Management of Portfolios (OGC)
Problem
Different definitions lead to inconsistent decisions.
Action
Define portfolio management as the coordinated selection, prioritization, and oversight of organizational change.
Outcome
People make decisions with a common understanding.
Chapter: What is portfolio management? - Portfolio management: definitions
Problem
Inconsistent processes reduce portfolio effectiveness.
Action
Use one portfolio management model for all portfolio activities.
Outcome
Portfolio work becomes more consistent.
Chapter: What is portfolio management? - The portfolio management model
Problem
Portfolio management loses support when its value is unclear.
Action
Track and review the benefits produced by the portfolio.
Outcome
The value of portfolio investments becomes clear.
Chapter: What is portfolio management? - The benefits of portfolio management
Problem
Misunderstandings lead to poor portfolio decisions.
Action
Explain what portfolio management is designed to do and what it is not.
Outcome
People apply portfolio management correctly.
Chapter: What is portfolio management? - Portfolio management - some misconceptions
Problem
Operational work can reduce focus on strategic change.
Action
Manage portfolio initiatives separately from business-as-usual activities.
Outcome
Strategic change receives appropriate attention.
Chapter: The strategic and organizational context - Portfolio management and business as usual
Problem
Investments may not support organizational goals.
Action
Select portfolio initiatives that support strategic and business plans.
Outcome
Resources are directed toward strategic priorities.
Chapter: The strategic and organizational context - Portfolio management and strategic and business planning
Problem
Resources may be invested in lower-value work.
Action
Assign budgets based on agreed portfolio priorities.
Outcome
Funding supports the most valuable initiatives.
Chapter: The strategic and organizational context - Portfolio management and budgeting and resource allocation
Problem
Independent change initiatives create conflicts and duplication.
Action
Manage programs and projects as parts of a single portfolio.
Outcome
Change efforts become better coordinated.
Chapter: The strategic and organizational context - Portfolio management and programme and project management
Problem
Performance issues remain hidden without regular review.
Action
Review portfolio performance against agreed measures.
Outcome
Performance problems are identified sooner.
Chapter: The strategic and organizational context - Portfolio management and performance management
Problem
Weak governance reduces effective oversight.
Action
Make portfolio decisions through established governance processes.
Outcome
Decision-making becomes more accountable.
Chapter: The strategic and organizational context - Portfolio management and corporate governance
Problem
Portfolio decisions may overlook important organizational expertise.
Action
Engage corporate functions throughout portfolio planning and oversight.
Outcome
Portfolio decisions become better informed.
Chapter: The strategic and organizational context - Portfolio management and corporate functions
Problem
Different working practices reduce portfolio effectiveness.
Action
Use the portfolio management principles to guide all portfolio activities.
Outcome
Portfolio management becomes more consistent.
Chapter: Portfolio management principles - Introducing the portfolio management principles
Problem
Portfolio management lacks authority without executive support.
Action
Obtain visible and ongoing commitment from senior management.
Outcome
Portfolio priorities receive stronger support.
Chapter: Portfolio management principles - Portfolio management principle 1: senior management commitment
Problem
Conflicting governance arrangements slow decisions.
Action
Align portfolio governance with organizational governance structures.
Outcome
Governance decisions become more consistent.
Chapter: Portfolio management principles - Portfolio management principle 2: governance alignment
Problem
Projects may continue without strategic value.
Action
Assess every initiative against strategic objectives before approval.
Outcome
The portfolio remains aligned with strategy.
Chapter: Portfolio management principles - Portfolio management principle 3: strategy alignment
Problem
Portfolio activities become difficult to coordinate without dedicated support.
Action
Create a portfolio office to manage portfolio processes and coordination.
Outcome
Portfolio management becomes more effective.
Chapter: Portfolio management principles - Portfolio management principle 4: portfolio office
Problem
Resistance reduces the success of organizational change.
Action
Encourage behaviors that support continuous change.
Outcome
Change initiatives are adopted more successfully.
Chapter: Portfolio management principles - Portfolio management principle 5: energized change culture
Problem
One-time planning cannot manage ongoing change.
Action
Operate portfolio management through defined and recurring management cycles.
Outcome
The portfolio remains current.
Chapter: Portfolio management cycles - The portfolio management cycles
Problem
Waiting for perfect conditions delays improvement.
Action
Implement portfolio management with available information and improve it over time.
Outcome
Portfolio capability develops sooner.
Chapter: Portfolio management cycles - If there is no defined start, how should portfolio management be implemented?
Problem
Improvements fade without continued attention.
Action
Review portfolio practices and results on a regular schedule.
Outcome
Portfolio performance continues to improve.
Chapter: Portfolio management cycles - How is progress sustained?
Problem
Low engagement weakens portfolio delivery.
Action
Keep leaders and teams actively committed to portfolio objectives.
Outcome
Portfolio momentum is sustained.
Chapter: Portfolio management cycles - Why does organizational energy link the portfolio management cycles?
Problem
Poor selection reduces portfolio value.
Action
Evaluate and approve initiatives before committing delivery resources.
Outcome
The portfolio contains stronger investments.
