Project portfolio management (PPM) is a strategic alignment process by which an organization’s projects are evaluated to identify the purpose, fit, and benefits as they relate to company goals.

Projects can then be grouped into programs based on relevance and similarities. All programs and their respective projects should then fall under a portfolio strategy undertaken by the project management office (PMO) to meet overall company objectives. As such, PPM is not just a process for aligning projects with strategy, but also for aligning project policies and processes with organizational objectives.

Carefully executed project portfolio management enables organizations to achieve higher rates of success and performance because projects, programs, and portfolios align with mid- to long-term goals. Other benefits of PPM include the following.

To succeed with PPM, PMOs should develop and implement a process to help ensure everything goes smoothly and as expected. Here are some key steps that should be included in the PPM process.

Best practices can not only increase the likelihood of PPM success but also provide companies with assurances as to the value of each project when attempting to identify projects to undertake. Here are some key best practices for doing PPM right.

Frameworks can have a positive impact on your PPM strategy and execution. Popular PPM frameworks include the following.

The right tools are essential to succeeding with PPM, and the following are among the best. They are all web-based with iOS and Android apps so your team can access mission-critical project information on the go. Each offers features such as easy access dashboards, portfolio management, project planning, requirements management, collaboration, budget and issue management, task management and status tracking.

Having the right training is essential when considering a career in portfolio management because of all the moving pieces, constant change, and complexities that are guaranteed to surface. When selecting the right option for your career, make sure to do your due diligence to protect your investment. Here are two examples.

PMI is the gold standard for globally recognized project, program, and portfolio certifications. They offer a Portfolio Management Professional (PfMP) credential, providing “advanced competency in the coordinated management of one or more portfolios to achieve strategic objectives.”

Prerequisites: Minimum of eight years of professional business experience and a secondary degree (high school diploma, associate’s degree or global equivalent) with 10,500 hours of portfolio management experience; or four-year degree (bachelor’s degree or the global equivalent) and 6,000 hours of portfolio management experience.

Pricing: $800 (members); $1,000 (non-members

PMI also offers a list of organizations that it has approved to provide training in project, program, and portfolio management.

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This story, "What is project portfolio management? Aligning projects to business goals" was originally published by CIO.