Bridging the Gap Between Operations Management and Projects Management
Project Portfolio Management is a bridge between traditional operations management
and project management. For organizations that will be depending on project success
for success of the overall enterprise, a well-structured bridge, built on a good foundation,
is the preferred way to overcome the traditional gap between operations and projects
management.
In Project Portfolio Management, it is assumed that the enterprise, via the selection
and execution of projects, positions itself for increased strength and profitability
as well as assuring that the firm continues to thrive in a world of constant change
and the threat of competition.
The basic elements of Project Portfolio Management are not new. Nor is the environment
in which it is applied. However, before the emergence of Project Portfolio Management,
as a defined discipline, these elements were the responsibility of two distinct groups:
Operations Management and Projects Management. Each group had its specific role, as
noted in the table, below.
|
Operations Management
|
Projects Management
|
|
Strategies
|
Schedule/Time
|
|
Objectives/Goals
|
Project Cost
|
|
Business Performance
|
Project Performance
|
|
Stockholder Satisfaction
|
Stakeholder Satisfaction
|
|
Project Selection and Mix
|
Scope/Change Control
|
|
Resource Availability
|
Resource Utilization
|
|
Cash Flow/Income
|
Cash Usage
|
|
The
Emergence of Project Portfolio Management
