Project Portfolio Management
Whereas project management aims to focus on scheduling and executing an individual project, project portfolio management analyzes all projects in progress or potential projects and their viability in reaching the objectives of the enterprise.
The portfolio management process can be represented in three sub-steps:
Project selection: a restricted list of projects is drawn up according to selection criteria (strategic, financial etc.). The projects are classified according to the strategic perspectives (the domains) used in the organization.
Analysis and arbitration: the best project combination is defined to maximize the objectives and the restrictions of the portfolio.
Follow-up: the portfolio's performance indicators ensure the alignment of the portfolio with the strategy of the organization.