Both the market and business industry are putting more pressure on organizations in terms of visibility and improvement. Organizations are struggling to make relevant and maintain the reputation that they have been safeguarding for the past years. It’s a jungle out there and everyone is bent on surviving. Putting more work for company growth isn’t always that favorable. When you only have limited resources and a scant strategy, you automatically brush the dust off your shoulders and look for ways to stay on top of things. But there are some things that no matter what, you make do with what you already have, especially constraint in resources. Juggling projects and resources is an art and a costly one at that. Making small things bigger through methodologies is one of the prime adages of project portfolio management. Considered to be the answer to the woes of managers who are lost in the sea of too many projects, project portfolio management offers a lot of benefits that are great contributors in a company’s structure. These benefits of project portfolio management need work, albeit it’s a valuable adversary in project wars.
Factors such as economic and financial push companies to execute portfolio management. The following benefits of project portfolio management have lure organizations to embed them in their projects’ infrastructure. So what do we actually get from portfolio management? Is it less work in projects? Or is less time spent on trivial things during project operation? The benefits of project portfolio management are numerous and they all come in different forms. Not to mention they actually fit the various needs of every existing organization in the world.
Below are the top 5 benefits of project portfolio management and how these advantages will help your organization as whole become more efficient.
Benefits of Project Portfolio Management #1: Increase in Project Delivery
Delivering a project is never easy; there are many issues and risks lurking about and these factors are often hidden in plain sight. And when a project fails, so is its expected delivery. Project failures are typically caused by overshooting funds, delayed in the schedule, and improper planning, as well as mismanagement or resources and poorly aligned strategies. As you can see they are not a pretty sight and can even make projects crumble entirely.
This is where project portfolio management comes in. One of the benefits of project portfolio management is organizations have a greater chance of success when they execute it in their system, compare to others who don’t resort to one. Another benefit of project portfolio management is to help companies steer their system and projects into the right direction.
Benefits of Project Portfolio Management #2: Minimize Overspending
Successful projects still fall victim to overspending funds and resources. Excess spending is probably one of the norms of projects that are somewhat inevitable. With this, managers in charge are doing all the means necessary to counter-attack this type of issue for the success of the projects. The benefits of project portfolio management are to enable managers or users to clearly evaluate which existing resources are being overspent. This will make them more careful to release the following resources and are extra vigilant on what type of project they will invest it to.
Benefits of Project Portfolio Management #3: Quick Project Returns
Do you know that another benefit of project portfolio management is a faster project return? So how does it work? Since projects are organized me a portfolio, it’s easier for managers to be able to identify which project generates more value. Portfolios are divided based on the projects’ duration, cost, and value rate so no need to endlessly dig which project has more value; all you have to do is hunt that portfolio and you get yourself a gold mine of a project with potential for value. Not only that, you will also get to identify which projects should be removed due to no value at all.
Benefits of Project Portfolio Management #4: Reducing « no value » projects
An important benefit of Project Portfolio Management is the steps to select, to prioritize and to optimize a group of high value project, that align with strategic objectives of the organization, and that deliver the expected business results.
These processes eliminate the loss of effort in the case of duplicated projects. The scoring and ranking of the portfolio projects allows the classification of the initiatives’ values and eliminates the « no value » projects.
Benefits of Project Portfolio Management #5: Bring Improvement in Communication, Collaboration, and Simplifies Data
This is by far the most promising benefits of project portfolio management. Real-time data is the thing now, what with all the constant changes happening around in the market. Companies have to constantly keep up with it and that means upgrading to up to date tools for communication, information sharing, collaboration, and even scheduling. The birth of project portfolio management has given organizations and their managers more ways to also simplify data all the while making them reliable and accurate.
One of the benefits of project portfolio management is an improvement in communication and collaboration among team members, Decision making does not just fall exclusively to the one person, but everyone shares their ideas for the purpose of both organizational growth and project success.
There are actually numerous benefits of project portfolio management and you will never know, they’re just under your noses. Some benefits are harder to see or appreciate, but when you are able to fully grasp what your organization needs, you will be able to see them clearly. You can’t really expect these advantages to immediately jump and impress you. You have to focus first on the issue before understanding the solutions behind it.
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