Project Portfolio Management
Project portfolio management (PPM) is applied by enterprises to meet business strategies and achieve strategic objectives. It is an integral element of the strategic plan of a company. The realization of value to the company is a measure of portfolio success. Business value increases by effective use of project, program, and portfolio management processes that help meet strategic goals. Programs and projects are components in the layer below a portfolio. Project portfolio management aligns programs and projects to strategy and value creation.
Depending on the size of an organization and the extent of strategic changes, projects might be part of a program or a portfolio. Irrespective of whatever structure is appropriate for a major endeavor, each level must support the goals of the business strategy. If organizations initiate projects without structuring them under portfolio or program umbrellas, they must directly derive project objectives from strategy or check for their compatibility to strategic objectives.