Explain how strategic portfolio management relates to project management

Running Head: PORTFOLIO AND PROJECT MANAGEMENT

PORTFOLIO AND PROJECT MANAGEMENT 2

Portfolio Management and Strategic Management Concepts and Organization Paper

Qiana Reynolds

University of Phoenix

Project Management/CPMGT-301

November 30, 2020

Instructor: Gary Denney

Explain how strategic portfolio management relates to project management

The process where the company's finite and critical resources are focused on critical areas where they can be maximumly utilized to achieve the company’s goals and objectives is called strategic portfolio management. Strategic portfolio management is related to project management in the way work is subdivided into different definite projects. Once the work is subdivided, resources are effectively allocated so that each part of the project achieves the targeted goals and objectives. Strategic portfolio management ensures that resources are best fit in the projects that are resourceful to the company in making trade-offs in all the portfolios. In portfolio management, we have four key elements. The following are the critical elements of an investment portfolio that show the relationship with project management: effective diversification. Asset classes are the traditional view of effective diversification in project management and strategic portfolio management. Asset's underlying source of risk is the most significant consideration in creating effective diversification.

Strategic portfolio management is the high view of projects that the company is running to meet its strategic goals and objectives. Project management, on the other hand, is ensuring that the projects are excited rightly. Portfolio management is then ensuring that exciting projects are the right and intended. Traditionally, program management, or project management, pays attention to doing the work right, but strategic portfolio management ensures that it is only doing good work (Pennypacker, 2015). Another difference is that portfolio management focuses on the company's long-term goals and objectives whereas project management focuses on its short-term goals and objectives. The project management portfolio is to ensure the development and implementation of the project efforts in the company's best practices ever.

Explain the difference between project-based and non-project-based organizations.

Organizational design is the choice the company makes in terms of pf structures to achieve a happy workforce, fast decision making, and peak efficiency. In project-based organizations, systems are put in a way that the project implementation process is highly effective. PBO is the organizational form meant temporary systematic performance. Project activities are conducted by the PBO, which offers the best functional approaches like the organizational matrices when the company is conducting several activities (Martinsuo, 2018). PBO is significant to the organization. It reduces the hierarchy, and the bureaucracy as the work results are what matters and not the strategies employed along the way (Gemünden, 2017). PBO works because it is structured in a way that creates synergy amid portfolio management and project management.

As a businessman, one needs to analyze the difference between non-project-based organizations and project-based organizations. A structural model is cultivated in showcasing the hierarchy meant to explain how each department connects with other departments. The company's personnel and departments are organized around individual projects in the PBO. For instance, an organization with operational PBO has project managers that will oversee that employees are delivering on their duties. Team members of the project are selected from individual departments to implement on the company’s projects. In most companies, we have multiple teams working independently and collaborating only where necessary.

Non-project-based organizations are organizational structures whose designation is not bounded on company projects. Most business models use the form of non-project-based organizations. In non-project-based organizations, one manager supervised various departmental managers that oversee their various departments. Examples of these departments include the customer service department, sales department, human resource, and marketing department. Business organizations that don't pay attention to projects but rather on basic functionality form non-project-based organizations.

Discuss how communication differs for a project manager in a project-based organization versus a non-project-based organization.

Communication for a project manager in the project-based organizations will be quite different from the communication from the project manager of the non-project-based organizations. In the project-based-organizations, the project manager will act as the divisional manager in charge of projects in the organization. The project manager will be liable for all the projects' activities in the human resource department, sales department, and finance department. In simple terms, a project manager is functional and takes care of the elements of time at a time. The project manager, therefore, needs to communicate with all stakeholders of the organization to make sure that the companies’ goals and objectives are met.

The project manager in the non-project-based organization will not be a divisional manager because of their functionality. Unlike in the project-based organizations, managers in the non-project-based organizations don't have the functionality to manage projects. However, the manager will have to communicate with all other company stakeholders as it is in the project-based organizations.

Discuss two challenges that a project manager might face in a non-project-based organization

In non-project-based organizations, the project manager will have a rough time in the company management because he or she is given minimal authority in his day-to-day duties. In other words, unlike project-based-organizations, the project manager won’t be the divisional leader where he takes the responsibility of the departments like the financial, legal, and sales departments (Lehtonen, 2017). In non-project-based organizations, the project manager will be involved in functions where he will be required to work, but the supervisory duties will be relatively minimal. The manager in the non-project-based organizations will have the challenge of fund allocation and budget. When the company is based on projects, it will be straightforward for the project management department to be allocated their budget, but when it is the case with non-project-based organizations, a small amount of money will be assigned to the department; hence the project manager will find a hard time in executing his or her duties.

In non-project-based associations, the venture director will make some harsh memories in the organization of the executives since the person is given an insignificant expert in his everyday obligations. All in all, dissimilar to extend based associations, the undertaking supervisor won't be the divisional pioneer where he assumes the liability of the offices like the monetary, legitimate, and deals offices. In non-venture-based associations, the task chief will be engaged with capacities where he will be needed to work, yet the administrative obligations will be very negligible. The supervisor in the non-venture-based associations will have the test store designation and spending plan. At the point when the organization depends on ventures, it will be effortless for the task the executive's office to be allotted their financial project; however, when it is the situation with non-venture-based associations, a little measure of cash will be distributed to the division consequently the undertaking administrator will locate a hard time in executing their obligations.

Discuss how would you overcome the challenges that you identified

As a leader, I recommend that one performs the best as the project manager. Despite the challenges of life, as a manager, you communicate rightly with the company's stakeholders so that the budget and funds are set rightly to meet the company's goals and objectives. The manager and anyone else have to ensure that they are on good relational terms with the people surrounding them. The company will make sure that the project is funded rightly and heavily hence achieving the company goals and objectives. As a money manager, one necessity to examine the contrast between non-project-based associations and undertaking-based associations is that an auxiliary model is developed in exhibiting the chain of importance intended to clarify how every division interface with different offices. The organization's staff and divisions are coordinated around singular activities in the PBO. For example, an association that has operational PBO has venture supervisors that will direct that representatives are conveying on their obligations. Colleagues of the undertaking are chosen from singular offices to actualize on the organization's ventures. In many organizations, we have numerous groups working freely and teaming up just where fundamental.

References

Martinsuo, M., & Lehtonen, P. (2017). Role of single-project management in achieving portfolio management efficiency. International journal of project management, 25(1), 56-65.

Martinsuo, M. (2018). Project portfolio management in practice and context. International journal of project management, 31(6), 794-803.

Pennypacker, J. S. (2015). Project portfolio management maturity model. Pennsylvania, USA: Center for Business Practices.

Teller, J., Unger, B. N., Kock, A., & Gemünden, H. G. (2017). Formalization of project portfolio management: The moderating role of project portfolio complexity. International journal of project management, 30(5), 596-607.