What Is Project Portfolio Management?
PMI defines portfolio management as "Project Portfolio management refers to the selection and support of projects or program investments. These investments in projects and programs are guided by the organization's strategic plan and available resources." Under the guidance of the utilized resources and corporate strategic plan, make the selection and support of multiple projects or program investment. Project portfolio management is to maximize project benefits through project evaluation selection and multi-project portfolio optimization to ensure that projects are in line with the company's strategic goals.
Project portfolio management
Right!
- Chinese name
- Project portfolio management
- Nature
- Management methods
- proposer
- Interim
- Defined level
- Managed level
- Synchronization level
- PMI defines portfolio management as "Project Portfolio management refers to the selection and support of projects or program investments. These investments in projects and programs are guided by the organization's strategic plan and available resources." Under the guidance of the utilized resources and corporate strategic plan, make the selection and support of multiple projects or program investment. Project portfolio management is to maximize project benefits through project evaluation selection and multi-project portfolio optimization to ensure that projects are in line with the company's strategic goals.
- To explain the meaning of project portfolio management, the first thing to look at is project portfolio.
- As early as the 1950s, an American economist, Harry Markowz, put forward the concept of investment portfolios, established a portfolio approach in financial securities and other fields, and assessed the value and return of investment assets from a risk and return perspective. Modern Portfolio Theory. With the spread of MPT theory, some commercial companies have begun to consider how to apply this theory to business projects. In 1981, Warren McFarland first applied modern portfolio theory to the selection and management of projects, and achieved maximum returns under certain risks through the operation of the project portfolio.
- Traditional project management
- 1) Traditional project management emphasizes "how to do a project", and through effective project management methods to ensure that the project is in accordance with schedule,
- More and more organizations are facing the situation that enterprises are conducting many projects and project groups at the same time, and each enterprise hopes to obtain the maximum return on investment in the project. As one of the future development trends in project management, project portfolio management,
- Maximize investment income in terms of finance;
- Build a bridge between the project and corporate strategy, and the project portfolio is the embodiment and support of corporate strategy;
- Correctly and effectively allocate scarce resources and not allow limited resources to be invested in a large number of projects, but focus on the superior resources to execute the "best" projects;
- A balance between long and short-term corporate returns, high-risk and low-risk projects.
- Project strategic positioning
- The main purpose of this stage is to carry out the strategic positioning of the enterprise project and judge whether the enterprise's project is consistent with the strategic direction of the enterprise.
- The main content at this stage is related to the macro
- 1. Define the required portfolio of items within the organization
- Generally as an organization
- Organizational maturity at four levels of portfolio management:
- In fact, portfolio management consists of three levels, and then there is a level 0. Software maturity is related to project delivery, and project portfolio management maturity is related to what we should do first.
- Only about 2.5% of large companies adopt a temporary management approach. The other 97.5% are doing things, but that "thing" is relative. About 20% of organizations define their portfolios and realize the significance of having such a process. Another 55% of organizations point out what's in their portfolio and have a process to assess how to invest in IT expenses, which is often done on an annual basis. [2]