The Standard for Portfolio Management (PMI)
Problem
Portfolio decisions become inconsistent without a clear purpose.
Action
Define the purpose of portfolio management before making portfolio decisions.
Outcome
Portfolio decisions better support organizational goals.
Chapter: Introduction - Purpose of The Standard for Portfolio Management
Problem
People cannot apply guidance that does not fit their responsibilities.
Action
Provide portfolio guidance that matches each audience's needs.
Outcome
Portfolio practices are applied more effectively.
Chapter: Introduction - Audience for The Standard for Portfolio Management
Problem
Strategic investments are difficult to manage individually.
Action
Group related investments into a portfolio.
Outcome
Strategic oversight improves.
Chapter: Introduction - What Is a Portfolio?
Problem
Different types of work require different management methods.
Action
Distinguish portfolios, programs, projects, and operations before managing work.
Outcome
Work is managed more effectively.
Chapter: Introduction - Relationships Among Portfolios, Programs, Projects, and Operations
Problem
Independent investment decisions weaken strategic focus.
Action
Evaluate and manage investments as a single portfolio.
Outcome
Resources better support organizational strategy.
Chapter: Introduction - What Is Portfolio Management?
Problem
Disconnected management creates conflicting priorities.
Action
Align portfolio, program, and project management activities.
Outcome
Strategic execution becomes more consistent.
Chapter: Introduction - Relationships Among Portfolio Management, Program Management, and Project Management
Problem
Inconsistent practices reduce portfolio effectiveness.
Action
Use the same portfolio management principles for major decisions.
Outcome
Portfolio decisions become more reliable.
Chapter: Introduction - Principles of Portfolio Management
Problem
Portfolio work loses value when disconnected from strategy.
Action
Connect portfolio management to organizational strategy and execution.
Outcome
Portfolio investments better support business goals.
Chapter: Introduction - Relationships Among Portfolio Management, Organizational Strategy, Strategic Business Execution, and Organizational Project Management
Problem
Investments can drift away from strategic priorities.
Action
Evaluate portfolio decisions against the current organizational strategy.
Outcome
Strategic alignment improves.
Chapter: Introduction - Relationships Among Portfolio Management, Organizational Strategy, Strategic Business Execution, and Organizational Project Management - Portfolio Management and Organizational Strategy
Problem
Strategic plans fail when execution is not coordinated.
Action
Manage execution through coordinated portfolio, program, and project management.
Outcome
Strategic objectives are delivered more effectively.
Chapter: Introduction - Relationships Among Portfolio Management, Organizational Strategy, Strategic Business Execution, and Organizational Project Management - Strategic Business Execution and Organizational Project Management
Problem
Portfolio components lose value when managed in isolation.
Action
Manage the relationships among all portfolio components.
Outcome
Portfolio performance improves.
Chapter: Introduction - Portfolio Components and Their Interrelationships
Problem
Related projects miss shared benefits when managed separately.
Action
Group related projects into programs when coordination adds value.
Outcome
Benefits are delivered more effectively.
Chapter: Introduction - Portfolio Components and Their Interrelationships - Program Management
Problem
Projects become unpredictable without structured management.
Action
Manage each project using approved objectives and plans.
Outcome
Project delivery becomes more reliable.
Chapter: Introduction - Portfolio Components and Their Interrelationships - Project Management
Problem
Strategic change can disrupt ongoing operations.
Action
Manage operational work separately from portfolio change initiatives.
Outcome
Operational performance remains stable.
Chapter: Introduction - Portfolio Components and Their Interrelationships - Operations Management
Problem
The portfolio loses direction without effective leadership.
Action
Guide portfolio decisions using strategic priorities.
Outcome
The portfolio stays aligned with business goals.
Chapter: Introduction - Role of the Portfolio Manager
Problem
Unclear responsibilities delay portfolio decisions.
Action
Assign clear responsibilities to everyone involved in portfolio management.
Outcome
Collaboration becomes more effective.
Chapter: Introduction - Other Roles in Portfolio Management
Problem
Strategic initiatives lose support without engaged sponsors.
Action
Require sponsors to actively champion portfolio investments.
Outcome
Strategic commitment increases.
Chapter: Introduction - Other Roles in Portfolio Management - Sponsors
Problem
Major portfolio decisions lack consistent oversight.
