In this session, we will look into the important concepts around the Project Portfolio Management process.
The key flows around portfolio management are Defining, Aligning, Authorizing and Controlling a portfolio.
Defining:
This function is focused on planning and identifying the corporate organizational strategy needed to deliver that strategy over a period of time. This includes creating key artifacts, such as the strategic plan, the charter, the road-map of the portfolio, as well as the risk and communication plans.
In general, we plan what we’re going to do about keeping everything aligned with strategy, how we will assess the performance, how we’ll communicate with stakeholders and how to manage risks at the strategic level.
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Aligning
Aligning activities are conducted once the portfolio has been defined. They are concerned with creating a method for aligning the mix of portfolio components to the organization’s strategy. They work in tandem with the defining activities.
If or when the corporate strategy changes, we assess the portfolio to ensure that all components are aligned to the revised strategy.
Authorizing and controlling
This is the area that emphasizes authorization of new efforts and oversight of in-flight work within the portfolio.
The responsibility here is to make decisions to approve the work efforts, track status and progress of components within the portfolio that are under progress.
For example, say, there is an organizational change which modifies the organization’s charter and mission. The strategy will change. Therefore, the governance function would have to approve any new components or cancel any existing efforts that don’t align with the new strategy. Accordingly the activities would be aligned as well as the new effort would be authorized and controlled in line with the revised strategy.