterprise. Project Portfolio Management (PPM) is the management of that collection of projects and programmes in which a company invests to implement its strategy, for example asset programmes, improvement initiatives and strategic change work streams among others. A PPM process can utilise various techniques to provide tangible results for your business, ensuring that project investments contribute directly to realising your corporate goals.”
PPM is a paradigm shift in thinking, it’s successful implementation is driven from the top-down spear headed by executive and senior management sponsorship and responsibility. PPM attempts to straddle the gap between the projects themselves, the management process and their accountability to the business. PPM is the bridging that brings together the strategic and operational.
PPM challenges the narrow “pure play project-by-project orientated focus to planning” and draws attention to the broader more integrated approach, which subjects projects to wider organisational considerations and executive responsibility.
Simply put, PPM looks to empower the business not just the project process. It helps business establish a clear line of sight from the top-level pan-initiative view right down to the individual project layer. From the strategic view point, it allows stakeholders, business leaders and executives to see clearly and understand how effective their strategies are and if necessary which programmes and projects to review. From the operational view point PPM empowers programme, resource and projects managers with tools, support and necessary corporate accountability to execute project delivery.
