Portfolio management takes a holistic view of a company’s overall strategy. Both IT and business leaders vetprogram proposals by matching them with the company’s strategic objectives. The portfolio should be managed like a financial portfolio; riskier strategic investments (high-growth stocks) are balanced with more conservative investments (cash funds), and the mix is constantly monitored to assess which programs are on track, which need help and which should be shut down. Program and Portfolio management has been moving from an ad hoc set of activities to standard disciplines and formal practices
Definitions and structures
The portfolio reflects the strategy of the company and the budget authorised by the board. To manage a portfolio in programs will give the company the optimisation of benefits the company is searching for within the portfolio of the companies’ strategy. Budget from the portfolio should be allocated to each Each program should have a strategic definition and should be translated to a set off achievable projects with a priority schedule. The program manager should report back to the portfolio manager the benefits expected and the return of investment. The portfolio manager should manage the dependencies between programs. The program manager should manage the dependencies between the projects in his program. Within the program priorities should be set and choices should be made for each project in the program within the given program budget. Each program is responsible for the benefits delivery for the full set of projects.
Program and Portfolio management has been moving from an ad hoc set of activities to standard disciplines and formal practices.