Friday 11 February 2022

Project portfolio management

The project portfolio management and project management, project set management, and organizational project management maturity models constitute a complete system and become an organic part of the organization and implementation of project management.

 


1. the project portfolio is to combine the project,

 the project set, and other aspects of the work content for effective management to ensure that the strategic business objectives (strategic objectives) of the organization are met. portfolios represent an organization's investment decisions, project prioritization, and allocation of resources. portfolios are a reflection of the organization's strategic intent, strategic direction and strategic progress, rather than defined, specific work and mandates.

2. the modules (projects, project sets, portfolios) included in the portfolio have the following common characteristics:


(1) be able to represent the investment or planned investment activities of the organization
(2) consistent with the strategic goals of the organization
(3) the organization can manage it in combination
(4) have quantitative management characteristics that can be measured, graded, and prioritized
(5) sharing and competing organizational resources

3. the relationship between project portfolio, project, project set, and organizational project management:


(1) the project portfolio includes the project set, project and day-to-day operations, and project portfolio governance with the aim of achieving the strategic objectives of the organization. projects in a portfolio can be within or outside the project set. the set of items in a portfolio and the project may not necessarily be linked. portfolios contribute to the strategic goals of the organization by selecting the right set of projects and projects, prioritizing work, and providing the necessary resources. a portfolio is a parent-child dependency to the components in a portfolio.


(2) project set management effectively manages the subset of projects it contains and the dependencies of projects, focusing on how to obtain a series of benefits (benefits determined by strategic objectives).


(3) project management supports the achievement of the goals of the project set and portfolio by developing and implementing the collection to complete a specific scope of work, and ultimately ensures that the organizational strategy is achieved. project management focuses on specific deliverables.


(4) organizational project management is a strategic execution framework that ensures the achievement of organizational strategic objectives through portfolios, project sets, projects and other means. in organizational-level project management, portfolios, project sets, and projects are required to be aligned with the strategic direction of the organization; on the other hand, the contributions of the three to the achievement of strategic objectives are different.

4. the portfolio plan is highly relevant to the organizational strategy in the following six areas:


(1) maintain alignment of the project portfolio with the strategy
(2) allocation of human resources
(3) allocation of financial resources
(4) allocate material or equipment resources
(5) measure module performance in a portfolio
(6) manage risks

5. the project portfolio management process includes: 

it is a continuous, dynamic, repetitive and interactive system

(1) assess the current state of the portfolio management process
(2) define the willingness and plan for portfolio management
(3) implement the project portfolio management process
(4) improve the project portfolio management process

6. the steps and methods for implementing the project portfolio management process (i.e. item 5.3) include:


(1) steps

  • n define roles and responsibilities for the implementation of the portfolio management process
  • n communicate the project portfolio management implementation plan
  • n define and deploy detailed portfolio management procedures
  • n training for participants and stakeholders


(2) the method contains two aspects

  • starting point and direction of implementation: top-down, bottom-up or mixed, 
  • l scope of implementation:
  •  phased method and comprehensive introduction method


7. project portfolio governance management includes five sub-processes: 

governance is different from management, and governance is biased towards planning, definition, optimization, approval, supervision, etc

(1) develop a portfolio management plan
(2) define the portfolio
(3) optimize the project portfolio
(4) approve the project portfolio
(5) implementation of portfolio supervision

8. the project portfolio management process group includes:


(1) definition process group: various plans, charters, and portfolio roadmaps
(2) adjustment process group: evaluation, selection, adjustment, matching
(3) authorization and control process group: monitoring, tracking

9. areas of knowledge of the project portfolio management process:


(1) strategic management of the project portfolio
(2) portfolio governance management
(3) portfolio performance management
(4) project portfolio communication management
(5) portfolio risk management

10. portfolio risk management is different from project risk management and project set risk management, focusing on the following objectives:


(1) maximize the financial value of the project portfolio: high risk, high return
(2) ensure that the strategic objectives of the organization are met
(3) balance the set and projects in the portfolio

11. three elements of portfolio risk management: 

The risk planning, risk assessment and risk response

12. External risks of the project portfolio: 

 

From competitors, competitive markets, financial markets, political events, laws, nature, environment, laws, etc

portfolio internal risks: originating from within the organization, such as management decisions, corporate bankruptcy, organizational restructuring, corruption, etc

13. each role has different focus on portfolio risk


(1) top management: value risk, market risk, capital risk, strategic goal risk, etc
(2) operation management personnel: development, product and service content, support process, etc
(3) portfolio manager: accuracy of risk, how to report, etc
(4) project set and project team: schedule, cost, scope, embezzlement, etc

14. The portfolio risk management plan is an integral part of the portfolio management plan. 

Which should focus on how to balance the relationship between investment risk and the overall return maximization goal of the organization, and the project portfolio governance organization needs to make risk-based investment decision conclusions.

15. tools and techniques used in risk management of project organizations:


(1) weighted sorting and assignment techniques
(2) graphical analysis methods: probability analysis, impact analysis, probability impact matrix
(3) qualitative and quantitative analysis: state and trend analysis, re-balancing method, investment selection method, risk display chart

16. four stages of managing portfolio risk: (different from the above three elements)


(1) risk identification
(2) risk analysis
(3) risk response
(4) risk monitoring

 

The portfolio management is the management of one or more portfolios to achieve an organization's strategic goals. in order to achieve their vision, mission and value goals, organizations follow a series of interconnected processes to evaluate, select and prioritize modules in the portfolio in order to optimally allocate limited internal resources to the portfolio.

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