The portfolio management concept is critical to supporting an organizations mission and goals. Portfolio management will determine which projects will be pursued when the budget or resources are limited. Portfolio management starts with choosing a portfolio. Projects are a way of tracking an organizations task or activities that cannot be addressed within the organizations limits. Portfolio management will review the projects that are not only being worked but also review any possible pending projects and determine if there is money and resources to continue.
They will then prioritize projects and eliminate any that are determined wrong for the organization. Portfolio management assists in helping ensure an organization does the most valuable work and is well managed throughout the organization. Portfolio management also ensures that proper resources are allocated to the most important work and ensures that resources are properly allocated on new projects as well as maintaining older project processes.
According to Kezner, H. (2013), portfolio management focuses attention at a more aggregate level. Its primary objective is to identify, select, finance, monitor and maintain the appropriate mix of projects and initiatives necessary to achieve organizational goals and objectives. Project management focuses on a project that has already be recognized by portfolio management as a project that will support the mission and goals of the organization. Portfolio management also looks at what financing will be available for each project.
There are many similarities between portfolio management and project managers that make them relate to each other. The portfolio manager and project manager are to deliver the same benefits by executing the project that the company has taken on. Both define success by meeting defined objectives and ensuring benefits are felt by stakeholders.
Strategic portfolio management relates to project management by using the portfolio as a part of the boundary between the program and strategic business objective of the company. Both understand that risk must be taken at times, but also know when to stop taking risks. They both contain common leadership skills and can make difficult decisions when needed.
In project-based organizational structure, a company’s departments and personnel are organized around each project. For example, many project-based organizations have project managers that run teams of employees. These employees are often from different departments and have different job titles, but all are needed to get the project done.
Typically, there are many teams operating at once, but they have no need to interact with each other because each team is focused on completing its project. Non-project-based organizational structure is an umbrella category that includes all organizational structures that are not designed around projects. One of the most common types of non-project based organizational structure is the functional model. In this model, a manager or owner oversees several different department heads, each of whom runs one department in which a specific function is performed. For example, a business may include separate departments for manufacturing, accounting, marketing, and human resources. Because the organization is based around functions, not projects, this business is a non-project-based organization.
Communication amongst project managers in project-based organization differ from project managers in non-project based organizations. In project-based organizations, project managers have the authority and freedom to directly control the task involved in the project, which allows them response time to change processes and flexibility to address issues as they occur.
Two challenges that a project manager may face in a non-project-based organization is unrealistic deadlines of a project and the lack of communication from project managers to employees regarding information needed to help with completing the project. Unrealistic deadlines are set without evaluating the risk and process changes. Communication on non-project-based organizations are short and fails to give the readers a true sense of what’s going on.
The best way to overcome challenges with non-project-based organizations is to develop good habits as a project manager. Developing good habits will ensure that you are consistent in when leading your team and ensuring that the deliverables can be met. Project managers should also use clear concise communication. Using clear and concise communication to the team will ensure that they always know what’s going on. Project manager should also be time wise, making sure there is enough time to successfully complete the project.
