By now, many companies have gained tight control over their IT projects.
It is, however, not enough to control individual projects —the project portfolio has to be gotten under control as well.
Projects rely on key personnel within the company. These persons are heavily used during a project, as it is often difficult on a daily basis to do without them in the departments where they rightfully belong. It is therefore not appropriate to involve the same key people in multiple simultaneous projects.
Strategies are usually implemented through projects. A strategic initiative, not associated with an active project, is not likely to succeed. All strategic initiatives should therefore, at any given moment, be tied up to one or more projects, whereas key personnel should participate only in one project at a time.
These opposing concerns need to be balanced. Such balance is achieved through project portfolio management that gives the company a tool for appropriate prioritization among potential projects.
