The guiding principle of portfolio management is to do the right things, not merely to do things right. A project portfolio can be described as a collection of components in which an organisation invests to implement its strategy.

Portfolio management coordinates its components to achieve specific organisational objectives. It enables governance bodies to make decisions that determine or influence the direction of portfolio components, identifies relationships between programmes and projects, and ensures resources are allocated in line with organisational priorities.

Portfolio Management Includes the Following Steps:

  • 1. Analysis
    Portfolio analysis requires careful estimation of potential benefits, thorough consideration of risks and the development of possible future scenarios. The result should be a portfolio plan designed to deliver the required benefits within a defined timeframe.
  • 2. Plan Execution
    Another important step is delivering the projects within the portfolio. This means controlled execution of the plan, including the planning and management of finances, time, capacity and other resources. During delivery, resource use must be monitored carefully, both to accommodate necessary changes and to support the portfolio's subsequent financial evaluation.
  • 3. Evaluation
    The final part of portfolio management is evaluation. At a minimum, this should assess the portfolio's benefits and planned costs. The findings must inform the next round of portfolio planning. These activities are essentially a way of thinking about strategic management, with project management providing the means to deliver individual projects. As noted above, portfolio management is a coordinated discipline that benefits from a sophisticated tool. The tool should support portfolio planning in terms of resources, time and strategic objectives, as well as the creation of portfolio scenarios.

Successful portfolio management depends on the ability to balance portfolio planning, delivery and evaluation, including follow-up action.

We Help You:

  • Introduce portfolio management into your business environment
  • Define strategic objectives linked to portfolio objectives
  • Implement a portfolio management tool
  • We Teach You How to Manage Your Portfolio

Terms and Conditions · Privacy Policy