The project portfolio process is a strategic organizational approach designed to manage and prioritize a collection of projects effectively.
The project portfolio management process aims to identify the returns, strategy, risks and efficiency to organize and choose projects with better returns. It serves the crucial purpose of selecting the projects that directly lead the organization to its strategic goals, significantly increase its overall worth, and avoid unnecessary risks or outcomes that provide only temporary benefits (as noted in information from November 14, 2022).
Essentially, it's about making informed decisions on which projects to start, continue, or stop, based on their potential value and alignment with the organization's overarching strategy.
Why is the Project Portfolio Process Important?
Implementing a robust project portfolio process helps organizations in several key areas:
- Strategic Alignment: Ensures projects contribute directly to business objectives.
- Resource Optimization: Manages resources (budget, personnel, time) across projects efficiently.
- Risk Management: Identifies and mitigates risks associated with the project collection.
- Value Maximization: Focuses on projects likely to deliver the highest returns and value.
Key Aims of the Process
Based on the core definition, the primary aims include:
- Identifying potential returns from projects.
- Ensuring alignment with organizational strategy.
- Assessing project risks.
- Evaluating project efficiency.
- Organizing and choosing projects with the best potential returns.
- Selecting projects that achieve organizational goals and increase worth.
- Avoiding projects that lead to significant risks or only temporary results.
By systematically evaluating projects against these criteria, organizations can build a portfolio that is balanced, strategic, and contributes significantly to long-term success.
