What Is Project Portfolio Management?
Project portfolio management (PPM) is the management of all projects in an organization from a high-level perspective. Many companies use a Project Management Office (PMO) to handle all activities related to PPM. The PMO is the central hub for all projects in the business, driving PPM on a largely strategic level. The PMO is a fixed and permanent entity within the business organization. The focal points of its work are resource management and cross-level as well as cross-project communication (source: Strasser).
In other words, the purpose of PPM is to prioritize projects, plan and staff them realistically with qualified and available employees (resource management), monitor them, and keep all involved parties informed about their status. PPM follows a top-down approach. This ensures that important, less risky projects are implemented first and that they also have the necessary resources. Remaining capacities are then used for additional initiatives. PPM places great value on resource planning and resource conflict resolution, which in turn increases value creation in a business.
Project portfolio management tasks can include: