A Portfolio Management Primer

A Key Information Briefing for Industry Professionals

Image courtesy of knowledgetrain at Pixabay

I’m not sure if it’s still fashionable to say you’ve been on a journey. I feel that in relation to project management, program management and portfolio management that it is still a relevant metaphor.

In the construction world I was initially exposed to oil and gas, metals and mining and power projects of increasing scale; the Moatize Mine in Mozambique, the Medupi Power Station in South Africa came near the top in terms of scale. When I moved across to work for a Project Management Consultant (PMC), my first project was Jeddah Airport Expansion, which was labelled a megaproject and brought a high level of complexity, technologically, in terms of systems, small “p” politically, and more.

More recently I’ve been leading elements of PMOs and PgMOs (project management offices and program management offices) of large scale regional and national programs, each planning and executing many hundreds of projects.

In my current role I’m in an organization where we develop five-year portfolio plans and annual plans that align with it. I share this only because I hope it helps with understanding of how I’ve approached writing this primer. It is based on concepts and principles but comes from a practical place.

There’s an episode of the US comedy Frasier in which, if I remember correctly, Frasier and his brother Niles are in the best spa and health club they have ever experienced. That is until they discover there’s a door though which they are not allowed to pass. It’s only for silver members. Suddenly their amenities are shoddy, insufficient, intolerable. So, they become silver members, but then there’s a door for gold members, then another for platinum members, until finally they discover another door they are not allowed to pass through, they force it open and end up out on the street.

I feel a bit like that about the project management, mega project, program management, portfolio management journey. It’s as if each stage is somehow better than the rest. It’s not. We need excellence, or at least highly competent effectiveness, in each.

The Benefits of Portfolio Management Approaches

Portfolio management offers a transformative framework for aligning an organization’s projects and programs with its strategic objectives, delivering a range of benefits that enhance performance and competitiveness. Figure 1 shows project, program and portfolio relationships.