It is a brief overview presentation on portfolio management. It gives a brief idea of what Portfolio Management is and also specifies the processes as mentioned in OGC's Management of Portfolio and PMI's PfMP.

1. PM Footprints – Project Portfolio
Management
Niladri Mallick Choudhuri
16 January 2014
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2. Agenda
Project Portfolio Management
Definition
Portfolio – Program - Project
Portfolio Management and Corporate Governance
Portfolio Management, Strategy and Operations
Portfolio Management Strategy
Portfolio Management Model
Portfolio Management Process
Presentation Title
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3. SPPM Workshop - Definition
What is Portfolio?
As per PMI – A Portfolio is a collection of Projects or Programs and other work that
are grouped together to facilitate effective management of that work to meet
strategic business objectives. The Projects or Programs of the Portfolio may not
necessarily be interdependent or directly related. These components of a Portfolio
are quantifiable; that is, they can be measured, ranked and prioritized.
As per OGC – An organization’s portfolio is the totality of its investment (or
segment thereof) in the changes required to achieve its strategic objectives.
What is a Portfolio Management
As per PMI – Portfolio Management is the coordinated management of Portfolio
Components to achieve specific organizational objectives.
As per OGC – Portfolio Management is a coordinated collection of strategic
processes and decisions that together enable the most effective balance of
organizational change and BAU.
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4. Portfolio – Program – Project
Business Strategy: The
approach or line to take,
designed to achieve a longterm aim. Strategies can exist
at different levels in an
organization
Strategy
Portfolio: Overall collection of
the organization’s grouping of
high-level initiatives and their
respective projects.
Portfolio
Program
1
Project
A
Project
B
Source: Gartner
Program
2
Project
C
Project
D
Project
E
Project: A project is a temporary endeavour
undertaken to create a unique product or service.
Projects are temporary (characterized by a definite
beginning and a definite end) and unique (the
product or service is different in some distinguishing
way from all other products or services).
Program: A set of projects
that have a common objective
and interdependencies that
need to be managed. A set of
interrelated and interdependent projects.
Source: Project Management Institute
Source: Project Management Institute
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5. Portfolio Management and Corporate Governance
Relationships among Portfolio Management and Organizational Governance:
Organizational Governance
Strategic Planning
Management by Projects
Portfolio Management
Program Management
Management of
Operations
Project Management
Process Tools and
Metrics
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6. Portfolio Management, Strategy and Operations
Relationships among Portfolio and Strategy
The ultimate goal of linking Portfolio management with organizational strategy is to establish a
balanced, executable plan that will help the organization to achieve its goals. The impact of the
portfolio plan upon strategy is attained by the five areas:

Maintain Portfolio Alignment

Allocating Financial Resources

Allocating Human Resources

Measuring component contributions

Strategic Risk Management
Relationship between Portfolio Management and Operations
The day to day functioning of the organization will continue. Portfolio management will impact
multiple functional units in the organization. There may be operational budget constraints
affected by portfolio or vice versa.
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7. Portfolio Management, Strategy
The framework supports the execution of strategy and drives the alignment between strategy,
operations, and risks
Governance & Risk Management
L
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a
r
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s
h
i
p
2. Translate the
Strategy
1. Develop the
Strategy
Strategic Plan
3. Align the
Organization
6 Test & Adapt
f
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r
E
x
e
c
u
t
i
o
n
Risk
4 Plan
Operations
5 Monitor & Learn
Operating/Financial
Plan
C
h
a
n
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M
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n
a
g
e
m
e
n
t
Process
Execution
Project & Portfolio Management
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8. Project Portfolio Management Detailed Model
Strategic
Planning
Business Unit
Planning
Pre-Assessment
A
N
Project
N
Portfolio
Management U
A
L
Unapproved
Quarterly
Unapproved
Out of Capacity
New Projects
Screened
In-Progress Projects
On-Hold Projects
Portfolio Screening
Project Scoring
Portfolio Ranking
Portfolio
Simulation
Approved and
not Resourced
Approved
Project
Management
Portfolio
Monitor
Monthly
Cancelled
In-Progress Projects
On-Hold Projects
Post Audit
Complete
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9. Portfolio Management Process
Portfolio Management Process can be divided in two parts:
As per OGC
 Portfolio Definition Processes
 Portfolio Delivery Processes
As per PMI
 Aligning Process Group
 Monitoring and Controlling Process Group
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10. Portfolio Management Process
 Portfolio Definition Processes
 Understand
 Categorize
 Prioritize
 Balance
 Plan
 Portfolio Delivery Processes
 Management Control
 Benefits Management
 Financial Management
 Risk Management
 Stakeholder Engagement
 Organizational Governance
 Resource Management
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11. Portfolio Management Process
 Aligning Process Group
 Identify Components
 Categorize Components
 Evaluate Components
 Select Components
 Identify Portfolio Risk
 Analyze Portfolio Risk
 Prioritize Components
 Develop Portfolio Risk Response
 Balance Portfolio
 Communicate Portfolio Adjustments
 Authorize Components
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12. Portfolio Management Process
 Monitoring and Controlling Process Group Management Control
 Monitor and Control Portfolio Risks
 Review and Report Portfolio Performance
 Monitor Business Strategy Changes
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