Portfolio Management

Portfolio ManagementLets Get StartedWhat is Portfolio Collection of programs project or operations as a group to achieve strategic objectiveNot necessarily interdependent or related objectives Components are quantifiable i.e measured or rankedCommon features to group them for effective managementSet of past, present or future portfolio componentsLonger term with new projects rotating Even when specific projects or programs within portfolio are independent or do not have related objectives If a portfolio is not aligned It represent organizations intent, direction and progress

Activities included in portfolio managementAligning org. prioritiesDetermining governancePerformance management Measuring value/benefitMaking investment decisions Managing risksCommunication ResourcesPPM provides opportunity for governing body to take decisionIdentifySelectPrioritizeGovernAllocateResourcesMonitorReport And relative alignment with org. objectivesWhat is Portfolio Management

Relationship between Portfolio, Project, Program and Organizational Project Management

OPM is strategy execution framework to deliver organizational strategy producing better performance and sustainable competitive advantagePortfolio, project and program differ in their way contributes to achievement of strategic goals Portfolio aligns with org strategy by selecting right program or project, Program management harmonize its project and manage their interdependencies to realize specified benefits (schedule, performance), project management develops and implements plans to achieve scope driven by objectives and ultimately to organizational strategies Organization measures its capabilities, then plans and implements improvements towards achievements

Portfolio Management and Organizational Strategy

Impact of portfolio plan upon strategy is attained by six areasMaintaining portfolio alignmentAllocating financial resourceAllocating human resourceMaterial or equipment resourceMeasuring portfolio component performanceManaging risksBusiness ValueDefined as entire value of business- sum of tangible and intangible elementsValue can be created through effective management of ongoing operationsPPM has ability to employ process to create greater business value Organizational strategy can be expressed through its mission and visionIt provides defined direction for development and growth To bridge the gap between business value and org. strategy PPM is helpfulContinuous portfolio strategic alignment and optimization can achieve effective investment management successful business value realization