Action
Assign strategic portfolio decisions to the portfolio governance body.
Outcome
Decision quality improves.
Chapter: Introduction - Other Roles in Portfolio Management - Portfolio Governance Body
Problem
Portfolio processes become inconsistent across teams.
Action
Use a management office to support standardized portfolio practices.
Outcome
Portfolio execution becomes more consistent.
Chapter: Introduction - Other Roles in Portfolio Management - Portfolio, Program, and/or Project Management Office
Problem
Programs can drift away from portfolio goals.
Action
Coordinate program management with approved portfolio priorities.
Outcome
Programs contribute more strategic value.
Chapter: Introduction - Other Roles in Portfolio Management - Program Managers
Problem
Projects can lose strategic focus.
Action
Guide project managers using portfolio priorities.
Outcome
Projects contribute more value.
Chapter: Introduction - Other Roles in Portfolio Management - Project Managers
Problem
Portfolio management becomes inconsistent across life cycle stages.
Action
Use the same guiding principles throughout the portfolio life cycle.
Outcome
Portfolio management becomes more predictable.
Chapter: The Portfolio Life Cycle - Guiding Principles
Problem
The portfolio becomes outdated as conditions change.
Action
Review and adjust the portfolio continuously.
Outcome
The portfolio remains relevant.
Chapter: The Portfolio Life Cycle - Ongoing Life Cycle
Problem
Weak investments are added to the portfolio without proper review.
Action
Assess each proposed portfolio component before initiation.
Outcome
Portfolio quality improves.
Chapter: The Portfolio Life Cycle - Ongoing Life Cycle - Initiation
Problem
Execution lacks coordination without planning.
Action
Develop a portfolio plan before starting major work.
Outcome
Portfolio execution becomes more organized.
Chapter: The Portfolio Life Cycle - Ongoing Life Cycle - Planning
Problem
Resources are wasted on lower-priority work.
Action
Execute portfolio activities based on approved priorities.
Outcome
Strategic delivery improves.
Chapter: The Portfolio Life Cycle - Ongoing Life Cycle - Execution
Problem
The portfolio loses value as priorities change.
Action
Adjust the mix of portfolio components regularly.
Outcome
Overall portfolio value increases.
Chapter: The Portfolio Life Cycle - Ongoing Life Cycle - Optimization
Problem
Performance problems continue without timely oversight.
Action
Track portfolio performance and address deviations promptly.
Outcome
Portfolio objectives stay on track.
Chapter: The Portfolio Life Cycle - Ongoing Life Cycle - Monitor and Control
Problem
Poor information leads to weak portfolio decisions.
Action
Use a portfolio management information system to manage portfolio data.
Outcome
Decision-making becomes better informed.
Chapter: The Portfolio Life Cycle - Portfolio Management Information System
Problem
Governance becomes inconsistent across portfolio activities.
Action
Integrate governance into every stage of the portfolio life cycle.
Outcome
Oversight becomes more effective.
Chapter: The Portfolio Life Cycle - Governance Within the Portfolio Life Cycle
Problem
Strategic decisions become inconsistent.
Action
Apply guiding principles when managing portfolio strategy.
Outcome
Strategic management becomes more consistent.
Chapter: Portfolio Strategic Management - Guiding Principles
Problem
The portfolio lacks strategic direction.
Action
Set clear strategic objectives for the portfolio.
Outcome
The portfolio gains strategic focus.
Chapter: Portfolio Strategic Management - Portfolio Strategic Objectives
Problem
Portfolio objectives fail to support business priorities.
Action
Create portfolio objectives directly from organizational strategy.
Outcome
Strategic alignment improves.
Chapter: Portfolio Strategic Management - Developing Portfolio Strategic Objectives
Problem
Objectives lose direction without organizational purpose.
Action
Use the vision and mission to guide portfolio objectives.
Outcome
Objectives support long-term direction.
Chapter: Portfolio Strategic Management - Developing Portfolio Strategic Objectives - Vision and Mission Statements
Problem
A broad strategy is difficult to execute.
Action
Define measurable strategic goals from the organizational strategy.
Outcome
Strategic planning becomes actionable.
Chapter: Portfolio Strategic Management - Developing Portfolio Strategic Objectives - Strategic Goals
Problem
Goals alone do not guide portfolio decisions.