Chapter: Portfolio management cycles - Portfolio definition cycle
Problem
Delivery can drift away from approved objectives.
Action
Track portfolio delivery throughout execution.
Outcome
Delivery remains aligned with expectations.
Chapter: Portfolio management cycles - Portfolio delivery cycle
Problem
Incomplete information leads to poor decisions.
Action
Collect accurate information about current portfolio initiatives.
Outcome
Portfolio decisions become better informed.
Chapter: Portfolio definition cycle - Portfolio management practice 1: understand
Problem
Unstructured portfolios are difficult to evaluate.
Action
Group initiatives using common classification criteria.
Outcome
Portfolio analysis becomes easier.
Chapter: Portfolio definition cycle - Portfolio management practice 2: categorize
Problem
Limited resources cannot support every initiative.
Action
Rank initiatives using agreed evaluation criteria.
Outcome
Resources focus on higher-priority work.
Chapter: Portfolio definition cycle - Portfolio management practice 3: prioritize
Problem
Too much investment in one area increases portfolio risk.
Action
Maintain an appropriate mix of initiatives across the portfolio.
Outcome
The portfolio becomes more resilient.
Chapter: Portfolio definition cycle - Portfolio management practice 4: balance
Problem
Overcommitted plans reduce delivery success.
Action
Plan portfolio work within available organizational capacity.
Outcome
Portfolio plans become more achievable.
Chapter: Portfolio definition cycle - Portfolio management practice 5: plan
Problem
Work can continue without sufficient oversight.
Action
Use defined management controls throughout the portfolio.
Outcome
Portfolio governance becomes stronger.
Chapter: Portfolio definition cycle - Portfolio management practice 6: management control
Problem
Expected benefits may never be achieved.
Action
Track planned benefits from approval through realization.
Outcome
Benefit delivery becomes more reliable.
Chapter: Portfolio definition cycle - Portfolio management practice 7: benefits management
Problem
Financial issues become harder to correct when they are not monitored.
Action
Review portfolio financial performance against approved plans.
Outcome
Financial control improves.
Chapter: Portfolio definition cycle - Portfolio management practice 8: financial management
Problem
Unmanaged risks threaten portfolio success.
Action
Identify and address portfolio risks as early as possible.
Outcome
Portfolio risk exposure is reduced.
Chapter: Portfolio definition cycle - Portfolio management practice 9: risk management
Problem
Poor communication weakens stakeholder support.
Action
Provide stakeholders with timely and relevant portfolio information.
Outcome
Stakeholder engagement improves.
Chapter: Portfolio definition cycle - Portfolio management practice 10: stakeholder engagement
Problem
Unclear accountability creates inconsistent oversight.
Action
Assign governance responsibilities to defined roles.
Outcome
Governance decisions become clearer.
Chapter: Portfolio definition cycle - Portfolio management practice 11: organizational governance
Problem
Critical initiatives may lack the resources they need.
Action
Assign people and resources based on portfolio priorities.
Outcome
Resource use becomes more effective.
Chapter: Portfolio definition cycle - Portfolio management practice 12: resource management
Problem
Inconsistent benefit practices reduce portfolio value.
Action
Use a documented portfolio benefits management framework.
Outcome
Benefits are managed consistently.
Chapter: Portfolio-level documentation - Portfolio benefits management framework
Problem
Benefits may not be realized without a clear plan.
Action
Document how and when portfolio benefits will be achieved.
Outcome
Benefit realization becomes easier to manage.
Chapter: Portfolio-level documentation - Portfolio benefits realization plan
Problem
Managers cannot assess portfolio status quickly.
Action
Maintain a dashboard with key portfolio measures.
Outcome
Portfolio performance becomes easier to review.
Chapter: Portfolio-level documentation - Portfolio dashboard
Problem
Separate delivery plans reduce coordination.
Action
Keep a single delivery plan for all portfolio initiatives.
Outcome
Portfolio delivery becomes more coordinated.
Chapter: Portfolio-level documentation - Portfolio delivery plan
Problem
Financial planning becomes unreliable without clear records.
Action
Document expected portfolio income and spending.
Outcome
Financial planning becomes more accurate.
Chapter: Portfolio-level documentation - Portfolio financial plan
Problem
Undocumented processes create inconsistent practices.
Action
Maintain documented portfolio management processes and guidance.
Outcome
Portfolio activities follow a common approach.
Chapter: Portfolio-level documentation - Portfolio management framework
Problem
Unexpected resource shortages delay delivery.
Action
Maintain a portfolio resource schedule.
Outcome
Resource planning becomes more predictable.
Chapter: Portfolio-level documentation - Portfolio resource schedule
Problem
Stakeholders may not receive the information they need.
Action
Maintain a stakeholder engagement and communication plan.
Outcome
Communication becomes more consistent.
Chapter: Portfolio-level documentation - Portfolio stakeholder engagement and communication plan
Problem
An outdated strategy weakens investment decisions.
Action
Review and update the portfolio strategy regularly.
Outcome
The portfolio stays aligned with organizational priorities.
Chapter: Portfolio-level documentation - Portfolio strategy