Overview

Project Portfolio Management (PPM) deals with the harmonization and control of several tasks pursing
the similar planned objectives and contending for the equal resources, having managers prioritize amid
projects to attain planned benefits. (Cooper et al., 1997)

PPM is also the art and science of relating an established understanding, skills, tools and procedures to a
gathering of projects, so as to meet prerequisites and expectation of the establishments investment
strategy.

However, it is said that PPM has established steady and fundamental position mutually in project
management research, product development research and companies management practices
throughout the historical period. PPM has been developed into global standards PMI, (2008) and also as
practical book that are projected to support establishments in consolidating and implementing their
specific PPM structures. This deals with consolidating and running a set of projects in an establishment.
Every single establishment has its peculiar approach to handling the portfolio that meets its trade
objectives. One of the key challenges is tracking project performances through the whole portfolio in an
appropriate and real way. It agrees for managers to identify performance tendencies and identification
of projects prerequisite of attention, giving them the chance to take administrative action in a well-
timed way.

To a large extent, our establishment has developed exponentially in design, advanced technology and
innovation business. At hand are constant potentials for progress in management procedures of our
projects as it is essential to achieve the whole collection of project through PPM. It has been my
understanding over the existences that appreciating the dynamic of this complete portfolio and as
projects independently, has assisted management to monitor and implement business strategy to
develop the portfolio and also single project. Wysocki, (2009, P, 535) mentions that A project portfolio
is a gathering of projects that share certain collective linkage to one another. These communal linkages
represents part of our business models that seeks to support managements decision making strategy
concerning any project, plan selection, administrative approaches, financial plans, and supplementary
key modules of an actual trade proposal.

Based on research by Elonen and Artto, (2003) and findings, the below are the challenges faced by
establishment devoid of PPM:

Management Stage

Poor decision made lacking suitable deliberation

Poor data managing across establishment
No shared databank of projects
Authority centered decision making
High quantity and low quality information
Inadequate portfolio quality
Resource Stage

Ineffectual deployment of resources

Shortage of resources and focus
Indistinguishable roles and accountabilities

Project Stage

Projects and strategy incompatibility

Too many minor projects
Insufficient project ranking
Denying to cancel a project

In addition, according to McFarlan, (2003) also reflects comparable snags are that in numerous
establishments, project portfolios are deviating from general establishment goals, causing squandered
capitals and weakened revenues. Furthermore, he also mentioned that numerous huge organizations
manage their portfolios as collection of projects rather than an integrated portfolio to be grouped
together and viewed as an integrated whole.

These complications may perhaps be reflected as an addition to poor management practices, like the 10
Uglies of Projects itemized by Kerzner, (2010 P, 79) and their effects linked to organizations project
portfolio performance to be:

Management Stage
Deficiency of retained documents
No communal strategy
Not plan for rework

The common factor in existence amid entire progressions in an organization is communication.

Sanghera, (2010) Assumed that effective communication and info transparency throughout
establishment is imperative for emerging a positive planned project portfolio, when the info does not
get to the proper receiver, in real time and via suitable passages, it may perhaps be admitted that
companys initiatives are destined for disaster. Furthermore, if facts are devoid of accessibility by
shareholders particularly historical records on previous projects, the hazards of generating poor
guesstimates of variables upsurges.

Resource Stage

Inappropriate persons on the job

Not involving the right persons
Based on experience, I have discerned that more frequently than not a project squad is gathered with
the human resource existing at the moment rather than with most competent for project nature.
According to Kezner, (2010, P. 81), not including the accurate persons upfront in a project at all times
fallouts to alterations in effort.

Project Stage

Pile Phenomenon
Not any quality at basis
Not having appropriate sponsorship
No thoroughness around procedure

Assumed that establishments devoid or lacking portfolio management would sooner or later fail to
bond projects to the portfolio strategy, it denies upper management the visibility of project events, and
also PMs capability of seeing the greater representation of business approach; additionally, upper
management necessitates the skill to successfully manage the business Morris and Pinto, (2007)

Portfolio Stage

Based on the above project management practices, the entire project portfolio accomplishments will
upshot complications as:

Project running past their lifespans,

Overlapping of projects and assets, and
Absence of critical policy making decision from upper management Elonen and Artto, (2003)

The dissimilarity amid strategic portfolio management (SPM) and multiple projects are:

SPM are projects suitable for establishments business plan whereas multiple projects are a
selection and achieved on income basis.
The variation amid PM and PPM emphases on meeting premeditated alongside tactical
objectives. Strategic objectives are detailed and short period nonetheless promotes companys
long span goals, while PM focuses on premeditated objective
Leaders in control of PM requisite the knowing of ways in which it fits into business, for the
most part in aspects of business plan, funds and trade risks
PPM ensure business and organization has a selection of accurate projects, whereas PM assists
with project execution UoL (2013)
REFERENCE

1. Cooper RG, Edgett SJ, Kleinschmidt EJ (1998). Portfolio management for new products. Perseus
Books, New York

2. Elonen, S. & Artto, K. (2003) 'Problems in managing internal development projects in multi-
project environments, International Journal of Project Management, 21 (6), pp. 395 402,
Science Direct [Online] DOI: 10.1016/S0263-7863(02)00097-2 (Accessed: 05 October 13).

3. Kerzner, H. (2010) Project Management Best Practices: Achieving Global Excellence.2nd ed.
Hoboken: John Wiley & Sons, Inc.

4. PMBOK English 4th Edition published by PMI 2008.

5. Sanghera, P. (2010) PMP Exam In Depth, Second Edition: Project Management Professional
Study Guide for the PMP Exam.2nd ed. Boston: Course Technology/Cengage Learning.

6. University of Liverpool/Laureate Online Education (2013) Week 1 Lecture notes from

Sustainability, Programme and Portfolio Management (online) Available at: [Online]. Available
from: https://elearning.uol.ohecampus.com/bbcswebdav/xid-132751_4 (Accessed: 05
October 13)

7. Wysocki, R.K. (2009) Effective project management: traditional, agile, extreme. 5th ed.
Indianapolis: Wiley Publishing.