Topics
Portfolio Detail
Most organisations operate in complex environments with a lot of Programme and Project activity going on at the same time. The way in which Portfolio Management can help is illustrated below.
| Area | Portfolio Management |
|---|---|
| Selection | Establishing a process for selecting the right Programmes & Projects |
| Capacity | Assess if requirements can be met within existing organisational capacity & resources |
| Prioritisation | Allocation of right resources to right Programmes/Projects |
| Alignment | Ongoing alignment with strategic objectives |
| Conflicts | Resolving conflicts over scarce resources |
| Interdependencies | Identify & manage Programme/Project interdependencies |
| Risk | Assessing the true level of aggregate Programme/Project risk |
| Progress | Monitoring progress against key outcomes |
| Delivery | Managing successful Programme/Project delivery |
| Investment | Optimising investments and maximising returns |
| Efficiency | Achieving VFM savings and efficiency gains from Programme & Project rationalisation |
| Benefits | Co-ordinating & measuring benefits realisation across the organisation’s Programmes & Projects |
Portfolio Management is a relatively new concept and although its focus in this guidance is at the strategic level, in practice it is applied at several levels within the organisation. For example, it could be at directorate, branch/business unit level and within various Programmes or Projects. The Office of Government Commerce (OGC) has produced some high level guidance on Portfolio Management and it is also mentioned in OGC’s Managing Successful Programmes (MSP) and PRINCE2 (PRojects IN Controlled Environments) methods. Other bodies such as the Association of Project Management (APM) provide direction as part of their overall ’Body of Knowledge’.
The main roles and responsibilities associated with effective Portfolio Management are illustrated below. These will vary depending on the size and nature of the organisation.
| Stakeholder | Roles & Responsibilities |
|---|---|
| Ministers | Being accountable for the successful delivery of the department's strategic objectives (some of which may be via Programmes & Projects) |
| Management Board/Perm Sec Members | Making informed decisions on all or a subset (typically mission critical) of the Programmes and Projects in the portfolio eg go/no-go, defer, re-scope or re-assign resources etc |
| Investment Decision Makers | Making informed investment decisions |
| Centre of Excellence (CoE) for Delivery (or equivalent) | Creating the Programme/Project register and monitoring the agreed portfolio on behalf of the Management Board. Providing `dashboard` information upon which informed decisions can be made by the Board |
| Senior Responsible Owners (SRO) | Accountable for successful delivery of Programmes and Projects |
| Programme & Project Managers | Managing the delivery of Programmes/Projects, providing CoE with progress reports & responding to changes required by the CoE |
| Operational Business Owners | Accepting/receiving new capability & operational changes on behalf of the business, leading the integration of these changes into the ‘new’ business as usual position |
| Business Change Managers | Driving benefits realisation across the portfolio |
