Why Project Portfolio Management is Important?
Effective project portfolio management is vital to enhancing revenue, boosting profitability, and ensuring project success. Projects that are not managed end-to-end through a project portfolio management software, experience overruns, lack of communication, bottlenecks, and quality issues. This can significantly impact client satisfaction and overall business results.
Streamlined project portfolio management, through a PPM software, also introduces standardization into the project ecosystem. Teams can leverage a consistent platform to deliver projects on, and gain access to tools, databases, and charts, seamlessly. Every project management process can be easily mapped onto the software solution, while being optimized through automation.
Risk of budget overruns through lifecycle
A key reason why portfolio management, through an online project management software, is vital is the risk of overruns. In the infrastructure domain, close to 450 projects are experiencing overruns of INR 4.28 lakh crores, with most projects witnessing time delays of multiple years. By implementing a project portfolio management system, enterprises can have greater cost visibility.
Planning-stage efficiencies can also be introduced when portfolios are managed strategically. By introducing better data visualization, charting, cost planning, and estimating tools during the initial stages, the right budgets can be set for each project stage. From EPC firms to IT enterprises, managing lifetime cost effectively is critical.
Lack of transparency in execution
Lack of transparency is a major challenge in projects today, with enterprises opting for the best online solutions to streamline portfolio management. With the right project governance tools in place, tests & analysis, and checkpoints, managers have greater control over project execution.
Additionally, project managers can also track project performance through monitoring tools designed to showcase the impact of specific tasks and stages. Team members can also regularly update the project progress to their managers and ensure complete transparency into the execution of all projects.
Essential to enhancing profitability
Managing a project portfolio strategically is critical to ensuring project profitability. As costs rise over time, managers need to have greater control over their entire portfolio to curb over-consumption or site delays. The greater the complexity of the project is, the stronger the need for a portfolio management system is within enterprises.
In fact, one of the main reasons why enterprises adopt a project portfolio management software is to ensure profitability through digitization. Technology streamlines many of the processes that are critical to execution, thereby reducing reliance on manual resources. Having greater control over scheduled work and budgets, through a project health dashboard, ensures that project managers can enhance profitability.
In conclusion
Project portfolio management is an essential measure implemented to ensure profitability, improve transparency, and enhance communication. Project portfolio management also enables teams to follow a specific approach, whether it be agile, waterfall, task-based, or hybrid, in a more systematic manner. TouchBase, a ProductDossier product, provides an end-to-end intuitive project portfolio management software that is being used by enterprises across industries to optimize project outcomes.
