GLOSSARY	PPM
	PPM

PPM is a process to prioritize, select and manage large numbers of programs, projects and resources.

Project Portfolio Management (PPM) typically covers some or all of the following ? IT projects, new product development, change projects, six sigma, capital investment and sales and marketing. Project portfolio management provides an overall framework to manage, prioritize and track live projects and planned initiatives.

The underlying goals of Project Portfolio Management are to maximize the return from constrained resources, within an acceptable level of risk. Specifically, this means that a disciplined mechanism must be in place to assess and approve investment decisions, and then to track and manage the benefit realization.

The concepts used in Project Portfolio Management have their roots in financial portfolio management. However, there are many differences. Firstly, new products typically aim to address a range of strategic and marketing goals, as opposed to a singular focus on financial return. Secondly, projects and programs are not as easily traded as financial investments - put another way there are typically large costs incurred to close down one project and switch resources to another. Thirdly, projects typically demand a complex and usually constrained mix of resources, probably requiring different skills or roles to be filled.

Project Portfolio management combines a number of approaches to prioritize and select projects, in order to maximize value, align to strategic goals, maintain the right balance and optimize the use of resources.

More on PPM at:

• Project Portfolio Management

See main page on Project Portfolio Management Software Solutions