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The Standard for Portfolio Management — Fourth Edition

Book Description

In today’s environment of rapid change and constant disruption, highly mature portfolio management practices have proven to be a vital tool to organizational success. Portfolio managers oversee a collection of projects, programs and other activities that are grouped together to meet strategic business objectives. The practice of portfolio management is integral to the implementation of your organization’s overall strategic plan. Now in its fourth edition, The Standard for Portfolio Management reflects current practices and has been updated to reflect the evolution of the profession. It is a principle-based standard, making it applicable to a broad range of organizations, regardless of project delivery approach. The Fourth Edition also contains an expanded description of portfolio management to reflect its relation to organizational project management and the organization. Not only is The Standard for Portfolio Management – Fourth Edition invaluable for portfolio managers and aspiring portfolio managers, it’s an important reference for anyone who works with portfolios—from project and program managers to project stakeholders and senior managers.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Table of Contents
  5. List of Tables and Figures
  6. 1. Introduction
    1. 1.1. Purpose of the Standard for Portfolio Management
    2. 1.2. Audience for the Standard for Portfolio Management
    3. 1.3. What is a Portfolio?
    4. 1.4. Relationships among Portfolios, Programs, Projects, and Operations
    5. 1.5. What is Portfolio Management?
    6. 1.6. Relationships among Portfolio Management, Program Management, and Project Management
    7. 1.7. Principles of Portfolio Management
    8. 1.8. Relationships among Portfolio Management, Organizational Strategy, Strategic Business Execution, and Organizational Project Management
      1. 1.8.1. Portfolio Management and Organizational Strategy
      2. 1.8.2. Strategic Business Execution and Organizational Project Management
    9. 1.9. Portfolio Components and their Interrelationships
      1. 1.9.1. Program Management
      2. 1.9.2. Project Management
      3. 1.9.3. Operations Management
    10. 1.10. Role of the Portfolio Manager
    11. 1.11. Other Roles in Portfolio Management
      1. 1.11.1. Sponsors
      2. 1.11.2. Portfolio Governance Body
      3. 1.11.3. Portfolio, Program, and/or Project Management Office
      4. 1.11.4. Program Managers
      5. 1.11.5. Project Managers
  7. 2. The Portfolio Life Cycle
    1. 2.1. Overview
    2. 2.2. Guiding Principles
    3. 2.3. Ongoing Life Cycle
      1. 2.3.1. Initiation
      2. 2.3.2. Planning
      3. 2.3.3. Execution
      4. 2.3.4. Optimization
      5. 2.3.5. Monitor and Control
    4. 2.4. Portfolio Management Information System (PMIS)
    5. 2.5. Governance within the Portfolio Life Cycle
  8. 3. Portfolio Strategic Management
    1. 3.1. Overview
    2. 3.2. Guiding Principles
    3. 3.3. Portfolio Strategic Objectives
    4. 3.4. Developing Portfolio Strategic Objectives
      1. 3.4.1. Vision and Mission Statements
      2. 3.4.2. Strategic Goals
      3. 3.4.3. Strategic Objectives
      4. 3.4.4. Strategic Initiatives
    5. 3.5. Strategic Risk Appetite
    6. 3.6. Portfolio Charter
    7. 3.7. Portfolio Roadmap
    8. 3.8. Key Portfolio Components
      1. 3.8.1. Evaluating Portfolio Key Components
      2. 3.8.2. Selecting Portfolio Key Components
    9. 3.9. Portfolio Optimization
    10. 3.10. Managing Strategic Alignment
      1. 3.10.1. Considerations when Managing Strategic Impact
      2. 3.10.2. The Impact of Strategic Change
  9. 4. Portfolio Governance
    1. 4.1. Overview
    2. 4.2. What is Portfolio Governance?
