Portfolio Management Processes 3rd ed Flashcards
Knowledge Areas (5)
Portfolio strategic Management
Portfolio Governance Management
Portfolio Performance Management
Portfolio Communication Management
Portfolio Risk Management
Process Groups (3)
Defining Process Group
Alligning Process Group
Authorizing &Controlling Process Group
Processes of the portfolio strategic management Knowledge Area (4)
Defining Process Group:
- Develop Strategic Plan
- Develop Portfolio Charter
- Develop Portfolio Roadmap
Alligning Process Group:
- Manage Strategic Change
Processes of the portfolio governance management Knowledge Area (5)
Defining Process Group:
- Develop Portfolio Magagement Plan
- Develop Portfolio
Allign Porcess Group:
- Optimize Portfolio
Authorizing & Controlling Process Group:
- Authorize Portfolio
- Provide Portfolio Oversight
Processes of the Portfolio Performance Management Knowledge Area (3)
Defining Process Group:
- Develop Portfolio Performance Management Plan
Alligning Process Group:
- Manage Supply and Demand
- Manage Portfolio Value
Inputs for the develop Portfolio strategic plan process (5)
- Organizational strategy &objectives
- Inventory of work
- portfolio process assets
- organizational process assets
- enterprise environmental factors
Tools & Techniques of the develop strategic plan process (3)
- Portfolio Component Inventory
- strategic Allignment analysis
- priorization Analysis (ROI, Investment Risks, dependencies)
Components of the Portfolio Strategic Plan (5+x)
- Ziele & Bereiche
Portfolio vision & objectives
organizational structure & organizational areas
portfolio prioritization model, high level prioritization, decision- making framework
Measurable goals & guidance - Finanzen: Rückfluss
portfolio benefits, performance results, value expected
allocation of funds to different types of initiatives (portfolios, subportfolios) and how they contribute to the organizational strategy & objectives - Ressourcenbedarf
ressources required by type and quantity - Kommunikation
communication requirements to ensure successful change and implementation - Risiken, Annahmen, Abhängigkeiten
key assumptions, constraints, dependencies, risks
risk tolerance
Risk tolerance: the degree of risk that an investor is willing to endure given the volatility in the value of an investment.
Components of the portfolio Charter (5+x)
- Ziele
Objectives
high-level scope
critical success criteria
portfolio justification
high-level timeline - Finanzen/ Nutzen
benefits - Ressourcenbedarf
resources (Capacity & Capability) - Stakeholder insb. Rollen
portfolio sponsor(s)
portfolio management roles &responsibilities
key & major stakeholders
stakeholder expectations & requirements
communication requirements - Risiken
assumptions, constraints, dependencies, and risks.
Inputs for the develop portfolio charter Process (3)
- Portfolio Strategic Plan
- Portfolio Process Assets
- Enterprise environmental factors
Tools & Techniques to develop the portfolio Charter (2)
- Scenario Analysis
- Capacity & Capability Analysis
Inputs to Develop the portfolio Roadmap (3)
- Portfolio strategic plan
- portfolio charter
- portfolio
Tools & Techniques to develop the Portfolio Roadmap (3)
- Interdependency analysis
- cost-benefit- analysis (NPV, discouted cash flow, IRR, Cost benefit ratio, payback, options analysis)
- prioritization analysis
Inputs for the manage strategic change process (6)
- Portfolio strategic plan
- portfolio charter
- portfolio
- portfolio roadmap
- portfolio management plan
- portfolio process assets
Tools & techniques to manage strategic change (3)
- stakeholder analysis
- gap analysis
- readiness assesment
Inputs for the develop portfolio management plan process (6)
- portfolio strategic plan
- portfolio charter
- portfolio roadmap
portfolio process assets - organizational process assets
- enterprise environmental factors
Tools & Techniques for the develop portfolio management plan process (3)
- Elicitation techniques
- portfolio organizational structure analysis
- integration of portfolio management plans (subsidiary Plans: Risk, communications, performance mngmnt)
Content of Elicitation techniques (3)
- facilitaiton techniques (Focus groups & Brainstorming)
- survey techniques (interview & Observation)
- Collaboration techniques (majority vote)
Content of the portfolio management plan (12)
- portfolio justification, high level scope and timelines
- governance model
- structure of portfolio oversight (who?)
