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[Music] project portfolio management may be a tongue twister but every serious Enterprise needs it PPM identifies prioritizes coordinates and monitors projects that align with the company's strategy and goals simply put PPM is the bridge between an organization's overall strategic objectives and the individual projects needed to achieve them it examines the risk reward ratio of each project the available funds A Project's likely duration and the desired outcomes PPM is not the same as project management which focuses on the successful execution of individual projects PPM instead looks at the big picture it encompasses top-down strategic planning as well as tactical and continuous decision making here we'll go over the basics of project portfolio management and what businesses need to know for a deeper dive explore our complete collection on all things PPM by clicking the link above or in the description below [Music] starts with a team of decision makers in the organization led by a portfolio manager this PPM team examines each potential project to determine if the project supports the goals and objectives of the business projects that failed this first Criterion are eliminated from selection the PPM team also examines the interconnections and contingencies among projects these relationships can affect the ranking prioritization funding and selection of projects in the portfolio once projects are identified and prioritized the PPM team then monitors projects that are in motion poorly performing projects can affect other projects in the portfolio so consistent monitoring of the portfolio is needed to optimize overall value at mature organizations PPM decisions are made under the auspices of or in conjunction with a project management office or pmo PPM managers often report to Achieve Financial or Chief Operating Officer but that can vary depending on the structure size and complexity of the company it also depends on the size of the PPM team which typically ranges from 2 to 20 people this centralized governance structure helps to ensure that projects add up to more than the sum of their parts the PPM process typically entails six basic steps first plan the portfolio inventory and collect information on existing projects and identify proposed new projects canvas employees and outside consultants for ideas assess the competitive landscape identify areas for improvement and research industry trends select and prioritize projects PPM teams use various selection methods in ranking projects for strategic value in Roi including sophisticated Financial metrics the selection process often relies on the time value of money as an input test the feasibility of the portfolio work with the people who are involved in existing projects or will run proposed projects use data analytics and other metrics to assess individual project risks including Market changes and internal limitations in areas such as technology skills and budget allocate resources line up the funds materials personnel and other requirements to bring each project to completion manage Monitor and adjust evaluate performance identify problems and make adjustments as necessary to keep projects on track and finally report and improve upon portfolio management regularly update portfolio stakeholders about things like the Project's performance risks and personnel which serves as the basis for continuous Improvement and PPM maturity project portfolio managers evaluate all projects and programs from a strategic perspective they have the authority to prioritize projects based on importance to the business and allocate resources ingly in addition they create a pipeline of projects and programs align the pipeline to Enterprise goals ensure projects and programs are managed effectively and efficiently throughout their life cycles manage project portfolio risks progress and issues continuously Monitor and report on the portfolio realign and re-prioritize the portfolio when Enterprise objectives or circumstances shift and communicate to Enterprise leadership the expected Roi for Planned projects and programs [Music] projects are big business the project management Institute has pegged the value of worldwide project-oriented activities at 20 trillion dollars by 2027 up 67 from 12 trillion dollars in 2017 with some 88 million people globally employed in project management roles yet only about one-third of projects today are completed successfully project portfolio management can help boost those success rates by providing the following better decision making by consistently evaluating projects qualitatively and quantitatively throughout the entire project delivery cycle businesses can be more objective in evaluating and prioritizing projects faster new product and Service delivery ppm's coordination of project delivery methodologies processes and tools across all projects and programs can minimize and even eliminate time-consuming redundancies and inefficiencies consistency of cross-project teams PPM brings the same standards and strategies to all teams so everybody works toward the same set of goals and uses the same tools and processes to measure and Report success greater visibility consistency of methodologies and processes provides more visibility into the project Pipeline and status more accountability increased visibility also makes project managers and teams more accountable for each project and its success rate better risk management by providing a view of potential issues across all projects businesses can more effectively manage project risks more opportunities for continuous Improvement PPM centralization of project governance lets companies see what is and isn't working across all projects and make improvements where necessary and higher probability of success and increased Roi taking all these benefits together PPM ensures a higher probability that the company can consistently complete all projects successfully [Music] the scope of a project portfolio can be challenging because it encompasses multiple geographies legal entities and functional areas potential pitfalls could include a lack of a well-defined strategy and executive support deferring to the loudest voice in the room the inability to operationalize and scale under resourcing the PPM initiative failing to fully Implement governance methodologies standards and Technologies indecision about how much of project management should be centralized opposition to centralization in the tenets of PPM lack of a change management component and failing to nurture PPM initiatives to maturity to guard against these pitfalls take steps to secure executive support align projects with organizational goals cast a wide net to build a portfolio and develop a project portfolio risk management plan also design the portfolio to fit your organization's skills operational capacity and culture use tested methods to prioritize projects and balance the portfolio enforce standard project templates and processes to drive consistency and allocate resources based on Project importance and need it's also essential to focus on continuous Improvement monitor project progress address issues that arise in real time and manage and readjust portfolio objectives as circumstances warrant to manage track and optimize portfolio performance choose the right PPM software and tools the broad range of available planning tools have traditionally been used by an elite group of professional project planners but these tools are evolving to become more accessible more intelligent and more agile in response to such factors as the rise in remote work Enterprise adoption of new cloud architectures and economic uncertainty above all don't forget the importance of the human element stay in constant contact and freely communicate with all stakeholders to keep everyone up to date and well informed [Music] a PPM maturity model reflects how well an organization can select manage and complete the projects in its portfolio levels of maturity range from using no formal project management tools to manage the portfolio to modeling a portfolio for risk reward and Roi to executing PPM through an Enterprise project management office organizations that have only shallow experience in selecting prioritizing and monitoring projects are more apt to have inconsistent results within their portfolio as a company matures its selection and completion of successful projects becomes more exact through refinement experience and education the bottom line is PPM leadership must understand their company's strategic goals determine each Project's strategic alignment and probability of success analyze the lessons learned and make adaptations to improve the flow of projects throughout the Enterprise in the end instead of being a sad acronym for project post-mortem your organization's PPM will stand for project portfolio management that truly delivers on your strategic goals foreign [Music]