Business Environment Interface Concepts

A department or enterprise that generates revenue or otherwise conducts its business through the accomplishment of projects is well served by establishing a project portfolio management capability. Using this approach, project decisions become business decisions, and such decisions warrant the examination of project progress and performance on an ongoing basis by the individuals who make relevant business decisions.

The output of a well-constructed "project portfolio management" function is pertinent data that is available for exchange and review across the relevant organization and across the enterprise. In particular, project portfolio management information will be interspersed with related information in accounting, contracts, and human resource management departments. In an organization where project portfolio management is an advanced function, the data obtained or derived from the project portfolio management process may become the primary source of such business information. In turn, the financial calculations performed and the business decisions made can be returned to the portfolio management process and to the individual projects for implementation.