Portfolio Management
Achieving project success on time, on budget and within scope does not ensure that all projects meet the goals of the organisation. Portfolio Management is a process to ensure that your company spends its scarce resources on the work that is of most value to the organisation. The process helps to ensure that only the most valuable work is approved and managed across the company, and helps validate that the work being funded is the most important.
Similar to a financial portfolio, the project portfolio looks to improve the return on investment. This requires an understanding of the current value of the project portfolio to the business, and heavily relies upon the Business Case and ROI data (information that is often missing).
Benefits
A good Portfolio Management process will assist with the selection and balance of priority projects to meet business goals and provide essential executive support for decision making.
The value of Portfolio Management can be summarised as:
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The Project Portfolio Management relies upon gathering the appropriate information and then making strategic decisions about which projects the organisation will focus on. At the highest level the process can be summarised as:
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As with all business improvement projects there is a cost and a payback, only by considering this can you determine if it is a worthwhile investment. Regardless, the first step is to define the terms of reference and the scope of Portfolio Management for your organisation.
PM-Partners group Project Portfolio Management Services
PM-Partners group offer Education and Consultancy services in Portfolio Management. We can present to an executive board about how portfolio management can be used as a powerful means to control corporate strategy execution. We have helped organisations make their vision a reality by putting in place a full portfolio management capability based on authorisation and prioritisation of the right projects and programmes at the right time.
Read an article about difference between Programme Management and Portfolio Management