- Process of managing strategic change
- process of change control and Management
- methods of balancing Portfolio and managing Dependencies
- Performance management planning
- Communication planning
- Risk management planning
- Procurement planning
- Managing Compliance
- Prioritization model (solid and more detailed than in the portfolio strategic plan)
eg balanced scorecard, ROI, Investment Risk and dependencies
Inputs for the define portfolio process (6)
- portfolio strategic plan
- portfolio charter
- portfolio
- portfolio roadmap
- portfolio management plan
- portfolio process assets
Tools & Techniques for the define portfolio process (3)
- portfolio component inventory (key descriptors& preliminary comparison of components against the portfolio definition)
- portfolio component categorization techniques (categories: increased profitability, risk reduction,..)
- weighted ranking & scoring techniques (single criterion, multiple criteria, scoring models)
Inputs for the optimize portfolio process (5)
- portfolio
- portfolio roadmap
- portfolio management plan
- portfolio reports
- portfolio process assets
Tools & techniques for the optimize portfolio process (4)
- capability & capacity analysis (human, finacial, assets)
- weighted ranking & scoring techniques (single criterion, multiple criteria, scoring models)
- quantitative & qualitative analysis (Cost- benefits- analysis, scenario- analysis, probability- analysis, SWOT- analysis, Market/ Competitor analysis, Business- value- analysis)
- graphical analytical methods (risk vs. return charts, histograms, pie charts)
Inputs for the authorize portfolio Process (3)
- Portfolio
- portfolio management plan
- portfolio reports
Tools & techniques for the authorize portfolio process (2)
- portfolio authorization process
- portfolio management information system (PIMS)
Inputs for the provide portfolio oversight process (5)
- Portfolio
- portfolio roadmap
- portfolio management plan
- portfolio reports
- portfolio process assets
Tools & techniques for the provide portfolio oversight process (2)
- portfolio review meetings
- elicitation techniques (facilitation techniques (focus- groups & brainstorming) , survey- technique (interview &observation), cooparation- techniques (majority votes)
Outputs of the develop strategic plan process (2)
- Portfolio strategic plan
- portfolio
Outputs of the develop portfolio charter process (3)
- Portfolio strategic plan updates
- Portfolio Charter
- portfolio process assets updates
outputs of the develop portfolio roadmap process (1)
- Portfolio Roadmap
Outputs of the manage strategic change process (6)
- Portfolio Strategic Plan Updates
- Portfolio Updates
- Portfolio Charter Updates
- Portfolio Roadmap Updates
- Portfolio Management Plan updates
- Portfolio process assets updates
Outputs of the develop portfolio Management Plan process (3)
- Portfolio Strategic Plan updates
- Portfolio Management Plan
- Portfolio Process assets updates
Outputs of the define portfolio Process (3)
- Portfolio updates
- Portfolio Roadmap updates
- Portfolio management plan updates
Outputs of the optimize portfolio process (5)
- Portfolio Roadmap updates
- Portfolio Mangement Plan updates
- Portfolio Updates
- Portfolio Reports
- Portfolio Process assets updates
Outputs of the authorize Portfolio Process (4)
- Portfolio Updates
- Portfolio Management Plan updates
- Portfolio Reports
- Portfolio Process Assets Updates
Outputs of the provide portfolio oversight process (4)
- Portfolio Updates
- Portfolio Management Plan updates
- Portfolio Reports
- Portfolio Process Assets Updates
(selbe wie bei “Authorize Portfolio Process”)
Inputs of the develop Portfolio Performance management plan process (4)
- Portfolio Management plan
- Portfolio Process assets
- Organizational process assets
- Enterprise environmental factors
Tools of the Develop Portfolio performance management plan process (3)
- Elicitation techniques (faciliation, surveys, cooperation techniques)
- PIMS
- Capacity &capability analysis
Outputs of the Develop performance management plan process (2)
- Portfolio Management Plan updates
- Portfolio Process assets updates
Inputs for the manage supply & Demand Process (3)
- Portfolio
- Portfolio Management Plan
- Portfolio Reports
Tools for the manage supply & demand Process (3)
- scenario analysis
- qualitative & quantitative analysis (resource levelling eg sequencing technique, dependency analysis, trend analysis)
- Capacity & Capability Analysis
outputs of the manage supply & Demand process (3)
- Portfolio management plan updates
- portfolio updates
- reports
(Updates auf die Inputs des Prozesses)
Inputs of the manage portfolio value process (3)
- portfolio Roadmap
- Portfolio management plan
- Portfolio Reports
Tools of the manage portfolio value process (3)
