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Project management covers that processes, methods, knowledge, skills and experience needed to achieve the project objectives So project portfolio management or PIMP creates solutions by enabling the company sake decisions on logic, reasoning and Objectivity While create a structure for selecting the right projects for the company and discarding the wrong ones. It creates a solution for wasteful spending by ensuring that the correct resources are being delivered to the right projects.
Project portfolio management ensures that the portfolio decisions coincide With the strategic business goals so that the company achieves maximized success in regards to the project. That being said, strategic portfolio management is the bridge between the strategic goals of the company and the project itself. Within the company the strategic portfolio management strategic prioritize which projects will be completed first and enables the project manager understand the sequence in which the project must follow in order achieve the business goals.
It gives the project manager or project management team see things through visualization from concept to completion, An example would be it you had a broken heirloom that you would like to taxi, first understanding what you would need to fix the heirloom, the cost of the heirloom would be part of the project management side of the house. You goal is to ultimately fix the heirloom back to normal or as close as possible.
The decision is add to utilize heavy duty super glue, you then read the instructions to see what you need to do first and the order of the steps needed to achieve success which is like the strategic portfolio management side of the company. If the project management and strategic portfolio management are conducted the appropriate way, then the heirloom will be fixed before you get into trouble. If the strategic portfolio management is left out, then you have the possibility Of adding too much glue, not enough glue or completing the step out of order and thus causing the project to be a complete failure and you being discovered.