Portfolio Management is the selection, prioritization and control of an organization’s programs and projects, in line with its strategic objectives and capacity to deliver.
The goal is to balance the implementation of change initiatives and the maintenance of business-as-usual while optimizing return on investment.
A portfolio is a collection of projects and/or programs used to structure and manage investments at an organizational or functional level to optimize strategic benefits or operational efficiency. They can be managed at an organizational or functional level.
In a strategic portfolio, governance may be aligned entirely with corporate governance. Where this is not the case, it is vital to establish a clear understanding and buy-in to the portfolio prioritization process from the executive team. In a portfolio, it is normal for sponsors of projects, to be required to sacrifice their project priorities for the benefit of the wider portfolio.
