PMBOK6, or the Project Management Body of Knowledge 6th edition, is a comprehensive guide to project management that outlines the principles and best practices of the discipline. One of the key areas covered in PMBOK6 is portfolio management.
Portfolio management is the process of managing a collection of projects, programs, and operations in a way that optimizes the achievement of strategic goals and objectives. It involves identifying, prioritizing, and balancing the allocation of resources to different projects and programs to ensure that they are aligned with the overall strategy of the organization.
In PMBOK6, portfolio management is described as a function that supports organizational strategy and involves four key processes:
- Identify: This process involves identifying potential projects and programs that align with the organization’s strategic objectives and goals. The goal is to create a portfolio of projects and programs that can deliver the desired business value and achieve the strategic objectives.
- Categorize: This process involves categorizing the identified projects and programs into different groups based on their strategic alignment, risk, and resource requirements. This helps to ensure that resources are allocated appropriately and that the portfolio is balanced.
- Evaluate: This process involves evaluating the potential projects and programs based on criteria such as ROI, risk, and alignment with strategic goals. This helps to prioritize the projects and programs within the portfolio and ensure that they are aligned with the overall strategy of the organization.
- Select: This process involves selecting the projects and programs that will be included in the portfolio based on the evaluation process. The goal is to ensure that the portfolio is balanced, prioritized, and aligned with the organization’s strategic objectives.
Overall, portfolio management is an important function for organizations to ensure that their investments in projects and programs are aligned with their overall strategic objectives and goals. PMBOK6 provides a comprehensive framework for managing portfolios that can help organizations achieve their business objectives and maximize their return on investment.