Action
Create specific strategic objectives from strategic goals.
Outcome
Portfolio decisions become more focused.
Chapter: Portfolio Strategic Management - Developing Portfolio Strategic Objectives - Strategic Objectives
Problem
Strategic objectives remain inactive without coordinated work.
Action
Launch strategic initiatives that support portfolio objectives.
Outcome
Strategy is executed more effectively.
Chapter: Portfolio Strategic Management - Developing Portfolio Strategic Objectives - Strategic Initiatives
Problem
Risk decisions become inconsistent without clear limits.
Action
Establish the acceptable level of strategic risk.
Outcome
Risk decisions become more consistent.
Chapter: Portfolio Strategic Management - Strategic Risk Appetite
Problem
The portfolio lacks formal direction and authority.
Action
Create a portfolio charter that defines its purpose and governance.
Outcome
Portfolio authority becomes clear.
Chapter: Portfolio Strategic Management - Portfolio Charter
Problem
Future portfolio direction is difficult to understand.
Action
Develop a roadmap that shows planned portfolio changes over time.
Outcome
Long-term planning improves.
Chapter: Portfolio Strategic Management - Portfolio Roadmap
Problem
Critical investments are not clearly recognized.
Action
Identify the portfolio components with the greatest strategic importance.
Outcome
Portfolio priorities become clearer.
Chapter: Portfolio Strategic Management - Key Portfolio Components
Problem
Investment reviews produce inconsistent results.
Action
Assess portfolio components using common evaluation criteria.
Outcome
Investment decisions improve.
Chapter: Portfolio Strategic Management - Key Portfolio Components - Evaluating Portfolio Key Components
Problem
Low-value investments reduce portfolio performance.
Action
Choose portfolio components based on their strategic contribution.
Outcome
Portfolio value increases.
Chapter: Portfolio Strategic Management - Key Portfolio Components - Selecting Portfolio Key Components
Problem
Portfolio priorities drift as business needs change.
Action
Evaluate portfolio alignment with strategy on a regular basis.
Outcome
The portfolio remains strategically relevant.
Chapter: Portfolio Strategic Management - Managing Strategic Alignment
Problem
Portfolio changes can weaken strategic outcomes.
Action
Assess the strategic impact before approving major portfolio decisions.
Outcome
Strategic performance improves.
Chapter: Portfolio Strategic Management - Managing Strategic Alignment - Considerations When Managing Strategic Impact
Problem
The portfolio reflects outdated business priorities.
Action
Adjust portfolio priorities when organizational strategy changes.
Outcome
The portfolio stays aligned with the current strategy.
Chapter: Portfolio Strategic Management - Managing Strategic Alignment - The Impact of Strategic Change
Problem
An unbalanced portfolio limits strategic value.
Action
Regularly optimize the combination of portfolio components.
Outcome
Overall portfolio performance improves.
Chapter: Portfolio Strategic Management - Portfolio Optimization
Problem
Portfolio decisions lack accountability without governance.
Action
Create a governance structure before managing the portfolio.
Outcome
Decision accountability improves.
Chapter: Portfolio Governance - What Is Portfolio Governance?
Problem
Governance becomes unreliable when applied unevenly.
Action
Use governance principles for every portfolio decision.
Outcome
Governance becomes more effective.
Chapter: Portfolio Governance - Guiding Principles
Problem
Governance decisions become inconsistent without clear authority.
Action
Document governance roles and decision processes.
Outcome
Governance becomes more transparent.
Chapter: Portfolio Governance - The Concept of Governance
Problem
Programs and projects can drift away from portfolio priorities.
Action
Apply portfolio governance to every program and project.
Outcome
Strategic alignment improves.
Chapter: Portfolio Governance - The Concept of Governance - Portfolio Governance Impact on Programs and Projects
Problem
Independent governance processes create conflicting decisions.
Action
Align portfolio governance with other portfolio management domains.
Outcome
Portfolio decisions become more consistent.
Chapter: Portfolio Governance - The Concept of Governance - Portfolio Governance and Other Domains in Portfolio Management
Problem
A standard governance model does not fit every organization.
Action
Design portfolio governance to match organizational needs.
Outcome
Governance becomes more effective.
