Why Big Organisations Need Portfolio Managers to Select the Right Projects

In today’s fast-paced business environment, large organisations manage multiple projects, each competing for limited resources. Without a structured approach to selecting and overseeing these projects, businesses risk wasted investments, inefficiencies, and strategic misalignment.

This is where Portfolio Managers (PfMs) play a crucial role—especially those certified as Portfolio Management Professionals (PfMP®) by the Project Management Institute (PMI).

Optimising Investments with Strategic Selection

PfMs ensure that organisations allocate their budgets and resources effectively by selecting projects that align with company capacity and long-term objectives. Instead of approving projects based on subjective preferences or short-term gains, PfMs employ data-driven methodologies such as:

• Benefit-Cost Ratio (BCR)

• Net Present Value (NPV)

• Strategic Alignment Matrices

These tools help determine which projects will provide the highest return on investment (ROI).

For example, a global manufacturing firm reduced its annual project expenditure by 15% by eliminating low-value initiatives and focusing on high-impact projects aligned with its strategy. This resulted in higher revenue and a stronger market position.

Enhancing Efficiency and Resource Utilisation

One of the biggest pitfalls in large organisations is overloading teams with too many projects, leading to burnout, inefficiencies, and missed deadlines. PfMs play a vital role in balancing workloads by assessing the availability of resources—including finances, personnel, and technology—before approving new initiatives.

A case study from a Fortune 500 company demonstrated that implementing portfolio management reduced project failure rates by 30%, while increasing on-time delivery by 20%. By ensuring that only feasible projects are undertaken, organisations prevent costly delays and workforce exhaustion.

Maximising Benefits and Reducing Waste

A strong portfolio management framework eliminates redundancy and ensures that projects complement each other rather than compete for the same resources.

According to a PMI study, companies with mature portfolio management practices waste 13 times less money than those without structured portfolio governance.

For instance, a healthcare provider employing PfMP-certified professionals successfully streamlined its digital transformation efforts, cutting unnecessary technology projects and focusing on integrated solutions.

✔️ Savings achieved: $25 million over five years

✔️ Impact: Enhanced patient care and operational efficiency

The Importance of PfMP® Certification

While any organisation can appoint a Portfolio Manager, having a PfMP-certified professional brings additional advantages.

• Risk Management Expertise – Ability to balance risks and benefits

• Strategic Alignment – Ensures projects support long-term business goals

• Portfolio Governance – Applies best practices for investment optimisation

Companies employing PfMP-certified professionals report a 35% higher success rate in achieving project goals compared to those without formal portfolio management.

Conclusion

Big organisations can no longer afford a trial-and-error approach to project selection. With the expertise of PfMP-certified Portfolio Managers, businesses can:

✔️Optimise investments

✔️ Enhance efficiency

✔️ Maximise benefits while minimising risks

Investing in portfolio management is not just a smart decision — it is a necessity for sustainable growth and long-term competitiveness.