Project portfolio management can be discussed as a process of conducting and coordinating several projects combined in a portfolio in order to achieve the certain strategic goals. Therefore, there are two perspectives, from which it is possible to discuss the components of project portfolio management.
On the one hand, it is important to concentrate on the components of the portfolio as a set of projects and programs (Stretton 2012). On the other hand, the purpose is to discuss the components of the framework related to the project portfolio management (Petit & Hobbs 2010). Therefore, this paper focuses on the analysis of the project portfolio management components and on the discussion of the impact that these components have on project managers.
The components of the project portfolio management that are related to its framework include the selection process, prioritization, governance, resource allocation, communication, performance analysis, control, and evaluation. The selection is an important component because, organizing a portfolio, project managers aim at choosing projects and programs that are most effective to reach the set goal (Unger, Gemünden & Aubry 2012).
Therefore, the next associated component is prioritization, and managers rank and determine certain projects as the key ones in the portfolio for the purpose of promoting them (Martinsuo 2013). The next significant component is governance that includes scheduling and synchronization of projects in a portfolio. It is important to note that the effective governance determines the successfulness of the overall portfolio.
Resource allocation and communication are those components that are directly associated with governance because they influence the process of developing all projects in a portfolio. All projects organized in a portfolio use the same resources, and the effective resource distribution and management are expected to address the goals.
In addition, the outcomes of managing the project portfolio can be predicted with the focus on the performance management, control and monitoring, and evaluation of processes and results (Meskendahl 2010). Focusing on these components, project managers are expected to improve the coordination and performance based on the constant monitoring of processes.
The important question to answer at this stage is how these components can influence the project managers. Selection and prioritization of projects and programs to use in the portfolio management are often challenging tasks for managers who need to demonstrate the effective decision-making.
Governance and resource allocation also have the important effect because project managers need to decide on the alignment of programs, efficient distribution of resources, and appropriate scheduling (Beringer, Jonas & Gemünden 2012). Moreover, managers often concentrate on the coordination and monitoring, and these activities become prioritized among other managers’ strategies and approaches because they influence the movement of the project portfolio to the set goal.
From this perspective, the project portfolio components can be discussed as having an important impact because the essence of these components determines the usual activities of project managers. In addition, the coordination of all mentioned components can be discussed as a daily practice of managers, and it influences the success of the project.
Reflection on the Components of Project Portfolio Management
It is almost impossible to overestimate the role of components in the project portfolio management as they provide the core of the project management process. The experience in the field of project management supports the idea that the effective administration of these components makes managers demonstrate their developed skills in the decision-making, analysis, assessment, planning, risk taking, and coordination.
At each stage of the project portfolio development, a manager is expected to assess trends regarding the mentioned components, decide on the further actions in order to address the timeframe and objectives of the project and propose appropriate and effective strategies.
Reference List
Beringer, C, Jonas, D & Gemünden, H 2012, ‘Establishing project portfolio management: an exploratory analysis of the influence of internal stakeholders’ interactions’, Project Management Journal, vol. 43, no. 6, pp. 16-32.
Martinsuo, M 2013, ‘Project portfolio management in practice and in context’, International Journal of Project Management, vol. 31, no. 6, pp. 794-803.
Meskendahl, S 2010, ‘The influence of business strategy on project portfolio management and its success – a conceptual framework’, International Journal of Project Management, vol. 28, no. 8, pp. 807-817.
Petit, Y & Hobbs, B 2010, ‘Project portfolios in dynamic environments: sources of uncertainty and sensing mechanisms’, Project Management Journal, vol. 41, no. 4, pp. 46-58.
Stretton, A 2012, ‘Program management: types of relationships between a program’s component projects’, PM World Today, vol. 14, no. 2, pp. 1-15.
Unger, B, Gemünden, H & Aubry, M 2012, ‘The three roles of a project portfolio management office: their impact on portfolio management execution and success’, International Journal of Project Management, vol. 30, no. 5, pp. 608-620.