Chapter: Portfolio Governance - Effective Portfolio Governance Design Factors
Problem
Unclear authority slows portfolio decisions.
Action
Define the responsibilities of each governance role.
Outcome
Decision-making becomes more efficient.
Chapter: Portfolio Governance - Portfolio Governance Roles
Problem
Strategic priorities lose support without executive ownership.
Action
Assign the portfolio sponsor responsibility for strategic direction.
Outcome
Leadership commitment increases.
Chapter: Portfolio Governance - Portfolio Governance Roles - Portfolio Sponsor
Problem
Major portfolio decisions lack structured oversight.
Action
Require the portfolio governance board to review significant decisions.
Outcome
Decision quality improves.
Chapter: Portfolio Governance - Portfolio Governance Roles - Portfolio Governance Board
Problem
Governance weaknesses remain undetected.
Action
Perform independent audits of portfolio governance.
Outcome
Governance compliance improves.
Chapter: Portfolio Governance - Portfolio Governance Roles - Portfolio Audit Organization
Problem
Supporting governance activities become fragmented.
Action
Define how supporting governance roles contribute to portfolio oversight.
Outcome
Governance operates more smoothly.
Chapter: Portfolio Governance - Portfolio Governance Roles - Other Roles
Problem
Strategic work fails when resources and capabilities are managed separately.
Action
Manage organizational capacity and capability as connected portfolio activities.
Outcome
Portfolio delivery becomes more reliable.
Chapter: Portfolio Capacity and Capability Management
Problem
Resource management becomes inconsistent across the organization.
Action
Use common principles for capacity and capability management.
Outcome
Resource decisions become more reliable.
Chapter: Portfolio Capacity and Capability Management - Guiding Principles
Problem
Too much work is approved for the available resources.
Action
Assess organizational capacity before committing to new portfolio work.
Outcome
Resource overload decreases.
Chapter: Portfolio Capacity and Capability Management - Capacity Management
Problem
Resource shortages appear without advance planning.
Action
Forecast capacity needs using expected portfolio demand.
Outcome
Future work is better supported.
Chapter: Portfolio Capacity and Capability Management - Capacity Planning
Problem
Portfolio demand exceeds available resources.
Action
Match work demand with available resource supply.
Outcome
Resources are used more effectively.
Chapter: Portfolio Capacity and Capability Management - Supply and Demand Management
Problem
Capacity imbalances remain hidden.
Action
Review resource supply and demand regularly.
Outcome
Capacity planning becomes more accurate.
Chapter: Portfolio Capacity and Capability Management - Supply and Demand Management - Supply and Demand Analysis
Problem
High-priority work competes equally with lower-priority work.
Action
Assign resources according to approved portfolio priorities.
Outcome
Critical initiatives receive better support.
Chapter: Portfolio Capacity and Capability Management - Supply and Demand Management - Supply and Demand Allocations
Problem
Static resource assignments reduce portfolio performance.
Action
Adjust resource allocations as portfolio conditions change.
Outcome
Portfolio efficiency improves.
Chapter: Portfolio Capacity and Capability Management - Supply and Demand Optimization
Problem
Strategic plans overlook capability gaps.
Action
Identify the organizational capabilities required to support the portfolio.
Outcome
Strategic planning becomes more realistic.
Chapter: Portfolio Capacity and Capability Management - Organizational Capabilities
Problem
Capability weaknesses remain unknown.
Action
Evaluate organizational capabilities using defined criteria.
Outcome
Capability gaps become clear.
Chapter: Portfolio Capacity and Capability Management - Capability Assessment
Problem
Current capabilities cannot support future objectives.
Action
Strengthen the capabilities required for strategic success.
Outcome
Organizational readiness improves.
Chapter: Portfolio Capacity and Capability Management - Capability Development
Problem
Strategic initiatives require capabilities the organization does not have.
Action
Develop new organizational capabilities in advance.
Outcome
Future initiatives can begin sooner.
Chapter: Portfolio Capacity and Capability Management - Capability Development - Developing New Capabilities
Problem
Important capabilities decline without ongoing support.
Action
Maintain and improve existing organizational capabilities.
Outcome
Long-term performance remains strong.
Chapter: Portfolio Capacity and Capability Management - Capability Development - Sustaining Existing Capabilities
Problem
Resource decisions rely on assumptions instead of evidence.
