What is Project Portfolio Management? PM in Under 5

TL;DR

Portfolio management involves selecting and controlling projects and programs to align with an organization's strategy, with the goal of balancing risk and reward.

Transcript

in this video I want to answer the question what is portfolio management portfolio management is the selection prioritization and control of an organization's projects and programs a portfolio managers role is to select projects and programs that will deliver the strategy that the organization has selected and to deliver the capability that will en... Read More

Key Insights

• 🚚 Portfolio management focuses on selecting, prioritizing, and controlling projects and programs to deliver an organization's strategy.
• ⚖️ It involves balancing risk and reward, similar to creating a diversified financial investment portfolio.
• 🧡 A portfolio manager plays a crucial role in overseeing a basket of projects and programs that address a range of strategic imperatives.
• 📽️ Organizational maturity in project and program management is essential for effective portfolio management.

Questions & Answers

Q: What is the role of a portfolio manager?

A portfolio manager's role is to select projects and programs that align with an organization's strategy and deliver the required capabilities. They prioritize and allocate resources, monitor project progress, and make decisions to manage and balance risks.

Q: Why is portfolio management compared to financial portfolio management?

Portfolio management in the project and program sense draws on the concept of financial portfolio management. By diversifying investments/projects, risks are reduced, and overall performance can be optimized, similar to creating a mix of investments with different risk levels in a financial portfolio.

Q: What is the significance of a central portfolio management office (PMO)?

A central PMO brings together project management, program management, and portfolio management under one leadership. This combined facility supports portfolio managers in overseeing and managing projects and programs at various levels, ensuring alignment with strategic imperatives.

Q: What is the importance of organizational maturity in portfolio management?

Portfolio management requires a high level of organizational project and program management maturity. An organization needs a sophisticated strategy generation process, effective decision-making and governance, and mature project management disciplines to successfully implement portfolio management practices.

Summary & Key Takeaways

• Portfolio management is the selection, prioritization, and control of an organization's projects and programs to deliver its chosen strategy.

• A portfolio manager's role is to choose projects and programs that align with the organization's strategy and deliver the required capabilities within specified parameters.

• The concept of portfolio management draws on the financial sense of creating a diversified investment portfolio to manage risk and optimize performance.