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What Is Project Portfolio Management
Project portfolio management (PPM) involves centralized management of multiple portfolios to help organizations achieve their goals through effective decision-making. Portfolio managers are responsible for collecting operational data, evaluating project impact on strategic objectives, and prioritizing funding based on factors like cost and risk. Effective PPM includes managing objectives, budgets, resources, and adapting to new risks and opportunities.
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What Is Project Portfolio Management
- 1.
- 2. PORTFOLIO MANAGEMENT • is“centralized management of one or more portfolios that enable executive management to meet organizational goals and objectives through efficient decision making on portfolios, projects, programs and operations.” • The Standard for PORTFOLIO MANAGEMENT – FOURTH EDUTION, PMI®, 2017. PMI is registered mark of Project Management Institute, Inc
- 3. Manage several projectsand coordinate them to achieve specific organizational objectives. SIMPLE DEFINITION
- 4. WHAT DO PORTFOLIOMANAGERS DO?
- 5. COLLECT PROJECT /OPERATION DATA The table shows a list of projects of a Portfolio in the Project Portfolio Management simulation SimulTrain®+
- 6. DEFINE IMPACT ONSTRATEGIC OBJECTIVES The table shows Strategic Value: the contribution of projects in company Strategic Objectives in SimulTrain®+
- 7. CHOOSE A STRATEGICAPPROACH For example, • Maximum Strategic Value • High Profit - Low Cost • High Strategic Value - Low Risk • High Profit - Quick Win • . . . .
- 8. FUNDING PRIORITY: LESSEXPENSIVE? Funding Priority The chart shows Net Present Value (NPV) vs Cost and Strategic Value (area of the bubble) for projects of a Portfolio in SimulTrain®+
- 9. FUNDING PRIORITY: LOWRISK? Funding Priority The chart shows NPV vs Risk and Strategic Value for projects of a Portfolio in SimulTrain®+
- 10. FUNDING PRIORITY: QUICKWIN? Funding Priority The chart shows NPV vs Payback Time and Strategic Value for a Portfolio in SimulTrain®+
- 11. ASSIGN PROJECTS TORESOURCES The chart shows company who works on projects: units with names of the unit heads vs Time for a Portfolio in SimulTrain®+
- 12. CONTROL CASH BALANCE Thechart shows Cash balance vs Time for a Portfolio in SimulTrain®+
- 13. CONTROL PORTFOLIO KEYINDICATORS The chart shows the Dashboard of a Portfolio in SimulTrain®+
- 14. REACT TO NEWRISKS AND OPPORTUNITIES The info concerns changes of Strategic Values of a Portfolio at the end of year in SimulTrain®+
- 15. PORTFOLIO EXECUTIVES MANAGE Objectives Projects Budget People ProjectPriorities Project Workload Payback Periods Risks & Opportunities Communication The picture shows typical tasks of the Project Portfolio Manager in SimulTrain®+
- 16. WHAT PMS DOEFFECTIVELY! PORTFOLIO MANAGEMENT IS
- 17. “LEARNING IS EXPERIENCE. EVERYTHINGELSE IS JUST INFORMATION.” ~Albert Einstein
- 18. SimulTrain®+ Real Strategic ManagementExperience www.simultrain.net/plus
Editor's Notes
- #2 What is Portfolio Project Management?
- #3 There are more than six thousand results when you search for books on “Portfolio Management” on Amazon. As such, it is not easy to learn about portfolio project management.
- #4 Standard definitions are very theoretical. They are correct but rather complicated for normal people.
- #5 This is a simplified definition.
- #6 What do Portfolio Managers do?
- #7 They collect data on existing operations, projects, and potential ideas / opportunities.
- #8 They evaluate impact of the projects on the Strategic Objectives of the portfolio..
- #9 They choose one or more strategies to reach the objectives and staying in budget when the resources are limited.
- #10 For example, they can choose projects with smaller cost and greater financial values.
- #11 They can choose projects with lower risk.
- #12 They can choose projects that bring fast money back.
- #13 They assign the chosen project to company units.
- #14 They control and monitor financial resources.
- #15 They use special tools to collect and analyze information.
- #16 When changes arrive, the adapt the partfolio to new reality by changing priorities, redistributing resources, even cancelling certain projects.
- #17 What do Portfolio Mangers do? They manage Strategic Objectives, Risks, Budgets, and balance Organizational resources, funds, priorities . They react to changing environment.
- #18 Project Portfolio Management is what Portfolio Managers do effectively!
- #19 Albert Einstein said “Learning is Experience. Everything else is just information.” How can we learn Portfolio Management? The best way is to manage real Project Portfolios.
- #20 Business simulation is a way to study Project Portfolio Management. Study yourself by managing Project Portfolios! The simulator SimulTrain+ is real strategic management experience!