To be successful, organizations must evolve meaning they need to improve how they run their business
on a daily basis and they need to adapt to emerging demands and expectations. Portfolio management
helps organizations make decisions about implementing the right changes to the current business;
those changes are delivered via projects and programmes. Portfolio management provides a 'helicopter
view' of all change activities - both those in planning and those in delivery. It includes providing
a clear overview about what is in the portfolio, what it is costing, what risks are faced, what
progress is being made, and what the impact is on the strategic objectives of the organization.
Individuals and organizations are much more cautious with their investments
these days. Can we afford this? Can we take the risk? Should we be doing this? Are all questions
being asked of change initiatives (projects and programmes)? It sounds as a logical sequence of
questions that a company should ask before funding a project, however often these questions are not
sufficiently investigated. With portfolio management two fundamental questions are investigated:
Are we sure this investment is right for us?
How will it contribute to our strategic objectives?
There are a number of portfolio management practices developed, of which Management of Portfolios
(MoP®) is one of them. This framework is developed by the Best Management Practice which also
developed the Prince2® project management practice. We are convinced that MoP® will become the new
global de facto standard for project portfolio management.
Investment in project portfolio management is about investing in the right change initiatives and in
implementing them correctly. MoP® achieves this by ensuring that:
The programmes and projects undertaken are prioritized in terms of
their contribution to the organization’s strategic objectives and overall level of risk
Programmes and projects are managed consistently to ensure efficient and effective delivery
Benefits realization is maximized to provide the greatest return (in terms of strategic
contribution and efficiency savings) from the investment made.
Portfolio management can be used effectively within specific directorates of
the organization - for example, the 'IT portfolio'. However, the greatest success is realized when
management boards use portfolio management to deliver the organization's corporate change portfolio
as a whole. A corporate approach is the only approach to optimize the contribution of the portfolio
to the strategic objectives of the organization.
About Eric Oschatz
Eric has extensive experience in implementing project portfolio management in organizations and owns
his own consulting firm. He is the founding father of bizztracker, which is a project portfolio
management application supporting organizations in capturing all change initiatives, prioritizing
and balancing them in order to facilitate the decision-making by the management board about which
projects to include in the company’s portfolio.