Strategic Portfolio Management
Portfolio management is one of the hottest topics in project management today. How can the
sponsor of a critical project communicate its estimated contribution to the organization? How will the
organization, in turn, choose from an ever growing list of “must-do” projects, some of them urgent,
some compliance related, others strategic?
This course begins with a discussion of business case analysis techniques that can be used to
communicate a project‘s costs, benefits and strategic value to the organization. Class participants
will review the overall estimating process, the role of assumptions, the six types of tangible costs,
and methods for incorporating intangible benefits into a financial analysis. Finally, the course will
cover key financial analysis techniques – ROI, Breakeven Analysis, Net Present Value, and Internal Rate
of Return.
The remainder of the course will be devoted to the principles covered in “The Standard for Portfolio
Management”, published by the Project Management Institute in the spring of 2006. Topics covered will
include the role of the portfolio manager, the relationship with project and program management, the
links between portfolio management and operations management, key metrics and reporting for a project
portfolio, and the portfolio management process groups.
Program and Portfolio Managers. IT and Finance Managers responsible for establishing
project priorities, or monitoring portfolio performance. Project managers with financial
responsibility who seek to sharpen their skills in developing business cases.
- Introduction to Project Management or a similar introductory course
Business Case Analysis
- Typical analysis problems
- The estimating process
- The role of intangible benefits
Key Formulas
- ROI
- Break-even analysis
- Future value, present value, and net present value
- Internal rate of return
- Putting the financial analysis together
Portfolio Management Process and Organization
- Process Overview
- Stakeholder Roles and Responsibilities
- Program/Project Management Office
- Operations Management
- Project Team
- Other Stakeholders
The Portfolio Management Framework
- Project and Program Management Framework
- Role of the Portfolio Manager
- The Link with Organizational Strategy
- Portfolio Management Metrics and Reporting
The PMI Standard for Portfolio Management
- Portfolio Management Process Groups
- Process Interactions
- Aligning Process Group
- Controlling and Monitoring Process Groups
In order for a class to be successful, all students should share the same general level
of knowledge and experience. If a participant does not demonstrate these, the instructor will take
the necessary steps either to prepare the participant or place him/her in a more appropriate course.
This policy is intended to maintain the high level of quality control that you have come to expect.