People often use the two terms of project management and project portfolio interchangeably, but there is a great difference between these two terms. Project management means to manage the project lifecycle, i.e., from the stage of conception to final, either single or many within the same department.
In contrast, project management is just a phase of portfolio management. The portfolio management manages the company’s overall projects in terms of investment and selecting the project that is appropriate for the organization
Here, we will discuss the importance of portfolio management for the organization.
Save you from investing in bad projects.
When the organization has got the project, the project manager often fails to understand whether it is profitable. While through portfolio management, it will help to assist the project in terms of the following.
- rate of interest
- allocation of resources
- profit margin one can get.
- long term benefits
- risk involved.
Stay focus on the goal
Every organization has its own specific goals and objectives. But many times, the organization got distracted by new opportunities and businesses. But through portfolio management will help select only those projects that strategically align the company’s goal.
Calculation of the ROI
Portfolio management will enable you to understand ROI better as it will give the most realistic view about the investment and help you compare your project from the previous smiler project within the organization and other organizations.
Those projects are chosen which can be benefited the organization and resulted in earning profit. Hence it makes the stakeholders happy that their financial goals are aligned with the organizational strategy and will encourage them to invest in the future.
Prioritize the project
With the help of the project portfolio, you can help select the project that needs immediate attention between those projects that are not the priority. It will help to the better allocation of resources which project required the fastest delivery.
Forecasting the future
It will also help you evaluate the organization’s standing and get an idea of the future position of an organization and which projects are better.
Thus, the project portfolio is an integral aspect of the organization.
Ns violet offers you a broad range of portfolio management.
Our experts guide you in every aspect that will benefit your organization.