Portfolio Management Overview Flashcards
Regarding organizational maturity, What are major obstacles to portfolio management success
- Lack of organizational support for the concept and approach of portfolio management
- Not recognizing and formalizing the organization’s ability to handle change
Portfolio implementation principles regarding Organizational change
- Each portfolio component should consistently apply similar techniques to facilitate and handle organizational change
- The extent of organizational change that the organization is able to accept may be one of the factors used to determine the appropriate mix of portfolio components
Differences with Program/Project Management in Identifying Portfolio Stakeholders
Certain stakeholders may be specifically identified according to the goals and risk management strategies for the portfolio
PMO functions
- Managing portfolio components, supporting component proposals and evaluations, facilitating prioritization and authorization, and allocating resources in alignment with organizational strategy and objectives
- Developing and maintaining portfolio, program, and project frameworks and methodologies
- Providing project and program progress information and metric reporting to the portfolio governance process
- Negotiating and coordinating resources between various portfolio components or between portfolios
- Assisting with risk identification and risk strategy development and communicating risks and issues related to portfolio components
- Coordinating communication across portfolio components
- Developing and improving templates and checklists
- Monitoring compliance to policies
- Providing knowledge management including lessons learned
- Developing and conducting training and mentoring human resources in portfolio management skills, tools, and techniques
Aspects that the portfolio manager monitors, evaluates, and validates portfolio components
- Alignment with organizational strategy and objectives,
- Viability as part of the portfolio, based on key performance indicators and an acceptable level of risk,
- Value/benefit and relationship to other portfolio components,
- Available resources and portfolio priorities
- Additions and deletions of portfolio components
- Review the portfolio for balance (short-term versus long-term risk versus return)
- Negotiate agreement(s) with relevant strategic stakeholders
- Sequence the portfolio components to account for portfolio component interdependencies, balancing of constrained resources, and other organizational considerations
Defining Process Group
4.1 Develop Portfolio Strategic Plan
4.2 Develop Portfolio Charter
4.3 Define Portfolio Roadmap
5.1 Develop Portfolio Management Plan
5.2 Define Portfolio
6.1 Develop Portfolio Performance Management Plan
7.1 Develop Portfolio Communication Management Plan
8.1 Develop Portfolio Risk Management Plan
Aligning Process Group
4.4 Manage Strategic Change
5.3 Optimize Portfolio
6.2 Manage Supply and Demand
6.3 Manage Portfolio Value
7.2 Manage Portfolio Information
8.2 Manage Portfolio Risks
Authorizing and Controlling Process Group
5.4 Authorize Portfolio
5.5 Provide Portfolio Oversight
When is the Defining Process Group most active?
At the time the organization identifies and updates its strategic
goals, near-term budgets, and plans.
* annual budgeting time
* business review meetings
* unscheduled changes in the organization (e.g., mergers, reorganization, changes in enterprise environment factors, etc.)
When is the Aligning Process Group is most active?
After the portfolio organization has defined and developed its strategic goals, near-term budgets, and plans (to manage ongoing portfolio activities)
When is the Authorizing and Controlling Process Group is most active?
Ongoing function of the organization’s governing body.
Importance of Establishing a PMO
- Setting up a PMO can highlight the need for a structured and formal governance process if none existed before.
- This governance body is responsible for establishing expectations and deriving benefits from portfolio management processes.
- The PMO ensures that the portfolio management processes align with the organization’s strategic objectives.
