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Project Management: Discussion Questions Project Portfolio Management Essay

Project Management: Discussion Questions Project portfolio management is designed as a way to minimize the 'ad hoc' nature of the way in which most portfolios are constructed. "As its name implies, project portfolio management groups projects so they can be managed as a portfolio, much as an investor would manage his stocks, bonds and mutual funds….the obvious benefit of project portfolio management is that it gives executives a bird's-eye view of projects so they can spot redundancies, spread resources appropriately and keep close tabs on progress….[Also] discussions aren't just about how much a project will cost, but also about its anticipated risks and returns in relation to other projects. This way, entire portfolios can be jiggered to produce the highest returns based on current conditions" (Solomon 2002). While my organization does use project portfolio management to engage in more effective scheduling and use of material resources, it does not sufficiently capitalize upon the potential for 'risk management' inherent in the process when selecting projects.

Q2. There is often a 'feast or famine' climate within the construction...

It is always tempting to take on as many projects as are available, even if organizational resources are spread thin and the project is not really suitable for the organization. There is always the fear that the organization will lack adequate work to support itself. But it is not helpful in the long run if the company is bogged down with projects outside of the scope of its resources, resulting in the long-term opportunity cost of more suitable projects later on.
Q3. "Without PPM discipline, projects are arbitrarily requested and started without due diligence. PPM methodologies ensure that, first and foremost, projects align to the business and/or technological strategy for achieving organizational goals. The PPM framework then enables sound financial, business, and technological decisions using standardized tools and processes that are consistently applied" (PPM, 2011, PPI). Our overall use of PPM strategy does align with the organizational mission to uphold high project standards with minimal time and waste. On an individual, daily basis, some of these ideals can be forgotten, particularly during 'busy seasons' when…

Sources used in this document:
Bibliography

Project Portfolio Management (PPM): The Natural Evolution of Project Management. 2011.

Systems Evolution, Inc. (SEI). Retrieved:

http://www.pmi.org/en/Knowledge-Center/Knowledge-Shelf/~/media/PDF/Knowledge-Shelf/Systems-Evolution_2011.ashx

Solomon, Melissa. 2002. Quick study: Project portfolio management. ComputerWorld.
Available: http://www.computerworld.com/s/article/69129/Project_Portfolio_Management [10 Jan 2013]
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