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Portfolio Management Process
Portfolio Management Process

Having A Better Portfolio Management Process: What Its Benefits?

What should businesses and organizations do to ensure that they spend their budgets wisely, and accomplish tasks on time? One of the keys to improved efficiency and success lies in portfolio management. Portfolio management is referred to as process that ensures the wise spending of scarce resources in the workplace. The process guarantees that only the most "valuable" work is approved, and managed, across the project, or the entire organization. Here are some of the reasons why you need a better portfolio management process.

It Improves Work Scrutiny

It's a fact that some project managers or department heads want their "pet projects" to be completed first; hence they make funding decisions based on their own biases. With the application of portfolio management, the work that needs to be done must be approved by all stakeholders, and the proposed work will be more open to scrutiny and checks, because once managers know that work is approved in a certain area, it removes the funding for other potential tasks.

Portfolio Management Improves Resource Allocation

Protocol management ensures that only valuable projects should be executed first, and low-value projects must be placed on hold for the moment. It also prioritizes work across all departments, and effectively allocates labor and non-labor resources too.

It Promotes More openness Of The Authorization Process

The portfolio management process also removes all kinds of secrecy on how work gets funded. This allows everyone to propose work, and it also ensures that all members of the department or project team know the process that is followed to authorize the work.

It Reduces Ambiguity In Work Authorization

Portfolio management also provides a solid criterion for consistently evaluating work. This makes it easier to compare work on a daily basis, and it also does a much better job of guaranteeing that the authorized work is aligned and balanced.

It Improves Work Alignment

And apart from ensuring that only high-priority tasks are approved, portfolio management also enhances work alignment. This means that all decisions are made within the overall context of the department's strategy and objectives. In the IT industry, portfolio management provides an improved process of translating business strategy into technology decisions.

It Improves Work Balance

Portfolio management, especially in financial circles, ensures that resources are appropriately allocated and balanced between various instruments like real estate, bonds, stocks and so forth. This ensures that a proper balance of work is attained.

With the portfolio management process, project managers or department heads will easily understand how their budgets are spent, and those who cannot validate that the work they're doing is valuable will face more scrutiny from senior management. Portfolio management can help businesses and organizations answer the most basic (as well as the complex) questions about work priorities and resource allocation.

The process can also improve collaboration, since it enables business managers to make decisions while only taking into account their own departments. For instance, if portfolio management is practiced at the top of the organization, all departments will need to collaborate on an ongoing basis.

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