A portfolio

A portfolio was described earlier as a list of projects. An organisation may have one or many portfolios characterised by a common budget or a common department.

The purpose of creating a portfolio of projects is to increase the likelihood that they will succeed and to reduce the risks of failure arising from undertaking them in a complex and volatile environment. So it is better to define a portfolio as a group of projects gathered into a governable unit to facilitate their effective co-ordination and success.

Unlike a project and a programme, it is likely that the portfolio will never end. As projects are completed new ones take their place, so when judging the success of a portfolio that has no fixed outcome it is necessary to look for a steady stream of signals that:

e projects are being delivered on time; e projects are being delivered on budget; e projects are being delivered to specification; e projects are enabling business benefits to be realised; e the plan is regularly updated and approved by the business sponsors;

e the portfolio is aligned to the business plan; e the portfolio frequently contributes to the achievement of business objectives.

These benchmarks apply to projects that fall within a common budget or department. It is possible to conceive a portfolio of projects specifically pulled together to deliver a particular business objective. In other words, a greater degree of intelligence has been applied to the creation of this kind of portfolio because it has an end target in mind. This is a programme.

Better Business Budget Planning

Better Business Budget Planning

What Is The First Essential Step To Be Taken Before Starting Your Own Business? Enter Effective Business Budget Planning Learn All The Crucial Steps Necessary To Plan Your Budget For A Successful Business Career Today! Being The Next Big Entrepreneur Of The Century Has Never Been So Possible, download To Discover All The Secrets!

Get My Free Ebook

Post a comment