Project Portfolio Management Overview

This assignment delves into the core principles of Project Portfolio Management (PPM). It examines various aspects of PPM, including its definition, advantages, and common challenges. The text explores the relationship between business strategy and project portfolio management, highlighting the importance of aligning projects with organizational goals. Additionally, it discusses tools and techniques used in PPM, emphasizing the role of project selection and prioritization in maximizing organizational value.

RUNNING HEAD: Portfolio Project
1
Portfolio Project

Portfolio Project
2
Contents
Introduction.......................................................................................................................3
Company overview...........................................................................................................3
Objectives of portfolio......................................................................................................3
Portfolio identification......................................................................................................4
Portfolio categorization....................................................................................................6
Portfolio Evaluation..........................................................................................................8
Portfolio Prioritization......................................................................................................9
Portfolio Balancing.........................................................................................................10
Recommendation and conclusion...................................................................................11
References.......................................................................................................................12

Portfolio Project
3
Introduction:
This report has been emphasized upon project portfolio. Project portfolio is the
management through centralization by considering many processes, methods, tools,
technologies and regulations. These methodologies are used by the project manager officers
to investigate and collectively manage the proposed and current projects. These investments
are based on the various key characteristics. Project portfolio management offers the manager
a capability to manage various portfolios at the same time. It is a procedure which helps the
company to handle a project smoothly.
This process mainly helps an organization into managing the time, skills, resources,
budgets and other resources to manager all the interrelated assignments. This project portfolio
management offers a framework to the organization to resolve the issues and mitigate the
risk. At the same time, it also help an organization to centralize the visibility of the project to
assist the scheduling of the teams and planning a proper team to analyze the cheapest, fastest
or most appropriate approach to manage and deliver the programs and projects.
In this paper, various steps of project management has been studied and it has been
found that what are the main features of a project which could be controlled and managed
through the steps of project management. For conducting this report, ADCO construction has
been taken into consideration.
Company overview:
ADCO Constructions Pty Ltd offers construction and building services. The
company’s performance include various functions such as design and construction, early
contractor involvement, cost planning services and design management as well as
administrating contractor services. It delivers and undertakes projects in different categories,
which include aviation, aged care, community, commercial, health, industrial, education,
green, interiors, aquatic and leisure, retail, student accommodation, short term
accommodation and specialist projects service. This company offers local, state and federal
administration agencies, at the same time private and institutional Australian corporate.
ADCO Constructions Pty Ltd has been founded in 1972 and this company is situated in
Sydney, Australia.
Objectives of portfolio:

Portfolio Project
4
The main objective of portfolio project management is determining the optimal mix of
resources for managing and delivering the schedule activities of the project. The main
objectives of the project portfolio management are as follows:
 Manage the time and skills
 Maximum utilization of available resources
 Manage all the portfolios of the company(Gareis, 2006)
 Determine the optimal mix of the skills
 Analyze the most appropriate way
 Complete the task in given time
 Centralize the visibility of the task
 Investigate and collectively manage the proposed and current projects (Rad & Levin,
2006).
Further, the process of project portfolio has been identified.
Portfolio identification:
Portfolio identification is the first step of the project portfolio management. Project
portfolio management helps the organization to find out the best project from many available
portfolios. In this process the project portfolio manager analyzes the various projects which
are available in the market for the company to invest and manage the company’s functions. In
this process, various techniques are applied to analyze the best project in the available
projects. Further, it has been observed that the most important part for selecting the best
project is analyzing the pros and cons of every project, the risk associated with every project,
benefits which could be derived from the available projects etc (Killen, Hunt &
Kleinschmidt, 2008). It has been found that if the every risk and profit associated with a
project is identified in an effective manner than it becomes easy for the managers and the
company to manage the best project.
Additionally, it has been found that while choosing the best portfolio through many
techniques, company and managers are required to analyze other related aspects and factors
which could help the organization to manage the portfolio in a better manner.

