Portfolio management is defined as a coordinated collection of strategic processes and decisions that together enable the most effective balance of organizational change and business as usual.
Management of Portfolios (MoP®) approaches the management of change projects and programmes from a strategic viewpoint. It provides an overview of all change activities including what is in the portfolio, what it is costing, what risks are faced, what progress is being made, and what the impact is on business as usual and the organization’s strategic objectives.
Portfolios are defined as ‘The totality of an organization’s investment (or segment thereof) in the changes required to achieve its strategic objectives.’
In effect, the total investment put in by an organization to its change initiatives (including Programmes and Projects) qualifies for the Portfolio.
Portfolio Management addresses the question – ‘Are we doing the right things?’ – rather than focusing on ‘Are we doing things right’?
Portfolio Managers consider the strategic initiatives taken by the Organizations and assist in formalizing programmes and projects (and related operations support as needed) to achieve the strategic objectives.
At the company level, following interfaces are considered, while formulating Portfolios:
Business As Usual
Budgeting and resource allocation
Existing programme and project management processes
Portfolio Management involves two lifecycles
As a part of Portfolio definition, projects and programmes which are a part of the Portfolio get planned. During delivery, factors including funding arrangements, resource management, management control, benefits management and risk management are considered.
APMG/AXELOS have introduced a new offering covering the Certification for Portfolio Management, called ‘Management of Portfolios’ (MoP®). GRT Consulting LLP are amongst the premier ATO (Accredited Training Organization) accredited to provide trainings for this qualification and are offering the five day Foundation and Practitioner Certification course (including examinations) for ’Management of Portfolios’(MoP®).