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SubscribeA portfolio is defined as a set of projects and programmes that are managed by an organisation.
A portfolio can consist of multiple programmes and/or multiple projects. The projects within a portfolio can also be different from each other. However the programmes within a portfolio are formed by related projects. The portfolio represents the implementation of an organisation’s strategy.
Portfolio Management is the coordinated management of the projects and programmes that help achieve specific business objectives. Portfolio Management defines priorities based on the business objectives. Projects and programmes that are to be implemented are based on these priorities. The selected projects and programmes will together enable the most effective balance of creating business value, the risk level and resources to be used. Where project management serves to correctly manage projects, Portfolio Management serves to choose the right projects.
In the MoP (Management of Portfolios) guide, Axelos defines Portfolio Management as; “a coordinated collection of strategic processes and decisions that together enable the most effective balance of organisational change and business as usual.”
Portfolio Management characteristics:
In the blogpost ‘What is Programme Management’ we explained the meaning of a Programme and Programme Management. According to Axelos a Programme consists of one or multiple projects and serves to meet one or more strategic objectives while focusing on enabling change. Programme Management is the management of all related projects that together form the Programme.
The main difference between Programme and Portfolio Management is that Programme Management is about similar projects. Portfolio Management on the other hand manages projects and programmes within a wide range and even different fields.
Portfolio Management can allow organisations to:
According to Axelos, “in an ever faster and more demanding world like today, Portfolio Management can help organisations successfully implement change and achieve their strategic goals.” *
Today more than ever organisations that want to keep up with changes and innovations need an approach that focuses not just on projects and programmes, but on portfolio. The challenge is to find the balance between managing business as usual and change, while ensuring that the business and the whole organisation are willing, ready, and capable of supporting and assimilating change.
Multi-Project Management and Portfolio Management are both methodologies used to oversee multiple projects within an organisation, but they differ significantly in scope, focus, and objectives.
Multi-Project Management is more operational and concentrates on managing several projects simultaneously, whereas Portfolio management is strategic and aims to align projects with the organisation’s overall goals.
The objectives also differ: multi-Project Management seeks to complete projects efficiently, while Portfolio Management aims to optimise value and ensure strategic alignment across all projects. In terms of responsibility and decision-making, multi-project managers handle day-to-day management, whereas portfolio managers make strategic decisions regarding project selection and prioritisation.
The workload for each ongoing project should be assessed to ensure it does not exceed five days per week. Ideally, you should limit yourself to a maximum of ten projects to avoid overload.
It’s important to stand by your decisions. You can delegate non-priority projects and politely decline new requests by explaining why you are unable to take them on.
To be effective in multi-Project Management, it’s best to avoid breaking tasks into too many fragments. You can set aside dedicated time slots in your calendar to work on specific projects, while also leaving room for unexpected events.
Regular meetings with a standard agenda should be scheduled and kept to a maximum duration of one hour. Using an action log, updated weekly, is recommended to avoid making notes.
A weekly review of your achievements helps you recognise your progress. Your goals should be translated into concrete actions and tracked in your calendar to maintain a positive approach.
Have you ever considered the MoP (Management of Portfolios) training course? Contact us to find out more.
*Axelos, What is Portfolio Management