Portfolio Project
5
It has been analyzed through study over the ADCO construction pty ltd that company
has various options to invest the amount and enhance the operations of the company
(Heising, 2012). It has been analyzed that following options are available in the market for
the company:
a. Project to make a building for the residential building
b. Project to make a building for the commercial building
c. Project to make an investment into the international business
d. Project to make bungalows into the VIP area
e. Project to manage the already built buildings
f. Project to renovate the buildings
g. Project to make new buildings into the already existing market
h. Projects to make new building into the new market
i. Project to enhance the already existing operations of the company
j. Project to enhance the new operations of the company(Martinsuo & Lehtonen, (2007)
k. Project to diversify the market
l. Project to enter into the international market
m. Project to product all the raw materials
n. Project to buy the old buildings
o. Project to enter into a joint venture
p. Project to merge the business
q. Project to open new subsidiary businesses
r. Project to open subsidiary businesses into the new state
s. Project to invest into another industry
t. Project to manage the previous portfolios (Beringer, Jonas & Kock, 2013)
u. Project to invest the amount into the safe stocks in the market

Portfolio Project
6
Thus it has been analyzed that above 20 options are available in front of the company to
manage and administer the projects. In this step, company is required to identify each project
and analyze the pros and cons of every project. Further, it is also required by the managers of
the company to identify the risk and return from each share so that a best decision could be
made for the company.
Portfolio categorization:
Portfolio categorization is the second step of the project portfolio management.
Project portfolio management helps the organization to categorize the projects from many
available portfolios. In this process the project portfolio manager analyzes the various
projects which are available in the market for the company to invest and manage the
company’s functions. In this process, various techniques are performed to categorize the
available projects (Teller et al, 2012). Further, it has been observed that the most important
part for categorize the best project is segregating it through the help of various strategies and
the operations of the project, the risk associated with every project, benefits which could be
derived from the available projects etc. It has been found that if the portfolio would be
implemented for the diversification than it must be categorized differently, further if the
project would be taken place for the goodwill than it must be categorized accordingly.
Additionally, it has been found that while categorizing the best portfolio through
many techniques, strategies etc., company and managers are required to analyze other related
aspects and factors which could help the organization to manage the portfolio in a better
manner.
It has been analyzed through study over the ADCO construction pty ltd that company
has various options to invest the amount and enhance the operations of the company. It has
been analyzed that following options could be categorized as follows:
a. Project to make a building for the residential building – for this company is required
to start the project from choosing the site to collecting the raw material and so on.
b. Project to make a building for the commercial building - for this company is required
to start the project from choosing the site to collecting the raw material and so on.
c. Project to make an investment into the international business – for this company is
required to start the project from choosing the international business and analyzing the
financing and market condition of that business (Beringer, Jonas & Kock, 2013). .

Portfolio Project
7
d. Project to make bungalows into the VIP area - for this company is required to start the
project from choosing the site to collecting the raw material and so on.
e. Project to manage the already built buildings - for this company is required to start the
project from choosing the cons of the building and then so on.
f. Project to renovate the buildings - for this company is required to start the project
from choosing the buildings to analyze the cons of the building.
g. Project to make new buildings into the already existing market - for this company is
required to start the project from choosing the site to collecting the raw material and
so on.
h. Projects to make new building into the new market - for this company is required to
start the project from choosing the site to collecting the raw material and so on.
i. Project to enhance the already existing operations of the company - for this company
is required to start the project from choosing the site to collecting the raw material and
so on (Teller et al, 2012).
j. Project to enhance the new operations of the company: for this company is required to
start the project from choosing the site to collecting the raw material and so on.
k. Project to diversify the market: for this company is required to start the project from
choosing the best market.
l. Project to enter into the international market: for this company is required to start the
project from choosing the best market.
m. Project to product all the raw materials: for this company is required to start the
project from choosing the best techniques and plant area.
n. Project to buy the old buildings : for this company is required to start the project from
collecting the amount.
o. Project to enter into a joint venture: for this company is required to start the project
from choosing the best company.
p. Project to merge the business: for this company is required to start the project from
choosing the best company (Unger et al, 2012).

