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Project Portfolio Management

Project Portfolio Management (PPM) is a strategic approach for selecting, prioritizing, and controlling projects within organizations. By applying PPM, companies can use their resources more efficiently and ensure that projects are aligned with business objectives. Overall, PPM contributes to achieving higher profitability and competitiveness.

Fundamentals of Project Portfolio Management

PPM is based on a series of processes and methods used for planning, monitoring, and controlling projects. These include, among others:

  1. Project Selection: Selecting the right projects is crucial for the success of PPM. Potential projects are analyzed and evaluated according to certain criteria, such as strategic relevance, economic efficiency, and risk assessment.
  2. Prioritization: After the projects have been selected, they must be prioritized to determine the order in which the projects should be carried out. This is done using criteria such as urgency, resource availability, and strategic importance.
  3. Resource Management: One of the main tasks of PPM is the efficient management of resources, such as personnel, budgets, and time. Here, resources are allocated to individual projects and their optimal use is monitored.
  4. Monitoring and Control: In the context of PPM, ongoing projects are continuously monitored and controlled to ensure that they meet the predefined goals and requirements. Regular status reports and progress measurements are used for this purpose.
  5. Risk Management: PPM also includes the management of risks associated with individual projects. Possible risks are identified and assessed in order to take appropriate countermeasures and minimize risk.

Advantages of Project Portfolio Management

The implementation of PPM in an organization offers numerous benefits:

  1. Strategic Alignment: By focusing on the strategic goals of the company, it is ensured that projects provide added value for the company and contribute to the achievement of business objectives.
  2. Efficient Use of Resources: PPM allows for targeted and efficient use of resources to achieve the best possible results.
  3. Risk Minimization: By early detection and management of risks, negative impacts on the projects and the company can be minimized.
  4. Transparency: PPM ensures higher transparency across all projects by centrally collecting and evaluating information and data.
  5. Improved Decision Making: Comprehensive information and data allow for informed decisions about the selection, prioritization, and management of projects.

Software for Project Portfolio Management

To successfully implement PPM, the use of software solutions can be helpful. These offer features to support various processes, such as:

  • Project selection and prioritization
  • Resource planning and management
  • Risk management
  • Reporting and analysis

Some well-known PPM software solutions include Microsoft Project, Oracle Primavera, Planview, and Clarity PPM.


Project Portfolio Management is an important approach for organizations to strategically align their projects, efficiently use resources, and minimize risks. By implementing PPM, companies can increase their profitability and competitiveness and thus operate successfully in the market in the long term.