Learning Outcomes
Project Management and Portfolio Management are quite different from each other. It involves two terms project and portfolio that has two different meaning. Project is defined as a temporary endeavour that is performed to achieve or create a unique product. It is a single undertaken task that consists a series of steps aimed at producing specific products and services within certain period (Kerzner, 2010). Therefore, project management involves supervising individual project, checking if the project is completed on time, achieving goals of the project within specified budget while meeting the established requirements. Portfolio is a collection of programs and projects that are executed for achieving the strategic objectives of the organization (Morris & Pinto, 2010). Therefore, portfolio management involves setting priorities that will increase the business value along with the increase in profit.
According to me, Portfolio management should be implemented before selecting the processes and procedures of project management. Portfolio management in a broad sense includes all the activities needed for carrying out successful operation in an organisation. It involves analysing the risks involved in various projects and programs and checking the available resources. After checking the required details, the project portfolio manager decides the programs and projects that will be undertaken. This will increase the efficiency and effectiveness of operations carried out by the particular organisation. It also reduces risks involved in the projects. The project portfolio manager has the responsibility to look after these issues and according to the demand of business select correct programs and projects.
Bob Buttrick, a project manager once said that project management is the process of making projects right whereas portfolio management is defined as the execution of the right project. There is a thin line difference between the two discussed managements. Project management is a part of portfolio management. As programs and projects are involved in a portfolio, therefore portfolio management needs to done before selecting any project. Portfolio management office (PMO) team performs project portfolio management that helps to manage the projects within a portfolio (EPMC & Enterprise Portfolio Management Council. 2011). It is a high-level process that is directly related to achieving the strategic goals of the organization. The procedures and processes for project management should be confirmed after the identification of risks and available resources.
There is a difference between the software used for project management and portfolio management just like the difference between the project and portfolio. Microsoft Project is one software that is used in project management to create Work Breakdown structure (WBS) and Gantt charts (Thiry, M. & Gozzard, 2008). The software that is used in project portfolio management is Planview’s project portfolio management solutions that helps in centralizing the project as well as proper alignment of the project. Real time analytics is used to manage the resources required for the portfolio. The three different approaches to understand portfolio management in details are finance, education, marketing and politics.
References:
EPMC, Inc., & Enterprise Portfolio Management Council. (2011). Project portfolio management: A view from the management trenches. John Wiley & Sons.
Kerzner, H. (2010). Project management best practices: Achieving global excellence. John Wiley & Sons.
Morris, P., & Pinto, J. K. (Eds.). (2010). The Wiley guide to project, program, and portfolio management (Vol. 3). John Wiley & Sons.
Thiry, M. & Gozzard, R. (2008). Successfully implementing a portfolio management system in a medium/large corporation. Paper presented at PMI® Global Congress 2008—Asia Pacific, Sydney, New South Wales, Australia. Newtown Square, PA: Project Management Institute.
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