Imagine that you want to work on a couple of projects at the same time. So, you go and start working on them simultaneously, but eventually, you run into some problems. You keep adding things, but don't stop thinking about whether it should be there. However, you notice that everyone working with you isn't on the same page.
Continuing this, you run into more roadblocks, and your willpower weakens. Eventually, the deadline arrives, but you don't have much to show. Every project manager had to deal with this headache. Fortunately, there's a sure-fire way to deal with it, and the name of the game is Project Portfolio Management (PPM).
What Is Project Portfolio Management?
Project portfolio management (PPM) is simply a way to efficiently manage all your projects. You do this by putting all your projects under a single heading or umbrella. Doing so provides a comprehensive and holistic view of all your projects, allowing you to make the best decisions to steer the boat.
Difference between Project Portfolio Management and Project Management
While they have similar names, Project Portfolio Management and Project Management are separate, distinct terms for completely different things.
Project Portfolio Management is all about the selection of projects. It entails taking an overview of all the projects and selecting the ones that fit the current organizational goals. Conversely, Project Management is all about the execution of all current projects. It focuses on making sure the project is finished on time, and within budget.
In other words, Project Portfolio Management is concerned with making sure that the organization is working on the right projects, whereas Project Management is about making sure that the projects are implemented successfully.
Benefits Of Project Portfolio Management
Just by implementing PPM, an organization can reap significant benefits, such as:
- Improved efficiency: Streamlined processes and better resource allocation/usage lead to faster project completion.
- Enhanced decision-making: Getting an overall view of all the projects can help you focus on the bigger picture and make all the appropriate business decisions.
- Reduced risk: Proactive risk management and ease of communication help mitigate potential issues.
Challenges Of Project Portfolio Management
Managing a project portfolio comes with its own set of challenges. Common obstacles for project portfolio managers include:
Resource Constraints: Limited manpower, budget, and expertise can make it difficult to effectively manage all projects simultaneously.
Learning Curve: Implementing PPM means changing the way businesses operate, and many organizations may be reluctant to change their ways of working.
These challenges highlight the importance of implementing a robust PPM strategy to ensure project success.
The Art Of Management
Now that you have an idea of what project portfolio management is about, let's look at the cornerstones of what makes successful portfolio management work:
Define Your Goals
Before starting a project, it's vital to understand just exactly what you want from it. Not doing so can lead to wasted resources, a lack of clear vision that muddles everything, and scope creep. One way to define your goals is to use the 3P approach. The 3Ps stand for:
- Premise: In just one line, what outcome do you wish to achieve?
- Parts: What elements are required to achieve this outcome?
- Procedures: What are the checklists required for getting each element done?
Kill Your Darlings
A very common writing advice is ‘Kill Your Darlings.’ This means that if something isn't relevant to your writing, it's best left off the page. It's not easy, however. Sometimes, you've invested a lot of effort into it and have a personal attachment to it. However, if it doesn't serve the story, it's best to erase it.
The same applies when defining a project's scope and details. Do you want to make a program with fancy features like color menu changes and other QoL things? Awesome! But with your time and resources, you may be unable to finish it. In fact, the things that you want are not necessarily what your audience wants.
We get attached to our creations but must also learn to let go. In PPM, we make use of some common frameworks to help in the selection and prioritization of projects and all their aspects. Some of them are:
Weighted Scoring: This method assigns a score to each project based on pre-defined criteria (e.g., strategic alignment, financial return, risk), allowing for a quantitative comparison.
MoSCoW: This prioritization tool categorizes projects into Must-Have, Should-Have, Could-Have, and Won't-Have (MoSCoW) based on their importance and feasibility.
These plans help projects stay on time and avoid extra work. But there are always some games that break the rules! Undertale, a popular independent role-playing game, is a great example. Most RPGs take about 70 hours to finish, but Undertale is only 6 hours long. And that's a good thing. The game keeps things simple. It doesn't have fancy graphics, and the battles are even in black and white. Undertale might be basic, but it became one of the most loved game in 2015.
Resolving Project Conflict
Many complications often arise in big projects. One of the more persistent and serious ones is project conflict, which occurs when team members oppose each other. Examples include disagreements between project managers and stakeholders and in-fighting between team members.
Like with many things in life, communication is critical. If everyone can easily communicate with one another, there is less chance of conflict. This is where project portfolio management comes in. Implementing PPM also means fostering a collaborative environment where employees and higher-ups can freely communicate. It also makes it easier to resolve conflicts and create compromises.
Make Sure Everybody's On The Same Page
A rather big problem with managing many projects is that it gets very hard to keep track of what everyone's doing. But the problem doesn't just stop with managers - even the employees themselves get confused and have no idea what they're working towards. When that happens, the identity of a project can get muddled as everyone's just going off and doing their own thing.
That's why it's essential to keep everyone on the same wavelength and let them know what you want from them. We've talked about setting goals earlier, but PPM also goes a step further and sets up two-way communication channels that encourage more team interactions.
Monitoring Progress And Performance
Once you kick a project off the ground, it doesn't stop there. You must monitor it continuously and ensure everything is done on time and correctly. This involves:
Resource Management: Assessing the skills and availability of your team members before assigning them to projects.
Risk Management: Identify and develop strategies to mitigate identified risks, such as creating contingency plans or allocating buffer resources.
Regular Meetings: Conduct meetings to share project updates, address concerns, and ensure everyone communicates clearly.
Project Portfolio Management Software
Need help with the project portfolio management process? Many popular project management software solutions offer features that cater to PPM needs. These tools can help you:
Plan and Schedule Projects: Define project tasks, milestones, and dependencies.
Track Progress and Resource Allocation: Real-time monitor project progress, resource utilization, and budgets.
Facilitate Collaboration: Enable communication and information sharing among team members and stakeholders.
Some popular project management software options with PPM functionalities include:
Asana
Need an all-in-one platform to keep your team organized and on the same page? Asana has you covered. It helps individuals and groups manage their projects and tasks, track progress, and collaborate effectively.
Trello
Trello is for you if you can't stand looking at lists and numbers. It's a web-based, Kanban-style visual tool for organizing work and projects. It uses boards, lists, and cards to track progress clearly and collaboratively, making it great for brainstorming and keeping teams on the same page.
Microsoft Project
By combining chat, video meetings, file storage, and task management in one place, Microsoft Project is one of the heavy hitters regarding project management software. While it has a learning curve, the upside is that you get access to features that can help when working with complex projects.
In Summary
So far, we've given a basic idea of portfolio project management and why it's valuable to a project portfolio manager or any project management office. We discussed the challenges of prioritizing and coordinating multiple projects and how PPM provides a strategic framework to overcome them. We highlighted the importance of resource management, cutting things, and communication. Lastly, we introduced valuable tools that can streamline your PPM efforts.
Now, the only question is: are you ready to take your workflow to the next level? Implement the PPM strategies outlined in this guide and watch your project success rates soar! Take control of your project portfolio, optimize resource allocation, and ensure your projects deliver the maximum value for your business.
