Thinking about an idea and working on it is not that difficult. The difficulty begins when you start working on the idea. You need to look at different aspects of the project and manage it. Failure in the management can result in failing the whole project irrespective of the greatness of the idea. So whether an idea is amazing or not does matter if the management is a failure. Therefore, you need to start working on the management team before you assign them the work.
The best way to deal with the management problem is to use the centralized management system which is known as project portfolio management (PPM).
Availability of software tools
With the advancements in the technological sector, you now have software tools for almost everything. Therefore, you will easily find software for business management. There are tools for management, accounting, HR and many more. So if you are looking for project portfolio management software be sure to visit this site.
They will provide you with a quick overview video. You can look at that and find something that will make you understand the tool. In addition to this, if the video is not sufficient for you, you can also request access to the demo. This is a powerful tool that will help you deal with your business problems. Yet it is quite easy to understand and simple to use.
However, even with the availability of software tools, you cannot work efficiently. You need to know about its working and also about management. So here we will explain to you the working of a project management portfolio. So let’s have a look at that;
What actually is a project portfolio?
It is a collection of processes, programs and projects that you will manage together. In addition to this, you will work on them to achieve the strategic and financial goals of your organization.
To put it simply, you are working on capital generation by working on a project.
The only difference between a project and a portfolio is that the project has a well-defined goal. On the other hand, the portfolio will have thorough strategic planning. Furthermore, with the help of a portfolio, you will be optimizing your plan continuously. So every single one of your steps is well-defined and planned through a portfolio.
Thus, the risk of failure and mistakes is very low.
What about its management?
Once you start working on the project portfolio, you will need to manage it as well. Management is very important because this is the thing that will let you optimize the cost. Furthermore, you will work on the resources and technologies that you will need during the work.
Therefore, this task is not simple and quick so there is a need for portfolio managers. Depending on the scale of the company, there is also a project management office or PMO. If the company is of large scale and it needs to carry a number of portfolios, then there will be a need to have a separate department for that.
Management of project portfolio
The duty of managers is to make sure that the results of the portfolio coincide with the business goals. You are designing a portfolio because you wish to achieve certain strategic goals and you have some. If the results of the portfolio are not bringing you the desired results then what is the need for it?
The process of effectively managing the project portfolio
The project portfolio management process is carried out in five basic steps.
1 – Define your business objectives
Before taking the start, you need to define your business objectives. What are your strategic goals? You will need to know the objectives to create the best possible portfolio. Furthermore, you also need to make sure that the financial objectives are valuable for your organization. Therefore, a stakeholder’s meeting will take place before starting the project. They will define the goals and then the management team will establish the valuation criteria.
2 – Collection of some ideas
After the stakeholder’s meeting, you will have the goals that you plan to achieve. Therefore, you need a path that will take you toward those goals. So start collecting the projects that are in their initial stage or are already in progress. You will need to gather all the data regarding the management. This will let you have the valuation criteria. Thus, you will be able to select the best one from those.
3 – Selection process
Now begins the selection process. The right way to select the most suitable project to meet the strategic goals is by doing a cost-benefit analysis. You will analyze it along with the valuation criteria. This will let you measure the value that you will get from each project.
The things that you will work on in the selection process include the risk level of every project, its net present value, and also the payback period. After analyzing all these things, you will have your project that will be most suitable for the company’s strategic goal. Thus, you will have your final project on which you are going to work.
4 – Validate the portfolio feasibility
The next step is to prepare a feasibility report. This will include all the financial risks that are involved in the whole process. Furthermore, it will also include resource management constraints and capacity planning.
5 – Project execution and management
You are done with the feasibility report and now it is time to start working on the project itself. Afterward, you will have your portfolio ready and you will follow the programs mentioned in it. You will do coordination with the program managers. So the program and project managers both will work together on bringing the best outcomes. Furthermore, they will try to minimize the risk factors throughout the process.
Finally, after careful consideration and effective coordination, you will be able to achieve the final goals.