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The AMA Handbook of Project Management, 4th Edition by Jeanette Cabanis-Brewin, Paul C. Dinsmore

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CHAPTER 26

Project Portfolio Management

Principles and Best Practices

GERALD I. KENDALL, PMP, TOC INTERNATIONAL

Project portfolio management (PPM) is a set of processes to analyze, recommend, authorize, activate, accelerate, and monitor projects to meet organization improvement goals (Figure 26-1). When performed successfully, PPM has yielded the following benefits:

• 20 to 30 percent improvement in time to market1

• 25 to 300 percent improvement in number of projects completed with the same resources2

• Average project duration cut by 25 to 50 percent3

• Over 90 percent project success rate, with double the profit margin4

• 50 percent improvement in research and development (R&D) productivity5

These achievements apply to government, not-for-profit, ...

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