Portfolio Management
Portfolio Management is the coordination and alignment of multiple Projects and / or Programs to meet the strategic objectives of the organization. In essence, a Portfolio serves as a collection of manageable, well scoped projects and programs, the totality of which make up the whole initiative. Portfolio Management is a permanent discipline whereas Project Management, by definition, has a specific start date and a specific end date.
Project Management is about doing projects right.
Portfolio Management is about doing the right projects.
Portfolio Management is about doing the right projects.
Contrast between Portfolio Management and a traditionally managed large project:
Portfolio Management
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A Large Project
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Defining Project (Portfolio) Success
Project successes can be defined in any one of the following Tiers:
Tier 1 – The project was a success if it delivers all or most of what it said it would (the scope), regardless of schedule or budget performance;
Tier 2 – The project was a success if it delivers what it said it would, on schedule and/or within the agreed budget;
Tier 3 – The project was a success if it delivers what it said it would, on schedule, within the agreed budget and to the expected quality standards;
Tier 4 – The project was a success if it delivers on all agreed project objectives, be they scope, schedule, budget, quality or outcomes based (i.e. goals to be achieved or strategic positions to be attained); or
Tier 5 – The project was a success if the product produced by the project creates significant net value for the organization after the project is completed
The Tier 5 definition of success is the one that matters to the business
Tier 1 – The project was a success if it delivers all or most of what it said it would (the scope), regardless of schedule or budget performance;
Tier 2 – The project was a success if it delivers what it said it would, on schedule and/or within the agreed budget;
Tier 3 – The project was a success if it delivers what it said it would, on schedule, within the agreed budget and to the expected quality standards;
Tier 4 – The project was a success if it delivers on all agreed project objectives, be they scope, schedule, budget, quality or outcomes based (i.e. goals to be achieved or strategic positions to be attained); or
Tier 5 – The project was a success if the product produced by the project creates significant net value for the organization after the project is completed
The Tier 5 definition of success is the one that matters to the business
Since the entire Information Technology Industry is just an enabler to business, it should not take on a life of its' own. Portfolio Management would suggest there should be no Information Management or Information Technology Projects there should only be Business projects. There certainly will be an Information Technology component to most business projects, but only in the context of the strategic objectives of the business.
When Information Technology is positioned as a component of a business project it is much more likely that the business objectives will remain as the focus for the project team. There will be a direct line-of-sight between the work people are doing on the project and the business outcomes they are trying to achieve.
At the personal level, when people feel that the work they are doing can make a difference, their energy levels go up, stress goes down and innovative results that exceed expectations is the outcome. If you know "WHY" you are doing something it will be more fun and more productive.
When Information Technology is positioned as a component of a business project it is much more likely that the business objectives will remain as the focus for the project team. There will be a direct line-of-sight between the work people are doing on the project and the business outcomes they are trying to achieve.
At the personal level, when people feel that the work they are doing can make a difference, their energy levels go up, stress goes down and innovative results that exceed expectations is the outcome. If you know "WHY" you are doing something it will be more fun and more productive.