Standard_for_Portfolio_Management_EN
THE STANDARD FOR PORTFOLIO MANAGEMENT
“While project management and program management have traditionally focused on ‘doing work right’, portfolio management is concerned with ‘doing the right work’”
Robert LaRoche, PMP
Directeur conseil, CGI
1
Contents of the Standard
Section I –The Portfolio Management Framework Chapter 1 –Introduction
-Purpose of the the Standard for Portfolio Management
-What is a Portfolio
-What is Portfolio Management
-The link with Organizational Strategy, Governance and
Operations Management
-The link with Program and Project Management
-The role of Portfolio Manager
-Portfolio Management Metrics
-Portfolio Management reporting
Chapter 2 –Portfolio Management Process and Organization -Portfolio Management Process Overview
-Portfolio Stakeholder Roles and Responsibilities
-Organizational Influence
Contents of the Standard
Section II –The Standard For Portfolio Management Chapter 3 –Portfolio Management Processes
-Portfolio Management Process Groups
-Portfolio Management Process Interactions
Aligning Process Group
Monitoring and Controlling Process Group
Section III –Appendices
A –Future information
B –Initial Development
C –Contributors and reviewers
D –Project Portfolio Management Tools and Techniques
-Introduction
-Overview of Tools and Techniques for Project Portfolio
Management
-Tools and Techniques to use for Each of the Portfolio
Management Sub-processes
Aligning Process Group
Monitoring Process Group
The Portfolio Management Framework
Section I –Chapter 1 -Introduction
Purpose of The Standard for Portfolio Management “…To describe generally accepted processes associated with
portfolio management.”
What is a Portfolio?
“a collection of projects and/or programs and other work that are grouped together to facilitate the effective management of that work to meet strategic business objectives.”
Section I –Chapter 1 -Introduction
What is Portfolio Management?
“...the centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing and
controlling projects, programs and other related work, to achieve specific strategic business objectives.”
Section I –Chapter 1 -Introduction
The Link With Organizational Strategy
“From the vision and mission, the organizational strategy and objectives are developed. Execution of the strategy requires the
application of strategic management processes, systems, and tools to define and develop:
-High level operations
planning and
management
-Portfolio planning and
management.”
Section I –Chapter 1 -Introduction
The Link Between Portfolio Management and Organizational Governance
“Governance is the act of creating and using a framework to align, organize and execute activities in a collectively
coherent and intelligible manner in order to meet goals.”
Section I –Chapter 1 -Introduction
The Link Between Portfolio Management and Operations Management
“Portfolio management interacts with and impacts a number of organizational functions…who can be stakeholders…sponsors…or
customers of various components”
Finance
-Financial information, Financial goals, Budget, Benefits Marketing
-Market analysis, Benchmarking, Opportunities, Regulatory
Obligations, Value, Customers, etc.
Corporate Communications
-Strategic communication, Stakeholder information, progress reports,
Project coordination, etc.
Human resource Management
-Enterprise resource planning, Skills management, Capacity
management, Change management, etc.
Section I –Chapter 1 -Introduction
Role of the Portfolio Manager
“…typically a senior manager or senior
management team, responsible for monitoring and managing assigned portfolios in the following ways”
-Playing a key role in project prioritization…
-Providing key stakeholders with timely assessment…
-Measuring the value to the organization…
-Ensuring timely and consistent communication…
-Participating in program and project reviews…
Section I –Chapter 2 –Process and Organization Portfolio Management Process Overview
Links with strategy
-“…includes processes to collect, identify, categorize,
evaluate, select, prioritize, balance, authorize and
review components within the portfolio to evaluate how
well they are performing in relation to the key indicators
and the strategic plan.”
Components will be reviewed and validated in relation to Alignment with corporate strategy
Viability of the component based on key indicators
Value
Relationship with other components
Available resources
Additions and deletions of components
Section I –Chapter 2 –Process and Organization Portfolio Stakeholder Roles and Responsibilities
“…Those who are actively involved with the portfolio or who have interest that may be positively or negatively affected by the portfolio management”
Executive Managers
Portfolio Review Board
Portfolio Managers
Sponsors
Program Managers
Project Managers
Program/Project Management Office
Project Team
Operations Management
Functional Managers
Finance Managers
Customers
Vendors/Business Partners
The Standard for Portfolio Management
Section II –Chapter 3 –Process
“Portfolio management is a business process...”
“…identifies those portfolio management processes that have been recognized as generally accepted
practices for most project portfolios most of the
time.”
“These processes apply globally and across
industry groups.”
“This standard presents and describes the required elements for portfolio management…it does not
intend to explain how to implement and utilize
portfolio management…”
Section II –Chapter 3 –Process
Portfolio Management Process Groups
Aligning Process Group
-Determines how components will be identified, categorized,
evaluated, selected, prioritized and authorized
Monitoring and Controlling Process Group
-Reviews performance indicators periodically for alignment
with strategic objectives
Section II –Chapter 3 –Process
Portfolio Management Process Interactions
Section II –Chapter 3 –Process
Portfolio Management Process Interactions
Aligning Process Group
-Identification: Organized list of acceptable components.
-Categorization: Group components into relevant business groups.
-Evaluation: Evaluate components to compare them.
-Selection: Select the best components by category.
-Prioritization: Rank components by importance in value/risk and time.
-Portfolio balancing: Develop the portfolio component mix with the
greatest potential to support the organization’s strategic objectives.
-Authorization: Formally allocate financial and human resources.
Monitoring and Controlling Process Group
-Portfolio reporting and review: Review value and performance
indicators.
-Strategic change: Realign the portfolio if needed.
Appendices –Tools and Techniques
Section III –Appendices –Tools and techniques
Identification
Define a common set of key descriptors
-Component identification, number, name, description, etc.
-Class of component
-Strategic objectives supported
-Quantitative benefits
-Qualitative benefits
-Resources required
-Customer
-Sponsor
-Stakeholders
-Timescale
-Deliverables
-Risks
-Etc.
Section III –Appendices –Tools and techniques
Categorization
Aligned with the strategic objectives
-Revenues
-Increased profitability
-Risk reduction
-Efficiency improvement
-Legal obligation
-Market share increase
-Process improvement
-Continuous improvement
-Business imperative