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Home arrow News arrow IT Management arrow The Benefits of IT Portfolio Management


The Benefits of IT Portfolio Management

The Benefits of IT Portfolio Management

 

It is unfortunate that a lot of companies focus most of their management time and effort on the execution of individual projects, but make the mistake of failing to give as much attention to the portfolio of the project itself.  When not much concentration is given to IT portfolio management, the results become substandard and the performance is suboptimal. 

 

Thus, for best results, IT organizations must also attend to the project portfolio management (PPM) aspect.  IT PPM ensures a lot of benefits, some of which are as follows:

 

1.  IT PPM makes sure that there is just the right mixture of projects in the portfolio in order to maximize the company's overall returns.  An IT project portfolio is usually made up of projects that have a wide range of value.  They vary based on their long-term and short-term benefits, investment level, anticipated ROI, and their alignment with the company's goals.  PPM would then seek to optimize the projects such that these factors are considered in the entire portfolio.  It can also eliminate any redundancies or overlaps between projects, and this can save a lot of time and cost.

 

2. IT PPM makes sure that the risks involved in each project in the portfolio balances overall.  Just like all institutions, IT companies seek to maximize returns and minimize risks. Portfolio management carries with it the diversification of the organization's project portfolio, so that the potential risks and returns are balanced.

 

3.  It makes sure that all resources are optimally allocated across all IT projects.  There is always some amount of competition for resources and people.  PPM assures that projects are quantified, compared and prioritized accordingly so that resources are optimized and not wasted on efforts that are less useful.  Through excellent executive oversight, can also resolve conflicts in resources in ongoing projects whenever they happen.  It also incorporates strategies that will determine just the right skills needed for every project and find the best source of these skills.

 

4.  IT portfolio management can correct performance problems before they even turn into something major.  Performance problems are very hard to eliminate, portfolio management can't do them either.  However, it can help identify and address them before they worsen.

 

5.  It ensures that projects coincide with the business goals althroughout its implementation.  PPM is able to provide uninterrupted management oversight, continuous coordination and regular communication as well as constant correction so that project drift doesn't occur.  It makes sure that projects are aligned and remains to be aligned whenever company objectives happen to change.

 

6.  With IT portfolio management, project receive oversight and support needed for successful completion.  PPM ensures that all projects receive all the support needed from the executive level.  This is very much needed and important to the overall success of any IT project.

 
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