Project portfolio management refers to the centralized management of one or more project portfolios to achieve strategic objectives. It is a way to bridge the gap between strategy and implementation, and ensures that an organization can leverage its project selection and execution success.
PPM is generally used by organizations to identify the potential returns on a project. It makes it possible for companies that want to invest in new (and often competing) projects to forecast risks inherent in each and make an informed decision. Its value extends beyond that though. It also facilitates team communication and ensures that all parties involved in projects are on the same page.
When done properly, PPM is a valuable tool for obtaining the buy-in of all stakeholders in an organization. By enabling various stakeholders – including clients and company executives – to see the bigger picture, obtain consistent feedback, understand, manage and mitigate risks, there’s much less likely to be discord, which can often be the bane of successful project management. PPM also enhances transparency, governance, and accountability.