Action
Use performance reporting and analytics to support capacity decisions.
Outcome
Decision quality improves.
Chapter: Portfolio Capacity and Capability Management - Performance Reporting and Analytics
Problem
Resources and capabilities develop at different rates.
Action
Keep organizational capacity and capability in balance.
Outcome
Portfolio execution becomes more sustainable.
Chapter: Portfolio Capacity and Capability Management - Balance Capacity and Capability
Problem
Weak stakeholder engagement reduces portfolio support.
Action
Apply stakeholder engagement practices throughout portfolio management.
Outcome
Stakeholder commitment improves.
Chapter: Portfolio Stakeholder Engagement - Guiding Principles
Problem
Important stakeholders are overlooked.
Action
Identify everyone affected by the portfolio.
Outcome
Stakeholder coverage becomes more complete.
Chapter: Portfolio Stakeholder Engagement - Definition and Identification of Portfolio Stakeholders
Problem
Different stakeholder groups receive the same approach.
Action
Classify stakeholders into meaningful categories.
Outcome
Stakeholder engagement becomes more effective.
Chapter: Portfolio Stakeholder Engagement - Definition and Identification of Portfolio Stakeholders - Categorization of Stakeholders
Problem
Stakeholder information becomes outdated.
Action
Review stakeholder identification as the portfolio evolves.
Outcome
Stakeholder records remain accurate.
Chapter: Portfolio Stakeholder Engagement - Definition and Identification of Portfolio Stakeholders - Identifying Stakeholders
Problem
Engagement priorities remain unclear.
Action
Assess stakeholder interests and influence before planning engagement.
Outcome
Communication efforts become more effective.
Chapter: Portfolio Stakeholder Engagement - Analysis of Portfolio Stakeholders
Problem
Stakeholder interactions lack coordination.
Action
Develop a stakeholder engagement plan.
Outcome
Stakeholder engagement becomes more consistent.
Chapter: Portfolio Stakeholder Engagement - Stakeholder Engagement Planning
Problem
Poor communication reduces stakeholder understanding.
Action
Select communication approaches that match stakeholder needs.
Outcome
Communication becomes more effective.
Chapter: Portfolio Stakeholder Engagement - Identifying Communications Management Approaches
Problem
Communication activities fail to support governance.
Action
Coordinate communication practices with governance requirements.
Outcome
Governance decisions receive better support.
Chapter: Portfolio Stakeholder Engagement - Identifying Communications Management Approaches - Alignment with Governance
Problem
Weak communication systems delay important information.
Action
Establish a dependable communication infrastructure for the portfolio.
Outcome
Information flows more efficiently.
Chapter: Portfolio Stakeholder Engagement - Identifying Communications Management Approaches - Communication Infrastructure
Problem
Communication activities become disconnected from portfolio planning.
Action
Document communication approaches in the portfolio management plan.
Outcome
Portfolio communication becomes more coordinated.
Chapter: Portfolio Stakeholder Engagement - Identifying Communications Management Approaches - Portfolio Management Plan
Problem
Stakeholders lack the information needed for decisions.
Action
Provide timely reports on portfolio status and performance.
Outcome
Decision-making becomes better informed.
Chapter: Portfolio Stakeholder Engagement - Identifying Communications Management Approaches - Portfolio Reports
Problem
Useful portfolio knowledge is lost over time.
Action
Keep portfolio process assets accurate and accessible.
Outcome
Portfolio work becomes more efficient.
Chapter: Portfolio Stakeholder Engagement - Identifying Communications Management Approaches - Portfolio Process Assets
Problem
Portfolio communications become inconsistent across components.
Action
Align communication governance with portfolio components.
Outcome
Portfolio information remains consistent.
Chapter: Portfolio Stakeholder Engagement - Identifying Communications Management Approaches - Communication Governance and Interface to Components
Problem
Stakeholders lose confidence without regular updates.
Action
Communicate portfolio information throughout execution.
Outcome
Stakeholder trust increases.
Chapter: Portfolio Stakeholder Engagement - Manage Portfolio Communications
Problem
Portfolio value is evaluated inconsistently.
Action
Use common principles when managing portfolio value.
Outcome
Value management becomes more reliable.
