How do you decide which projects you take on and which ones you don’t? If you’re just starting out as a project manager or project management organization, then you might be taking on whatever work you can as you try to secure your first few clients. But as you grow your business, you may have to be choosier about which projects you accept in order to manage your workload. This is where project portfolio management comes in.
What is project portfolio management?
Project portfolio management is an effective strategy for choosing which projects a PM or organization takes on. It considers various factors in making this decision, including the potential risks and rewards of the proposed projects, current workload, available team members, their skill-sets and experience, available man-hours vs the time needed to complete the project, and the number of resources available. It may also consider whether the prospective projects align with the company’s current goals and values. Based on these factors, a project manager can decide which project or projects are the best to undertake.
When done effectively, project portfolio management helps a team or business meet deadlines more consistently and maximize their bottom line. It also serves as a useful forecasting tool to help project managers identify problems and opportunities that may arise throughout the course of the project. This helps them be more prepared for them, therefore better able to respond to and handle them effectively.
Project portfolio management is particularly useful in companies that juggle multiple projects at once, helping to see them all through to the end, on time and on budget. It is also useful for managing overall budgets and resources when deciding how much to assign to each project.
How can strategic planning help with this?
Strategic planning intertwines with and complements project portfolio management. Firstly, it is used to decide the direction and future goals of your company. Knowing these things helps you to also manage your project portfolio, allowing you to choose projects that align with these factors. Having a strategic plan in place for your business also helps you to effectively manage your finances and resources, which aids project portfolio management since you know how much of a budget you have to dedicate to prospective projects.
Essentially, your company’s strategic plan serves as a tool or reference point for making the best decisions about which projects to add to your portfolio. When both processes get the attention they deserve, you can maximize the productivity and profitability of your company and project teams.
If you need help with strategic planning and project portfolio management, LogicalPlan is the ideal tool for staying organized. Using our app, you can see all your current tasks and available resources at a glance, clearly showing you how much availability you have to take on further projects. You can get in touch with us anytime if you have questions about how to use LogicalPlan for project portfolio management.