Portfolio management team

The portfolio management team oversees the wider portfolio of projects. As the portfolio progresses through the year, individual projects will be completed, new projects will be proposed and others will slip or vary in some way. The portfolio management team is ultimately responsible for the state of its portfolio, so the team must meet regularly to evaluate the portfolio's health and answer the question: Is the portfolio on track to deliver its commercial and strategic imperatives?

It is normal for a portfolio management team to meet every month, but also to have a process in place for dealing with exceptional matters at short notice. The regular meeting should have a standard agenda that takes into account the following:

e Prospects - where project outlines will have been submitted, suggesting a potential but as yet unproven opportunity. The portfolio management team must decide whether there is sufficient budget to fund the initiation stage in which the business case and project governance report would be developed. e Initiated projects - where newly completed business cases and project governance reports are considered to determine whether the project should continue into the delivery phase, and that the identified project steering group can adopt ownership. e Notifications - where red flags (signalling that the project is likely to breach a key parameter) have been raised. e Completions - where projects have closed but have not yet delivered any benefits. e Realisations - where benefits realisation reports have been submitted to determine the extent to which completed projects have delivered the intended benefits.

Reports from a project register should be used at these meetings so that the state of the portfolio is known at any time. Such a report might look the one in Table 9.1 overleaf, although there is no recognised standard. The essential data are as follows:

Table 9.1 Project register

Project

First project

Second project

Background

ID

1

2

Last assessment date

Jan 12th 06

Assessor

Pete Robbins

Maggie Jones

Project start date

Dec 10th05

Sep 10th 05

PSG

Sponsor

Brad Somemlle

Mark Knowles

Customer representative(s)

Kevin Quinn

Helen Smith

Developer representative(s)

Mark Johnson

Bupinda Patel

PM

Project manager

Will Stevens

Harry King

Time

Baseline end date

May 31st 06

Jun 10th 06

Forecast end date

May 31st 06

Sep 30th 06

Variance (weeks)

0

-16

Escalation conditions (weeks)

2

2

Within escalation conditions?

Yes

No

Cost

Baseline budget

$2,026,971

$101,923

Forecast budget

$2,026,971

$115,000

Variance

$0

-$13,077

Escalation conditions %

10

10

Within escalation conditions?

Yes

No

Benefits

Baseline benefits

$2,703,836

$200,101

Forecast benefits

$2,703,836

$200,101

Variance

$0

$0

Escalation conditions %

10

10

Within escalation conditions?

Yes

Yes

Business

Baseline profit

$676,865

$98,178

case

Forecast profit

$676,865

$85,101

Variance

$0

-$13,077

Escalation conditions %

10

10

Within escalation conditions?

Yes

No

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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