- Elicitation techniques (fasciliation, survey, cooperation, SWOT)
- value scoring & measurement analysis (scoring- models eg spiderweb), cost -benefits analysis eg NPV & ROI, comparative advantage analysis eg what- if - analysis, progress measurement techniques eg. earned value, efficient frontier)
- benefits realization analysis (results chain,…)
Outputs of the manage portfolio value process (3)
-Portfolio management plan updates
- Portfolio Reports
- Portfolio process assets updates
Inputs of the develop communication management plan (5)
- portfolio
- roadmap
- portfolio management plan
- portfolio reports
- portfolio process assets
Tools of the develop portfolio communication management Plan process (3)
- Stakeholder analysis (graphic: Stakeholder communication strategy)
- elicitation techniques (eg lessons learned)
- communication requirements analysis (frequency, recipient, communication vehicles)
Outputs of the develop portfolio communication management plan process (2)
- Portfolio management plan updates
- Portfolio process assets updates
Inputs of the manage portfolio information process (5)
- portfolio
- portfolio management plan
- Portfolio reports
- portfolio component reports
- Portfolio Process assets
Tools & Techniques of the manage portfolio information process (4)
- elicitation techniques
- PIMS
- communication requirements analysis
- communication methods (visual representation of data)
outputs of the manage portfolio communication process (3)
- portfolio management plan updates
- portfolio reports
- portfolio process assets updates
Inputs of the develop portfolio risk management plan Process (4)
- portfolio management plan
- portfolio process assets
- organizational process assets
- enterprise environmental factors
Tools of the develop portfolio risk management plan process (3)
- weighted ranking & scoring techniques (single criterion, multiple criteria, scoring models)
- graphical analytical methods (probability impact matrix)
- qualitative & quantitative methods (status analysis, trend analysis, rebalancing methods, investment choice tools (market variability, trade- off- analysis,…)
Output of the develop portfolio risk management Plan process (3)
- portfolio management plan updates
- portfolio process assets updates
- organizational process assets updates
Inputs for the manage portfolio risks process (6)
- portfolio
- portfolio management plan
- Portfolio reports
- portfolio process assets
- organizational process assets
- enterprise environmental factors
Tools for the manage portfolio risks process (2)
- weighted ranking & scoring techniques (single criterion, multiple criteria, scoring models)
- quantitative &qualitative analysis (sensitivity analysis, trade off analysis, simulation eg what- if scenarios, variance- and trend analysis, NPV, ROI, IRR, payback or payback period)
outputs of the manage portfolio risks process (4)
- portfolio management plan updates
- Portfolio reports
- portfolio process assets updates
- organizational process assets updates
Def Finite capacity planning and reporting
Given the organizational objectives, this planning and reporting tool indicates resource bottlenecks and under and over allocations and is based on priorities that were agreed upon through governance oversight; and performs resource leveling across portfolio components.
Def ressource Levelling (Sequencing technique)
- strives to smooth performance levels by managing bottleneck areas and communicating delayed schedules if necessary.
- Recommended changes, requests for more resources, and updates are communicated to the governing body when resource leveling does not produce sufficient results.
High- level scope of the portfolio Charter (4)
provides the portfolio structure:
- hierarchy
- organization of portfolios, subportfolios, programs, projects and operations
- forecast how & when the portfolio will deliver value to the organization
- formally authorizes the portfolio manager to apply resources to the portfolio component
High- level scope of the portfolio management plan (5)
- portfolio justification, high level scope and timelines
- establishes how a portfolio is defined, organized, optimized, and controlled
- defines how and when the portfolio resources will be planned, balanced, and allocated to the portfolio components
- is critical in closing the gap between organizational strategy and the fulfillment of that strategy.
- a place to document updates including new measures, reports and processes for effective ongoing management of the portfolio value
High- level steps to define a Portfolio in the define portfolio process (7)
identifying,
categorizing,
scoring,
ranking (evaluating)
prioritizing,
selecting,
allocating of ressources to portfolio components
What is the difference between the Inventory of Work and the Portfolio component inventory?
