Portfolio Management

Introduction To Portfolio Management

Portfolio or project portfolio management (PPM) is the process of prioritizing and managing a list of projects in order to achieve specific business objectives. Thus, a portfolio is a collection of projects with common business goals. The result of an effective PPM methodology allows executives to:

  • Identify all projects in a portfolio.
  • Understand the impact of each project on resources, cost, and revenue.
  • Make an intelligent, strategic decision as they prioritize, select, or remove projects in a portfolio.

Typically, PPM practitioners use the following steps to conduct PPM:

  1. Create evaluation criteria for project selection and prioritization.
  2. Collect project requests.
  3. Select several requested projects as a portfolio project based on the criteria created.
  4. Prioritize the selected projects using the same criteria.
  5. Evaluate the resource availability for carrying out the selected projects.
  6. Review and evaluate the progress of the projects in the portfolio, and make adjustments if necessary.

Workfront provides an excellent tool for Workfront Enterprise users to conduct PPM and cascade the decisions down through the organization, ensuring all projects in your company are aligned with your business goals and requirements. The figure below is a high-level overview of the PPM process in Workfront.

Workfront PPM Process

Project Request

In this phase, project requests are created and submitted for review. The necessary review criteria needs to be established prior to the creation of any project requests.

Project Review

Once the project requests are submitted, they will be reviewed by an appropriate committee to determine if the requests can be selected for a company project portfolio.

Portfolio Optimization

After all portfolio projects are selected, they will be further optimized or prioritized according to their value, alignment, and benefit.

Capacity Planning

In the capacity planning phase, resource availability for the portfolio projects will be assessed. When enough resources are available (validated), the projects can be executed; however, when the resources are invalidated, the portfolio projects need to go back to the previous phase to be re-prioritized.

Project Execution

Projects will be executed in this phase and you will be using Workfront to manage them.

Project Postmortem

After the completion of portfolio projects, you can review the success of each project.