Everyone is familiar with the term portfolio as it relates to a grouping of things under an umbrella. However, the term portfolio can take various forms depending on the industry and context. For example, it is one of the most widely used terms for project and program management industries.
If you belong to these industries, you are in the right place. Here is everything you must know about the portfolio in project and program management.
In project and program management, a portfolio refers to the grouping of programs or projects. Besides that, it can also include other responsibilities and activities related to the project. Its primary aim is to centralize management for any program or project.
Besides that, a portfolio also helps create governance across the entire organization. It helps the business align with its values, goals, and strategies in no time. It also helps businesses take projects that help maximize their value.
The Relationship Between a Portfolio, Projects, and Programs
We all know what a project is, and programs are groups of similar projects. Businesses create portfolios to ensure programs and projects align with the business strategy. Sharing similar projects under a program allows the business many opportunities of sharing resources, stakeholders, measures, timelines, and much more.
On the other hand, management allows businesses to balance all the projects it works on. For example, each business has certain limitations and capacities at one time. This will ensure that the organization does not exceed its maximum capacity of projects at a time.
If it exceeds this capacity, the business will suffer, and the work will not be efficient. So, the portfolio helps in managing all the projects and programs, so the business can stay on track with what it does. It also aids businesses in strategic planning for programs and projects.
The Key Stakeholders
All projects and programs will have a portfolio. The key stakeholders of that will include:
1. Board Members
These members govern the organization. They also bear the legal responsibility of the business. The experience and skills of board members help the company fulfill its vision.
2. Portfolio Manager
The portfolio manager is responsible for planning, developing, and implementing a portfolio. The manager must also ensure that the best practices are utilized to implement it. Doing this will help with performance and prevent any unnecessary risks.
3. Team Members
Team members of a project or program under the portfolio will help execute it. These members will get tasks that they will need to complete. These individuals must meet with the manager and other relevant authorities to update them.
That is everything you must know about a portfolio in project and program management. Many industries can benefit from portfolio management such as IT, construction, healthcare, software, and much more. It will optimize processes and ensure strategic planning of all projects for successful execution and delivery in no time.