The Success Of Project Portfolio Management

824 Words May 31st, 2016 4 Pages
Jeffrey Pinto defines project portfolio management as, “the systematic process of selecting, supporting, and managing a firm’s collection of projects.” (p. 92). Many large firms can have multiple projects going on at the same time. These projects might support each other or can be stand-alone projects. This essay will examine the keys to successful project portfolio management and analyze the key difficulties in successfully implementing them.
The success of project portfolio management is determined by three key factors. The factors include: flexible structure and freedom of communication, low-cost environmental scanning, and time-paced transition. Projects that involve difficult channels of communication can be very difficult to develop. The projects that involve lots of “red tape” and other levels of administration can hinder them from meeting milestones and can be doomed to fail from the beginning. One of the main keys to a projects success is communication. Pinto writes, “Successful portfolios emerge from environments that foster flexibility and open communication. When project teams are allowed to improvise and experiment on existing product lines, innovative new product ideas are more likely to emerge.” (p. 95). This open communication and flexibility allows team members to voice their concerns when issues arise and allow them to come up with alternatives freely with having to get approval from project leaders or management. The next key to success is low-cost…
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