    3. 4.3. Guiding Principles
    4. 4.4. The Concept of Governance
      1. 4.4.1. Portfolio Governance Impact on Programs and Projects
      2. 4.4.2. Portfolio Governance and other Domains in Portfolio Management
    5. 4.5. Effective Portfolio Governance Design Factors
    6. 4.6. Portfolio Governance Roles
      1. 4.6.1. Portfolio Sponsor
      2. 4.6.2. Portfolio Governance Board
      3. 4.6.3. Portfolio Audit Organization
      4. 4.6.4. Other Roles
  10. 5. Portfolio Capacity and Capability Management
    1. 5.1. Overview
    2. 5.2. Guiding Principles
    3. 5.3. Capacity Management
    4. 5.4. Capacity Planning
    5. 5.5. Supply and Demand Management
      1. 5.5.1. Supply and Demand Analysis
      2. 5.5.2. Supply and Demand Allocations
    6. 5.6. Supply and Demand Optimization
    7. 5.7. Organizational Capabilities
    8. 5.8. Capability Assessment
    9. 5.9. Capability Development
      1. 5.9.1. Developing New Capabilities
      2. 5.9.2. Sustaining Existing Capabilities
    10. 5.10. Performance Reporting and Analytics
    11. 5.11. Balance Capacity and Capability
  11. 6. Portfolio Stakeholder Engagement
    1. 6.1. Overview
    2. 6.2. Guiding Principles
    3. 6.3. Definition and Identification of Portfolio Stakeholders
      1. 6.3.1. Categorization of Stakeholders
      2. 6.3.2. Identifying Stakeholders
    4. 6.4. Analysis of Portfolio Stakeholders
    5. 6.5. Stakeholder Engagement Planning
    6. 6.6. Identifying Communications Management Approaches
      1. 6.6.1. Alignment with Governance
      2. 6.6.2. Communication Infrastructure
      3. 6.6.3. Portfolio Management Plan
      4. 6.6.4. Portfolio Reports
      5. 6.6.5. Portfolio Process Assets
      6. 6.6.6. Communication Governance and Interface to Components
    7. 6.7. Manage Portfolio Communications
  12. 7. Portfolio Value Management
    1. 7.1. Overview
    2. 7.2. Guiding Principles
    3. 7.3. What is Value Management?
    4. 7.4. Components of Value Management
    5. 7.5. Negotiating Expected Value
    6. 7.6. Maximizing Value
    7. 7.7. Assuring Value
    8. 7.8. Realizing Value
    9. 7.9. Measuring Value
    10. 7.10. Reporting Value
  13. 8. Portfolio Risk Management
    1. 8.1. Overview
    2. 8.2. Guiding Principles
      1. 8.2.1. Managing Portfolio Risk
      2. 8.2.2. Balancing Risk
    3. 8.3. Portfolio Risk Management
    4. 8.4. Key Planning Elements
      1. 8.4.1. Portfolio Risk Management Framework
      2. 8.4.2. Risk Perception
    5. 8.5. Portfolio Risk Management Framework and Portfolio Risk Management Plan
      1. 8.5.1. Portfolio Risk Management Framework
      2. 8.5.2. Portfolio Risk Management Plan
  14. References
  15. Appendix X1. Fourth Edition Changes
    1. X1.1. Structural Changes
    2. X1.2. Writing Styles
    3. X1.3. Section 1—Introduction Changes
    4. X1.4. Section 2—The Portfolio Life Cycle
    5. X1.5. Section 3—Portfolio Strategic Management
    6. X1.6. Section 4—Portfolio Governance
    7. X1.7. Section 5—Portfolio Capacity and Capability Management
    8. X1.8. Section 6—Portfolio Stakeholder Management
    9. X1.9. Section 7—Portfolio Value Management
    10. X1.10. Section 8—Portfolio Risk Management
  16. Appendix X2. Contributors and Reviewers of the Standard for Portfolio Management
    1. X2.1. The Standard for Portfolio Management—Fourth Edition Core Committee
    2. X2.2. Subcommittee Members
    3. X2.3. Reviewers
      1. X2.3.1. SME Review
      2. X2.3.2. Consensus Body Review
      3. X2.3.3. Exposure Draft Review
    4. X2.4. PMI Standards Program Member Advisory Group (MAG)
    5. X2.5. Harmonization Team
    6. X2.6. Production Staff
  17. Appendix X3. Considering the Portfolio as a Complex System
    1. X3.1. A Holistic Approach to Portfolios and their Management
  18. Glossary