Portfolio Project
8
q. Project to open new subsidiary businesses: for this company is required to start the
project from choosing the best other areas and feasibility of the new company.
r. Project to open subsidiary businesses into the new state: for this company is required
to start the project from choosing the best country.
s. Project to invest into another industry: for this company is required to start the project
from choosing the best industry.
t. Project to manage the previous portfolios: for this company is required to start the
project from choosing the best techniques (Martinsuo, 2013).
u. Project to invest the amount into the safe stocks in the market: for this company is
required to start the project from choosing the best techniques.
Thus it has been analyzed that above 20 options are available in front of the company to
manage and administer the projects. In this step, the available options have been categorized
to make it easy for the managers to understand the requirement of every project.
Portfolio Evaluation:
This is the third step of the portfolio project management procedure. In this process, it
has been analyzed that how a business evaluates the available options and make a decision
accordingly. It has also been analyzed that this step helps the business to analyze that which
option is a good option as a portfolio for the company. it has also been analyzed that this
process makes it easy for the organization to identify the most effective projects and thus it
mitigates the risk of the company, enhances the return of the company and also helps the
company to utilize the time, skills and resources in an effective manner.
It has been analyzed through study over the ADCO construction pty ltd that company
has various options to evaluate the best projects for the benefits of the company and which
could help the company to achieve the targets:
a. Project to make a building for the commercial building – as this proposal would offer
the best returns to the company through rent on monthly basis (Jonas, 2010).
b. Project to make an investment into the international business – as this proposal would
offer the high return as well as high approach into the market.

Portfolio Project
9
c. Project to make bungalows into the VIP area - as this proposal would offer the the
high return as well as high approach into the market.
d. Project to renovate the buildings - as this proposal would offer the high return as well
as high approach into the market (Levine, 2007).
e. Project to enhance the new operations of the company: as this proposal would offer
the high return to the company and also make the company capable to manage the
related aspect.
f. Project to enter into the international market: as this proposal would offer the the high
return as well as high approach into the market.
g. Project to enter into a joint venture: as this proposal would offer the high techniques
and power to the company to grab the market (Morris et al, 2007).
h. Project to merge the business: as this proposal would offer the high techniques and
power to the company to grab the market.
i. Project to invest into another industry: as this proposal would offer the high
techniques and power to the company to grab the market.
j. Project to manage the previous portfolios: as this proposal would offer the high return
and management technique to the company.
Thus it has been analyzed that above 12 options are the best option in front of the
company to manage and administer the projects. In this step, the available options have been
studied to make it easy for the managers to achieve the goals of the company and manage the
risk and return of the company. Further, it would also help the company to overcome all the
issues related to projects (Braue, 2011).
Portfolio Prioritization:
This is the forth step of the portfolio project management procedure. In this process, it
has been analyzed that which project must be in the priority list of the organization. It has
also been analyzed that this step helps the business to analyze that which portfolio project
must be performed firstly and which must be on hold for a time. it has also been analyzed that
this process makes it easy for the organization to achieve the goals of the company, enhances
the return of the company and also helps the company to utilize the time, skills and resources
in an effective manner (Bonham, 2005).

Portfolio Project
10
It has been analyzed through study over the ADCO construction pty ltd that company
has various options to prioritize the best projects for the benefits of the company and which
could help the company to achieve the targets:
a. Project to make a building for the commercial building
b. Project to make bungalows into the VIP area
c. Project to enter into the international market
d. Project to enter into a joint venture
e. Project to manage the previous portfolios
f. Project to invest into another industry:
g. Project to enhance the new operations of the company
h. Project to renovate the buildings
i. Project to merge the business(Müller et al, 2008)
j. Project to make an investment into the international business
Thus it has been analyzed that above 12 options has been set in such a manner that the
time and skills of the company could be utilized perfectly. In this step, the available projects
have been prioritized to achieve the goals of the company and manage the risk and return of
the company. Further, it would also help the company to overcome all the issues related to
projects.
Portfolio Balancing:
This is the last step of the portfolio project management procedure. In this process, it
has been found that would the selected portfolios would be able to achieve the target of the
company and whether the priority list of the projects have been set in a good and effective
manner. It has also been analyzed that this step helps the business to manage all the projects
in such a manner that best of the benefits could be derived.. it has also been analyzed that this
process makes it easy for the organization to achieve the goals of the company, enhances the
return of the company and also helps the company to utilize the time, skills and resources in
an effective manner (turner, 2008).

