Abstract – Project Portfolio Management, Second Edition, 2nd Edition

Abstract

Project portfolio management (PfM) is a critically important discipline, which organizations must embrace in order to extract the maximum value from their project investments. Essentially, PfM can be defined as the translation of strategy and organizational objectives into projects, programs, and operations (portfolio components); the allocation of resources to portfolio components according to organizational priorities; alignment of components to one or more organizational objectives; and the management and control of these components in order to achieve organizational objectives and benefits.

A particular area of concern during the management of the portfolio, is the decision making process regarding which portfolio components to accelerate, suspend, or terminate. A lack of determining the individual and cumulative contribution of portfolio components to strategic objectives leads to poorly informed decisions that negate the positive effect that PfM could have in an organization. The focus of this book is aimed at providing a mechanism to determine the individual and cumulative contribution of portfolio components to strategic objectives so that the right decisions can be made regarding those components.

Having the ability to determine the contributions of portfolio components to strategic objectives affords decision makers the opportunity to conduct what-if scenarios, enabled through the use of dashboards as a visualization technique, in order to test the impact of their decisions before committing them. This ensures that the right decisions regarding the project portfolio are made and that the maximum benefit regarding the strategic objectives is achieved. This edition of the book introduces concepts around benefits realization management and includes a frame-work that could be used as a starting point by organizations for tracking benefits realization.

This book is intended for executives, project and program directors, project portfolio managers, project office managers, and training providers in project, program, and PfM.

Keywords

complexity; decision making; multicriteria utility; organizational; project portfolio management; systems