Essay Project Portfolio Management

2599 Words Aug 27th, 2013 11 Pages
Project Portfolio Management

Project Portfolio Management is a methodology to manage a company’s projects in a similar way that financial manager manages the company’s cash flow and related finances. According to Rouse (2013), “PPM (project and portfolio management) is a strategic prioritization methodology employed to analyze and manage current or proposed projects within an organization”. The purpose is to determine the best available sequence and group of projects to achieve organizational strategic objectives from concept to conclusion. Project Portfolio Management aims to align the projects, investments and resources with organizational priorities. Project Portfolio Management is a continuous process which comprises of project data
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According to them, benefits included 35% increase in number of project managed, 37% reduction in cost per project, 78% decrease in redundant projects, 14% increase in staff productivity and drop in project failure rate by 59%.

Middle East Aeronautics (name changed for confidentiality), a public sector aeronautical rebuild and overhauling facility, takes a mixed approach to management of project by assigning functional managers from within the company as project managers. In such a case, functional managers would become project managers while performing their routine duties in parallel which Kerzner (2010) described as common practice during 1960s. One of the major reason for such an approach to project management in Middle East Aeronautics was that individual projects were launched within the departments as individual initiative without considering their alignment with organizational business strategy. Due to company internal politics, even the project were kept hidden until announced completed which impacted the working of other department and effective utilization of project deliverables. Thus Nguyen (2001) stresses the need for regulating the middle managers’ abilities of creativity and innovation. Every department seemed competing to portray their projects as success while remaining adopted a criticizing approach to discourage any innovative approach without considering the overall impact of the

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