Read the summary and the most important questions on Management of portfolios | 9780113312948 | [authors: Stephen Jenner, Craig Kilford].

• 2 What is portfolio management

• 2.2 Background

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• What are the objectives of portfolio management?

  • The change initiatives that are being delivered represent the optimum allocation of resources in the context of the organization's strategic objectives, available resources and risk or achievability.
    
  • The portfolio is sufficient to achieve the desired contribution to strategic objectives
  • All initiatives are necessary to achieve the desired contribution to strategic objectives
  • The selected change initiatives are delivered effectively and cost-efficiently
  • All the potential benefits are realized.

• Objective and solutions provided by portfolio management

  Portfolio management addresses the issues by providing the mechanisms for translating strategic objectives into an appropriate set of programmes and projects (change initiatives), facilitating effective delivery and benefits realization, and capturing and applying lessons learned.

• 2.3 Portfolio management: definitions

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• Difference between a Project and Portfolio

  Project and programme management seeks to ensure delivery af the individual projgramme or project level. Portfolio management is concerned with ensuring that the programmes and project undertaken are right ones in the context fo the roganization's strategic objectives; managing delivery at a collective level; maximizing benefits realization; and ensuring that lessons learned are identified, disseminated and applied in the future. 

• Focus Portfolio management vs Project & Programma management

  Programmes and projects specifically focus on "doing things right", whereas portfolio maangement is about a combination fo "doing the right things" and "doing things right" at a collective level.

• 2.4 The portfolio management model

• 5 principles of portfolio management

  1. Senior Management commitment
  2. Governance alignment
  3. Strategy alignment
  4. Portfolio office
  5. Energized change culture

• 3 The strategic and orgizational context

• 3.2 Portfolio management and business as usual

• Relationship Portfolio management and BAU

  Portfolio management controls the major changes to BAU. When change initiatives are successfully implemented, benefits are then realized and operational performance improves. 

  
  

  Portfolio management can make the contribution of change initiatives to operational performance clearer to everyone involved - and not just the forecast impact, but also when this impact will be seen and what metrics will be used to assess it. 

• 3.3 Portfolio management and strategic and business planning

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• Role in Strategic and business planning

  Portfolio management does not try to replace strategic and business planning - rather, it seeks to ensure that the organization's change initiatives represent the optimum allocation of limited resources in the context of the organization's strategic objectives, and that this maintained in the light of changing environmental conditions. Strategic planning therefore sets the context within which portfolio management operates.

• 4 fundamental questions regarding strategic planning

  1. Are the programmes and projects in our portfolio necessary in the context of our strategic objectives?
  2. Is our portfolio, together with BAU activities, sufficient to achieve our strategic objectives?
  3. Is the overall level of risk acceptable and is the portfolio of initiatives achievable?
  4. Is the portfolio affordable - and if not, which initiatives should be dropped or re-scheduled.

• 3.4 Portfolio management and budgeting and resource allocation

• Portfolio management and budgeting and resource allocation

  Strategy is little more than intent until it is backed up by the allocation of resources (money, people, equipment, facilities, etc) and portfolio management provides the means by which the link between strategy and resource allocation can be maintained.

• 3.5 Portfolio management and programme and project management

• Mechanisms of Portfolio other than for Project & Programme Management

  • Development of delivery capability organization-wide, via fit-for-purpose standards, processes, and staff development.
  • Management of limited resources such as skilled project managers and other scarce resources and ensuring that where there is any shortage they are assigned to the highest-priority initiatives and/or effective action is taken to increase the supply of these resources
  • Overall risks management, including over-reliance on a single supplier and the risks of cost escalation and benefits shortfalls
  • Dependency management, ensuring that key dependencies are effectively managed across the portfolio