Project Portfolio Management (PPM) involves the management of all projects within an organization from a high-level perspective. A Project Management Office (PMO) on the other hand, acts as a central hub for all projects in the business. A PMO is a group that sets, maintains and ensures standards for project management across the entire organization.
The purpose of PPM is to identify and prioritize projects, plan and staff them with available resources, keep track of them, and communicate updates with all parties involved with the project. PPM is traditionally managed top-down, giving more importance to the projects with the highest priority. Less important projects are given fewer resources and a less stringent project timeline. The top-down approach can also give priority to projects with less risk and more overall usefulness in the organization.
For most companies that work on a number of projects, it makes sense to delineate between normal project management and PPM. Project management strives to complete an individual project within a given timeline and available resources. PPM, on the other hand, encompasses all the projects within an organization while keeping the big picture in mind to make strategic decisions.
When a company doesn’t use project portfolio management, they often run into the common problem of implementing too many projects that don’t align with strategic goals. This causes employees to be constantly overloaded and overextended. It also leads to projects being stopped due to low quality or simply because they are too difficult to complete with the given time or resources. Without PPM, a bottom-up approach consumes unnecessary time and resources, neglects business strategy, and ultimately leads to wasted efforts.
If your organization wants tighter monitoring and more efficiency of your IT and Business projects that align with organizational goals and strategy, a PMO may be your answer.
A PMO is a group that sets, maintains and ensures standards for project management across the entire organization. It makes sure that all company practices, operations, and procedures are on time, within budget, and are all on the same strategic page.