Portfolios are collections of programs and projects that support a specific business goal or objective. Let's say our company is in the construction business. Our organization has several business units: retail, single-family residential, and multifamily residential. Collectively, the projects within all of these business units make up the portfolio. The program I talked about in the preceding section (the collection of projects associated with building the new shopping mall) is a program within our portfolio. Other programs and projects could be within this portfolio as well. Programs and projects within a portfolio are not necessarily related to one another in a direct way. However, the overall objective of any program or project in this portfolio is to meet the strategic objectives of the portfolio, which in turn should meet the objectives of the department and ultimately the business unit or corporation.

Portfolio management encompasses managing the collections of programs, projects, other work, and sometimes other portfolios. This includes weighing the value of each project, or potential project, against the business's strategic objectives. It also concerns monitoring active projects for adherence to objectives, balancing the portfolio among the other investments of the organization, and assuring the efficient use of resources. Portfolio management is generally performed by a senior manager who has significant experience in both project and program management.

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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