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Yes or No - The Two Models for Implementing Project Portfolio Management

"There are two models for implementing a Project Portfolio Management (PPM) system:

• The budget alignment model
• The engagement profitability model

"The budget alignment model corresponds with an operational environment where the value of projects varies, and project costs are expense overhead. Decisions and behavior are driven by the need to squeeze value out of the available budget. Examples of the budget alignment business model include enterprise IT and product development organizations.

"In the engagement profitability model, 'projects' and 'programs' are vehicles for managing revenue-generating engagements with customers that produce profit margins. Decisions and behavior are driven by the profitability of customer engagements. Examples of the engagement profitability model include IT services firms and professional services departments within product companies."

Read more at: http://www.chiefprojectofficer.com/article/109

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