Defining Portfolio Management

by Jennifer Bridges, PMP (formerly, Jennifer Whitt)

We get so many questions on the forum, different blogs and from other sources asking, “What’s the difference between project management, program management, and portfolio Don't forget the Big Picturemanagement?” People are daunted by the idea that it is complex, but we think it’s simple once you look at the definition and concepts of portfolio management. In A Guide to the Project Management Body of Knowledge, 4rth Edition (PMBOK ) by the Project Management Institute (PMI), a portfolio is a collection of projects or programs or other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. A key that I want to point out here is that a collection of projects is for a strategic business objective. How many times has your team become so concerned about task, activities and deliverables that they forget or lose sight of why they are doing what they’re doing? The big picture is lost on all the details. So it is really to meet a strategic business objective.

I often reference two groups of people that I have learned a lot from, my artist friends and my financial portfolio managers. All artists, whether artistic in drawing, music or other areas, talk about how different compositions within their portfolio express their heart, emotions, mission or whatever it is their collection supports. In financial management, a diversity of investments completes a group representative of the client’s goals and interests thus showing the characteristics typical to their investments. Likewise for a business, groups have strategic business objectives, and many projects and/or programs have to be implemented to meet those objectives. 

Within the business selection there are projects, programs, and other work to support the portfolio. A portfolio project could be broken down into phases or levels of importance, i.e., when implementing things over time. Another project within that same collection may just have one high level deliverable. There could be programs with multiple projects, and then other work that simply supports the portfolio and business objectives. Portfolio management is the centralized management of all of these pieces combined. The portfolio manager is basically identifying what projects have to be done, prioritizing, authorizing, managing and controlling them. It is very similar to how projects, programs and other types are managed. I hope this helps you in understanding what portfolio management is, how simple it can be and how important it can be to keeping everything organized.

If you found these tips from Jennifer Whitt, PMP of value and are a PMP looking to earn PMI PDUs, you might be interested in her self-paced, downloadable courses at PDUs2Go.com.

____________________________________________________________

Are you running out of steam as a PMP Project Manager? Download our FREE course “4 Ways to Stay Energized as a PMP Project Manager” and get yourself motivated again! This 1 Category A PDU course will teach you 4 things you can start doing today that will recharge your PMP Project Manager batteries and keep your career climbing.

PDUs2Go.com can help you maintain your PMP Certification whether you need one PMP PDU or 60 PMP PDUs. Try 1 PMP PDU for FREE and see how easy it is to Earn n’ Learn™ while in your car, in your office, by the pool, or on the road! 1 PDU – a $37 Value for FREE!


Leave a reply

 
 
PMI Logo1 Powered by PDUs2Go.com, Inc. | Copyright © 2007 - 2017, PDUs2Go.com, Inc. All rights reserved worldwide.

"PMBOK, PMI, PMP and REP" are trademarks, service marks or certification marks of the Project Management Institute Inc.
PDUs2Go.com Inc. | 3500 Lenox Road, Suite 1500 | Atlanta, GA 30326 | 404-815-4644