Project Portfolio Management

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Examples:

• Building a bridge for a government agency.
• Developing a software application for a private company.
• Providing consulting services to improve a client's operations.

PPM Applicability:

PPM is applicable for selecting and managing both internal and external projects. It helps organizations prioritize projects based on strategic alignment, resource availability, and potential return on investment (ROI). PPM ensures both contribute to the organization's overall goals.

Justification:

• Internal projects: PPM helps prioritize investments in capabilities that align with strategic objectives and avoid resource overload. It ensures internal projects contribute to long-term growth and competitiveness.
• External projects: PPM helps select profitable projects, allocate resources effectively, and manage risks associated with external clients and dependencies. It ensures external projects contribute to revenue generation and market expansion.

Q2. Project Charter and its Assistance in PPM:

Project Charter: A formal document outlining a project's objectives, scope, stakeholders, and key milestones. It serves as a single source of truth and reference throughout the project lifecycle.

Assistance in PPM:

• Project selection: Charters provide clear information for PPM to assess alignment with strategic goals, feasibility, and potential benefits.
• Resource allocation: Charters help PPM understand resource requirements and potential conflicts with other projects.
• Risk management: Charters identify potential risks early on, allowing PPM to develop mitigation strategies.
• Performance monitoring: Charters serve as benchmarks for monitoring project progress and alignment with objectives.

Q3. Focus of PM vs. PPM and Performance Measures:

Project Management (PM): Focuses on executing individual projects successfully within scope, budget, and schedule.

Performance Measures:

• On-time and on-budget project completion.
• Meeting quality standards and stakeholder expectations.
• Managing risks and issues effectively.
• Achieving project deliverables.

Project Portfolio Management (PPM): Focuses on selecting and managing a portfolio of projects to achieve organizational goals.

Performance Measures:

• Portfolio alignment with strategic objectives.
• Portfolio ROI and contribution to organizational value.
• Resource utilization and efficiency across projects.
• Risk management effectiveness for the entire portfolio.
• Balancing short-term project successes with long-term goals.

Conclusion:

PPM plays a crucial role in managing both internal and external projects, ensuring they align with the organization's overall strategy and contribute to its success. Project charters and performance measures tailored to PM and PPM levels help achieve optimal outcomes in individual projects and the entire portfolio.

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References:

• Project Management Institute (PMI): https://www.pmi.org/
• A Guide to the Project Management Body of Knowledge (PMBOK® Guide): https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

I hope this explanation and answer help you learn!

Sample Solution

Project Portfolio Management: Internal vs. External Projects and More

This document addresses your questions about internal and external projects, Project Portfolio Management (PPM), project charters, and the differences between Project Management (PM) and PPM.

Q1. Internal vs. External Projects and PPM Applicability:

Internal Projects: Executed within the organization to enhance capabilities and capacities.

Examples:

• Implementing a new enterprise resource planning (ERP) system to improve information flow and efficiency.
• Developing a new product line to expand the company's offerings.
• Training employees on new skills to improve productivity.

External Projects: Executed for clients outside the organization, generating revenue or achieving specific goals.