Portfolio management is nothing but the centralized management of one or more portfolios. It includes identifying along with prioritizing and authorizing and managing programs and other related work in achieving specific strategic business objectives.
There are numerous advantages of portfolio management:
Maximum overall returns- The proper portfolio management ensures the proper conglomeration of the projects for achieving the maximum and overall returns. The project portfolio comprises of the projects that often provide values that differ widely from each other. The various projects in the portfolio varies in terms of the following factors
- Short and long term benefit
- Synergy with corporate goals
- The level of investment
- Anticipated payback
By considering all these factors, PPM focuses on the optimization of the returns of the entire portfolio by doing all the following activities:
- Executing the most valued producing projects
- Directing the funds towards worthy initiatives
- Eliminating the redundancies between the projects
- Saving time and costs
Harmonizing the risks posed by projects– The PPM involves the balancing of the risk that has been posed by the projects in the portfolio. The various companies should have the tenacity in evaluating and balancing the projects risk in their portfolios for decreasing the risk and increasing the returns by diversifying portfolio holdings.
To be honest a traditional portfolio might minimize the risk and protect the principals, however it also limits the prospective returns. On the contrary, the hard-line project portfolio might have the tenacity in providing greater chance of good returns. However it also poses considerably higher risk of failure or loss. PPM allows in balancing the risk with potential returns by diversifying the projects of the organizations as being said by individuals providing having patent office Canada.
Optimized allocation resources– The resources are optimally allocated among various projects of the portfolio. As the resources are really limited, all the projects should have the potency in competing with each other for resources.
PPM involves measuring along with comparing and prioritizing the projects in order to classify and implemented the most valuable projects only. The conflicts between the projects for the resources are being resolved by high level management. The skill sets required for each project are the ideal source of these resources that are determined by incorporating formal sourcing strategies as being said by individuals who are skilled in patent search in Canada.
Correction of performance problem– The performance problems are corrected prior to their development in various major issues. Although. PPM cannot completely get rid of the performance issues early. The PPM involves identification along with escalation and addressing any issues related to execution and helps in keeping the progress of project on the track.
Aiming the projects according to business goals– PPM assures that project remain aligned to the business goals during the execution by performing the following activities:
- Oversight management and proper monitoring throughout the project.
- Communication of optimal standards.
- Correction of regular courses.
- Project redirection for maintaining alignment and changing the business objectives.