Chapter: Portfolio Value Management - Guiding Principles
Problem
Success cannot be measured without a shared definition.
Action
Agree on how portfolio value will be defined.
Outcome
Performance evaluation becomes more consistent.
Chapter: Portfolio Value Management - What Is Value Management?
Problem
Value is reduced when parts of the process are ignored.
Action
Manage every component of the value management process.
Outcome
Value delivery improves.
Chapter: Portfolio Value Management - Components of Value Management
Problem
Stakeholders expect different outcomes from investments.
Action
Negotiate expected value before approving portfolio investments.
Outcome
Stakeholder expectations become aligned.
Chapter: Portfolio Value Management - Negotiating Expected Value
Problem
Low-value investments consume limited resources.
Action
Select investments with the greatest expected strategic value.
Outcome
Portfolio benefits increase.
Chapter: Portfolio Value Management - Maximizing Value
Problem
Expected benefits may never be achieved.
Action
Confirm that portfolio outcomes produce the planned value.
Outcome
Benefit delivery becomes more dependable.
Chapter: Portfolio Value Management - Assuring Value
Problem
Benefits are assumed instead of confirmed.
Action
Monitor expected benefits after implementation.
Outcome
Value realization improves.
Chapter: Portfolio Value Management - Realizing Value
Problem
Portfolio value cannot be compared objectively.
Action
Evaluate portfolio value using agreed measures.
Outcome
Performance assessment becomes more reliable.
Chapter: Portfolio Value Management - Measuring Value
Problem
Stakeholders lack visibility into delivered value.
Action
Provide regular reports on portfolio value.
Outcome
Stakeholders gain clearer insight.
Chapter: Portfolio Value Management - Reporting Value
Problem
Risk management varies across the portfolio.
Action
Use common principles for portfolio risk management.
Outcome
Risk management becomes more dependable.
Chapter: Portfolio Risk Management - Guiding Principles
Problem
Unmanaged risks threaten strategic objectives.
Action
Identify and address portfolio risks before they escalate.
Outcome
Portfolio resilience improves.
Chapter: Portfolio Risk Management - Guiding Principles - Managing Portfolio Risk
Problem
Risk becomes concentrated in selected investments.
Action
Maintain an appropriate balance of risk across portfolio components.
Outcome
Overall portfolio stability improves.
Chapter: Portfolio Risk Management - Guiding Principles - Balancing Risk
Problem
Individual risk reviews overlook total portfolio exposure.
Action
Assess risks across the entire portfolio.
Outcome
Strategic risk becomes easier to manage.
Chapter: Portfolio Risk Management - Portfolio Risk Management
Problem
Portfolio risk management becomes inconsistent without clear planning.
Action
Identify the key planning elements before managing portfolio risks.
Outcome
Risk activities become more coordinated.
Chapter: Portfolio Risk Management - Key Planning Elements
Problem
Risk management practices vary across the portfolio.
Action
Create a portfolio risk management framework before managing portfolio risks.
Outcome
Risk management becomes more consistent.
Chapter: Portfolio Risk Management - Key Planning Elements - Portfolio Risk Management Framework
Problem
Different views of risk lead to inconsistent decisions.
Action
Evaluate stakeholder risk perception when assessing portfolio risks.
Outcome
Risk decisions become more balanced.
Chapter: Portfolio Risk Management - Key Planning Elements - Risk Perception
Problem
Risk activities lack direction without documented guidance.
Action
Create and maintain a portfolio risk management framework and risk management plan.
Outcome
Risk management becomes more organized.
Chapter: Portfolio Risk Management - Portfolio Risk Management Framework and Portfolio Risk Management Plan
Problem
Teams respond to similar risks in different ways.
Action
Apply the portfolio risk management framework to every portfolio risk decision.
Outcome
Risk governance becomes more reliable.
Chapter: Portfolio Risk Management - Portfolio Risk Management Framework and Portfolio Risk Management Plan - Portfolio Risk Management Framework
Problem
Risk responses become ineffective when the plan is outdated.
Action
Review and update the portfolio risk management plan throughout the portfolio life cycle.
Outcome
Portfolio risks remain under effective control.
Chapter: Portfolio Risk Management - Portfolio Risk Management Framework and Portfolio Risk Management Plan - Portfolio Risk Management Plan