Categories of Inputs/Outputs
- Guiding: Provides the strategy or high-level direction for the portfolio
- Supporting: Provide processes, tools, and capabilities to facilitate the operation of the portfolio management processes
- Planning: Provides specific direction as to how these processes are executed
- Reporting: Provides information that is used both within the portfolio team and with stakeholders
Guiding Input/Output
- Organizational strategy and objectives
- Inventory of work
- Portfolio (updates)
- Portfolio roadmap (updates)
- Portfolio charter(updates)
Supporting Input/Output
- Enterprise environmental factors
- Organizational process assets (updates)
- Portfolio process assets (updates)
Planning Input/Output
- Portfolio strategic plan (updates)
- Portfolio management plan (updates)
Reporting Input/Output
- Portfolio reports
- Portfolio component reports
Categories of T&T
- Analyzing: Uses tools and techniques to analyze process inputs, resulting in additional information that becomes the process outputs
- Selection: Provides methods to facilitate selection of the appropriate portfolio components
- Meeting: Provides mechanisms to share information and make decisions in a group interaction style
- Information: Provide methods to obtain or share information relevant to the portfolio
Analyzing Tools/Techniques
- Strategic alignment analysis
- Prioritization analysis
- Scenario analysis
- Capability and capacity analysis
- Interdependency analysis
- Cost/benefit analysis
- Stakeholder analysis
- Readiness assessment
- Portfolio organizational structure analysis
- Graphical analytical methods
- Quantitative and qualitative analyses
- Value scoring and measurement analysis
- Benefit realization analysis
- Communication Requirements analysis
- Gap analysis
Selecting Tools/Techniques
- Portfolio component inventory
- Portfolio component categorization techniques
- Weighted ranking and scoring techniques
- Portfolio authorization
Meeting Tools/Techniques
Portfolio review meetings
Informing Tools/Techniques
- Communication methods
- Elicitation techniques
- Portfolio management information system
- Integration of portfolio management plans
Portfolio Strategic Management processes
4.1 Develop Portfolio Strategic Plan
4.2 Develop Portfolio Charter
4.3 Define Portfolio Roadmap
4.4 Manage Strategic Change
Portfolio Governance Management processes
5.1 Develop Portfolio Management Plan
5.2 Define Portfolio
5.3 Optimize Portfolio
5.4 Authorize Portfolio
5.5 Provide Portfolio Oversight
Portfolio Performance Management processes
6.1 Develop Portfolio Performance Management Plan
6.2 Manage Supply and Demand
6.3 Manage Portfolio Value
Portfolio Communication Management processes
7.1 Develop Portfolio Communication Management Plan
7.2 Manage Portfolio Information
Portfolio Risk Management processes
8.1 Develop Portfolio Risk Management Plan
8.2 Manage Portfolio Risks
Portfolio Management Information System is T&T of which processes?
5.4 Authorize Portfolio
6.1 Develop Portfolio Performance Management Plan
7.2 Manage Portfolio Information
Weighted Ranking and Scoring Techniques is T&T of which processes?
4.1 Develop Portfolio Strategic Plan (as part of Priorization Analysis)
5.2 Define Portfolio
5.3 Optimize Portfolio
8.1 Develop Portfolio Risk Management Plan
8.2 Manage Portfolio Risks
Scenario Analysis is T&T of which processes?
4.2 Develop Portfolio Charter
5.3 Optimize Portfolio (as part of 5.3.2.3 Quantitative and Qualitative Analysis)
6.2 Manage Supply and Demand
Quantitative and Qualitative Analysis are T&T of which processes?
5.3 Optimize Portfolio
6.2 Manage Supply and Demand
8.1 Develop Portfolio Risk Management Plan
8.2 Manage Portfolio Risks
Elicitation Techniques are T&T of which processes?
5.1 Develop Portfolio Management Plan (management requirements)
5.5 Provide Portfolio Oversight (issues and risks)
6.1 Develop Portfolio Performance Management Plan (measures)
6.3 Manage Portfolio Value (criteria & benefit/outcome weights)
7.1 Develop Portfolio Communication Management Plan (information needs, plan feedback)
7.2 Manage Portfolio Information (data, information)
Capability and capacity analysis are T&T of which processes? *
4.2 Develop Portfolio Charter
5.3 Optimize Portfolio
6.1 Develop Portfolio Performance Management Plan
6.2 Manage Supply and Demand
Which process results to Portfolio Roadmap Updates?
4.3 Define Portfolio Roadmap
4.4 Manage Strategic Change
5.2 Define Portfolio
5.3 Optimize Portfolio
Which process results to Portfolio Updates?
4.1 Develop Portfolio Strategic Plan
4.4 Manage Strategic Change
5.2 Define Portfolio
5.3 Optimize Portfolio
5.4 Authorize Portfolio
5.5 Provide Portfolio Oversight
Which process results to Portfolio Strategic Plan Updates?
4.1 Develop Portfolio Strategic Plan
4.2 Develop Portfolio Charter
4.4 Manage Strategic Change
5.1 Develop Portfolio Management Plan