Nowadays, project management plays a vital role in many businesses, but portfolio management in it's modern form is still emerging. It helps your company to make better decisions and become more profitable over time.
There are many reasons why businesses implement portfolio management, the following are the top reasons that can help companies achieve strategic objectives.
1. Customer Satisfaction
Its main purpose is to see an overview of all the organisation's work to focus on projects for one customer or group of one product user and prioritise action in order to achieve maximum customer satisfaction.
2. Increase Return on Investment (ROI)
The goal of any organisation is to achieve increased returns in revenue or benefit. Primarily this means the financial goals, but it can include efficiency in operations, services, or timeliness of regulatory obligations. Investing in the portfolio management tool helps improve the probability of project success, increase the predictability, and makes it cost-saving to main better ROI.
3. Controlling Development Costs
There is a cost to do any project, transparency of this is critical for the decision making of any organisation. When you can see where your development costs are going, you can make sure that you’re investing in the right places.
4. Risk Management
While project management looks at individual project risks, Project portfolio management gives a more holistic view by looking at the risk versus return profile of the entire portfolio. This approach helps organisations prepare for contingencies with backup plans and lays the foundational framework for an evolved risk management strategy.
5. Improvements in Communication
When you collaborate with the team for project success, it is expected that you need to communicate to understand each other and acquire the essential details of the matter at hand. Project portfolio management, after all, promotes transparency among the team involved. When everyone is informed about a project's details, collaboration and communication get easier and fewer issues will occur when it comes to task distribution.
Conclusion
Portfolio management makes your business successful, secure and scalable by acknowledging the critical role of managing change to stay ahead in your industry. It acts as a flashlight that can help you to navigate in the dark. You get the ability to align decision-making with long-term objectives, go back and forth between the outcomes of decisions in the past, and the goals you have for the future.
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