If you have a project-based business, you must learn project portfolio management.
Poor project portfolio management can cause expensive business problems. Not having any kind of project portfolio management is even worse. The more projects you have and the more intensive they are, the more you need to have a system for examining them.
To do that, you need to make sure that you have the right team and the right tools for your business needs. This means choosing whether to develop an in-house program or purchase an external one. It also means choosing the right software to back you up.
Before we get into those details, though, we need to address one crucial question: what is project portfolio management?
Portfolio Management vs. Project Portfolio Management
Project portfolio management isn’t the same thing as just project management. Project management addresses how your business oversees individual projects they’re responsible for. Project portfolio management (or PPM) addresses all of those projects as a collective to look for performance trends.
Internal vs. External
Most small companies perform project portfolio management for themselves. This makes sense given that they usually have a smaller portfolio (and small budget) to work with. With the right tools and team members, small businesses should have everything they need to make their project portfolio management successful.
Larger companies, however, may want to invest in a dedicated third-party provider. These third-parties provide comprehensive project portfolio management solutions. Examples include this service from PM Solutions, which includes a full system assessment and analysis before work begins.
Pick the Right Software
If you’ve decided to go with an external third-party PPM service, choosing a software probably won’t be necessary. Third-parties have their own systems or partner with a separate software company that can provide one.
If you’re developing an internal team, you’ll need to get your own software. PPM software options run the gamut from completely free to $100K or more per year. That price difference reflects an extensive range of service offerings.
The smaller your company is, the more necessary it will be for you to pick the most cost-effective option. That said, you should never cut corners with quality. Before you commit to any software, free or paid, you should do your own research into what each software option can do and how necessary each toolset may be for your company.
You should also look into signing up for free trials so you can test the programs alongside one another. Free trial versions almost always exclude some of the premium features, but the nuts and bolts of each software system will remain the same. After comparing them to your specific project portfolio, you’ll have a better idea of which one will work for you.
Running a Business in the Digital World
Businesses don’t run themselves. No matter how small or large your company is, you must invest a lot of time and energy into making sure that you have the right software, hardware, and services to support you. Project portfolio management is just the tip of the iceberg.
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