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264 DEFINING AND IMPLEMENTING PPM

cost. Not any more. Now they ask: “What mix of potential projects will provide
the best utilization of human and cash resources to maximize long-range growth
and ROI for the firm?”

Perhaps this is an oversimplification. However, if we start with this premise
and examine its meaning, we can begin to realize the tremendous impact of this
observation on the way that we conduct project management and especially in the
way that we select and implement project management tools.

The Emergence of Project Portfolio Management

Certainly, it is not news to anyone that the basic concept of project management
has evolved to what we call enterprise project management. At first, we thought
that this shift was more of a way of aggrandizing project management—sort of a
pompous raising of project management to a higher level of importance. Later,
we came to realize that enterprise project management was a reflection of the im-
portance of consolidating and integrating all the firm’s projects—for universal ac-
cess and evaluation. Now, we come to find that enterprise project management
entails consideration of potential projects as well as approved projects. We also
find that the emphasis has shifted from traditional project-centric objectives to
higher-level operational objectives.

Executives have come to realize that projects are the basis for future prof-
itability of the firm. Hence, there is a growing interest on the part of executives
in how projects are managed. They are precipitating an increased demand for
more standardization and automation of project management. But what they
are asking for is different from the requests from traditional project manage-
ment sources.

And what they are calling this emerging project management protocol has also
changed. It is no longer just project management, or even enterprise project
management. It is now called Project Portfolio Management.

But is Project Portfolio Management for real? Or is it just a nice sounding
phrase, without real substance? I get the idea that it’s just a lingering melody—a
song without words. It’s a pretty tune, and, with the right lyrics, it might be a big
hit. But for the moment, I don’t see a consensus as to how this emerging concept
will play out.

But don’t mistake my skepticism for a lack of support for the concept. My con-
cern is not whether Project Portfolio Management is worthwhile. It is how to in-
tegrate the concepts of Project Portfolio Management with traditional project
management that requires attention.