Portfolio
Short Tip: The strategic management level that operates with multiple programs or key products through a Portfolio Manager.
What is it?
The strategic management level that operates with multiple programs or key products through a Portfolio Manager.
Portfolios are groups of programs or complex products linked to one or more strategic goals.
Why use it?
For large organizations, portfolio management is the connection between strategy and ongoing initiatives, which allows alignment with the organization’s executive level.
How to use it?
Portfolio management is continuous, even if changes occur in the set of portfolios.
For an effective portfolio management, the Portfolio Manager should execute these activities on a routine basis:
- Monthly meetings: periodical meetings with the executive team to update the portfolio. These meetings are aimed at identifying the value that has been generated, the value to be generated, and related impediments. The mapping of changes in the organization’s external and internal environments should also be discussed so as to identify the necessary adaptations to the portfolio;
- Keeping Value Metrics: i.e., creating and updating the portfolio’s value metrics and directly linking them to the related strategic goals. The value metrics should become visually available to the organization through a digital dashboard;
- Keeping a Portfolio Roadmap: this should provide a comprehensive high-level view of the programs’ activities and related initiatives, as well as their relationship with the associated value metrics. It is usually created in digital format to make it visible to stakeholders regardless of their location; its language and format should be easily understandable.