What is the difference between portfolio management and project management , exactly? And where does program management fit in? Here's a quick explanation of each in plain English to help you distinguish the differences. A portfolio is a high-level view of all the projects an organization is running in order to meet the business's main strategic objectives. It could be every project across the entire company, a division, or a department.
According to project manager Bob Buttrick , while project management is about executing projects right, portfolio management is about executing the right projects. The cost of doing nothing or relying on incomplete or obsolete applications is high and can be attributed to many of the most common pain points felt by many organizations.
Higher maturity organizations leverage PPM software primarily to provide the necessary visibility that is typically lacking from project management. Without a complete, real-time view of projects, work, and resources in the context of strategy, it is challenging to make informed decisions about where to invest.
If your organization never seems to have enough resources to meet incoming demand, PPM software will help your PMO balance, prioritize, and schedule resource capacity.
It provides a real-time view into both future and in-flight work across project teams, departments, geographies, and the enterprise, and shows interdependencies. This insight makes it much easier to prioritize and plan resource allocation over time, as well as rationalize the need to hire additional resources.
With corporate strategies defined, the PPM software makes it easier to see where gaps and disconnects are apparent while also providing data to justify decisions.
You will be better able to see risks and address them early, before they doom a project to failure and before they consume valuable resources that could have been better spent elsewhere. PMO teams have always been in a position to provide value. But staying relevant means changing with the times and adapting to changes in technology, management demands, and business needs.
Arming your PMO team with the right tools empowers them to drive both the strategic and the day-to-day programs that advance the corporate strategy. Integrated program, portfolio, and project management require a consistent organizational management structure addressing all three domains.
Project portfolio management PPM software provides an opportunity for organizations to improve PMO performance, make better decisions, and operationalize business strategy by centralizing demand management, prioritizing work, and improving visibility into the portfolio of projects. Angie believes that neither a good customer story nor high impact product capability should be kept a secret. Fun facts: Angie has a reputation for her PowerPoint magic skills, and in her spare time teaches group fitness classes.
Angie is a graduate of the University of Texas at Austin. Program Management vs. Effective program management balances and optimizes people and dollars across projects, enabling the enterprise to prioritize and fund the programs that drive the most value.
This can include: Definition of project goals Intake and management of requirements Breakdown and scheduling of tasks Budget and cost management Assignment and management of project resources Communication of project status against milestones.
It highlights questions such as: Do I have the necessary resources and budgets to initiate a new project? Are there other projects that can be modeled? Are there any current projects that may interfere with this new project? Do we need to adjust stakeholder expectations? Does this project align with our enterprise objectives? The program manager also has responsibility for: Prioritizing and budgeting initiatives Defining a cross-organizational roadmap Ensuring resources capacity and availability Managing interdependencies between projects Ensuring program-level goals are achieved Program managers often report to an Enterprise PMO, Strategic Planning Office, or line of business and have responsibility for managing strategic initiatives that span departments and business units.
The responsibilities of a project manager may include: Project scoping, scheduling, and approvals Resource management Budget management Risk management Status reporting to team members and stakeholders A portfolio manager is responsible for managing and leveraging the life cycle of investments, initiatives, programs, projects, and outcomes to optimally achieve enterprise goals and objectives. Just as projects roll up under the programs and the programs roll up under the portfolio, the Program Management Office has an eye on the progress and performance of all the projects within each program to ensure the overall program is meeting key milestones toward strategic objectives.
We all know scheduling projects is one of the most excruciating processes as you have to juggle a wide range of variables to make it work. Team members availability, project dependencies and resources all have to perfectly fit together.
PPM software helps streamline this process through easy to use timeline management tools that allow you to plan, plot and reconfigure project schedules on an on-going basis. With pmo , we are able to not only clearly visualise project timelines, but also have access to historic data and real-time updates that elevate your project schedule planning and tracking activities.
One of the biggest hurdles to successfully implementing any new system is getting users to use it. Teaching and training is key. However, a user-friendly and intuitive platform helps make this easier. With interactive dashboards and clear interfaces, pmo softwares makes the transition to the new system as pain-free as possible. Before picking the PPM software for you, make sure that you really test how easy and intuitive the software can be. One of the key means of achieving better results within an organisation is through improving collaboration and communication between teams.
PPM systems, through their integrative and centralised features, often come with in-built collaborative tools that allow for seamless inter-departmental collaboration in real-time.
They often come with extended features that allow you to form distinct channels with specific teams to share relevant data with the right people. This feature is critical so all information, communication and activities are kept on one platform and avoids the cost and complications of using an external collaboration tool.
If you want to know more about how pmo can revolutionise your PPM activities, make sure to book a free trial and speak directly with our PPM experts. All right reserved. Watch how microsoft pmo works in your industry. Review your existing projects portfolio data collection, tools, methods, current reports, dashboards, methodologies, frameworks and PPM best practices.
Book a Demo. What is Project Portfolio Management? Book a demo. Learn more. Cost Management. RAID Log. Timesheet Reports. Resource Management. Project Governance. Project Pipeline Management. Benefits Management. Portfolio Analysis. Program Management. Project Scheduling.
Download Our Brochure. What is the difference between project management and portfolio management? Why Project Portfolio Management is Important. The Benefits of Project Portfolio Management. When properly executed, PPM can bring organisations a wide range of benefits which include:. Giving organisations a big-picture view. Ensuring objectives and projects are strategically aligned. Bringing higher degrees of productivity.
Improved your organisation's ROI. Sean Nairn. Book a free demo. Pipeline Management. Change Control Management.
Risk Management. Project portfolio management in five steps. Step one: Clarify the guiding strategic objectives of the organisation. Step two: Gather and research proposed ideas. Step three: Selecting the best projects. How much will this project cost? How long will this project take? What are the expected returns or benefits of this project? Are there enough resources available to complete this project? What are the risks associated with this project?
Step four: Validate, prioritise and initiate projects. Inter-project dependencies that can cause delays The knowledge and capabilities of the organisation Resource constraints Financial constraints. Step five: Managing and monitoring the portfolio of projects. Gathering data and monitoring the performance of the portfolio Identifying and resolving issues within the portfolio Making necessary changes to steer the portfolio in the right direction - by either rescuing projects, re-scoping, canceling or introducing new projects.
What are the most important PMO software features. Do you need help with PPM? Our partners. We've worked with. Artificial Intelligence is a critical piece for sustainable project management As the world begins to seriously shift towards a more sustainable future, the project management space is also shifting towards a more sustainable form —…. Have any questions? Let us know!
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