Understanding Project Portfolio Management

In preparing for a workshop I'm conducting next month I read an article today where I found myself arguing with the author.  In the article PPM: Project Propaganda Management? Mullaly attempted to simplify project portfolio management (PPM) as three dimensions: evaluate, prioritize and select projects to undertake; monitor project performance; ensure benefits are realized.  The author argued PPM is simply a higher level of project management needed to address the lack of operational decision making and micromanaging executives.

Yes, PPM is an extension of project management and, while it mirrors the processes of project management, it does so at a higher level.  However, the author failed to recognize that project portfolio managers do work at the executive level and, therefore, are influenced by the organization's executives.  This level ensures alignment with the organization's strategies.  Additionally, the author missed another important component of PPM: integration and resource management.

PPM is used to ensure resources are properly allocated across all programs and projects within the organization.  It is also carried out to ensure interfaces between projects and programs are coordinated.  This level of management reaches beyond the simple select, monitor, evaluate dimensions the author used.

One more very important attribute of PPM.  As a byproduct of the PPM implementation, if it is implemented properly, is business value rather than the schedule/cost/functionality metrics become the main measure of success.  Traditionally, "successful" projects are completed on-time, on-budget, with the correct functionality.  The point is that if the organization can't realize the intended benefits is it really a successful project?  Properly implemented PPM moves project evaluation to business value rather than satisfying the project management variables.