Project Portfolio Management : Project Management

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Project Portfolio Management (PPM) is the centralized management of the processes, methods, and technologies used by project managers and project management offices (PMOs) to analyze and collectively manage current or proposed projects based on numerous key characteristics. The objectives of PPM are to determine the optimal resource mix for delivery and to schedule activities to best achieve an organization’s operational and financial goals ― while honoring constraints imposed by customers, strategic objectives, or external real-world factors. Portfolio management can be seen as providing governance structures adopted to minimize the overall costs in converting ‘‘input’’ to ‘‘output’’ through projects. When viewing projects as transactions, these costs are known as transaction costs, which are the sum of all costs for governing projects. Several researchers, such as Müller and Turner (2005) and Blomquist and Müller (2006), have proposed that the transaction cost economics theory (TCE) provides one theoretical framework for explaining the project and portfolio phenomenon. A project portfolio is a group of projects that share and compete for the same resources and are carried out under the sponsorship or management of an organization (Archer & Ghasemzadeh, 1999a, 1999b). Turner and Müller (2003, p. 7) defined a portfolio as “an organization (temporary or permanent) where projects are managed together to coordinate interfaces, prioritize resources between projects, and thereby
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