Strategic Portfolio Managment

In: Business and Management

Submitted By kostya1000
Words 440
Pages 2
Strategic Portfolio Management
Konstantin Vysotskiy
CPMGT/301
September 07, 2015
Michael Koma

Strategic Portfolio Management There is some misconception between project managers and portfolio managers that they are one in the same. Project manager is charged in managing a project in its entirety and on specific projects. By utilizing the seven points of Portfolio Management Process (PPM), Portfolio management focuses on managing several projects, programs and budgets.
Portfolio Management
“Portfolio management of projects helps determine the right mix of projects and the right investment level to make in each of them” (Kerzner, 2013). Portfolio management prioritizes the current and upcoming project to make sure they are handled accordingly. In addition, portfolio management looks over the budgeting to make sure if it will be feasible to take on the projects. In order to weigh all options, Project Portfolio Management Process is utilized. The seven points of PPM include: 1. “Provide a structure for selecting the right projects and eliminating wrong ones 2. Allocate resources to the right projects, thus reducing wasteful spending 3. Align portfolio decisions to strategic business goal 4. Base portfolio decisions on logic, reasoning, and objectivity 5. Create ownership among staff by involvement at the right levels 6. Establish avenues for individuals to identify opportunities and obtain support 7. Help project teams understand the value of their contributions” (Kerzner, 2013, p.1111-1112).
Project Managers The project managers have the responsibility of satisfying task needs, team needs, and individual needs. The project managers become the link between the strategic portfolio managers and team. They engage all aspects of projects and facilitate the work flow and communication between entities. In addition, the role of…...

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