Techniques Used to Measure PPM
Project Portfolio Management (PPM) includes the systematic control of a collection of tasks, programs, and projects to gain strategic goals. Measuring the performance and effectiveness of PPM is important for groups to ensure that their challenge portfolios are aligned with business desires and turning in costs. Several strategies are commonly used to degree PPM:
Techniques Used to Measure PPM
- Key Performance Indicators (KPIs): Establishing and monitoring KPIs is an essential method in the PPM dimension. Key metrics can also consist of economic overall performance, undertaking transport timelines, resource utilization, portfolio alignment with strategic goals, and stakeholder delight. KPIs provide a quantifiable manner to evaluate the success and fitness of the general undertaking portfolio.
- Earned Value Management (EVM): EVM is an assignment control technique that assesses a venture’s performance in phrases of price, timetable, and scope. EVM enables gauging the overall fitness of the project portfolio by studying cost and scheduling overall performance throughout more than one project.
- Balanced Scorecard: The Balanced Scorecard is a strategic performance control device that considers monetary and non-financial signs. In the context of PPM, it helps businesses degree and align their project portfolio overall performance with strategic goals. The balanced scorecard usually includes views that include economic, purchaser, internal tactics, and mastering and growth.
- Resource Utilization Metrics: Assessing how assets are allocated and utilized throughout the portfolio is crucial. Metrics consisting of aid allocation performance, aid ability usage, and talent usage offer insights into how properly resources are controlled and if modifications are had to optimize performance.
- Project Success Criteria: Defining and measuring achievement criteria for character initiatives in the portfolio is vital. Success criteria may encompass meeting mission deadlines, staying within budget, reaching specified deliverables, and fulfilling patron necessities. Aggregated throughout the portfolio, these standards contribute to a universal evaluation of PPM fulfillment.
- Customer Satisfaction Surveys: Collecting feedback from task stakeholders and clients is a treasured approach to measuring the success of the undertaking portfolio. Satisfaction surveys provide insights into stakeholder perceptions, expectations, and areas for development.
- Benchmarking: Compare PPM’s overall performance towards enterprise benchmarks or fine practices. Benchmarking enables companies to apprehend how well they are acting relative to peers and become aware of possibilities for improvement.
By using an aggregate of those dimension strategies, companies can benefit from a comprehensive understanding of their PPM performance, make knowledgeable decisions, and continuously improve their undertaking portfolio management practices.
Why Project Portfolio Management is Important?
Project Portfolio Management (PPM) is a key contributor to organizational achievement by taking on an organized and strategic role in project management. This is significant because it means getting projects to realize the overall goals for business ensuring that resources are managed and put at their most efficient use. With PPM, risk management at the level of a portfolio becomes easier to manage as decision-makers tend to assess potential impacts and make informed decisions.
Table of Content
- What is Asset Allocation?
- What is Diversification?
- What is Risk Management?
- What is Rebalancing?
- Example
- Objectives of Project Portfolio Management
- Benefits of Project Portfolio Management
- Project Portfolio Management Tools
- Techniques Used to Measure PPM
- Five Question Model
- Why do Project Managers Focus on PPM?
- Conclusion: Project Portfolio Management
- FAQs on Why Project Portfolio Management is Important