Portfolio Management Overview:


Portfolio management enables the business to ensure that the right projects are identified and executed based on the strategic intent of the organisation. Effective qualification enables the business to have a consistent process for evaluating ideas and ensures that money is spent on the right initiatives.


The PPM solution need to be able to perform the following functions:

·       Collect new initiatives/ideas

·       Qualify and approve ideas

·       Manage the portfolio

·       Strategic financial planning

·       Strategic resource management

The first function of portfolio management is to reflect the organisations strategic intent and direction. In order to achieve this, the function of portfolio management must be linked in some form or fashion to the organisation’s Mission, Vision and Strategic planning which dictates all further organisational actions. Management is responsible for creating the mission, vision and strategic plan and define the associated strategic objectives that the business needs to achieve.


Portfolio management achieves the interconnection between the organisations strategic intent and projects by sharing the allocation of goals and resources. The interaction is as follows:

·       Strategic intent determines the resources that would be allocated to the portfolio.

·       Strategic intent is mapped onto a set of projects.

·       Each project should correspond to a subset of the strategic intent, which it will deliver using the allocated resources.

·       Each project is defined by its contribution to the portfolio’s strategic intent.


After the organisations strategic intent is defined the business can link and evaluate identified opportunities against this structure.


Idea generation is the first step in the process where possible future projects are captured. This process is initiated by the recognition of an opportunity or idea for development. Once captured in the solution the progression of the entry from idea to project can be tracked and the organisation can apply a series of quality gate stages in the process that allow them to evaluate in a consistent manner if the idea is viable and if it would be worthwhile to progress it to the next level and spend more development fund in quantifying the opportunity further. The process followed is defined by the phases defined for Capital Projects.


After entry into the idea management solution the business can start with initial planning and resource allocation to perform the initial evaluation and approve the formulated idea for business case development.


As the idea passes through the steps of Order of Magnitude (OOM), Pre-feasibility and Feasibility the idea needs to pass a quality gate before progressing to the next phase of the capital project. At each of the quantity gates the approver (depending on the amount this can be either an individual or approval board) may decide to:

·       approve the idea for further qualification,

·       return the idea for re-qualification an re-approval, or

·       reject the idea and stop the initiative.


Course Syllabus

     2. Manage Portfolio
  2.1 Portfolio definition
  2.2 Portfolio Hierarchies
  2.3 Portfolio Items
  2.4 Data Transfer
     3. Increase Visibility  
  3.1 Portfolio Dashboards
  3.2 Financial Reporting Cockpit
  3.3 Portfolio Analytics
     4. Execution Tracking  
  4.1 Phase and Gate process Management
  4.2 Phase and Decision Point Dashboard
  4.3 Checklist Item
     5. Decision Support  
  5.1 Fact Sheet for Portfolio Item and Initiative
  5.2 Portfolio Reviews
  5.3 What-If Scenarios
  5.4 Questionnaires
  5.5 Scoring Models


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