Knowing the difference of portfolio management vs. project management and how and when each serve your business best is essential for success. comes into play.To keep your business operating at optimal levels, managing these crucial internal processes is a must.
While the terms might sound similar, but they serve different purposes in terms of business goals.
Learn more about portfolio management vs. project management, why they’re beneficial, and how you can optimize both of these practices with monday.com
Portfolio management vs. project management: what’s the difference?
Portfolio and project management are sometimes used interchangeably, but there are a few key factors that make them different. Let’s take a look at both concepts below to help you better understand the differences.
Many businesses balance multiple projects in any given year, and they need a way to organize them.Portfolio management is the process of selecting and managing an organization’s projects and programs to help the company grow. It’s all about seeing the big picture and working toward long-term goals.
While sifting through projects, portfolio managers work hard to differentiate between the good and the bad. Determine which goals should be prioritized and choose projects that align with them.
Projects within a company are often temporary tasks that have a start and end date. They tend to focus on unique, short-term goals, such as a new product, marketing strategy, or service. The project manager’s job is to meet all objectives within an established budget and timeframe, sometimes with only limited resources available to them.
Project management relies on strong visualization and problem-solving to achieve the desired outcome. Quick decisions are often made to improve the quality of a product, service, or strategy while saving time. With a strong team working on a project, the process can run smoothly, but any inefficiency can be potentially damaging.
Portfolio vs. project management
The main difference between portfolio and project management is projects focus on unique, short-term goals and are temporary, while portfolios concentrate on long-term goals and involve strategic, cohesive objectives.
Once the deadline for a project has passed, it usually isn’t heard of anymore because its purpose has been fulfilled. A portfolio can span for years, depending on how many projects it contains and what its overall mission is.
How does a portfolio manager differ from a project manager?
Since portfolio management and project management involve different goals and strategies, the responsibilities of a portfolio manager vs. project manager also differ.
The main responsibility of a portfolio manager is to make sure the right projects are selected for their specific portfolio. This involves inspecting each project individually to determine if the project aligns with the company’s long-term goals, and if it’ll bring a strategic return. Common tasks a portfolio manager may be in charge of include:
- Managing financial resources
- Planning out potential scenarios
- Prioritizing projects
- Ensuring tasks are completed on schedule
- Tracking real-time analytics
- Using holistic strategies to assist with the company’s overall goals
A project manager considers the key requirements of an individual objective that fits into the larger picture. They work hard to complete projects by establishing deadlines to prevent overtime or delays. Demonstrating great time management and brainstorming proactive solutions to avoid any serious problems are some top responsibilities of project managers. Other responsibilities include:
- Outlining budget requirements
- Prioritizing and scheduling tasks
- Defining project goals and expected outcomes
- Communicating project milestones
- Applying strategies to hit project targets
Why companies use portfolio management
Portfolio management helps companies ensure their projects are working together in perfect harmony while running as efficiently as possible. For instance, if one project isn’t running smoothly because of a lack of funds or resources, the portfolio manager is in charge of figuring out why and if the project is worth continuing. This can save your business time and money in the long run.
Companies also use portfolio management to determine how their funds should be distributed. If the portfolio manager decides to pull the plug on a project, that can open up funds to put towards other projects that are more beneficial to the business. When new projects are started, they prioritize these projects based on importance and decide how to distribute funds throughout the portfolio by weighing benefits and risks.
If your company has a long-term goal that you’re hoping to reach, portfolio management is meant to help you achieve that goal. By choosing projects that align with company goals, portfolio managers are essentially putting together pieces of a puzzle. Their job is to help your company focus on the big picture and ensure that projects and employees work on matching that vision.
Using the right Work OS can make portfolio or project management simpler, faster, and less stressful.
How monday.com can help your teams manage portfolios and projects
Successful portfolio and project management doesn’t happen overnight. It may take time to figure out which techniques work best for your business, or how to get started. monday.com offers monday projects, a software toolkit that provides customizable features to help you plan, strategize, and deliver your best work. Whether you need help with basic projects or complex portfolio management, monday projects can help you maintain a variety of tasks, including:
- Project planning
- Task management
- Customer projects
- Project dashboards
- Strategic planning
- Issue logging
The software conveniently connects all moving parts of your project to help your company reach its goals even faster. You can manage multiple projects from one location by creating custom dashboards and assigning team members. If you’re worried about time management, monday projects allow you to streamline projects by automating approvals.
Project dashboards help you stay on track by displaying every task’s progress. Having all your projects managed on one platform also makes it easier to communicate with stakeholders and update changes in real time to push projects forward.
When it comes to portfolio management vs. project management, they’re both equally important to the success of your business. monday.com offers templates for both project management and portfolio management that can make these processes easier.
The Single Project Template helps you plan and manage every aspect of a project in one place. Use it to track deadlines and budgets, set milestones, organize tasks, and achieve complete visibility.
The Project Portfolio Management Template helps you plan and track complex projects across departments and teams. It offers a high-level view of your success and allows you to streamline project requests. Other features include budget tracking, keeping track of any changes made to projects, and prioritizing work.
What is a project portfolio?
A project portfolio is a collection of projects, processes, or programs that work together to reach the strategic and financial goals of a company. The portfolio manager oversees all aspects of the portfolio and approves or denies program or project ideas. A program manager helps set schedules and budgets for each individual program in a project portfolio.
What is portfolio management in project management?
Portfolio management groups together projects that are related to each other. Grouping individual projects into a portfolio can help companies achieve their long-term goals and add more value to each project.
What is the difference between portfolio management and project management?
Portfolio management focuses on balancing multiple projects that assist with achieving long-term goals of a company, while project management focuses on achieving a unique, short-term goal for a company.
Take control of portfolio and project management processes
If you’re trying to find a quicker way to achieve your company goals, monday.com has the project management resources you need to be successful. You’ll never have to worry about losing track of deadlines or going over budget again.
Using the monday.com Work OS to help manage your portfolios and projects can save your business time and money.