Portfolio management is the process of running a group of projects or programmes in a way that helps the organisation reach its goals. It means choosing, ranking, and managing projects or programmes as a portfolio to make the best use of resources, reduce risks, and increase the portfolio’s value.
In portfolio management, a portfolio is a group of projects or programmes that have similar goals, needs for resources, or strategic directions. The portfolio may include projects or programmes from different departments or business units within an organisation, or it may include projects or programmes from outside vendors or partners.
The main goal of portfolio management is to make sure that the projects or programmes in the portfolio fit in with the organization’s overall goals and strategy. This means figuring out how each project or programme might affect the organization’s goals and putting them in order of importance based on their strategic value and resource needs.
Managing a portfolio also means making sure that the risks and rewards are balanced across the portfolio. This means figuring out how risky the portfolio as a whole is and taking steps to reduce risks through diversification or other methods. It also involves finding ways for the portfolio as a whole to work together or save money.
Portfolio management usually involves a few important tasks, such as:
Portfolio planning involves figuring out what the goals and objectives of the portfolio are, finding possible projects or programmes, and figuring out how they fit into the portfolio’s overall strategy and what resources they need.
Portfolio analysis means figuring out how each project or programme might affect the whole portfolio and putting them in order of importance based on their strategic value and resource needs.
Portfolio optimization means balancing the risks and rewards of the whole portfolio and looking for ways to save money or work together.
Monitoring the portfolio means keeping track of how well it is doing over time and making changes as needed to make sure it stays in line with the organization’s goals and objectives.
Overall, portfolio management is an important strategic process that helps organizations manage their resources well and reach their goals in a coordinated way. It is one of the most important parts of managing projects and programmes at the organizational level.
Usage
It is used in portfolio management