Inventory of Work:
A list of active work that may be potential portfolio components
Portfolio Component Inventory:
Tool used in the define portfolio process; Preliminary Comparison of all inventoried Portfolio Components against the portfolio definition
purpose of Capacity & Capability analysis in optimizing portfolio
enables the organization to achieve maximum portfolio benefits given current resource constraints
where are agreements from oversight Meeting Minutes recorded ?
in the portfolio process assets, not in the portfolio reports. Meeting minutes are a part of the portfolio process assets
Components of the capacity & capability analysis in the develop portfolio performance management plan process (5)
- resource types
- resource schedules (histograms)
- what - if - scenarios
- finite capacity & capability planning & reporting
- resource management tools
For which goal is the capacity & capability analysis in the develop portfolio performance management plan used?
to understand the human, financial, and asset capacity and capability of the organization in order to select, fund, and execute portfolio components.
Components of the portfolio performance management plan (7)
- Introduction (goals, objectives, strategies, and tactics);
- Performance roles and responsibilities (who will measure and how often);
- Performance measures, what will be measured, which can include metrics on scope, cost, resources, and benefits);
- Performance reporting (what tools will be used; dissemination of reports, scorecards, and dashboards; and who will be responsible and when);
- Resource optimization (utilization, balancing, and smoothing resource demand against capacity)
- Benefits realization (how will realized benefits be tracked and compared to plans; how will value be calculated).
What is the difference between ressource Levelling (Sequencing technique) and finite capacity planning?
resource leveling focuses on balancing resource demand and availability by adjusting the project schedule, while finite capacity planning focuses on allocating resources based on their specific capacity limits and constraints. Both techniques aim to optimize resource utilization and prevent resource-related issues but employ different approaches to achieve their objectives.
Communication strategy for stakeholders with high Influence (2)
- low Interest: active communication
- high Interest: active communication & engagement
How can risk management processes be mapped to the process groups? (3)
Risk Assessment - Defining
Risk planning - aligning
Risk Response - authorize & control
Content of the risk register (7) and where can the risk register be found?
- list of identified risks (incl. positive risks)
- causes & assumptions for identified risks
- risk owner (ccountable for effective management of the corresponding risk)
- list of potential responses
- Probability Impact Assessment
- risk triggers
- updated risk categories
Risk register is part of the portfolio process assets
what does the risk watch list contain?
risks with obviously low ratings of probability and impact that are not retained for additional work
Content of the portfolio risk management plan (5)
- methodology (approaches, tools, data sources)
- roles & responsibilities (owners, lead, support, team members & responsibilities)
- risk measures (risk categories and criteria for probability and impact,risk tolerances)
- frequency (of the risk management processes)
- risk categories
Stages to manage portfolio risks (4)
1) risks are identified,
(2) risks are analyzed,
(3) risk responses are developed, and
(4) risks are monitored and controlled throughout the Manage Portfolio Risk process
what does the distance between the best case scenario and the worst case scenario concerning the level of risk indicate?
when the distance is closer, the person is risk averse; if the distance is higher, the person is a risk taker
def trade-off analysis
determines the effect of changing one or more factors of the portfolio
def market-payoff variability
focuses on pricing and sales forecasts and depends on a number of marketing factors, whereby the effects of changing one or more of these factors may affect portfolio itself or the portfolio strategy
def Budget variability
determines the effect of changing the portfolio
def performance variability
analyzes the performance of the portfolio;
def market requirement variability
analyzes changes in market requirements in relation to the portfolio
Content of the burnup and burndown charts
The Burn-up and Burn-down charts show the execution of the portfolio against the overall budget and time. The Burn-up chart especially shows how much work has been completed and the total amount of work
at which level are Performance measures and targets (metrics) set?
at the portfolio component level and then rolled up to the portfolio level to determine overall portfolio impact.
High level purpose of the portfolio strategic plan
Articulates the options, preferences, and factors that will be considered in a specific portfolio
examples of components of portfolio reports (4)
- portfolio status or progress reports
- performance reports
- portfolio risk reports (incl. issues in the issue register)
- summary reports from the overall governance of portfolio components (incl. Governance decisions)
examples of components of portfolio process assets (10)
- Portfolio manager roles and responsibilities,
- Status reports,
- Portfolio risk profile or risk assessment with key risks and issues,
- Portfolio forecasts with variance to plan,
- Governance decisions,
- Funding decisions,
- Resource decisions,
- Portfolio value assessments,
- Delegations of responsibility for communication.
- meeting minutes
- risk register
Content of a stakeholder matrix (4)
- roles
- interests
- expectations
- groups
correct order for risk management activities (3)
- Risk planning (incl. risk identification)
- Risk assessment
- risk response
what do portfolios, programs and projects do concerning business value?
Portfolios optimize the pursuit of business value
Programs improve the generation of business value
Projects optimize the delivery of business value