Portfolio Project
11
It has been analyzed through study over the ADCO construction pty ltd that company
has various options to balance the best projects for the benefits of the company and which
could help the company to achieve the targets:
a. Project to make a building for the commercial building: this project would help the
company to manage the resources in such manner that best return could take place for
the company and thus company could manage the less risk and high return.
b. Project to enter into a joint venture: this project would help the company enhance the
techniques, professionals, money and resources in such manner that best return could
take place for the company and thus company could manage the less risk and high
return (Killen et al, 2008).
c. Project to manage the previous portfolios: this project would help the company to
enhance the return and offer the good option for the company to make further
investment into those portfolios.
d. Project to invest into another industry: this project would help the company to manage
the resources in such manner that best return could take place for the company and
thus company could manage the less risk and high return (Meskendahl, 2010).
e. Project to merge the business: this project would help the company enhance the
techniques, professionals, money and resources in such manner that best return could
take place for the company and thus company could manage the less risk and high
return.
f. Project to make an investment into the international business: this project would help
the company enhance the opportunities, new business options, techniques, money and
resources in such manner that best return could take place for the company and thus
company could manage the less risk and high return (Blichfeldt et al, 2008).
Thus it has been analyzed that above 6 options has been chose in such a manner that the
time and skills of the company could be utilized perfectly. In this step, the available projects
have been balanced to achieve the goals of the company and manage the risk and return of
the company (De Reyck et al, 2005). Further, it would also help the company to overcome all
the issues related to projects.
Recommendation and conclusion:

Portfolio Project
12
Thus through this report, it has been recommended to the company to manage the
portfolios in such a manner that all the issues related to projects could be overcome. And the
company become available to manage entire resources in such a manner that everything
could be resolved related to projects of the company.

Portfolio Project
13
References:
Beringer, C., Jonas, D., & Kock, A. (2013). Behavior of internal stakeholders in project
portfolio management and its impact on success. International Journal of Project
Management, 31(6), 830-846.
Blichfeldt, B.S. and Eskerod, P., (2008). Project portfolio management–There’s more to it
than what management enacts. International Journal of Project Management, 26(4),
pp.357-365.
Bonham, S. S. (2005). IT project portfolio management. Artech House,.
Braue, D. (2011). Project portfolio management. CIO, (Summer 2011-2012), 42.
De Reyck, B., Grushka-Cockayne, Y., Lockett, M., Calderini, S. R., Moura, M., & Sloper, A.
(2005). The impact of project portfolio management on information technology
projects. International Journal of Project Management, 23(7), 524-537.
Gareis, R. (2006). Happy projects!. Editura ASE.
Heising, W. (2012). The integration of ideation and project portfolio management—A key
factor for sustainable success. International Journal of Project Management, 30(5),
582-595.
Jonas, D., 2010. Empowering project portfolio managers: How management involvement
impacts project portfolio management performance. International Journal of Project
Management, 28(8), pp.818-831.
Killen, C. P., Hunt, R. A., & Kleinschmidt, E. J. (2008). Learning investments and
organizational capabilities: case studies on the development of project portfolio
management capabilities. International Journal of Managing Projects in Business, 1(3),
334-351.
Killen, C. P., Hunt, R. A., & Kleinschmidt, E. J. (2008). Project portfolio management for
product innovation. International Journal of Quality & Reliability Management, 25(1),
24-38.
LaBrosse, M. (2010). Project‐portfolio management. Employment relations today, 37(2), 75-
79.