Portfolio management, which can be regarded as a subset of corporate management, is very similar to programme management, but the projects in the programme manager's portfolio are not necessarily related other than being performed by the same organization. In a large organization a portfolio manager may be in charge of several programme managers, while in a smaller company, he may be in direct control of a number of project managers.
Companies do not have unlimited resources so that the portfolio manager has to prioritize the deployment of these resources for competing projects, each of which has to be assessed in terms of:
(a) Profitability and cost/benefit
(b) Return on investment
(f) Importance of the client
(g) Company strategy and objectives.
Portfolio management therefore involves the identification of these project attributes and the subsequent analysis, prioritization, monitoring and reporting of progress of each project, or in the case of large organizations, each programme. As each project develops, different pressures and resource requirements will occur, often as a result of contractual changes or the need to rectify errors or omissions. Unforeseen environmental issues may require immediate remedial action to comply with health and safety requirements and there is always the danger of unexpected resignations of key members of one of the project teams.
A portfolio manager must therefore possess the ability to reassign resources, both human and material (such as office equipment, construction plant and bulk materials), in an effective and economical manner, often in emergency or other stressful situations always taking into account the cost/benefit calculations and the overall strategic objectives of the organization.
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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.