A project portfolio is a collection of projects managed within a company or an organization. The goal of project portfolio management is to find the optimal mix of projects to best achieve the strategic goals of the company. This involves considering resources, risks, and schedules to ensure the success of the projects. The project portfolio is an important tool for analyzing the efficiency and effectiveness of projects and ensuring the best possible use of resources.
Definition of the Project Portfolio
A project portfolio (English: Project Portfolio) refers to the totality of all projects that are conducted and managed within a company or an organization. It is a collection of projects that usually pursue different goals and aim at achieving the strategic objectives of the company. The project portfolio includes both ongoing and planned projects and can contain both internal and external projects.
Goals of Project Portfolio Management
The main goal of project portfolio management is to ensure that the best possible combination of projects is chosen to achieve the strategic goals of the company. Various factors are considered, such as:
- Efficient use of available resources
- Maximizing benefits for the company
- Minimizing risks
- Optimizing schedules and project durations
- Balanced distribution of projects in terms of risks and opportunities
Processes and Methods of Project Portfolio Management
Project portfolio management includes various processes and methods that help optimally manage the projects in the portfolio. These include:
1. Selection and Prioritization of Projects
The selection and prioritization of projects is an important step in project portfolio management. Here, the various projects are categorized and prioritized according to their importance for achieving the company's goals. Various criteria can be used, such as expected benefits, risks, costs, or time resources.
2. Resource Management
Efficient resource management is crucial for the success of a project portfolio. This involves optimally distributing available resources, such as employees, budget, or materials, across the various projects and avoiding bottlenecks. It also ensures that resources can be used flexibly and as needed.
3. Risk Management
Risk management is another important aspect of project portfolio management. Here, potential risks that could jeopardize the success of the projects are identified and assessed. Subsequently, measures are taken to minimize or eliminate these risks.
4. Monitoring and Control
Monitoring and controlling the projects in the portfolio is a crucial factor for the success of project portfolio management. The progress of each project is regularly monitored to ensure that they are on track and achieving the set goals. Deviations are detected early, and measures for management and correction are initiated.
5. Adjustment and Optimization
Since the conditions for projects often change, it is important to regularly adjust and optimize the project portfolio. This may involve incorporating new projects, adjusting existing ones, or possibly discontinuing them. This ensures that the project portfolio is always aligned with the current strategic goals of the company.
Benefits of Project Portfolio Management
Effective project portfolio management offers various benefits for companies and organizations, such as:
- Better decision-making basis for the selection of projects
- More efficient use of available resources
- Increased transparency and control over project status
- Early detection of risks and issues
- More flexibility in adapting to changing conditions
- Optimization of projects in terms of their strategic relevance
In summary, the project portfolio is a central element in project management and enables companies to manage and optimize their projects efficiently and with focus. The strategic goals of the company are the priority, and project portfolio management helps to achieve these as effectively as possible.
